Some of
the most significant problems that both the Union and Confederate sides had to contend with
during the Civil War were the rapidly changing economic, social, and environmental circumstances
that the conflict had caused. In the North, tax revenue, primarily derived from the sale of
agricultural products, was only able to cover about 20 percent of the costs of the war, forcing
the federal government to begin issuing its own paper money. This resulted in a devaluation of
the value of gold and silver, as the new paper money was not backed by anything other than a
government guarantee of its value (known as fiat money) and damaged some banks that still
relied on the gold standard. Furthermore, some businessmen were able to trick government
contractors by providing them poor-quality goods for quick cash exchanges, making a fortune in
the process.
The Southern economy relied heavily on import and export duties
for its wartime revenue, but these too were too little to cover all of...
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