Their economy was agrarian, so the war didn't really disrupt it at first. Plus European countries saw a civil war coming and bought up all the southern cotton they could, so that gave them a nice surplus. But then the north set up effective naval blockades of the states, cutting off overseas trade, as well as taking the Mississippi river and destroying everything they came across. Google the Anaconda plan.
Hawgon Arkansas Fan Texas Member since Feb 2011 1223 posts
re: How did the Confederacy fund its war effort?(Posted by Hawgon on 1/11/13 at 10:24 pm to baybeefeetz)
Cotton sales mostly...and mostly to traders from the northern states both legal and illegal. The North needed cotton too and actually authorized people to trade for it. And of course, there was a thriving black market or illicit confederate cotton inthe north, The most active profiteers were Jews from the north.
TROLA LSU Fan BATON ROUGE Member since Apr 2004 6870 posts
re: How did the Confederacy fund its war effort?(Posted by TROLA on 1/11/13 at 10:30 pm to baybeefeetz)
It was backed by nothing but the good faith of the future government and faintly by the goodwill of crop futures sold to Europe.. The Europeans provided stability and legitimacy to the greyback but I don't believe they accepted the money as an exchange value. Once the war turned, you can imagine the inflation and decline of the greyback to being worth nothing..
cigsmcgee Arkansas Fan LR Member since May 2012 3083 posts
re: How did the Confederacy fund its war effort?(Posted by cigsmcgee on 1/11/13 at 11:25 pm to Hawgon)
quote: The most active profiteers were Jews from the north
This caused a stir during Grants presidency. He had written to his superior about having to deal with jewish groups following his army down to vicksburg, and was pretty pissed. Later, he was accused of being anit-semtic.
Hater Bait Alabama Fan Tuscaloosa & Gulf Shores Member since Nov 2012 2005 posts
re: How did the Confederacy fund its war effort?(Posted by Hater Bait on 1/12/13 at 12:37 am to cigsmcgee)
Cotton. Tariffs on imports, taxes on exports Gold holdings of the CSA's wealthy exhausted in 1861. Each state printed it's own paper money. Entry/exit fees for travel between Confederate states. There was a "war-tax" but proved hard to collect. The Confederate government borrowed a lot of money through war bonds. Hyperinflation.