Officials in both the USA and CSA were remarkably successful in finding sufficient financial resources to support their armies in the field for the better part of four long, bloody years.

~ Introduction ~
By the time of Abraham Lincoln’s inauguration as President of the United States (USA) in March 1861, seven seceding Southern states had already formed the Confederate States of America (CSA). Political leaders throughout that territory, as well as most of their counterparts in the Northern and Border states, believed that any period of fighting to establish the legitimacy of the new Confederate nation would be rather short. Neither of the newly appointed Secretaries of the Treasury in the USA (Salmon Portland Chase) or the CSA (Christopher Gustavus Memminger) expected to have to raise several billion dollars to prosecute a four-year-long war. As they approached the task of financially supporting even a short war, both men understood that nations had traditionally used three major sources to finance their wars: borrowing money, printing money, and raising money through taxation. From 1861 to 1865, both the USA and the CSA used each of these mechanisms, although in different and varying proportions. Historical sources differ a bit on the exact percentages of their wartime expenses those territories raised from various sources. However, the following table incorporates several estimates from scholars using different assumptions about inflation, currency values, and definitions.

In many ways, describing these financing activities reveals a tale of two countries. ~ M.A.M.
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‘Government By Organized Money’

“On the eve of a national election, it is well for us to stop for a moment and analyze calmly and without prejudice the effect on our Nation of a victory by either of the major political parties.

The problem of the electorate is far deeper, far more vital than the continuance in the Presidency of any individual. For the greater issue goes beyond units of humanity–it goes to humanity itself.

In 1932 the issue was the restoration of American democracy; and the American people were in a mood to win. They did win. In 1936 the issue is the preservation of their victory. Again they are in a mood to win. Again they will win. Continue reading →

The National Archives Southeast Region presents stories from survivors of the Great Depression overlaid with powerful pictures from era.

Johannes Adam Simon Oertel Pulling Down the Statue of King George III, N.Y.C. ca. 1859

Journalistic propaganda is a powerful instrument of indoctrination. Without evidence, foul ideas can easily penetrate mainstream discourse. For instance, recently it has become fashionable to posit that slavery is America’s original sin. To sensible people, this is a risible claim, because there is nothing particularly American about slavery. But revisiting the history of slavery in non-Western societies in Asia and Africa would do little to change the minds of America’s critics. A more appropriate strategy would be to contrast the opinions of the Founding Fathers on slavery with those of leaders in other countries. Only after undertaking this task will we be able to judge America. Continue reading →

Centralized sovereignty is a necessary first step in controlling the people. It is the fundamental platform for tyranny. Thomas Jefferson in all his wisdom pushed America toward a decentralized States Rights doctrine. He knew that government most directly accountable to the people was at State level. That doctrine prevailed in America until 1865 when by force of bayonets it was destroyed, which is why Karl Marx wrote Lincoln a letter of applause for his denial of States Rights. Marx believed that centralized power was an essential first step in herding the people toward his communist utopia. Continue reading →

NOTE: Due to the age of the following post, some of the embedded links may no longer be active. We do apologize. ~ Ed.

When war broke out in 1861, the federal government was without its own money machine, though that would soon change. As expenses from the war mounted, the U.S. government once again issued Treasury Notes to help finance it. The Act of July 17, 1861 authorized Secretary of the Treasury Salmon P. Chase to issue notes at 7.30%, a rate chosen to make interest calculation so easy they would circulate as money — a $50 note accrued interest at a penny a day, for example. Though the seven-thirties, as they were called, didn’t circulate, the same Act provided for the issuance of Demand Notes that did circulate. As their name implies, Demand Notes were redeemable in specie, but that promise was broken by December, 1861 when the government suspended specie payment. Continue reading →

Courteous Reader,

I have heard that nothing gives an author so great pleasure, as to find his works respectfully quoted by other learned authors. This pleasure I have seldom enjoyed; for tho’ I have been, if I may say it without vanity, an eminent author of almanacs annually now a full quarter of a century, my brother authors in the same way, for what reason I know not, have ever been very sparing in their applauses; and no other author has taken the least notice of me, so that did not my writings produce me some solid pudding, the great deficiency of praise would have quite discouraged me.

I concluded at length, that the people were the best judges of my merit; for they buy my works; and besides, in my rambles, where I am not personally known, I have frequently heard one or other of my adages repeated, with, as Poor Richard says, at the end won’t; this gave me some satisfaction, as it showed not only that my instructions were regarded, but discovered likewise some respect for my authority; and I own, that to encourage the practice of remembering and repeating those wise sentences, I have sometimes quoted myself with great gravity. Continue reading →