Wednesday, March 16, 2011

The Confederate Treasury-- Part 2

In 1861, Christopher Memminger proposed a direct tax on mostly real estate and slaves as he wanted slave owners to bear the brunt of the war's costs. Both were to be taxed at one-half of a percent.

This proved to be a fiasco and sentiment against it ran high. Resistance was especially high by the states. After all, the Confederacy had been formed under the premise of state sovereignty and here was the central government asserting itself. The opposition was there even with the risk of losing the war.

Since the tax didn't work, and with the ever-more crippling Union blockade hindering sale of the Confederacy's "White Gold," cotton, the fledgling country began to rely more and more on printing money.

As the quantity of currency increased, its valued declined rapidly. "Its inevitable depreciation greatly undermined the Southern war effort."

Stuff I Didn't Know. --Old B-R'er

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