North Economy

The shaded states represent all of the states that remained with the Union throughout the Civil War. The war hurt both economies, but the Confederacy had a harder time since they did not have great resources like the North. The main struggle was keeping up with the costs of the war. Each government had three specific strategies to help pay for the war. 1. They would borrow money by selling war bonds that promised high interest. 2. They imposed new taxes, including income taxes. 3. They printed money, Northern money was called greenback because of its given color. Industries in the North profited from the war by changing their products to something usable by the army. It was often called "putting industry into the war."

---