North Economic Resources

South Economic Resources

- Manufacturing based economy

- Agricultural based economy

- Railway system interconnected all of

northbound states
- Immigrants were increasing
meaning population was increasing
i.e enlisting increased because of
generous incentives

- Short transportation methods

- Weak central government spending
- Taxes increased by 10% on all farm produce

- Strong central government support

through increased taxes (Income tax
and Morrill Tariff act) i.e government
revenue was high
- Banks offered the sale of bonds
and issuance of greenback paper
money which increased borrowing
and helped people and the
government invest in other resources
for the war

NorthManufacturing provided basis of economy as textiles, iron, petroleum, and food producing industries boomed
during this time due to the great demand and rapid inflation, which in turn brought economic development.
Railway systems were a key factor in the north success as this resource brought forth fast communication
through telegraph and transportation of supplies. Also since immigrants were increasing and flooding in from
Ireland and Germany into the north part of the U.S, and since immigration increased it therefore caused the
great increase in population, which as a result offered more troops for the Union to enlist for the army. Another
great resource the Union had was the economic stability of the government as it provided numerous amount of
funding towards the efforts of the war and also "netted millions of dollars" due to increased taxes like the
income tax, Morril tax, and others to generate revenue. Finally, the federal bank also contributed much success
as a resource in the north especially because of consumers borrowing money, mainly in form of bonds, which
streamed a total of $2,621,916,786 in sales solely by bonds, which also included interest, and in turn brought
the National Banking System into place in 1863 by the National Banking Act, unifying the banking system.
SouthIn the case of the Confederate States, the economic resources and support seemed short lived as the
agricultural sector of the economy completely plummeted as blockades from the Atlantic and Gulf of Mexico
decreased exports, which meant less revenue for firms and less tax revenue generated by the government. Also
due to short, insufficient or destroyed railway systems the south suffered from supply shortages at many times
and shattered the southern morality and capability to fight itself. Another economic resource was the
Confederates government which was inherently unstable and weak as the constitution "contained one deadly
defect", Although the constitution was similar in nature of that of the Unions's, the Confederate states could no
longer further secede from the Confederacy and due to President Jefferson Davis's stubborn and tense ability of
leadership, impeachment was becoming a viable option. Also the central government wasn't able to collect tax
revenue in a more efficient way, because the blockades caused trade to severely diminish and since the South

relied on this part of their economy heavily, it caused problems with revenue because when the government
raised taxes to about 10% on all food produce people became more burdened by the inflation by not generating
revenue, straining the south as a whole.