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Article: Inflation in the Confederacy
- Article from:
- Dictionary of American History
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INFLATION IN THE CONFEDERACY
INFLATION IN THE CONFEDERACY
began in May 1861 with an issue of $20 million of non-interest-bearing treasury notes. The Confederate congress continued to issue treasury notes throughout the remainder of the year so that it had $105 million in such notes outstanding at the end of 1861.These paper dollars depreciated almost immediately, setting off a spiral of rising prices that, over the next four years, threatened to undermine the Confederate cause.
The principal methods available to finance the war were taxation, borrowing, and printing money. The Confederacy was able to raise little of its wartime revenue from taxes, and usually Confederate bonds found ...