DIY Project Quotes
The war expenditures had drained the treasury and the Northern Banks had stopped paying their debts in gold as there was not enough. Then the Federal Government could no longer do so as they ran out of gold. Wall Street panicked and Lincoln faced the dilemma. His solution was to print money—greenbacks. The South resorted to the same solution but never had the industrial base eventually to redeem the money that the North did. Even if a peace had been negotiated, the South was economically ruined by their rebellion folly. Confederate money was never worth anything substantial while the greenbacks were.