How Was The American Civil War Funded?

The American Civil War required a lot of funds for supplies as well as other basic requirements of all the people who were enlisting in the war. In order to fund the war, the United States Congress, for the first time in its almost-a-century old history, passed income tax laws. These laws required businesses to give a certain percentage of their earnings to the Federal Government, which would contribute towards providing the necessary funding for the American Civil War.

As for the Confederate States of America, the Confederate legislature promulgated taxes on various products, the accumulation of which would help in providing the money, which was required to fund the Confederate army. Both of the sides (the Union side and the Confederate side) also had formulated a plan of selling bonds on behalf of their respective governments to the American public as another way of raising money for the war.

There were various sources for funding this war. The American government levied taxes and borrowed money from other countries. Many European countries took sides and gave money to one or the other side. Prince Albert in England persuaded the English Parliament to remain neutral, after the South made a plea to have England recognize them as a separate country and businessmen from that country wanted to ensure a constant supply of cotton.  After the war the US government demanded reparations from the states that had tried to secede as well.

Lincoln also took America off the gold standard and printed 'Green Backs' - paper money printed out of thin air and pushed into the economy. After the war was over, this fiat currency became useless and Americans that saved them thinking they'd be worth something lost their investments.

All major wars in history involve printing money and not being on a gold standard.

Many of he union groups were funded from countries in europe and asian
countries