AP us history
President Davis versus President
Limitations on Wartime
Draftees: North and South
Stresses of War
Friday, September 27, 2013
The one defect of the South was that its own states could secede. Some state troops refused to serve outside their borders.President Jeﬀerson Davis of the
Confederacy often had disputes with his own congress. Davis's task as
President proved to be beyond his powers. Lincoln and the North enjoyed a long-established government that was ﬁnancially stable and fully recognized at home and abroad.
Due to the fact that Congress was not in session when the war broke out,
President Lincoln proclaimed a blockade, increased the size of the Federal army, directed the secretary of the Treasury to advance $2 million without appropriation or security to 3 private citizens for military purposes, and suspended the habeas corpus (stated that a citizen could not be held without the due process of a trial) - all of which were required to be approved by
Due to lack of volunteers, Congress passed in 1863 a federal draft law. Men who were called in the draft could pay $300 in order to buy a replacement. The
Confederacy also passed a draft law.
The North increased tariﬀs and excise taxes to ﬁnancially support the war. It also created the ﬁrst income tax. In early 1861, after enough anti-protection
Southern members had seceded, Congress passed the Morrill Tariﬀ Act. It was a high protective tariﬀ that increased duties 5%-10%. The increases were designed to raise additional revenue and provide more protection for the prosperous manufacturers. A protective tariﬀ became identiﬁed with the
Republican Party.The Washington Treasury issued green-backed paper money.
The greenbacks were backed by the nation's ﬂuctuating gold supply. Hence, the value of the greenback was constantly changing.
In 1863, Congress authorized the National Banking System. It was designed to stimulate the sale of government bonds and to establish a standard bank-note currency. Banks who joined the National Banking System could buy government bonds and issue sound paper money backed by the bonds.