Raising Money in the North
On both sides the cost of war was enormous. In order to balance out the cost, the North's government "increased tariffs on consumer goods, placed high excise duties on alcohol and tobacco, and imposed direct taxes on business corporations, large inheritances, and incomes." They also sold treasury bonds. Many families were convinced to buy war bonds. And the "National Banking Acts of 1863 and 1864 forced most banks to purchase treasury bonds." Lastly, the Union paid the remaining cost by printing money, paper money.