Why The Confederacy Wasn

’t Ready For War Essay, Research Paper

The political, economic, and military strength of the Union was much greater than that of the Confederacy. However, the war did last four years. The Confederacy proved itself resilient on many occasions. Throughout the war the tide constantly shifted, and with that, so did the political, economic, and military strength of either side. Although each side had its share of military successes, in the end, the superior Northern economy, centralized government and overwhelming manpower would eventually lead to victory. In mid 1863, both the Union and the Confederacy could have won the war, although the Confederacy lacked the industry or manpower to wage a long war with the Union.

The Union was far more industrialized than the South. The North possessed 80% of total U.S. industry (McPherson, 24). In addition, most Confederate industry was located in the Upper South, particularly in Virginia. The Confederacy lost a great deal of potential industry and manpower when West Virginia, Kentucky, Delaware, and Maryland joined the Union instead of the Confederacy. The loss of these states to the Union was as much a testament to shrewd northern politics (Maryland), as it was to opposition within the states (West Virginia). Confederate industry, especially with the loss of these states, was unable to compete with the Union.

The South also lacked the factories, and other facilities (ironworks etc.) to create cannons, rifles as well as other weapons (Ibid, 24). At the beginning of the war, the Confederacy only had one ironworks located in Richmond. This was in stark comparison to the northern industrial juggernaut. The North had begun to industrialize in the early part of the century, this in relation to a primarily agricultural South. In 1860, 84% of Southerners worked in agriculture compared with only 40% of Northerners (Ibid, 24). The North also invested three times as much per capita in manufacturing by this same time. In 1860 only 25% of all railroads passed through the South (Ibid, 24). The South lacked the necessary industrial and transportation infrastructure to wage an effective war.

In addition to the South.s lack of industry, most capital was invested in slaves and land; both of these are non-liquid. The South.s lack of a large supply of liquid capital made it difficult for Southerners to buy munitions for the war effort. As a result of the South.s lack of liquid capital, the North enjoyed a decided advantage.

The Confederacy was also unable to raise money for the war effort effectively. In war there are three ways to raise capital: printing currency, issuing bonds, or through taxing. The Confederacy was not in favor of taxing heavily, however, most of the taxes they levied were on the lower classes. Under the premise of states. rights, they believed it violated these principles. There were few Southern banks so that made issuing bonds difficult, as well as the fact that as the war wore on and it became unlikely the South would win, Southerners stopped investing on the belief they would win the war. This left only printing money. The drawback with this was that it led to hyperinflation. The more money the South printed, the more inflation there was. In 1865, the annual inflation in the South had reached 9000%. The Confederates unending quest for liquid capital had ended in economic disaster.

The South.s lack of liquid capital or inability to raise money, was not its biggest economic problem. The South.s lack of gold to give an intrinsic value to its currency was probably its biggest problem. Instead of using gold to determine the money.s value, the value was gauged on the public.s belief of their winning the war. In times of military success, the currency would have a greater value than in those of defeat. The lack of a stable currency added to the difficulties faced by the Confederacy when they tried to raise money through bonds, because if the money was valueless than how would interest on near valueless currency help the investor. The South only managed to raise 2% of total capital through bonds or taxes, compared with the North, which raised most of its capital that way (Steele, 22-27).

The Confederacy was also unable to raise money for the war effort effectively. In war, there are three ways to raise capital: printing currency, issuing bonds, or through taxing. The Confederacy was not in favor of taxing heavily, however, most of the taxes they levied were on the lower classes. Under the premise of states. rights they believed it violated these principles. There were few Southern banks, therefore, that made issuing bonds difficult, as well as the fact that as the war wore on and it became unlikely the South would win, Southerners stopped investing on the belief they would win the war. This left only printing money. The drawback with this was that it led to hyperinflation. The more money the South printed, the more inflation there was. In 1865, the annual inflation in the South had reached 9000% (Ibid, 27). The Confederates unending quest for liquid capital had ended in economic disaster.

The political strength of the South was hampered by its belief in states. rights. In his 1989 article entitled “The South.s Inner Civil War,” historian Eric Foner stated, “Jefferson Davis never enjoyed the sweeping political power of Lincoln (Foner, 50).” The South lacked a powerful bureaucracy and