Battle Cry of Freedom: The Civil War Era

by James M. McPherson

23

Breakdown of union vs rebel army structure

Three main factors explain the success of the Legal Tender Act. First: the underlying strength of the northern economy. Second: the fortuitous timing of the law. It went into effect during the months of Union military success in the spring of 1862, floating the greenbacks on a buoyant mood of confidence in victory. The third reason was the enactment of a comprehensive tax law on July 1, 1862, which soaked up much of the inflationary pressure produced by the greenbacks. The Union ultimately raised half again as much war revenue from taxes as from the issuance of paper money—in sharp contrast with the Confederate experience.38

Union economics explained

The news did indeed electrify the North. “VICTORY! WATERLOO ECLIPSED!” shouted a headline in the Philadelphia Inquirer.

In the South the obstructionist activities of several governors hindered the centralized war effort because the centrifugal tendencies of state’s rights were not restrained by the centripetal force of party.

“Some of you always seem to think he is suddenly going to turn a double somersault, and land on our rear and on both our flanks at the same time. Go back to your command, and try to think what we are going to do ourselves, instead of what Lee is going to do.”

Bars