| − | ''(See also [[Atlanta in the Civil War]], [[Charleston, SC in the Civil War]], [[Nashville in the Civil War]], [[New Orleans in the Civil War]], and [[Richmond in the Civil War]]).''
| + | ==Economy== |
| | + | Before the war the states that formed the Confederacy had an agrarian economy with exports, to a world market, of cotton, and, to a lesser extent, tobacco and sugar. Local food production included grains, hogs, cattle, and gardens. The 11 states produced $155 million in manufactured goods in 1860, chiefly from local grist mills, and lumber, processed tobacco, cotton goods and [[naval stores]] such as turpentine. The CSA adopted a low tariff of 15%, but imposed it on all imports from the rest of the United States--thus making one of the greatest tax increases in American history.<ref> See [http://docsouth.unc.edu/tariff/tariff.html]</ref> The tariff mattered little; the Confederacy's ports were blocked to commercial traffic by the Union's blockade, and very few people paid taxes on goods smuggled from the Union states. The government collected about $3.5 million in tariff revenue from the start of their war against the Union to late 1864. The lack of adequate financial resources led the Confederacy to finance the war through printing money, which led to high inflation. |