h had to create one. The North had a scheme of taxation
that produced large revenues from numerous sources; the South had to
formulate and carry out a financial plan. Like the North, the
Confederacy expected to secure a large revenue from customs duties,
easily collected and little felt among the masses. To this expectation
the blockade of Southern ports inaugurated by Lincoln in April, 1861,
soon put an end. Following the precedent set by Congress under the
Articles of Confederation, the Southern Congress resorted to a direct
property tax apportioned among the states, only to meet the failure that
might have been foretold.

The Confederacy also sold bonds, the first issue bringing into the
treasury nearly all the specie available in the Southern banks. This
specie by unhappy management was early sent abroad to pay for supplies,
sapping the foundations of a sound currency system. Large amounts of
bonds were sold overseas, commanding at first better terms than those
of the North in the markets of London, Paris, and Amsterdam, many an
English lord and statesman buying with enthusiasm and confidence to
lament within a few years the proofs of his folly. The difficulties of
bringing through the blockade any supplies purchased by foreign bond
issues, however, nullified the effect of foreign credit and forced the
Confederacy back upon the device of paper money. In all approximately
one billion dollars streamed from the printing presses, to fall in value
at an alarming rate, reaching in January, 1863, the astounding figure of
fifty dollars in paper money for one in gold. Every known device was
used to prevent its depreciation, without result. To the issues of the
Confederate Congress were added untold millions poured out by the states
and by private banks.

=Human and Material Resources.=--When we measure strength for strength
in those signs of power--men, money, and supplies--it is difficult to
see how the South was able to embark on secession and war with such
confidence in the outcome. In the Confederacy at the final reckoning
there were eleven states in all, to be pitted against twenty-two; a
population of nine millions, nearly one-half servile, to be pitted
against twenty-two millions; a land without great industries to produce
war supplies and without vast capital to furnish war finances, joined in
battle with a nation already industrial and fortified by property worth
eleven billion dollars. Even after the Confederate C