How did the North and South each finance the Civil War?

During the Civil
War, the North and the South used a number of methods to fund the cost of fighting. In the
North, for example, the government used taxation to raise 21
percent of the necessary funds. This came from a combination of income tax and taxes levied on
other products and services, like legal documents, liquor and advertising. While the South also
used taxation, it was not as lucrative as in the North, creating only 6 percent of the money
needed. (See the first reference link provided).

The South also raised the
necessary funds by printing paper money. In fact, this funded about
60 percent of the cost of war, though printing so much money caused a huge increase in
inflation. It also borrowed money from the wealthiest people in
society, as did the North. (See the second reference link).

Finally, both
sides sold war bonds as a means of raising extra money. This tactic
was more successful in the North, where wealthy families were encouraged to support the war
effort by purchasing bonds, and they did so in their millions. In the South, early bonds sold
well but they declined in popularity due to rising rates of inflation (because people realised
that their return would not be high). (See the third reference link).

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