Politics and Economics During the Civil War
I. Lincoln’s early presidency
A. Inaugural
1. Vowed to preserve the Union; to “hold, occupy, and possess” Federal property
a. “Physically speaking, we cannot separate”
b. He was careful not to offend border slave states
B. Lincoln an able and savvy leader
1. Perceptive at interpreting public opinion and acting accordingly
2. Charitable toward South
II. Attack on Fort Sumter
A. Located at mouth of Charleston Harbor, Ft. Sumter was one of
two last remaining federal forts in the South.
B. April 12: Fort Sumter bombarded by more than 70 Confederate cannon
III. The Border Slave States (MO, KY, MD, later WV)
A. Remained in the Union since the North did not start the war
1. Crucial to Union cause; sent 300,000 soldiers to the Union Army
a. “Mountain white” population in South sent 50,000 soldiers to the North.
b. Lincoln: Hoped to have God on his side but he had to “have Kentucky.”
2. West Virginia left Virginia in mid-1861 to join the Union;
large “mountain white” population
B. Contained over 50% of the South’s white population; fewest number of slaves
C. Politically, Lincoln had to keep border states in mind when making public statements
1. Declared the primary purpose of the war was to preserve the Union at all costs.
2. Declared the North was not fighting to free the slaves.
IV. The Confederacy
A. Drafted a constitution that was in many ways identical to that of the Union.
B. Jefferson Davis’ idea of a strong central gov’t was bitterly opposed states’ righters
C. Davis lacked Lincoln’s political savvy.
V. Raising Armies: North and South
A. Northern troops
1. Initially northern armies comprised of volunteers 90% of Union army.
2. 1863, Congress passed first-ever federal conscription law in U.S. history.
3. Draft most hated in Democratic strongholds of North
B. South initially relied on volunteers
1. Smaller population meant numbers troops smaller
2. Confederacy forced to conscript men between ages of 17 & 50
C. African-American soldiers in the North.
1. About 180,000 blacks served in the Union armies
2. Black volunteers initially rejected.
3. 1862, need for soldiers and emancipation opened door to black volunteers
4. Lincoln later claimed the Union’s victory was largely due to impact of the black regiments.
D. Confederacy did not enlist slaves until a month before the war ended.
VI. Financial aspect to the Civil War
A. Raising money in the North
1. First income tax in nation’s history; relatively small but still raised millions

Paid for 2/3 of the war’s cost
2. Excise taxes on tobacco and alcohol substantially increased by Congress.
3. Morrill Tariff Act of 1861 -- Raised low Tariff of 1857 about 10%
4. Greenbacks
a. About $450 million issued at face value to replace gold.
b. Supported by gold; value determined by nation’s credit
6. National Banking System authorized by Congress in 1863
-- The first national bank since Jackson killed the BUS
-- Lasted 50 years until the Federal Reserve System (1913)
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APUSH Lecture Notes
Unit 8.2: Civil War Politics
Page 2
B. Southern finances
1. Customs duties cut-off to Union blockade
2. Gov’t issued large amounts of bonds sold at home & abroad = $400 million.
3. Biggest source of revenue: printed large amounts of paper money
a. “Runaway inflation” as treasury cranked out more than $1 billion
C. War-time prosperity in the North
1. Civil War produced first millionaire class in U.S. history.
2. Westward movement
a. Homestead Act of 1862
i. Provided free land to pioneers heading to unsettled lands out west.
c. Morrill Land Grant Act of 1862
d. Pacific Railway Act (1863) D. Demise of the Cotton Kingdom
1. Blockade and destruction by Union armies ruined southern economy.
XI. Lincoln and civil liberties
A. As war-time President Lincoln bent Constitution and suspended certain civil liberties
1. Motive: Saving the Union required circumventing some areas of Constitution.
2. Congress generally accepted or approved Lincoln’s acts.
3. Suspension of liberties not total but more than any other period of U.S. history.
B. Increased size of federal army and navy (without Congressional Approval)
C. Extended volunteer enlistment to three years (without Congressional approval)
E. Directed his sec. of treasury to advanced $2 million to three private
citizens for military purposes (without Congressional approval)
F. Suspended writ of habeas corpus so that anti-Unionists could be
arrested.
1. Ex Parte Merriman, 1861:Chief Justice Roger Taney ruled that
habeas corpus could only be set aside by Congress
a. 864 people held without trial during first nine months of the
war
b. Lincoln ignored Taney’s report and took no action.
c. Significance: During crisis of wartime, the President could
bend the law for the welfare of the country, including
suspending the Court’s authority.
2. In 1863, Congress approved Lincoln’s action
Major Themes to Know:
1. Lincoln’s administration and the Republican Party created one of the most
successful economic programs in American history (after the South seceded):

Pacific Railway Act (1863)created the transcontinental railroad by 1869

Homestead Act (1862) opened millions of acres of land for free to pioneers

Morrill Tariff (1861) raised tariffs—a trend that continued until the 20th
century and became a dominant issue in politics during much of the postCivil War era.

National Banking Act (1862) created a new national bank that would last
until 1913

Morrill Land Grant Act (1862) resulted in agricultural and mechanical
colleges in the west
 First federal income tax in U.S. history (although ended after the war)
MEMORY AID: SUCCESS OF REPUBLICAN AGENDA DURING CIVIL
WAR
A
P
H istory
M akes
Me
Nauseous
Aboliton of slavery (13th Amendment)
Pacific Railway Act
Homestead Act
Morrill Tariff
Morrill Land Grant Act
National Banking Act
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and questions: