CHAPTER 14

1. CHAPTER 14 WAR, RECOVERY, and REGIONAL DIVERGENCE

2. The Economics of war • The South was unprepared for war and outmanned • The South hoped the North would tire of the loss of human lives • President Lincoln’s re-election sealed the South’s fate

3. Trade and finance policies • Confederate government discouraged trade with England and banned sales of cotton to the North • South was unable to come up with a good way to collect taxes • Northern economy far less effected by the war

4. Civil war & northern industrialization • Cost of Civil War nearly twice the national income in 1860 • Cost of Civil War twice the total market value of slaves • Growth of commodity output was no higher after the war, possibly lower than before the war

5. Economic retardation in the south • Economic role reversal • Huge decline in Southern output • Southern manufacturing rebounded faster than Southern agriculture

6. Decline in the deep south • Key cotton states experienced greatest setbacks • Plantation system destroyed • Withdrawal of labor • Cotton demand slowed

7. Inequities of war • Rich man’s war / poor man’s fight • Prices grew faster than wages in the North • Draft could be avoided in the South if you owned enough slaves

8. Legacy of slavery • 13th & 14th Amendments important, but not enough • Southern incomes suffered, led to hatred of blacks and the North • Difficult to protect the rights of blacks

9. Legacy of slavery • Some blacks migrated to reunite families • Most stayed in the South • Sharecropping