The USA raised huge amounts of money, even in the face of battlefield losses, corruption, and political divisions. In the end, the CSA central government did resort to many of the same tactics as the US, or tried to. Where the US innovated radically, the CSA hued to conservative principles, or at least sought to. In contrast, the Confederacy codified and amplified earlier decentralized and low tax practices. For this brief window the interests of the south were not represented, leaving the field open to Lincoln’s whiggish ideology.

These initiatives were possible largely because the conservative southerners were, by their own action, not participating in the US government. Many of these initiatives were sharp breaks from the past, and, indeed, they were considered unconstitutional by many. The Lincoln administration invested in infrastructure, education, technology, as well as a massive armed force. We also see the birth of a more centralized government, and, indeed, the very concept of the US as a nation, a single polity, rather than a loose confederation of states. Looking back from today, we see many financial and government practices that have become standard procedure in the ensuing decades. All those thrilling and horrifying battles and speeches had to be paid for somehow. The rebellion and ensuing war was far larger than anyone would have imagined, and, as they might say, it was pretty darned expensive. As Lowenstein makes clear, it was also transformative and revolutionary.Īt the start of the war, the US was a large economy with a tiny government. However, the financial engineering, especially by the Lincoln administration, was far beyond the grit and romance of combat and politics. (Sadly, this understanding has become surprisingly current in the last fifty years of US politics.)

Like most well educated Americans, I have a working knowledge of the US Civil War. (It also features one of my favorite tid bits of US government trivia–the wonderfully names “ways and means” committee.) So good luck with a history of “ the Financing of the Civil War”.īut I’m happy to say that Lowenstein’s book is actually readable and interesting. And the details of fiscal policy 150 years ago aren’t even relevant today. Government finance is not generally a riveting topic, however important it may be.

Ways and Means by Roger Lowenstein