The Solution
After the South lost the civil war their economy was in shambles. A new class of workers needed to be payed, southern currency had no value. Something had to be done before all of America was pulled down with it.
Because the damage was so vast and spread over large area extreme measures had to be taken. One of the solutions the south took to was the reduced sale price of goods.
Whatever the south could produce at the time with the workers they could afford, they sold for a fraction of the past sale price. Cotton and tobacco hit an all time low retail price as a result of the south attempting to pump any sort of union currency into their economy.
Whatever the south could produce at the time with the workers they could afford, they sold for a fraction of the past sale price. Cotton and tobacco hit an all time low retail price as a result of the south attempting to pump any sort of union currency into their economy.
The Governments Approach...
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Once the North and South had come to terms with a united government new taxes where instated to deal with the cost of the war for both the north and south. New taxation was arranged for property. Another organization that came into place was the Freedmen's Bureau sponsored by the Republicans to aid freedmen and white refugees. A federal Bureau was created to clothing, fuel, and advice on negotiating labor contracts. It attempted to oversee new relations between freedmen and their former masters in a free labor market. The Act authorized the Bureau to lease confiscated land for a period of three years and to sell it in portions of up to 40 acres per buyer. This created a new line.