Making Money: Currency in the Confederate States

iStock/mj0007
iStock/mj0007

When the Civil War began, the Confederacy quickly found itself facing a pressing issue: fighting a protracted war is really, really expensive. Unlike their Union counterparts, the Confederate states didn’t boast vast reserves of money and precious metals, either. With a Union naval blockade diminishing the lucrative international cotton trade, the Confederacy needed a way to raise some quick cash.

The Confederacy could have gone on a taxation rampage to drum up some funds, but the Southern states weren’t exactly keen on having a national government, even a Confederate one, collecting big taxes. Plus, there wasn’t any infrastructure in place to support mass taxation. Instead, the Confederacy started printing its own money.

As short term solutions go, printing your own cash is a fairly elegant one. You don’t have to levy any unpopular taxes, and as long as people will accept and use the money as a medium for trade, you’re in good shape.

Of course, in the long term, simply setting up a printing press and cranking out money without a comprehensive monetary policy and financial system in place can be a truly terrible idea. The Confederate notes didn’t have any gold, silver, or anything else backing them; instead, they promised to be redeemable for their face value after a certain period of time, say six months or two years, “after the ratification of a treaty of peace between the Confederate States and the United States of America.”

While currencies don’t necessarily have to be backed by anything tangible to be successful – just ask the euro or the dollar - astute readers have already noticed the rub in this system: the bills would only be redeemable if there were still a Confederacy around to cash them after the ratification of a peace treaty. If the Union came out on top, the Confederate money would be worthless. In addition to this gamble about the war’s outcome, the Confederacy kickstarted inflation in its states by continuing to print more and more of the currency. In a lesson straight out of freshman economics, as the supply of Confederate bills shot up, their value crashed.

By the time the Confederacy dissolved on May 5, 1865, the currency was already effectively worthless. The combination of the inflation that had kicked in as the Confederacy kept printing more money and Southerners’ growing skepticism about the continued existence of their breakaway government cratered the currency. At the war’s end, the value of 100 Confederate dollars had plummeted to $1.76, which equates to a rate of inflation of around 9,000 percent.

When the South failed to rise again (at least in Confederate form), many Southerners were left sitting on giant piles of worthless currency from a defunct country. Tough luck, to be sure, but what they may not have known was that they could just have taken a voyage to Germany to recover some of their lost value. On May 30, 1909, The New York Times ran a story under the headline “CONFEDERATE MONEY TAKEN: German Shopkeepers Apparently Ignorant That Civil War Is Over.”

According to the story, many merchants, hoteliers, and café proprietors in Berlin were still accepting Confederate cash that hadn’t been worth its face value in over four decades. The American consulate in Berlin had been fending off German businessmen who were trying to exchange their notes from, say, the Bank of Richmond for German currency. Whoops. The article closed with the line “[S]ome of [the merchants] have left the consulate convinced that the United States Treasury has really ceased payment and is ashamed to admit it.”

The Germans eventually wised up, but apparently this question still comes up from time to time. The Bureau of Engraving and Printing feels compelled to explicitly state on its website that “Confederate States Notes were not produced by the BEP and are not obligations of the United States Government.”

Just because you can’t take your Confederate money to the bank or use it to pay off a parking ticket doesn’t mean it’s worthless, though. There’s a collector’s market for the bills that can be quite lucrative. While most bills probably aren’t valuable enough to pay Stonewall Jackson’s salary, a quick scan of eBay auctions shows that even the rattiest examples of small-denomination bills regularly sell for over $10. Mint, uncirculated bills in higher denominations can fetch hundreds of dollars at auction.

Amazon's Under-the-Radar Coupon Page Features Deals on Home Goods, Electronics, and Groceries

Stock Catalog, Flickr // CC BY 2.0
Stock Catalog, Flickr // CC BY 2.0

This article contains affiliate links to products selected by our editors. Mental Floss may receive a commission for purchases made through these links.

Now that Prime Day is over, and with Black Friday and Cyber Monday still a few weeks away, online deals may seem harder to come by. And while it can be a hassle to scour the internet for promo codes, buy-one-get-one deals, and flash sales, Amazon actually has an extensive coupon page you might not know about that features deals to look through every day.

As pointed out by People, the coupon page breaks deals down by categories, like electronics, home & kitchen, and groceries (the coupons even work with SNAP benefits). Since most of the deals revolve around the essentials, it's easy to stock up on items like Cottonelle toilet paper, Tide Pods, Cascade dishwasher detergent, and a 50 pack of surgical masks whenever you're running low.

But the low prices don't just stop at necessities. If you’re looking for the best deal on headphones, all you have to do is go to the electronics coupon page and it will bring up a deal on these COWIN E7 PRO noise-canceling headphones, which are now $80, thanks to a $10 coupon you could have missed.

Alternatively, if you are looking for deals on specific brands, you can search for their coupons from the page. So if you've had your eye on the Homall S-Racer gaming chair, you’ll find there's currently a coupon that saves you 5 percent, thanks to a simple search.

To discover all the deals you have been missing out on, head over to the Amazon Coupons page.

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Here's How Much Money You Need to Earn in Each State to Afford a Home

The keys to your own kingdom.
The keys to your own kingdom.
PhotoMIX Company, Pexels

By this point, it’s well-known that American Millennials are much slower to buy homes than Baby Boomers were at their ages. While certain cultural changes have contributed to this trend—people are waiting longer to get married and have children, for example—the most common reasons to continue renting ad infinitum are financial. In other words, it’s especially hard to afford a house these days. That said, residents of some states have it easier than others.

According to a study by The Cost Guys, West Virginians only need to make $26,393 a year to become homeowners—the lowest of any U.S. state. In general, Appalachia, the Midwest, and the South are good places to live if you have your heart set on pocketing keys to your own tiny kingdom; in Alabama, Arkansas, Kentucky, Mississippi, and Oklahoma, you can feasibly afford a home on an annual salary below $40,000.

The West is expensive.The Cost Guys

If you live in Hawaii, on the other hand, you might end up renting for the long run; that is, unless you earn $152,676 per year (or more). Parts of the continental U.S. put up similarly high stats: Californians need to earn at least $136,600 to set up shop, and inhabitants of Colorado, Washington, New Jersey, Massachusetts, and Washington, D.C. all need more than $100,000.

To come up with these figures, The Cost Guys worked off the widespread assumption that about 30 percent of your annual earnings will go toward your home—which includes mortgage, insurance, property tax, and down payment—and used median real estate values from Zillow to calculate how much that percentage would amount to.

If you’re feeling discouraged by the high price tags on homeownership, it’s worth noting that there’s plenty of room for variation. Maybe you find a home listed for much less than your state’s median value, or maybe you can negotiate a deal for a much smaller down payment than 10 percent (which is what The Cost Guys used for their analysis). There’s also the possibility that you’re able to budget a little more than 30 percent of your income toward housing costs.

You can explore more detailed info and data here.