Final answer:
The debt Ballou refers to includes financial operations like loans and war bonds used by the North to finance the Civil War. It indicates how Northerners linked economic support with patriotic duty, and their concept of the war encompassed both military and financial dimensions.
Step-by-step explanation:
The debt referred to by Ballou relates to the financial loans and operations carried out by the North to fund the American Civil War. To cover wartime expenses, the Union primarily relied on bank loans and war bonds but also implemented tax increases and issued treasury notes. The ability to rely on credit from European banks and U.S. citizens allowed the North to finance about 65 percent of the war through loans and bonds. This financial strategy, particularly the sale of war bonds in accessible denominations, supported by Cooke, transformed the funding of the war into a patriotic venture for many Northerners. Cooke's war bond issues raised almost $1.2 billion, showing a public willingness to invest in the Union's cause.
The use of loans and taxes by the North, as opposed to reliance on treasury notes, indicates that Northerners viewed the war not just as a military struggle but also an economic one, where the citizen's financial support could help lead to victory. The efforts made by the North to finance the war through these means suggest a belief in the righteousness of their cause and confidence in both the government and the people's ability to sustain the war effort financially.