Question

Which of the following was not a form of financing for the American Civil War?

A. Printing paper money called "graybacks".
B. Selling cotton-backed bonds in the financial centers of Europe
C. Borrowing from the citizens of the southern states
D. Borrowing from the Rothschild's Family

Answer 1

C. Borrowing from the citizens of the southern states was not a significant form of financing for the American Civil War. The Confederacy primarily relied on other forms of financing, such as printing paper money (known as "graybacks"), selling cotton-backed bonds in Europe, and borrowing from foreign governments and banks. While some individual citizens may have lent money to the Confederacy, this was not a major source of funding for the war effort. The Union, on the other hand, primarily financed the war through increased taxes and the sale of government bonds to its own citizens.