4. North 75,000 Volunteers Mobilized navy for blockade Inexperienced army South 100,000 man army with one year terms (1961) Created a navy and employed privateers Had to build munitions factories Printed large amounts of paper money

36. First income tax War bonds Borrowing from banks Printing Greenbacks North Confederate Income Tax, 1862 Printing money Military Draft, 1862 What were the South’s obstacles? South

37. North Lack of cotton caused problems in textile industry Inflation offset wage increases South Union Blockade Economy hurt by labor shortage Destruction left by armies