Answer:
At that time, Treasury Secretary Chase suggested raising the unprecedented sum of $320 million to finance the war of rebellion through a combination of the sale of government bonds ($240 million), increased tariffs ($57 million), new taxes or duties ($20 million), and the sale of public lands ($3 million). An additional means of financing the war was printing money, a strategy also employed in the Confederacy. The Legal Tender Act of 1862 was enacted in February 1862 to issue paper money to finance the war. Apart from instituting new taxes and printing money, a third major source of funding was government bonds.
Explanation:
The cost in money of the Civil War for the Union was $5.2 billion (The Civil War (1861-1865) ) In 1860, the year before the American Civil War started, the U.S. Government debt was $64.8 million. Once the war began, debt grew quickly. The financial cost of the war was significant, totaling an estimated $5.2 billion.
