“The Confederacy then turned to debt issue as a means of war finance. The South successfully sold some long-term government securities during the early stages of the war. Bond issues proved a limited source of war financing as Southern prospects diminished, however. Investors increasingly shied away from purchasing securities offered by a government with little or no tax base and a deteriorating military situation. The government resorted to money financing as their primary source of revenue.” Read more.

“Money and Finance in the Confederate States of America”
Marc Weidenmier
EH.net, February 1, 2010.