The Northern Economy

Caption: Destruction of New Orleans' harbor by the Union navy, April 24, 1862. About eight million dollars' worth of cotton was destroyed by the South to keep it from falling into Union hands.


The Civil War affected the economy in the North and in the South in different ways. The North's economy was better off during the war than the South's was. The North had more factories. Almost ninety percent of manufactured goods were made in the North. There were more miles of railroad in the North, too. It was easier to move supplies for the troops. Both of these things would help the North win the war.


As the war went on, soldiers needed clothes, shoes, and guns. Factories in the North worked hard to make these items. Some owners made a lot of money through something called profiteering. This is when someone charges a lot of money for an item that someone needs. The government needed clothes and shoes for the soldiers. It was sometimes forced to pay higher prices to get what it needed.


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