Underlying Causes of the American Civil War

A large cotton plantation on the Mississippi River, by Currier and Ives illustrates a cotton harvest underway. Field slaves cut the cotton stalks, other hands operated cotton gins to remove the seeds.  After pressed into bales, riverboats, as seen in the background, transported the cotton to New Orleans for worldwide distribution.  Public domain image.

Agriculture was the primary component of the southern economy, of which cotton production towered in importance.  Indeed, “King Cotton” accounted for over half of all U.S. exports.

Dating from the earliest colonial times, the development of society in the northern and southern sections of the country diverged significantly.  By 1860, the nation had two distinct sections of the country, often at odds with each other over political, economic, and cultural issues.  Up until then, compromises had kept the Union intact, but the sectional animosity and distrust finally became so great that a split could not be avoided.

Following the election of Abraham Lincoln in November 1860, several southern states seceded from the Union.  War finally erupted in April 1861 when the South fired upon the federal position at Fort Sumter, South Carolina.

Southern Strategy

Confederate soldiers, 1861, Richmond, VA.  When the first bugle sounded, southerners responded enthusiastically.  Virtually none of them owned slaves, but all believed they were fighting to free themselves from their domineering brethren of the North, whose economic interests often ran counter to their own.  Image courtesy of Library of Congress..

In 1860, the South owned precious few economic resources compared to the North, falling far short in population (9 million vs. 22 million), manufacturing output (8% vs. 92%), and railroads (9200 miles of track vs. 32000 miles).

For the first two years of the war, the Confederates remained optimistic, as their plan, in part at least, was working for them.  They hoped that by continuing to hold the northern aggressors to a standstill, the tide of war would eventually turn in their favor, and their dream of independence would come true.

The Confederate Half Dollar

The US Branch Mint at New Orleans, as illustrated on September 11, 1858 by Ballou's Pictorial magazine.  Image courtesy of Louisiana State Museum.

At the onset of the war, there were three government mints operating in the South, located at New Orleans, Louisiana, at Charlotte, North Carolina, and at Dahlonega, Georgia.  The New Orleans facility was by far the busiest, minting large quantities of gold and silver coins.

On January 26, 1861, the State of Louisiana seceded from the Union and shortly thereafter seized control of the New Orleans Mint.  On March 7, Louisiana transferred control of the New Orleans Mint to the Confederacy.  The Mint Superintendent, William A. Elmore, retained his position only after taking an oath of allegiance to the CSA.  The mints at Charlotte and Dahlonega, seriously lacking a bullion supply, likewise came under the control of the Confederacy, but were quickly relegated to assay office status and never factored into the plans of the CSA. 

Jefferson Davis, the first and only President of the CSA.  Image courtesy of Political Science Dept, College of New Jersey.

Jefferson Davis and other leaders of the South envisioned minting coins bearing new CSA designs, to assert their newfound sovereignty and earn the respect and possible assistance of European powers. The New Orleans Mint, renamed the Confederate State Mint, was to be the major hub of coinage activity, as an ample supply of bullion was available to the Mint, at least initially.

While CSA Treasury Secretary Christopher Memminger was arranging for the creation of a Confederate half dollar design, minting of Union half dollars continued as before using the same federal dies.

In total, 2,532,633 half dollars bearing the 1861-O date were struck, 330,000 by the authority of the US government, 1,240,000 in February by the State of Louisiana, and 962,633 under the watchful eye of the Confederacy.  Since the same dies were used throughout this period, it is impossible to tell which 1861-O's were struck by whom.  17,741 gold double eagles were also issued at the New Orleans Mint during this time, and these too, are indistinguishable, as to authorizing government entity. 

Restruck in the 1880's by J. Walter Scott from the original Confederate reverse die, this restrike is nearly identical to the four authentic CSA half dollars. Photo courtesy of Ira & Larry Goldberg Coins & Collectibles, Inc., Beverly Hills, CA.

In early April 1861, Memminger approved of a Confederate half dollar design.  The obverse was to be made from the same Liberty Seated federal die, but the proposed reverse featured a new Confederate coat of arms, surrounded by cotton and sugar cane, important symbols of the southern economy.

Before full scale minting of the CSA half dollar could commence, the price of precious metals rose dramatically as the reality of war set in, causing coinage throughout all of America, both north and south, to disappear rapidly. Tangible assets, such as precious metal coins, were considered a safe harbor in stormy waters.

Moreover, bullion supplies at New Orleans were exhausted, with no hope of replenishment any time soon.  Given these circumstances, Memminger concluded that releasing Confederate coinage would be futile, and ordered a suspension of minting operations.

Little was it known then, that before shutting down on April 30, four genuine CSA half dollars were struck by Chief Coiner Benjamin F. Taylor, one of which was presented to President Jefferson Davis.  Taylor kept one of the half dollars for himself, while the other two went to local dignitaries.  Taylor also retained possession of the dies.

North Carolina fractional Civil War currency, face value of 25 cents, issued 1864.  Image courtesy of University of North Carolina at Chapel Hill library.

In the absence of circulating coinage, the Confederacy and several states printed paper money.  In addition to printing notes of greater dollar denominations, fractional notes, also known as “paper coins” having faces values less than one dollar, entered the channels of commerce.

In April 1862, Union forces under the command of Captain David Farragut, captured the city of New Orleans.  With the primary minting facility in the hands of the North, the goal of establishing a secure coinage system indicative of a self-sufficient Confederacy began to fade badly. 

On May 10, Confederate President Jefferson Davis was taken into custody by Union troops at Irwinville, Georgia, marking the formal end of the Confederacy and the American Civil War.  Four long years of widespread destruction and intense bloodshed, claiming the lives of over 600,000 Americans, had mercifully come to an end.

Writing publicly in early 1879, former CSA Chief Coiner B.F. Taylor revealed the existence of the four original 1861 Confederate half dollars.  Responding to Taylor’s disclosure, Jefferson Davis admitted that at the moment of his capture in 1865, he was still carrying the Confederate half dollar given to him four years earlier, but indicated it was stolen at the time of his arrest.

Later in 1879, Taylor sold his Confederate half dollar and dies to E. Mason Jr. of Philadelphia, who in May resold both the coin and the dies for $310 to J. Walter Scott, a New York coin and stamp dealer.  In 1882 Scott sold the half dollar for $870, but chose to hang onto the dies for the purpose of manufacturing restrikes.  After refurbishing the old dies, Scott produced 500 white metal tokens, successfully testing the Confederate reverse, pairing it up with a homemade Scott Company obverse die.

Inscribed on the Scott obverse: 4 ORIGINALS STRUCK BY ORDER OF C.S.A. IN NEW ORLEANS 1861 ******* REV. SAME AS U.S. (FROM ORIGINAL DIE SCOTT).  Scott used his "front" side die while testing the manufacturing worthiness of the Confederate half dollar reverse die.  Photo of a modern day replica of Scott token obverse.  Photo courtesy of Ira & Larry Goldberg Coins & Collectibles, Inc., Beverly Hills, CA.

Pleased by the results of the white metal tokens, Scott then proceeded to obtain from circulation 500 half dollars dated 1861 in various conditions and used these for restrikes.  At first, he struck the Confederate die directly onto the reverses of a few of these half dollars, but some of the federal reverse was still visible.  To overcome this problem, Scott then completely “shaved off” the reverse design from what remained of his 500 half dollars before continuing to make restrikes.

Today, the Confederate half dollar specimen originally belonging to B.F. Taylor is housed in the collection of the American Numismatic Society in New York City.  Two of the other half dollars are also privately held. The fourth authentic 1861 strike was actually found circulating in New York late in the 19^th century (perhaps the specimen stolen from Jefferson Davis?), and was sold on October 14, 2003 for an astounding $550,000. 

Prior to the 2003 sale, it had been many years since any of the four genuine Confederate half dollars were sold.  Based on this high level of interest in Confederate-related coinage, we can safely conclude that J. Walter Scott’s white metal restrikes could easily bring maybe $800 to $3000, depending upon condition.  Scott’s half dollar restrikes are worth $3000 to $6000, again depending upon condition, although the small handful of his restrikes onto “unshaved” 1861 half dollars are very rare and command much higher prices.  All of Scott’s restrikes are easy to distinguish from the four genuine CSA half dollars because the obverses were distorted and flattened during the restrike action.

Four lonely Confederate half dollars are the highest profile survivors of a long-ago vision to establish a coinage system representing southern values.  From President Jefferson Davis on down, the South's leaders believed distinctive coins, indicative of a self-reliant nation, would help them achieve independence.  Many numismatists nowadays wish there were more CSA coins available to collect from the Civil War, the most crucial episode in America's past.  Imagine how the road of history might have detoured from the path we know today had the Confederacy's desire to mint millions of its own coins been fulfilled.  Who knows, the short-lived republic might not have been so short-lived after all.

First Bloodshed

The shelling of Fort Sumter electrified and united most of the North.  Many people, including President Abraham Lincoln, expected the southern rebellion to be put down rather quickly. Lincoln’s first call for volunteers provided for only three-month enlistment terms.  In July 1861, Lincoln dispatched an army of 30,000 half-trained men toward Richmond, Virginia, the capital city of the Confederate States of America, only to be met by a stubborn rebel force near a small creek called Bull Run.  Many citizens from the Washington area, dressed in fine clothes and toting picnic baskets, accompanied the federal troops, expecting to observe the “end” of the rebellion, as if it were to be accomplished through some sort of bloodless spectator event.

Following the defeat at Bull Run, it was clear the North was not going to steamroll the South into submission anytime soon.  Talk of a short war ended.

The Yanks Adapt to Coin Shortages

1860 Liberty Seated dollar.  Coins just like were hoarded when the magnitude of the Civil War crises came into sharper focus.  Image courtesy of Jake's Marketplace.

As reality of a prolonged conflict hit the home front, the availability of circulating coinage became an early casualty of war.  Facing a very uncertain future, both ordinary citizens and speculators hoarded precious metal coins, saving them for what many feared would be bleak times ahead.

Civil war token collecting is a fascinating segment of today's numismatic environment.  For anyone desiring to study the subject in greater depth, we recommend visiting the Civil War Token website.  There, you'll find a great deal of detailed data on tokens, plus a salute to those who served during those tumultuous times.

The Lincoln administration, for its part, also took action to address the country’s monetary problems.  For the first time, the U.S. government issued paper money unsecured by gold, silver, or government bonds.  Some $450 million of “greenbacks” were printed, whose value fluctuated depending upon the latest good or bad news coming from the warfront.

The Emancipation Proclamation Shifts Focus of the War

Ambrose Burnside, one of many generals to occupy the Union army's top post, saw his troops decimated at Fredericksburg, taking 13000 casualties to the South's 5000.  A frustrated President Lincoln replaced him  with Joseph Hooker, who proved to be equally unsuccessful.  Ironically, Burnside is best remembered for his bushy side whiskers, a style which became known as "sideburns".  Image courtesy of Library of Congress.

As the coin shortage developed into a serious issue for the Union during 1861 and 1862, it was still probably not at the very top of President Abraham Lincoln’s list of concerns.

New Bronze and Nickel Coinage and "In God We Trust"

As mentioned a couple of sections above, the metallic value of the "nickel" Indian Head cent soon outpaced its face value, virtually disappearing from view by the end of 1862, just as did its silver and gold coin siblings earlier.  To compensate for the lack of coinage, numerous enterprising individuals produced a variety of tokens, most of them composed of bronze (95% copper, 5% tin and zinc), to help facilitate business transactions.  The tokens were easier to manufacture than Indian Head cents, since they were thinner and because bronze is more ductile than the nickel alloy used in the cent.  Even better, bronze is a relatively cheap metal.

The Winds of War Turn Against the Rebels

The year 1863 began with discontent settling in on both sides.   The South's goal of winning European support was slipping away, while the North, victorious in the western front, suffered many defeats in the East.  As Lincoln fired top generals one after the other while searching for just the right commander to lead the Union army, the capture of Richmond seemed only a remote possibility.

General Robert E. Lee, commander of the Army of Northern Virginia, revered to this very day throughout many parts of the South and elsewhere. After the war, Lee became president of Washington college, but was denied amnesty.  In 1975, Lee's citizenship was restored by an act of Congress.  Image courtesy of Library of Congress.

This was the situation in June 1863 when General Lee moved the Army of Northern Virginia, consisting of 75,000 men, northward across Maryland and into Pennsylvania.  Lee was hoping that if he could successfully invade a northern state, the Union would seek terms to end the war.  Lee also had another purpose for invading the North.  In the West, General Ulysses S. Grant of the Union army had laid siege to Vicksburg, a city guarding traffic up and down the Mississippi River.  The fall of Vicksburg threatened to split the Confederacy, so Lee needed another front to perhaps cause the Yankees to reallocate resources away from Vicksburg.

On June 30, advance patrols of the Confederate and Union armies skirmished near the Pennsylvania village of Gettysburg, drawing many thousands of soldiers to the vicinity.  For the next two days, major elements of both sides fought fiercely for positioning on the hills around Gettysburg.

Lincoln's latest replacement for leader of the Army of the Potomac, General George Meade, established a line of defense on high ground along what is now called Cemetery Ridge.  About a mile to the west, Lee's infantry and artillery occupied Seminary Ridge.  Separating the two armies was a large open field.  The stage was set for an epic event that proved to be a turning point in American history.

Many of the surviving Confederates reaching the top of Cemetery Ridge were killed or captured.  These southern soldiers were taken prisoner by the Yankees, but at least  they lived to one day tell their grandchildren the story of Pickett's Charge and the Battle of Gettysburg.  Image courtesy of Library of Congress.

On July 3, Lee gambled the fate of the Confederacy on a chance for victory, ordering General George Pickett to lead 15,000 of the South's finest troops in a massive charge across the open field and up Cemetery Ridge, in a bid to break the center of the Union line.

As the Confederates charged, Union gunfire and artillery shredded their ranks.  Nearly three-fourths of Pickett's division was lost before reaching the top.  For a brief moment, the Stars and Bars flew at the crest of Cemetery Ridge, but Union reinforcements repelled the Confederates off the ridge and into total defeat.  Pickett's Charge had failed.  As night came and the guns fell silent, thousands of southern dead, the best the Confederacy had to offer, lay dead on the battlefield.  The South's clearest prospect for winning the War Between the States had turned into disaster.

On the evening of July 4, the 87th anniversary of the Declaration of Independence, Lee started his somber retreat back to Virginia in the midst of a driving rainstorm.  The overcautious Meade chose not to pursue the Confederate forces.  A dejected Lincoln later removed Meade from command for failing to chase down and destroy the remnants of Lee's army.

Numismatists have long honored the memory of the Civil War.  In this 1936 Battle of Gettysburg commemorative coin, Union and Confederate soldiers are shown on the obverse.  Two shields representing the opposing armies grace the reverse.  Photo courtesy of Ira & Larry Goldberg Coins & Collectibles, Inc., Beverly Hills, CA.

The same day Lee abandoned Gettysburg, the Union won another decisive victory with the fall of Vicksburg.  By taking control of the Mississippi River, the key objective of splitting the Confederacy in two was accomplished.

So in the first week of July 1863, the winds of war turned solidly against the South, with crucial defeats at Gettysburg and Vicksburg.  Food shortages, inflation, and low morale now seriously began to plague the Confederacy.  More spectacular battlefield losses followed in 1864 and 1865, finally sealing the doom of the rebels.

The End of the Confederacy

Meeting aboard the River Queen, artist G.P.A. Healy's "The Peacemakers" shows a conference attended by (l-r) Gen. William T. Sherman, Gen Ulysses S. Grant, President Lincoln, and Adm. David Porter.  A rainbow can be seen in stormy skies through the window.  Image courtesy of White House Collection.

The improvement of coin availability in 1864 and general economic recovery in the northern states can also be tied to the favorable direction the war had taken for the Union.

In March 1864, Lincoln appointed General Ulysses S. Grant as the top commander of the Union army.  Students of the Civil War frequently point out that Grant was not the dazzling tactician in the class of Robert E. Lee.  Perhaps not, but Grant understood his edge in numbers and materiel, and ruthlessly utilized them to the North’s advantage.  At long last, Lincoln found a general who could consistently win.

Gen. U.S. Grant leans over church pew to study map held by Gen. George Meade, May 21, 1864 Massaponax Church, Va.  In a rare moment of relaxation, Grant's men can be seen smoking pipes, reading, and engaging in humorous conversation.  Image courtesy of Library of Congress.

Grant selected General William T. Sherman to take control of a large force in Tennessee, and move south toward Atlanta, Georgia.

In heavy fighting along the route, Sherman inflicted numerous defeats upon the Confederacy.  Noting that “war is hell”, Sherman then made it so by deliberately striking out at the civilian population, destroying everything in a 60 mile wide path from Atlanta to the coastline.

Even though there was not much intentional killing of civilians, thousands of homes, farms, and livestock were wiped out, anything of possible use to the southern cause, thrusting a fatal dagger into the heart and hopes of the Confederacy.

Louis Guillaume's 1867 painting portrays the surrender of Lee to Grant with mutual respect and kindness.  Terms of the surrender were generous.  Grant arranged food rations to be distributed to the hungry Confederates.  Lee's troops were allowed to return to their homes and keep their horses.  The high character of both men during the meeting has led historians to call it "The Gentlemen's Agreement".  Image courtesy of Appomattox Court House National Historic Park.

As Sherman moved northward through the Carolinas, Grant plowed his way through Virginia toward Richmond, capturing the Confederate capital city on April 2, 1865.

Hopelessly outnumbered and surrounded, Lee sent word to Grant on April 7 that he wished to talk.  Dressed in his finest uniform, Lee surrendered to Grant two days later at the Wilbur McLean farm house, located near the small town of Appomattox Court House, Virginia.

This was not the first time the two men had met.  They remembered one another as young officers in the Mexican War, and chatted for some while about that experience before getting down to business.  Displaying great mutual respect, the generals shook hands and parted company on agreeable terms.  Confederate soldiers were sent home, keeping their horses to ease the transition back to peaceful farm life.  Officers were permitted to keep their pistols.  Gratefully, there would be no mass punishment for the rebellion.

Upon hearing the news of Lee's surrender, other Confederate generals, realizing the end of the Confederacy had come, waved the white flag to avoid further useless killing.  At long last, the bloodiest chapter in United States history had thankfully been concluded.  In all, at least 600,000 American soldiers bravely paid the ultimate price for the causes they believed in.

Lincoln's Assassination Stuns the Nation

Lincoln’s blueprint to reconstruct the south centered on clemency.  As his second term commenced on March 4, 1865, Lincoln eloquently outlined his plan in his “With malice toward none” inaugural address.  Lincoln clearly believed forgiveness was critical for binding the nation’s wounds.

This Currier and Ives lithograph captures a tragic moment in American history, the assassination of Abraham Lincoln.  The President was buried in his native Illinois.  Image courtesy of the Library of Congress.

On April 14, less than a week after Lee surrendered to Grant at Appomattox Court House, President Lincoln decided some relaxation was in order.  He and Mrs. Lincoln attended Ford’s Theatre that evening in downtown Washington, D.C. to enjoy a comedy, Our American Cousin.

At 10:13, a gunshot echoed throughout the theatre, and the President immediately slumped forward in his chair, with a bullet in the back of his head, shot by a crazed actor named John Wilkes Booth.  Lincoln was quickly rushed out of the building to a house across the street, but there was little anyone could do.  At 7:22 the following morning, he passed away. As Lincoln drew his last breath, Edward Stanton, one of the President’s closest advisors, sadly intoned “Now he belongs to the ages.” 

The Lincoln cent was introduced in 1909, to commemorate the 100th anniversary of Abraham Lincoln's birth.  Image courtesy of Jake's Marketplace.

In his lifetime, Lincoln was reviled by many on both sides of the Mason-Dixon Line.  To put this into perspective, for a while there was actually some doubt whether or not he would win re-election in 1864.

The passage of time, however, has largely removed the last vestiges of hatred, and today he is widely regarded as a champion of human freedom and true hero of American history.  To that end, his likeness adorns our one cent coin and five dollar bill, a fitting honor for a man deeply committed to the principles of democracy and liberty for all.

Recommended Reading

The American Civil War is a fascinating topic to study.  Visiting a civil war battlefield today leaves one in awe, as visions come to mind of those brave souls who gave the “last full measure of devotion” on that very same ground. The titanic struggles between the North and the South, the immensity of the battles, and the courage and dedication to duty displayed by the opposing sides are what legends are made of.  The events leading up to secession, the war itself and its aftermath, dominated and shaped the development of the United States, politically and socially, for generations.  Without a doubt, the War Between the States was the single most defining event in American history.

Out of the hundreds of excellent Civil War books for sale, there are just a few more we'll recommend as absolutely outstanding.  When these arrive in your mailbox, * YOU WILL BE PLEASED* with your selection.

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