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Any money still owed by the Confederacy after the end of the Civil War was not collectible, since the Confederacy ceased to exist and had no legal inheritor of its debts. The Union paid its expenses in the usual way, through tax money. Even though governments take out loans in times of war, those loans also are eventually repaid by tax money. Taxpayers pay for wars.

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Q: How did both sides pay for the civil war?
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