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In the North, the emission of paper money, the so called Greenbacks, had produced inflation. Giving as an index in 1861 the number 100, prices had increased in 1864, at the the height of inflation, up to the number 182.

In the South, due to the fact that at the start of the war there were only some 25-30 million in gold held, the emission of paper currency led the currency parity to fall down marking a ratio of 4 cents paper to 100 cents gold.

Between October 1861 and March 1864 the prices rose on average of 10 per cent each month. In April 1865 the prices had become 92 times higher than in 1861.

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13y ago

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