One can easily find the Treasury Department reports for the period before the Civil War, and I challenge you to point to the bulk of the government spending going to the north. In 1859, the government took in $82 million (and had $6 million left from the year before). They spent $4.7 million on the Interior Department, which they specify as "Indians and pensions." $23 million to the Army, the bulk of which at the time was in the west, specifically in Texas. Another $17 million to the Navy. Another $17 million was service on debt. $6 million supported the entire bureaucracy of the US--executive, legislative, and judiciary, including the territories. $1 million went to supporting embassies abroad (there's also a line item of $10,000 for "Expensess in acknowledging the services of masters and crews of foreign vessels in rescuing American citizens &c., from shipwreck"). A lot of the rest was spent on odds and ends like surveying the Florida Keys and California Islands, surveying the borders of the US, and building an insane asylum and penitentiary in DC.
This tale that the north was getting all the government spending simply does not stand up to the slightest scrutiny.
The year of 1859 was in what could be considered a "grace period," between the Polk and Morrill tariffs -- a period of rather free trade, and less government surplus. But rather than quibble over context, check out this publication by the aforementioned Northern political economist:
"From the earliest period of the government the federal revenues have been derived from duties on goods imported. The duties have not been levied with a single view to revenue, but have been so adjusted as to afford the largest protection to Northern manufactures. In other words, to tax the consumers of goods West and South for the support of Eastern manufactures. The amount of customs so collected in the past 70 years reaches 1100 millions of dollars, a large portion of which was disbursed at the North. This sum has been paid mostly by the South and West into the federal treasury, on goods imported. The sum of these may be 20 per cent, of the quantity home manufactured, and the value of which has been increased in the ratio of the duty. If, however, it is assumed that the home-made goods have been enhanced in value only to the extent of the customs revenue, then the Eastern manufacturers have obtained 1100 millions of dollars as tribute from the South and West. That large sum has been taken from agricultural industry and added to manufacturing industry. The fisheries of the Eastern States drew $5,000,000 as bounties paid to those engaged in them, out of the federal treasury, to the date of the abolition of those bounties. The North enjoyed a monopoly of the carrying trade, foreign vessels being excluded. These, and other circumstances drew the surplus capital from the agriculturist into the coffers of the manufacturer. The accumulation of capital thus brought about, became invested in stocks, banks, insurance companies, all of which drew large profits on credits granted to the other sections. The North has $600,000,000 so invested, of which $356,318,000 are in banks alone, which draws $60,000,000 per annum from the earnings of the other sections. The frequent pilgrimages from all sections to the Eastern cities for the purchase of goods, and in pursuit of pleasure, form a large item of cost charged upon goods, that is paid by the consumer."
[Thomas Prentice Kettell, "Southern Wealth and Northern Profits - as exhibited in statistical facts and official figures, showing the necessity of union to the future prosperity and welfare of the Republic." George W. and John A. Wood, 1860, pp.126-127]
Kettle was a highly-respected economist in those days.
BTW, public works expenditures overwhelmingly favored the North.
Mr. Kalamata