[rustbucket]

For comparison with your specie figures, the amount of public debt tabulated by the US Treasury Department on Feb 2, 1861, was $69,373,649.26.

One wonders how the North was going to pay off its portion of the debt. As Texas Senator Wigfall said that same February, "How will it be with New England? Where will their revenue come from? From your custom-houses? What do you export? You have been telling us here for the last quarter of a century, that you cannot manufacture even for the home market under the tariffs which we have given you. When this tariff ceases to operate in your favor, and you have to pay for coming into our market, what will you expect to export?"

[PeaRidge]

You are right. Federal spending had been going wild.

By 1860, public debt had more than doubled in 4 years because spending was exceding revenue.

As you know, the government began borrowing large amounts of money to meet its obligations, and had incurred a great deal debt just prior to the secession of the Southern states.

Lenders were charging very high interest rates, and requiring the government to pledge public land as collateral.

With nothing to export to finance imports for tariff revenue generation, the Lincoln government was in a bad fix.

[Non-Sequitur]

For comparison with your specie figures, the amount of public debt tabulated by the US Treasury Department on Feb 2, 1861, was $69,373,649.26.

And Senator Wigfall, along with the rest of the southern leadership, saw nothing wrong with walking away from that debt.

[nolu chan]

From The Life and Public Services of Salmon Portland Chase, J.W. Schuckers, 1874, p. 355