Money, Money, Money!



Similar documents
HISTORY AT YOUR FINGERTIPS & SPIRIT OF THE NATION FEDERAL RESERVE BANK OF BOSTON

Chapter 13 Money and Banking

THREE WAYS TO QUICKLY IDENTIFY CONFEDERATE CURRENCY

MILITARY RECORDS. British Military Records, Series I 8 Microfilm Britain US M247 Papers of the Continental

Chapter 17. Preview. Introduction. Fixed Exchange Rates and Foreign Exchange Intervention

Macroeconomics, 8e (Parkin) Testbank 1

International Monetary Policy

January 1 New Compensation Plan Launches

Money, Banking, and the Federal Reserve Bank (Monetary Policy) Chapter 10, Page 256

Student Worksheet #1

B u r e au o f E n g r av i n g a n d P r i n t i n g. Currency NOTES. factory.gov

Chapter 17. Fixed Exchange Rates and Foreign Exchange Intervention. Copyright 2003 Pearson Education, Inc.

Powers of Congress. Expressed, Implied, and Non-Legislative

Numismatic Terms for Law Enforcement

AFRICAN-AMERICAN CONTRIBUTIONS SERIES presented by BlueCross BlueShield of Tennessee THE COLOR OF BLOOD TIME LINE OF MILITARY INTEGRATION

ROTC RANK STRUCTURE. 1 The Purpose of Army Ranks 2 The Cadet Ranks 3 The Cadet Unit Structure. 4 The Cadet Chain of Command e. Section 1.

Describe the functions of the Federal Reserve System (the Fed).

The South feared that the North would take control of Congress, and Southerners began to proclaim states rights as a means of self-protection.

CLE On-Demand. View and record the Secret Words. Print this form and write down all the secret Words during the program:

Econ 101: Principles of Microeconomics

The Banking System and the Money Supply South-Western/Thomson Learning

Chapter 15, Section 5. Turning the tide of the War

Functions and Characteristics of Money

Money Basics. { }

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

Macroeconomics, 10e, Global Edition (Parkin) Chapter 25 Money, the Price Level, and Inflation. 1 What is Money?

SUMMARY The Estonian Military Technical School ( , ). Surveys, memoirs and documents


MA 1125 Lecture 14 - Expected Values. Friday, February 28, Objectives: Introduce expected values.

Homework (Chapter 11)

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

A Comprehensive Guide to the Gold Price. The American Silver Eagle

4. The minimum amount of owners' equity in a bank mandated by regulators is called a requirement. A) reserve B) margin C) liquidity D) capital

Reasons for U.S. Involvement in War

Chapter 13 Money and Banking

THE AMERICAN CIVIL WAR & INDIANA RESEARCHER S GUIDE TO CIVIL WAR MATERIALS AT THE INDIANA HISTORICAL SOCIETY

A Lesson to Accompany Benjamin Franklin and the Birth of a Paper Money Economy

ECON 4110: Money, Banking and the Macroeconomy Midterm Exam 2

Introduction to Macroeconomics 1012 Final Exam Spring 2013 Instructor: Elsie Sawatzky

MACROECONOMICS. The Monetary System: What It Is and How It Works. N. Gregory Mankiw. PowerPoint Slides by Ron Cronovich

Money. 1 What is money? Spring functions of money: Store of value Unit of account Medium of exchange

Homework 5: The Monetary System and Inflation

Pre-Test Chapter 12 ed17

Wisconsin and the Civil War

Guidance. Currency vs. Virtual Currency

Homework Assignment #3: Answer Sheet

Volume II. The Heyday of the Gold Standard,

Money. Everyday Economics. Federal Reserve Bank of Dallas

PRACTICE- Unit 6 AP Economics

Command and Staff College Distance Education Program (CSCDEP)

Analysis One Code Desc. Transaction Amount. Fiscal Period

WFP SOUTH SUDAN MARKET PRICE MONITORING BULLETIN

Decision Making: Hamilton s Economic Policies Part 1: The Debt PROBLEM

Take A Memo. Primary Documents: African American Soldiers on the Home Front

EFFECTIVE ARMY BRIEFING

3. Any medium of exchange (including commodity money) must: a. be easily standardized. b. be widely accepted. c. be divisible. d. be easy to carry.

LEBANON'S DEBT MANAGEMENT FRAMEWORK

THE BRITISH ARMY OF THE AMERICAN WAR OF INDEPENDENCE

Visual One Grades examples Of CurrenCy and COin

Lecture Notes on MONEY, BANKING, AND FINANCIAL MARKETS. Peter N. Ireland Department of Economics Boston College.

Math Released Set Algebra 1 PBA Item #13 Two Real Numbers Defined M44105

Kennedy Half Dollar Value (United States)

Global stock markets finish off the year on a strong note

FP1. HiSET TM Social Studies Practice Test

Currency and Exchange Rates

The Free Silver Loophole: How to Legally Remove Silver from the U.S. Banking System

Graduate Level Credit for Resident EWS Students. Natasha McEachin CG 1

u n i t f o u r Savings and Investments: Your Money at Work "It s possible to have your money work for you in two ways..."

Costs of Major U.S. Wars

Sovereign Debt and the Politics of Creditworthiness. Nikhil Kalyanpur GOVT th Feb 2015

CHILE. I. Army. Density per sq. km... MAIN CHARACTERISTICS OF THE ARMED FORCES

Simple Interest. and Simple Discount

Enlisted. Service Ranks Duties Assumptions Comparable Civilian Positions E-1 E-2

As of September Englewood, New Jersey

University of Lethbridge Department of Economics ECON 1012 Introduction to Macroeconomics Instructor: Michael G. Lanyi

Assessment Questions

Supply Chain Specialist

Money: Definition. Money: Functions. Money: Types 2/13/2014. ECON 3010 Intermediate Macroeconomics

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

Country Background Sri Lanka. Investor-Country Conference Cairo, Egypt March 26-27, 2010

Natalia Orlova, Chief Economist December

A SCOTTISH CURRENCY? 5 Lessons from the Design Flaws of Pound Sterling

THE MEANING OF MONEY. The Functions of Money. Money has three functions in the economy: The Functions of Money. The Functions of Money

136A REFRESHER EPS =Earnings* Weighted Average Shares Outstanding

Exam 1 Review. 3. A severe recession is called a(n): A) depression. B) deflation. C) exogenous event. D) market-clearing assumption.

UNITED STATES ARMY FINANCE SCHOOL

West Virginia: 150 Years of Statehood Chapter 12: The Civil War and West Virginia's Statehood Movement

The mechanics of the forex market

Slavery, the Civil War, and Reconstruction Gettysburg and the Gettysburg Address

Transcription:

Soldier Pay in the American Civil War Activity Union privates were paid $13 per month until after the final raise on June 20, 1864, when they got $16. In the infantry and artillery, officers were as follows at the start of the war: colonels, $212; lieutenant colonels, $181; majors, $169; captains, $115.50; first lieutenants, $105.50; and second lieutenants, $105.50. Other line and staff officers drew an average of about $15 per month more. Pay for one, two, and three star generals were $315, $457, and $758, respectively. The Confederate pay structure was modeled after that of the US Army. Privates continued to be paid at the prewar rate of $11 per month until June 1864, when the pay of all enlisted men was raised $7 per month. Confederate officer's pay was a few dollars lower than that of their Union counterparts. A Southern Brigadier General for example, drew $301 instead of $315 per month; Confederate colonels of the infantry received $195, and those of artillery, engineers, and cavalry got $210. While the inflation of Confederate money reduced the actual value of a Southerner's military pay, this was somewhat counterbalanced by the fact that promotion policies in the South were more liberal. As for the pay of noncommissioned officers, when Southern privates were making $11 per month, corporals were making $13, "buck" sergeants $17, first sergeants $20, and engineer sergeants were drawing $34. About the same ratio existed in the Northern army between the pay of privates and noncommissioned officers. Soldiers were supposed to be paid every two months in the field, but they were fortunate if they got their pay at four-month intervals (in the Union Army) and authentic instances are recorded where they went six and eight months. Payment in the Confederate Army was even slower and less regular. Source: "The Civil War Dictionary" by Mark M. Boatner

Soldier Pay in the American Civil War Activity Complete the reading comprehension guide to indentify the wages of different soldiers from each side, prior to June 1864. Union Soldiers Wages per Month Confederate Soldiers Wages per Month Private Private Brigadier General First Lieutenant Colonel Brigadier General Colonel of Infantry Colonel of Artillery Major Non-Commissioned Corporals 3 Star General Non-Commissioned Sergeants Here is a quick exercise for you to familiarize yourself with soldiers pay during the Civil War. Please use reading to differentiate between different ranks of the Northern and Southern military. 1. How much would a Union private get paid for 2 year? 2. How much more would a Union B.G. get paid after 1 year compared to a Confederate B.G.? 3. How much would a 3 Star General in the Union get paid for 1 year? 4. How much less does a Colonel of Infantry get paid in the Confederacy compared to Colonel of Artillery? 5. How much does a First Lieutenant in the Union get paid for 6 months? Source: http://www.civilwarhome.com/pay.htm

History: Civil War Currency Just as the Revolutionary War prompted the Continental Congress to issue paper currency, the financing of the Civil War provided the catalyst for the continuing evolution of U.S. currency. In 1861, the U.S. Treasury issued its first paper currency since the Continentals--Demand notes. They were printed in $5, $10, and $20 denominations, redeemable in coin on demand. Demand notes were also called "greenbacks" because their reverse sides were printed in green ink. Although Demand notes were no longer printed after 1862, they're still valid today, redeemable in current cash at face value. Demand notes were replaced by Legal Tender notes, which were issued in denominations ranging from $1 to $10,000. To save metals during the Civil War, Legal Tender notes were originally backed by faith in the government, rather than gold or silver. In 1879, the U.S. Treasury began redeeming Legal Tender notes for coin. They were issued until 1966 and are still redeemable today at face value. Lack of confidence in paper money resulting from the Free Banking Era and the Civil War inspired the creation of Interest-bearing notes, issued from 1861 through 1865. The interest paid on these notes provided the incentive for citizens to hold the currency and also helped to finance the final years of the Civil War. Between 1861 and 1865, the Confederacy issued currency backed by cotton to millions of southerners, gambling that a Confederate victory would ensure the currency's value. Meanwhile, enterprising Northerners printed Confederate money and circulated it in the South. This led to one of the greatest inflationary periods in America, particularly in the South. By the War's end, Confederate notes were almost worthless and many people bartered or used black market Union issues as a medium of exchange. Widespread hoarding of coins and the need to divert metals toward the war effort created a shortage of coins during the Civil War. Paper tickets, stamps, and bills were frequently substituted, but the scarcity was so great that Congress authorized the issuance of "paper coins" as a temporary "fractional currency." From 1862 to 1876, the federal government issued more than $368,000,000 in fractional currency in three- to fifty-cent denominations. Called "shinplasters," these paper coins were much smaller in size than our existing currency. After the Civil War, fractional currency was no longer needed and Congress stopped issuing fractional currency in 1876. Source: San Francisco Federal Reserve

History: Civil War Currency Value of CSA Currency from 1861 to 1865 * (This is inflation at its worst) Date CSA Currency vs. $100 of Gold Jan. 1862 $120 Jan 1863 $300 Jan. 1864 $1,800 Jan. 1865 $3,400 Feb. 1865 $5,000 Mar. 1865 $4,700 Apr. 1865 $5,500 * Reference - Jefferson Davis, Varina Davis, 1890, Vol. II, p. 535. (Price (Y2-Y1))/ 100 = Inflation Multiplier (3400-120) / 100 = 3280 / 100 = 32.8 This means that in January 1865 products cost 32.8 times the cost in January 1862. Inflation Activity- Use the Inflation Multiplier to determine the price of products in 1865. Example - How much did $5.00 worth of tar cost? 32.8 X $5.00 = $165.00 Try it yourself below. Product Price in January 1862 Price in January 1865 Wheat $2.00 Flour $1.50 Cotton $3.00 Tobacco $4.00 Wood $10.00 Apples $6.00

Soldier Pay in the American Civil War Activity Key Complete the reading comprehension guide to indentify the wages of different soldiers from each side, prior to June 1864. Union Soldiers Wages per Month Confederate Soldiers Wages per Month Private $13 Private $11 Brigadier General $315 Brigadier General. $301 First Lieutenant $105.50 Colonel of Infantry $195 Colonel $212 Colonel of Artillery $210 Major $169 Non-Commissioned Corporals 3 Star General $758 Non-Commissioned Sergeants $13 $20 Here is a quick exercise for you to familiarize yourself with soldiers pay during the Civil War. Please use reading to differentiate between different ranks of the Northern and Southern military. 1. How much would a Union private get paid for 2 year? $312 2. How much more would a Union B.G. get paid after 1 year compared to a Confederate B.G.? $168 3. How much would a 3 Star General in the Union get paid for 1 year? $9096 4. How much less does a Colonel of Infantry get paid in the Confederacy compared to Colonel of Artillery? $15 5. How much does a First Lieutenant in the Union get paid for 6 months? $633 Source: http://www.civilwarhome.com/pay.htm

History: Civil War Currency Key Value of CSA Currency from 1861 to 1865 * (This is inflation at its worst) Date CSA Currency vs. $100 of Gold Jan. 1862 $120 Jan 1863 $300 Jan. 1864 $1,800 Jan. 1865 $3,400 Feb. 1865 $5,000 Mar. 1865 $4,700 Apr. 1865 $5,500 * Reference - Jefferson Davis, Varina Davis, 1890, Vol. II, p. 535. (Price (Y2-Y1))/ 100 = Inflation Multiplier (3400-120) / 100 = 3280 / 100 = 32.8 This means that in January 1865 products cost 32.8 times the cost in January 1862. Inflation Activity- Use the Inflation Multiplier to determine the price of products in 1865. Example - How much did $5.00 worth of tar cost? 32.8 X $5.00 = $165.00 Try it yourself below. Product Price in January 1862 Price in January 1865 Wheat $2.00 $65.60 Flour $1.50 $49.20 Cotton $3.00 $98.40 Tobacco $4.00 $131.20 Wood $10.00 $328.00 Apples $6.00 $196.80