From the very beginning, the Confederacy was in bad financial condition, lacking in both specie and banks. It had difficulty in negotiating loans and was forced to finance its operations through issues of paper money, which by 1864 reached $1 billion in face value, more than twice that of the greenbacks issued by the Union. The gold value of these notes declined dangerously. Christopher G. Memminger, secretary of the treasury, was forced to resign in 1864, but the situation was beyond the abilities of any person.
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