Economy of the Confederate States of America of London provided the U.K. Parliament with a powerful economic justification for the policy of neutrality. At the beginning of the war the Confederacy had some $47 million in bank deposits (compared to $189 million in Northern banks), and $27 million in specie (gold and silver coins) holdings (compared to $45 million worth in the northern states). Bad money drives out good, and supplies of gold and silver were hoarded, driven out of circulation by the rising flood of paper money. The first Confederate notes were issued in March 1861, and bore interest. They were soon followed by others, bearing
Economic secession The exchange of goods and money creates the flow of energy within an economic system. "In society, initially innovation drives the changes and innovation creates the building blocks which allow the next stages of social and economic development." If individuals or companies decrease their spending on innovation, the energy into the economic system will decline. Economic secession withdraws capital that leads to innovation and economic prosperity in society. Economic secession Economic secession has been variously defined by sources. In its narrowest sense, it is abstention from the state’s economic system – for instance by replacing the use of government money