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
Bad (economics) Bad (economics) An economic bad is the opposite of an economic good. A 'bad' is anything with a negative value to the consumer, or a negative price in the marketplace. Refuse is an example of a bad. A bad is a physical object that lowers a consumer's level of happiness, or stated alternately, a bad is an object whose consumption or presence lowers the utility of the consumer. With normal goods, a two-party transaction results in the exchange of money for some object, as when money is exchanged for a car. With a bad, however, both money and the object