Confederate States of America diplomat to the Confederacy. Those nations recognized the Union and Confederate sides as belligerents. In 1863 the Confederacy expelled European diplomatic missions for advising their resident subjects to refuse to serve in the Confederate army. Both Confederate and Union agents were allowed to work openly in British territories. Some state governments in northern Mexico negotiated local agreements to cover trade on the Texas border. Pope Pius IX wrote a letter to Jefferson Davis in which he addressed Davis as the "Honorable President of the Confederate States of America". The Confederacy appointed Ambrose Dudley Mann as special agent to the Holy
Confederate States of America The Confederate government initially wanted to finance its war mostly through tariffs on imports, export taxes, and voluntary donations of gold. After the spontaneous imposition of an embargo on cotton sales to Europe in 1861, these sources of revenue dried up and the Confederacy increasingly turned to issuing debt and printing money to pay for war expenses. The Confederate States politicians were worried about angering the general population with hard taxes. A tax increase might disillusion many Southerners, so the Confederacy resorted to printing more money. As a result, inflation increased and remained a problem for the southern states throughout