History of the United States (1849–1865) and South met in Virginia to try to hold together the Union, but the proposals for amending the Constitution were unsuccessful. In February 1861, the seven states met in Montgomery, Alabama, and formed a new government: the Confederate States of America. The first Confederate Congress was held on February 4, 1861, and adopted a provisional constitution. On February 8, 1861, Jefferson Davis was nominated President of the Confederate States. On April 12, 1861, after President Lincoln refused to give up Fort Sumter, the federal base in the harbor of Charleston, South Carolina, the new Confederate government under President Jefferson Davis
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