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
Economy of the Confederate States of America issuing a million dollars in notes in February 1861, and added to this amount during each subsequent session of the legislature. The other states followed suit. Cities also sought to replenish their treasuries in the same way. Corporations and other business concerns tried to meet the rising tide of prices with the issue of their individual promissory notes intended to circulate from hand to hand. As a result of this redundancy of the currency, its value collapsed. Gold was quoted at a premium in Confederate notes in April 1861. By the end of that year, a paper dollar was quoted