5.9 Government Policies during the Civil War

Financing and Powers Expand

To fund the war, Congress passed the Legal Tender Act (1862), creating greenbacks (paper currency not backed by gold), and the National Banking Act (1863), establishing a national banking system and currency. The Homestead Act (1862) gave 160 acres of western land to settlers, and the Morrill Land-Grant Act (1862) funded agricultural colleges, expanding federal involvement in economic development.

Lincoln and Wartime Civil Liberties

Lincoln expanded executive power, suspending the writ of habeas corpus to jail suspected Confederate sympathizers without trial. The Union draft (1863) sparked violent resistance, including the New York City Draft Riots, revealing class and racial tensions as wealthy men could pay $300 to avoid service.

Emancipation and the War's Purpose

The Emancipation Proclamation (1863) freed enslaved people in Confederate states, transforming the war's purpose from preserving the Union to also ending slavery. It allowed Black men to enlist in the Union Army, weakened the Confederacy's labor force, and discouraged Britain/France from recognizing the Confederacy.

Key terms

Legal Tender Act (1862)

Created 'greenbacks,' paper currency not backed by gold, to help finance the Union war effort.

Homestead Act (1862)

Granted 160 acres of federal land to settlers who lived on and improved it for five years.

Habeas corpus suspension

Lincoln suspended this right during the war, allowing detention of suspected Confederate sympathizers without trial.

Emancipation Proclamation (1863)

Freed enslaved people in Confederate states, reframed the war as a fight against slavery, and allowed Black men to enlist.

New York City Draft Riots (1863)

Violent protests against conscription, fueled by class resentment since wealthy men could pay $300 to avoid the draft.

Try an AP-style question

The Emancipation Proclamation declared freedom for enslaved people in…

1. all states
2. the North only
3. areas in rebellion
4. border states only