They used a combination of taxes, borrowing, war bonds and printing money (enotes.com). Remember that the government was much smaller in those days and there were no "social welfare", medical or social security programs. Thomas Jefferson was opposed to any government debt and was discouraged by the size of federal debt by time he died in 1826.
They used a [combination of taxes, borrowing, war bonds and printing money](https://www.enotes.com/homework-help/how-did-north-south-each-finance-civil-war-292145). Remember that the government was much smaller in those days and there were no "social welfare", medical or social security programs. Thomas Jefferson was opposed to any government debt and was discouraged by the size of federal debt by time he died in 1826.
(post is archived)