<P> Speculators were continually abused for importing high - priced luxuries instead of confining themselves to supplying the government with foreign war - supplies . Tobacco and cotton, which found few foreign buyers owing to the blockade, actually fell in value as quoted in gold . The great divergence of the price of these two commodities in the CSA and abroad--the New York price of cotton increased more than tenfold during the war--offered the strongest inducement to evade the blockade and export them . A small amount of cotton reached the world market by way of the Atlantic ports or via Mexico, and netted those concerned in the venture handsome profits . By 1862 Treasury agents from Washington were buying cotton, offering very large sums for planters willing to do business with the enemy . Tobacco and cotton were smuggled through the military lines in exchange for hospital stores, coffee and similar articles . The Confederate military authorities tried to suppress this illicit trade, but at times even they were carried away by the desire to secure the much - desired foreign supplies . </P> <P> The disturbances of prices, their local differences and fluctuations, produced wild speculation in the Confederate States . Normal commercial activity became almost impossible, and a gambling element was forced into every transaction . Speculation in gold became especially pronounced . Legislation and popular feeling targeted speculators, but to no avail . Even the government itself felt compelled to speculate in gold . Speculation in food and other articles was equally inevitable and was much decried . Laws passed to curb the speculators had no effect . </P> <P> The policy of the Confederate banks during the war encouraged speculation . The New Orleans banks had been well managed, and remained solvent until September 1861 . The banks of the other states suspended specie payments at the end of 1860, and thereafter enlarged their note issue and their loans, thereby adding to the general redundancy of the currency and stimulating the prevalent speculative craze . They did a large business by speculating in cotton, making advances to the planters on the basis of their crops . The state governments also used their note issues for this purpose, the planters urgently demanding relief as their cotton could not reach a market . </P> <P> The Confederate government also made advances on cotton, and secured large quantities by purchase to serve as the basis of cotton bonds . The rise in prices, which reflected the redundancy of the currency, did not help the producers . The government made frequent efforts by legislation and otherwise to reduce the prices demanded, especially by the farmers . As a result, production of food products fell off--or at least farmers did not bring their products to market for fear of being forced to sell them at a loss . The Confederate army obtained supplies by impressment, the prices paid for them being arbitrarily fixed at a low figure . As a result, the army administration found it almost impossible to induce producers of food willingly to turn over their products, and the army suffered shortages . Under these confused industrial circumstances, the sufferings of the debtor class were loudly asserted, and laws were passed to relieve them of their burdens, making the collection of debts difficult or impossible . The Confederate government confiscated the debts of Southerners to Northerners contracted before the war, but these did not amount to a large figure . </P>

When did post-war southern income levels reach those of the north