From the "era of good feeling" to the "era of good stealing", the economy in the United States has not always been stable. In the 19th century, the southern states seceded from the union to form the Confederacy; however, President Abraham Lincoln still saw the south as part of the United States and was willing to fight to preserve the union. As a result the United States, torn in two, fought immensely in the Civil War. The north was effective in fighting and defeated the south, who was then reentered into the union, ending the Civil War. With the Civil War over, there was another war to be fought. This war, although not physical, was a war to reconstruct the union and rebuild the failing economy. The consequences of the Civil War intensely affected primarily the economy of agriculture and transportation in the United States.
The Civil War was a defensive war for the south. As the Northern Yankees forced their way down into the southern states, the south merely stood and defended it. Along the way the Yankees destroyed much land and agriculture; however, destroying the land had long term affects on the farming. In fact, the land would be useless for several years. The destroying of the land and harvest ruined parts of the south, but not all land was physically destroyed. Some land in the south was abandoned by poor southerners who could no longer afford to live there. The northern Yankees also confiscated mules, horses, slaves and other necessities to the southern plantation owner. In fact, the Confiscation Act that was passed by Congress in 1862 authorized the seizure of the property of all persons in rebellion. This act alone practically ruined the southern economy. President Lincoln, recognizing the dependence of the south for the economy passed the Morill Land Grant Act. This act allowed the states to set aside land to be used for agriculture school; however, this act did not help improve the economy.