state tax collectors to accept their newly printed currency as legal tender, and the Confederate Treasury barely even collected national taxes. Without an effective tax regime (either state or national) to anchor the CSA currency and drain money to reduce its inflationary pressure, the results were inevitable (Q. did South's basketcase economy result from or cause its military setbacks?) -- Ironically, the Confederate decision to turn to paper money in lieu of a system of internal taxation abetted the most odious, regressive form of de facto taxation southern society endured: runaway inflation, appearing in the wake of military reversals in 1862, and topping 9,000 percent by war's end. (quoting same article as above -- a fascinating read). I never did see how 'legal tender' laws had anything to do with it. All that's needed is the currency be the only thing accepted for payment of taxes. The Confederate currency did manage to keep 1 million men in the field for maybe 5 years without being 'backed' by anything. It was needed by the states to pay taxes, though compliance was spotty. The real tax was the real resources taken from the private sector- food, people, etc. Real taxes are paid when the govt spends which is the actual transfer of real goods and services. Like the UMKC Buckaroo which is a fully functioning currency the Professor Mat Forstater created and manages. I never did see how 'legal tender' laws had anything to do with it. All that's needed is the