Even before the Civil War, many slave planters were already in debt, and the high cost of slave smuggling and the vagaries of cotton prices left many of the big planters in debt, and the biggest moneylenders were the bankers in New York.

A civil war bankrupted their neighbors, and the biggest blow was that the civil war made millions of blacks the first free laborers, and once the free labor market was established, it would continue to attack slavery. In the absence of a choice, slave labor is the safest, but once a choice is made, the advantages of more flexible free labor become apparent. Cotton is not a full-time job, and labor is intensively used during planting and harvesting, but most of the time, maintenance does not require much labor, which means that the use of labor by slavery is inefficient.

After Chinese capital took over the bankrupt slave estates, it used a large number of free laborers, only hired short-term workers during the harvest season, and only recruited a small number of long-term workers for maintenance, and did not always feed slaves, but reduced costs.

Those plantations that were already not doing well, under the impact of the new way of doing business, either transformed, went bankrupt, or chose to quit, as a result, slavery continued to be affected, and many plantation owners found that it was no longer profitable to use slave labor, and could not even be sold. And after the advent of free blacks, they also began to find ways to redeem their loved ones. In the end, the emancipation of slavery disintegrated itself not under political pressure, but under economic shock.

Due to the large investment of Chinese capital, although it has been rejected by a group of racists, the general trend, and the alliance itself depends on these investments, because their economic situation makes other countries not happy to invest in them, and only the close Chinese capital has the motivation and ability to invest.

With the strengthening of economic ties, the relationship between the Allied countries and China continued to be close, in order to facilitate trade, the tariffs between the two sides were gradually reduced to a dispensable degree, but the Allied countries still owed China a huge debt, but China wanted to get a port facing the Atlantic, and finally under the pressure of the financial bankruptcy of the Allied countries, China bought Miami and the surrounding swamps at a price of 20 million, equivalent to about 30 million before the war, as China's closest base to the North Atlantic.

After the first five years, the economy of the Union State completely improved, and the domestic capital of the Union State began to transform rapidly, driven by Chinese capital.

They already have a relatively sound political system, and although they have separated from the United States, their political system, even the Constitution, is copied from the Federal Constitution of that year, and the parliamentary system and the legal system have not been shaken. In addition, the southern planters supported free trade, and the Allied countries quickly pursued a free trade policy after the war, and although tariffs, as the only source of income for the Union government, could not be abolished, they tried to create a good trade atmosphere and protect trade security in other aspects, which were extremely beneficial to the economy.

The previous collapse was due to the fragile economic base that could not withstand the blow of the civil war, and the social problems brought about by the collapse of slavery. These problems have been greatly alleviated after five years of suffering, and the influx of Chinese capital, coupled with the reshaping of the dollar system by the Allied Powers, is still called the "dollar", which is called the Union Knife in order to distinguish it from the American knife of the North.

The gold content of the Union knife was greatly reduced, and the Northern Union worked hard to restore the gold content of the dollar after the war, and spent eight years streamlining the finances, restoring the gold content of the dollar to about 1.5 grams of gold, which was close to the gold content of 24.75 grains (1.6038 grams) of pure gold per dollar stipulated in the coinage law issued in 1792. And the Union Knife was re-established from the collapse, and the Union simply did not have the ability and will to restore the value of the currency, and after a crazy depreciation, the Union Knife was finally stabilized at about 0.01 grams of gold, not even one percent of the pre-war one.

Devaluation, remodeling, slavery reform, millions of free laborers appeared, pain to pain, living standards to decline, but ushered in a spring of industrialization.

The cost of labor fell substantially, and compared with China on the other side of the river, the labor force of the Union was less than one-third, and compared with the Union of the North, less than half, which made them the lowest labor price in North America, although there were no important mineral resources, but the land resources were abundant, and the economy such as cotton and tobacco was growing. Although their industrial level was low before the war, they were not an agricultural country in the full sense of the word, and they still had a certain industrial base.

Later generations estimated that before the war, the annual industrial output value of the northern United States was about 1.5 billion US dollars, with 1.3 million workers, 22,000 miles of railroad network and abundant grain output, while the southern industry was weak, with an annual output value of only 15.5 million US dollars, only 110,000 workers, and only 9,000 miles of railroads.

Compared with the United States, the North is of course very poor, but the North was already one of the world's top industrial powers before the war, so it is not that the South is inferior, but that the opponent is too strong. With $15 million in industrial output, 110,000 industrial workers, and 9,000 miles (14,484 kilometers) of railroads, that's not bad. At least in the Americas, there are not many countries that do better than him, and the railway mileage of more than 10,000 kilometers is quite large in the world. Moreover, there are a large number of universities in the south, and the level of education is also closely related to the world's first-class level.

These conditions met the foundation of the industrial revolution, so five years later, their economy not only recovered, but also began to enter a stage of rapid growth, sugar, tobacco, cotton textile industry, railway industry, shipping industry, all-round development. Because of the low starting point, this sudden burst of growth was astonishing, and the bankruptcy of slavery was accompanied by a rapid march into the modern state.

There were also some that lagged behind, with the Caribbean states, Cuba, Puerto Rico, and Jamaica, still entrenched in slavery due to their isolation and the weak foundations of Spanish rule. After the relative economic development, it is difficult for the strong east wind of industrialization to blow here for a while.

It should be said that the capital of the industrialization of the Allied countries is mainly endogenous, and the vast majority of the capital is adjusted domestic capital, and although the influx of Chinese capital is large, it does not exceed one-third at the peak. Moreover, it concentrates on investment in plantations and cotton textiles, and its penetration into other industries is very low.

But even the domestic capital of the United States cannot do without the support of Chinese capital at this time, because Chinese financial capital has entered here. Before the war, Southern capitalists and plantation owners, mainly borrowing from bankers in New York and England, traded much of their cotton in New York, and exported mainly to Great Britain. But after the war, the British found alternative production areas elsewhere, and at the same time, British capital was more willing to invest in the north. This has led to a gradual shift in southern cotton exports to China, mainly in North America, to be precise, and more Indian cotton imports in China.

Economically disconnected from the North and Great Britain, and politically, the Confederates were extremely repulsive from the North, with the capital of the New York banking sector re-entering the South, and even the Confederate government supporting a large number of plantation owners in their country to pay off the debts of New York bankers. This led to the bankruptcy of many New York banks, as well as endless international lawsuits and political confrontations.

In this case, with the help of the entry of domestic agricultural and textile capital into the Allied States, China's financial capital also entered here, and nine of the ten major banks of the Allied States were Chinese banks. They not only provide deposit and loan services to Chinese investors, but also conduct business with capitalists in allied countries. Under the hegemony of gold, the Bank of China has the highest capital strength in the world, so their entry has also indirectly helped the allied countries stabilize the currency.

The South began to recover from a sound political system, a sound legal system, a free trade policy, a re-stabilization of finance, low labor prices, and a high degree of agricultural economy.

Although the north has stronger industrial strength, a large overall economy, and even the ability to restore the gold content of the dollar, the economic development of the north has not been good in recent years.

The first is the huge amount of internal and external debt, the bonds issued by Lincoln, which are larger than in history, up to $5 billion, and the heavy debt interest, which is difficult for the federal government to repay. Due to the defeat of the war, Lincoln's resignation made the federal power not strengthened, and barely maintained the status quo, still with the sale of public land and customs duties as the main fiscal revenue, and the new taxes such as personal income tax promoted by Lincoln during the war were abolished one after another in the opposition of the states.

On the one hand, in order to cope with the financial difficulties, and on the other hand, in order to protect the domestic industry, the Northern Union, which had been trying to push for higher tariffs, quickly and dramatically increased the tariffs, with an average rate of 40 percent, almost the highest tariff level in the world. It also resorted to the sale of public assets to make up for its finances, such as the sale of a large number of shipyards built during the war, the sale of a large amount of public land, and even the sale of a large fleet, and if it were not for the fact that it had to face a hostile Southern regime, the Northern Union might even completely dissolve the navy and army.

After the Civil War, under the protection of high tariffs, the northern industry did not get a good opportunity to develop, but fell into a long depression. In fact, the North Industry itself is not internationally competitive, mainly because of the impact of foreign industrial products, but because of the United States itself, because of the relatively large land and sparse population, a large influx of immigrants is for the sake of being able to obtain land cheaply, rather than intending to come to the United States to work as workers, so the number of American workers is not uniformly small. This is also the reason why American factories are generally large in scale and have a high degree of mechanization, which are forced by the scarcity of manpower.