The economic situation in the South after the Civil War was dire. The destruction from the war left much of the infrastructure in ruins, with entire towns and cities, such as Columbia, Richmond, and Atlanta, having been leveled. This widespread devastation meant that former Confederate soldiers faced significant challenges in rebuilding their lives and livelihoods, as essential structures like homes, barns, and bridges were either destroyed or severely damaged.
Additionally, the South's transportation network was heavily affected, with two-thirds of the railroad tracks unusable, hampering the movement of goods and people. The financial repercussions were equally severe; with Confederate currency rendered worthless and debts owed to the Confederacy left unpaid, the economic landscape became unstable. Overall, the South's economic recovery was hindered by both physical destruction and financial instability.