The great weaknesses of the Confederate States were lack of industry and lack of money. There were few factories that could produce the materials of war. Imports supplied necessities for a time, but the tightening blockade reduced this source year by year. With exports cut off, the Confederate government had to print paper money and bonds without gold or silver to back them. This money rapidly declined in value as the fortunes of the army waned, and toward the end of the war became almost worthless.

The principal asset of the Confederacy was its agriculture. Over most of its area a surplus of food was raised, but its distribution depended on vulnerable waterways and a network of railways that did not prove equal to the demands of war. Most river shipping was eventually captured and many railways were destroyed by Union troops. Late in the war, the Union adopted a deliberate policy of destroying food supplies. This policy, together with the blockade, eventually made it impossible for the Confederacy to carry on warfare.