Due to the rise of industrialism, the north was mostly comprised by factories. In addition, white men in the north were literate at a higher rate than men in the South. Men in the north tended to be businessmen, scientists, etc (i.e. professionals as opposed to plantation owners/farmers like in the south). The south had a higher rate of illiteracy than the north, and was deeply influenced by an economy that depended on slavery and agriculture to thrive.
Answer:
The government raised about one-third of the money through taxes, including a progressive income tax. The rest of the money was through public borrowing by selling "Liberty Loan" and "Victory Loan" bonds.
