When the war ended Lincoln wanted it to be a time of healing and reuniting of the country. This is the sign of a true leader. The Civil War wasn't about slavery, it was about one or more states dictating how one or more other states should be. Remember it was the Northern States that started slavery. So to punish the Southern States would mean punishing innocent citizens of those states who were pushed into a war they didn't want but went to fight next to their brothers and neighbors. It became personal when their lands were invaded and courthouses were burned in an attempt to destroy the southern states.
States being able to issue their own paper money would lead to problems such as counterfeiting and people not being able to use money from a certain state in a different state.
