I'm reading Niall Ferguson's The Ascent of Money and I had a question about the economic difference between printing money vs. selling bonds to foreign entities.
At one point in the book, the author says that much of Southern Civil War effort (in the United States) was funded by issuing Cotton-backed bonds. I.e the south issued bonds that could be converted to Cotton.
The author then points out that the turning point in the war was when the Union army captured New Orleans and setup a naval blockade, which prevented European investors from collecting their cotton.
This ruined the South's ability to sell bonds, and forced them to print money to pay for war expenses, which led runaway inflation.
My question is as follows: In this case, how is issuing bonds better than printing money? Wouldn't foreign bond purchases also lead to inflation, since there would be an influx of money into the south purchasing more goods? Why did the South even bother with issuing bonds, and why couldn't they just print money in the first place.