Each scenario has a set of objectives: Richmond, Washington but also Vicksburg for example. When you conquer these objectives, your morale will raise, and the enemy's one will fall.
[/font][font="]National Morale directly affects the cohesion of your units which impacts on how fast they move and how well they fight.
[/font][font="]How your economy output assets and currencies.
[/font][font="]How many conscripts will answer the call or how interesting are some Special Faction Options are tied to the Morale Level. Don’t expect to get many volunteers if your morale starts to fall.[/font]
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Last but not least, if your morale fall below a level, or if it goes above a level, you can instantly lose or win the scenario (or the campaign)! These levels can vary in the course of a scenario/Campaign what's more, eg before the 1864 Election, the Union is particularly vulnerable to a morale loss.

small shot showing Morale and Victory points (with an extended tooltip for whose wanting to know the rule without having to read the manual

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