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Josie,
In response to your question, the way that I understand it, is as follows...in the early years of America's growing pains, Louisianna was a French territory (ie: The French Quarter in New Orleans). Being one of the larger sea ports of the time, and until today, New Orleans was, and still is, a major business center for agricultural and financial interests.
During the days before the War of Northern Aggression, there was no "National" currency that we are all accustomed to today. Instead, hardly imaginable today, individual states (or countries, at that time in American history) each had their own currency. Even individual city, bank and large corporations, like the major railroads of the day, issued their own unique trading "currency".
As the region was predominantly French, all of the banking institutions and other entities issued their currencies, and their ten dollar bills were known as the "Dix"...French for "ten".
The "dixie" was apparently one of the most common and understood units of trade of the time, although the barter system was still strong where chickens, pelts and other items of value were traded for other types of goods.
Spreading up the Natchez Trace to Nashville, throughout and beyond to the Northeast, up the Mississippi River to Minnesota, West through the "Indian Territories" of Texas, New Mexico, Arizona, on toward California, and of course through the region of the "Louisiana Purchase" of the early 1800's (see the back side of today's Louisiana quarter) North and West to Montana and Canada, the "dixie" was the foundation of the ever growing standard currency.
During the day, most of America came to know that New Orleans, the Louisiana region and even the Southland in general was, in fact , the land of the..."dixie".
And there is more, but perhaps I shall pause.
-Spence