It was part of the total war concept. Grant's mission was to destroy the army, and stopping the prisoner exchange was a move that made it harder for the Confederate Army to replace their losses of men.
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North: General Ulysses S. Grant South: General Robert E. Lee
Yes, because nearly all the battles were in the South, and in the last stages, Sherman was waging 'total war' on civilians. However, after Grant ended prisoner-exchanges, the Union prisoners in Andersonville suffered extreme privations, worse than anything the Confederate prisoners experienced in Northern jails.
Ambrose Burnside led the raids that distracted Confederate troops, enabling General Grant to land his troops south of Vicksburg.
Grant's ending of the system of prisoner-exchange. It meant the Confederates were doomed to run out of men.