Countries in crisis

One of my countries had an earthquake and since then BOTH countries have taken a big hit economically. I tried building an army in my slave to take over another c3, but now I'm in a war that country can't win and I don't know how to get out of, I have already recalled one unit and disbanded it so I could unload the arms.
I know military is a big expense so I've been trying to unload excess in both countries, but I still seem to be hemorrhaging money! Since, I'm lvl 3 I can't get security counsel help to float me through the crisis.
Any help/advice would be super. My countries are Bumbletown and Strenhold.

A few things you could do:
Increase the Welfare, more CEOs will be attracted to your countries the higher the Welfare and the lower the Tax. You usually earn more from CEO Corps then from State Corps.
Increase the salaries in State corps to 300, this is considered as a good ratio of paying more for more production. This would also increase your Tax-Income.
And of course, as you allready mentioned, lower military costs in your second country.

Thanks Queenie! I'll get right on that.