Civil War and Reconstruction in Alabama

by Walter L. Fleming

The legislation of the Confederate States was not so full, but the policy was about the same and more consistently enforced. In 1862 the Confederate Congress made it unlawful to sell in any part of the Confederate States in the possession of the enemy any cotton, tobacco, rice, sugar, molasses, or naval stores.[499] Licenses, however, for the sale of certain merchandise could be obtained from the Secretary of War. Trade through the lines was not under the supervision of Treasury officials but was looked after by the generals commanding the frontier. In 1864 a law of Congress prohibited the export of military and naval stores, and agricultural production, such as cotton and tobacco, except under regulations prescribed by the President.[500]

But the restrictions were not strictly enforced. It was not possible to do so; commerce would find a way in spite of the war. The people of Alabama were, on the whole, disposed to approve the policy of the Confederate authorities, but, when want and destitution came, the owners of cotton proceeded to find a way to sell a few bales. Early in 1863 north Alabama was occupied by the Federals, and trade began along the line of the Tennessee River. Later, there were trade lines to the northwest through Mississippi, and to the northeast through Georgia and Tennessee.[501] After the capture of New Orleans, cotton was sent through Mississippi to New Orleans, or to the banks of the Mississippi River, and always found purchasers. There was a thriving trade between Mobile and New Orleans during the Butler régime in the latter city.

By the trade through the lines, the people of Alabama secured more of the scarcer commodities than by the blockade-running. Much of the trade was carried on by firms in Mobile that had agents or branch houses in New Orleans. Three pounds of cotton were exchanged for one of bacon; army supplies, clothing, blankets, and medical stores were secured in exchange for cotton; salt was also a commodity much in demand. For three years, from 1862 to 1864, trade was quite brisk between the two cities, some of it under license by the Confederate Secretary of War, and some of it purely contraband. As long as Butler controlled New Orleans there was no trouble.[502] When General Canby went to New Orleans, he reported that English houses in Mobile were making contracts to export 200,000 bales of cotton via New Orleans, and expected to realize $10,000,000 net profits. Canby was of the opinion that the cotton trade aided the Confederates. The character of the Treasury agents in charge of the cotton trade was bad; they were likely to do anything for gain. He stated on the authority of a New Orleans banker, who was the agent of a cotton speculator, that Confederate agents would come to New Orleans with United States legal tender notes and invest in sterling with him, drawing against cotton which was ostensibly purchased from “loyal” or foreign citizens.[503] The speculators would give information to the Confederates with regard to the movements of the Federals, in order that the Confederates might preserve cotton that would in an emergency be destroyed. The speculators would buy the cotton later.

In 1864 a New York manufacturer testified that he had made contracts with firms in Selma, Montgomery, and Mobile to take pay for debts due him in cotton delivered through the lines at New Orleans. The price was $1.24 to $1.30 a pound in New York. Treasury agents made similar contracts for Alabama cotton to be delivered through New Orleans, Pensacola, or through the lines in Mississippi, Tennessee, and Georgia. One agent, H. A. Risley, made contracts with half a dozen persons for more than 350,000 bales of cotton, the bulk of which was to come from Alabama. Most of this, it is needless to say, was not delivered.[504]

The Confederate officials tried to manage that only government cotton went out under the licenses from the War Department and that only necessary supplies were imported in exchange. But there was much abuse of the privilege and much private smuggling of cotton in 1864, through the Mississippi to New Orleans and the river; and on September 22, 1864, General Dick Taylor (at Selma) annulled all cotton export contracts in the Department of Alabama, Mississippi, and East Louisiana. However, he said, the Confederate authorities would purchase necessaries imported and would pay for them in cotton at 50 cents a pound. This cotton could then be carried beyond the lines. No luxuries were to be imported, under penalty of confiscation.[505]

Surgeon Potts, of the Confederate army, stationed at Montgomery, secured medical supplies from the Federal lines in Louisiana and Mississippi, both by water and by land, sending cotton in exchange. One of the last reports made to President Davis was by Lieutenant-Colonel Brand, of Miles’s Louisiana Legion, who stated (April 9, 1865, at Danville, Virginia) that on March 21, 1865, a Mr. McKnight of the Alabama Reserves had presented a permit to General Hodges in Louisiana for indorsement and orders for a grant to escort 1,666,666⅔ pounds of cotton (about 4000 bales) through southwestern Mississippi and eastern Louisiana to exchange for medical supplies for Surgeon Potts. Brand was of the opinion that this was merely a scheme to sell cotton and not to get medicines, as he had known of only one wagon-load of medical supplies that had gone through his territory to Dr. Potts. McKnight had no government cotton to carry, for there was none in that section of the country, but he expected to buy it as a speculation. This practice, Brand stated, was common. Even government cotton would be sold for coffee, soap, flour, etc., under the name of medical supplies, and these would be sold by the speculators.[506]

In north Alabama a brisk trade was carried on for three years with the connivance of the Federal officers, many of whom were interested in the fleecy staple in spite of orders forbidding such conduct.[507] Negroes were given “free papers” in order that they might go in and out of the lines of the armies on contraband trade. The Confederate officials on the border were also often implicated in the traffic or connived at it through a desire to see poor people get supplies.[508]

One of the mildest charges against the Federal General O. M. Mitchel was that he had profited by speculation in the contraband trade in cotton while he was in command in north Alabama. It was alleged that he used United States transportation to haul cotton when the transportation was needed for other purposes. Mitchel claimed that personally he had received no profit from his trade; it appeared, however, that he had used his official position to advance the interests of his brother-in-law and his son-in-law. The discussion over his case brought out the fact that the northern cotton speculator or agent would go into the Confederate lines and buy cotton at ten and eleven cents a pound, Confederate currency, and take the cotton North and realize immense profits.[509] Mitchel and other Federal officers, it was shown, approved and assisted the trade beyond the lines.[510]

Individual permits were sometimes given by President Lincoln, authorizing the bearers to go within the Confederacy, without restriction, and get cotton and other southern produce. Sometimes, after bringing it out, these people lost their cotton to United States Treasury agents, because the permission given by the President was not in accordance with the Treasury regulations. In north Alabama several agents got into trouble in this way. Lincoln, it seems, understood that the laws gave him authority to issue permits to trade within the Confederate lines.[511]

In 1864, when cotton was selling at forty to fifty cents a pound in coin, numbers of Federal officers resigned in order to speculate in cotton. A former beef contractor who had grown rich in the cotton trade was said to have controlled almost the whole of Huntsville. Both hotels, the waterworks, and the gas works belonged to him, and there was complaint of his extortions.[512]