Circa1865

The Wilmington Journal editorialized on 25 September 1863 that: “It is a curious fact, for those who maintain the civil war in America is founded upon the slave question, that [John Newland Maffitt] should be the very man who has distinguished himself actively against the slave trade.”

Maffitt, born of Irish parents at sea on the Atlantic on 22 February 1819, was said to be “born to command a ship.” He was “cultivated and gentlemanly,” blessed with a magnetic personality, and his seagoing exploits during the war are legendary.

The slave ship Echo noted below was originally built and registered in Baltimore in 1845 as the Putnam, for the New York City merchants Everett and Brown. The latter sold the ship in 1857 to “New York slave traders.”

New York City at the time “proved to be an ideal port for launching illegal slave voyages at this time: it boasted an abundance of available vessels and seafarers, it was overseen by overstretched and often corrupt port officials, and it even offered a legitimate trade in West African palm oil that could serve as a legitimate cover for illegal human trafficking.”

The newly purchased Putnam was sent on its first slaving voyage in 1857, the first of fifteen to leave New York City docks in that year alone.

Emancipator and Confederate Naval Officer

“Maffitt had captured a beautiful clipper named Echo, originally from Baltimore. It had a crew of eighteen, several of whom were Americans. It carried – stowed in a false lower deck only forty-four inches high – some three hundred African slaves. They were separated by sex and almost entirely naked. Maffitt ordered [two officers with a prize crew] to sail the Echo to Charleston to be turned over to the US marshal for disposition in court.

From orders dated 11 June 1859, he learned his new command was to be the USS Crusader [to be used] again cruising for slavers. (His earlier capture of the Echo had touched off great interest in the enterprise and led to a series of captures by other US naval vessels).

[On May 23rd, 1860] off the northern coast of Cuba [Maffitt stopped and boarded a suspicious square-rigger flying a French flag]. At this moment, hundreds of blacks broke open the hatches and, with a great shout, swarmed on board. When they saw the American flag over the Crusader, they became frantic with joy. The men danced, shouted, and climbed into the rigging. The women’s behavior was quite different. Totally nude, and some with babies in their arms, they withdrew to sit upon the deck, silent tears of appreciation in their eyes.

The crew of the slaver . . . stated their ship had no name, but it subsequently was found to be the bark Bogota out of New York. The cargo master spoke English and “might be taken for a Yankee galvanized into a Frenchman or Spaniard, as circumstances might dictate.”

Maffitt escorted the Bogota to Key West. The blacks, between four and five hundred of them, had been on passage in the Bogota for forty-five days from Ouida, a slave trading base in the People’s Republic of Benin (Kingdom of Dahomey). They, like many others, had been prisoners of war sold by the king.

At Key West, the blacks joined others who had been recaptured by the navy. Buildings had been erected to house them at Whitehead Point. At the time, there were some fourteen hundred Africans in the complex awaiting government disposition.”

(High Seas Confederate: The Life and Times of John Newland Maffitt, Royce Shingleton, University of South Carolina Press, 1994, excerpts pp. 26-30)

William O. Stoddard of upstate New York was one of three personal secretaries utilized by Lincoln, joined by John Hay and John Nicolay. Stoddard had an adventurist personality and became one of the office-seeking multitude looking for appointment in Lincoln’s new Republican administration.

White House Insider Information

“Stoddard was high-spirited . . . “And almost every man who can discover means for doing so is gambling in stocks and gold.” This game is fascinating, he says, because of “the sudden and unaccountable jumps and falls of what are called its prices, meaning the price of greenbacks. They are rather the pulsations of the public hope and fear concerning the national credit.”

To put the case as simply as possible, the new greenbacks the government issued in 1862 were not backed by gold, but they were placed on par value with bonds that were. The Union had not coin enough to pay its bills . . . It was patriotic to hold greenbacks, but even the truest patriot had himself and his family to feed. So rumors of distant battle, another Union defeat or embarrassment, would set many citizens scrambling for gold and speculators selling paper money short – or buying it in the belief a Union victory would send it soaring again.

The speculation that year was running insanely wild in New York and other financial centers, and I formed the idea that it was almost true patriotism to be what is called a “bear” in gold. I therefore went in, a little at first and then deeper . . . I had not the least idea that there was anything wrong in it for a fellow in my position . . .”

Stoddard had noted, as he did every day, the price of gold, selling at $132 per ounce, and it would go even higher if [General Ambrose] Burnside failed in Virginia. He had his eye on the stock exchange, especially the gold and currency markets, where he hoped to make his fortune.

Rumors of Lee’s rapid advance [into Pennsylvania] spread panic in the mid-Atlantic cities from Baltimore to Harrisburg, Pennsylvania. The price of gold had been rising as the result of Union defeats; now the fear of a Confederate invasion spread to the financial markets as well. The price of gold was soaring, and Stoddard – the shrewd gambler – was “shorting” the metal and piling up greenbacks . . . [and] had made a killing in the gold market.  

“Does the President take any interest in Wall Street gambling operations?” Stoddard asked rhetorically in his memoirs. “Of course he does, for the currency is the life of his policies.”

Over dinner one evening, they were discussing precious metals. “What is the price of gold this morning? Is it up or down? Lincoln asked his secretary. “Up Mr. Lincoln. The street is wild.”

“Well now,” the president replied, “they don’t know everything. If I were a bear on Wall Street, and if I were short of gold, I’d keep short. It’s a good time to sell.”

New York financier Clinton Rice testified that he made Stoddard’s acquaintance in 1862, when he told Rice “he enjoyed superior facilities for obtaining in advance all information of a political, official and diplomatic character likely to affect gold, stocks and other commodities. I entered into an arrangement with him [Stoddard] to furnish me telegraphic cipher dispatches.” Rice would use the information to invest in stocks or gold, and divide profits with Stoddard “share and share alike.”

As soon as there was “any important action of the Cabinet, or on receipt by the President or heads of departments of any important military or naval . . . operation” or diplomatic development, the secretary would wire Rice at once in cipher and the financier would place his bets. [Stoddard referred] to the “hollow” Union victory at Bristoe Station three weeks earlier, and how much the press had exaggerated the importance of the event. “I think I could run a gold line here better than anywhere else . . .”

(Lincoln’s Men: The President and His Private Secretaries, Daniel Mark Epstein, HarperCollins, 2009, excerpts pp. 100; 133; 135; 152; 172-173)

Fielding their very first presidential candidate in 1856, the new Republican party was responsible for breaking up the 1789 federation of States only four years later – it was indeed the party of disunion. With conservative Southerners gone from Congress in 1861, the Republicans began dismantling the Founders’ republic and ushered in America’s “Gilded Age” and pursuit of empire. This new America would be “despotic at home and aggressive abroad” as Robert E. Lee famously remarked to Lord Acton shortly after the war ended.

A Party of Disunion and Thievery

“In the Plundering Generation, Ludwell H. Johnson summarized the real reasons for Lincoln’s violent opposition to the South’s independence: “Manufacturers feared the loss of American markets to a flood of cheap British goods pouring through a free-trade Confederacy; Northern shippers feared the loss of their monopoly of the coasting trade and their share of the transatlantic carrying trade; merchants feared the loss of the profits they garnered as middlemen between the South and Europe; creditors feared the loss of Southern debts; the Old Northwest feared the loss or curtailment of the Mississippi trade; the Republicans feared the disintegration of their party should it let the South go and bring upon the North all the consequences just mentioned.”

Lincoln waged war on the South, however, to achieve more than preservation of the status quo. War was the means to establish the North’s hegemony over the political and economic life of the United States. War offered Lincoln, his party, and Northern special interests a continental empire to exploit. And they did so with ruthless abandon. In the North, Lincoln’s Congress imposed excise taxes on virtually all items; raised the protective tariff to the highest level in the country’s history (under the Morrill Act of 1861); issued paper currency (Legal Tender Act of 1862); awarded Northern railroad companies government loans and extensive land grants (Pacific Railway Act of 1862); unilaterally repealed Indian land claims; promoted settlement of western lands by Northerners (Homestead Act of 1862); effectively “nationalized” the country’s financial institutions (National Banking Acts of 1863 and 1864); and furnished Northern business with cheap labor (Contract Labor Law of 1864).

In the South, Congress authorized the theft of tens, if not hundreds of millions of dollars, worth of Southern property (Confiscation Acts of 1861 and 1862, Direct Tax Act of 1862, and Captured and Abandoned Property Act of 1863). The cotton, alone, that the North stole has been conservatively valued at $100 million.

This legalized robbery was in addition to the plundering by Lincoln’s Army. In December 1864, Sherman wrote: “I estimate the damage done to the State of Georgia . . . at $100,000,000; at least $20,000,000 which has inured to our advantage, and the remainder is simple waste and destruction.”

With Lincoln came the wholesale corruption of the political system. In 1864, Edward Bates, Lincoln’s attorney general, lamented that “the demoralizing effect of this civil war is plainly visible in every department of life. The abuse of official powers and thirst for dishonest gain are now so common as they cease to shock.”

(Lincoln and the Death of the Old Republic, Joseph E. Fallon, Chronicles, August 2002, excerpts pp. 44-45; www.chroniclesmagazine.org)

Captain John De Forest of the Twelfth Connecticut regiment was a veteran of Louisiana’s military occupation when it was hurried to Washington to defend it from General Jubal Early’s march up the Shenandoah. In his letters home De Forest wrote that army regulations did not provide Northern officers with rations or credit for obtaining them, thus he often went hungry when short of money. “In addition, he remarked bitterly to his brother in a letter, “many of the commissaries are scamps, who charge us a profit over and above the government price for the article. I have known the same article to vary in price the same day . . . I cannot help suspecting that some of the generals share with the commissaries in this kind of plunder.”

The Famed Veterans of the Army of Northern Virginia

“Halltown, Virginia, August 8, 1864:

A column of cavalry four or five miles long is in sight coming up the Potomac Valley. Possibly they have been hunting Mosby’s guerillas, who are said to be troubling our communications with Washington. Early with his main force is at Winchester seven miles southerly from us.

The Sixth Corps, one of the best in the Army of the Potomac, is lying near us. They seem to be badly demoralized by the severe service and the disastrous battles of the campaign in Virginia. Their guns are dirty; their camps are disorderly clutters of shelter tents; worst of all, the men are disrespectful to their officers. I heard a private say to a lieutenant: “I’ll slap your face if you say that again.”

“Looking for guns [Captain]?” Drawled a sergeant. “Well, if you find a clean gun in this camp, you claim it.” We hain’t had one in our brigade since Cold Harbor.” Their talk about the war and our immediate military future had a tone of depression which astonished me.

“But don’t you believe in Grant at all?” I finally asked.

“Yes, we believe in Grant,” replied the colonel. “But we believe a great deal more in Lee and in that Army of Northern Virginia.”

Near Charles Town, Virginia, August 21, 1864:

Thus far General Sheridan is cautious about fighting, perhaps because of instructions from high political authority. With the elections at hand, including the presidential, it would not do to have this army beaten and the North invaded. So, whenever Early is reinforced, Sheridan retreats to a strong position and waits to be attacked. It is to the enemy’s interest just now to take the offensive, but we doubt if Early has men enough to risk it.

Three points I noted with regard to our opponents, the famed veterans of “the Army of Northern Virginia.” They aimed better than our men; they covered themselves (in case of need) more carefully and effectively; they could move in a swarm, without much care for alignment and touch of elbows. In short, they fought more like redskins, or like hunters, than we. The result was that they lost fewer men, though they were inferior in numbers, and perhaps not half our number.”

(A Volunteer’s Adventures: A Union Captain’s Record of the Civil War, John William De Forest, Archon Books, 1970 (original 1946), excerpts pp. 165-166; 190)

Northern Colonel [later brevet Major General] Charles E. Hovey was born in Vermont, graduated from Dartmouth and studied law in Massachusetts. He moved to Illinois where he became superintendent of schools in Peoria, and helped in the organization of Illinois State University where a building is named in his honor. Hovey was buried in Arlington National Cemetery with full military honors. Hovey’s early exposure to New England abolitionism did not dissuade him from trading the black men within his lines back to their owners for cotton bales for personal profit.

Lincoln’s Army of Emancipation

“For years the Abolitionist politicians have been rocking the cradle of liberty, and singing the lullaby of freedom, and the idea of buying and selling of “human flesh” as “chattels” was most terribly shocking to them. The following, from a publication during the summer of 1863, will speak for itself.

The matter was hushed up because Gen. [Samuel R.] Curtis was a political General, but “when this cruel war is over” many facts blacker than the following will appear in the great record book of recorded facts:

“A commission is now in session at the West with Maj. Gen. [Irvin] McDowell at its head, investigating the conduct of Maj. Gen. Curtis and other Republican officials, in conducting their military operations so as to secure the largest amount of cotton possible for their own private benefit.

One of the richest revelations is in reference to the trading off of Negroes for cotton. The specification alleges that Negro slaves had been taken from the plantations upon the pretense of giving them freedom under the President’s “emancipation edict,” and thus used as a substitute for coin. It has been fully proven before the investigation court.

The officer charged with this lucrative speculation was Col. Hovey of Illinois, formerly the principal of the State Normal School at Bloomington. The following is the testimony upon the subject, “Brice Suffield being called and sworn, testified as follows:

“In due time [was brought] twenty-six bales of cotton [with the plantation overseer, and] After the cotton was delivered, the boatmen, by order of the captain, put on shore fifteen Negroes that had been used as [our] boat hands. After getting them ashore, they tied them after considerable struggling on the part of the Negroes . . . this was about the 24th of September [1863].

Q: After these fifteen Negroes were put ashore, did any other Negroes come back with you as deck hands in the service of the [US] boat?

A: No sir. These Negroes were taken on an expedition to the same place some weeks before from the same place.

Q: Under whose charge was that expedition?

A: Col. Hovey.”

It would crowd the dimensions of our volume to unreasonable proportions to continue this chapter to the full . . .”

(Logic of History: Five Hundred Political Texts, Being Concentrated Extracts of Abolitionism; Also, Results of Slavery Agitation and Emancipation; Together with Sundry Chapters on Despotism, Usurpations and Frauds. Stephen D. Carpenter, S.D. Carpenter, Publisher, 1864, excerpts pg. 263)

The suppressed fear in the North was that blacks would flock to their cities and work for lower wages than white laborers. This would have pleased Northern capital’s understanding of free labor as workers were paid wages, but were responsible for themselves, for food, housing and medical care, when not in the factory. Northern capitalists were assured by abolitionists that the new black farmers would have much disposable income with which to purchase products from Northern manufacturers. It should be kept in mind that after their plantation homes and crops were burned by Northern troops, the black family had no alternative but to follow the invader for scraps of food and menial work. Also, as black men were taken into the US Colored Troops organization, they served under white officers, while Southern units were integrated.

Fears of Negro Immigration

“History will record,” William Bickham wrote from the Peninsula, “the only friends of the Union found by this army in Eastern Virginia [were] Negro slaves.” So eager were the fugitives to do their bit, according to a New York Post correspondent in Louisiana, that when a thousand of them were asked, at one camp, if they would work their old plantations for pay, the show of hands was unanimous.

A good number of conservative orators were frightening laboring audiences [in the North] with the warning that the Negroes were all too willing to work. If set free, the argument ran, they would drift northward and crowd white men out of jobs.

An army correspondent of the Chicago Tribune stepped into the breach with the answer to that . . . [and] assured his readers that the Negroes “did not wish to remove to the cold frigid North. This climate is more genial, and here is their home. Only give them a fair remuneration for their labor, and strike off their shackles, and the good people of Illinois need not trouble themselves at the prospect of Negro immigration.

As a matter of fact, many [Northern] officers and men were genuinely opposed to releasing “contrabands” from camp on practical as well as political or sentimental grounds. Three war correspondents, sweating through the siege of Corinth, Mississippi, in mid-1862, had domestic arrangements typical of many members of the expedition.

They shared the services of Bob and Johnny, two black youths who blacked boots, pressed clothes, cooked, ran errands and more or less gentled their employers’ condition for monthly wages totaling six and twelve dollars.

Charles Coffin and Albert Richardson [of the Boston Journal], at the same locale, made joint use of a tent an “African factotum” who awoke them . . . each morning with a call of “Breakfast ready.” Newspapermen at Ben Butler’s headquarters [were under] the care of a black chef.”

(Reporters for the Union, Bernard Weisberger, Little, Brown and Company, 1953, excerpts pp. 242-244)

In truth, New England led the secession movement from Britain with its revolt against British Navigation Acts. In contrast, the Southern colonies were exporters and did well as British Americans, though they had formed a provincial identity of independence, or, “States’ Rights.” This of course preceded the Articles of Confederation and 1787 Constitution.

Regarding the counterrevolution of the 1860’s and its result, the author quoted below writes: “the revolution of the 1860’s ended up devastating New England almost as much as it did the South. What emerged in the late 19th century, as John Quincy’s grandson Henry described it, was a country ruled by speculators, stockjobbers and imperialists. Boston rule would have been infinitely preferable to rule by the set of gangsters who engineered the election of Grant, Arthur, McKinley, and Harding and their spiritual descendants who control both parties today.”

Lincoln’s Counterrevolution to the Revolution

“Lincoln did not initiate the political revolution that destroyed the American republic. The bandwagon was hurtling along in its course long before he leaped aboard and seized the reins. The effect of his presidency and of the war he either brought on deliberately or blundered into was to annul the American Revolution, which might be more accurately described as a counterrevolution. But if we are going to stick to conventional language, we can say that Mr. Lincoln’s project in national democracy as the counterrevolution to the revolution of 1776.

To understand why some Americans – and not just in the South – opposed the Lincolnian counterrevolution, we have to first understand why so many Americans had been willing to go to war in the 1770’s.

In Massachusetts, of course, one can find sound economic reasons. The British government was eager to find ways to make the colonies pay for the wars that had been undertaken on their behalf, and taxation and regulation of industry and commerce seemed to be – and indeed was – a solution that was both reasonable and just. New Englanders, feeling the pinch of mercantilist policies, were understandably annoyed, and when the insult of constitutional innovation (the suspension of charters and the so-called Intolerable Acts) was added to the injury inflicted on their economic life, they were ripe for revolution.

The planters and merchants of Charleston and the South Carolina Lowcountry, by contrast, were making out rather well within the [British] empire. In the 1770’s, Charelston was one of the wealthiest and by far the most civilized city in North America. By the outbreak of the Revolution, Charleston merchants and Lowcountry planters formed an American aristocracy.

While most historians and political ideologues have claimed, over and over, that the American rebels were devotees of John Locke’s theory of natural rights and the social contract, there is very little evidence of this. Every important statement and virtually all the little manifestos of church parishes and small townships stake their claim on the Common Law rights of Englishmen.

A key word was equality, not of all human beings, but the equality of Americans in possessing the rights of the English. Patrick Henry put it succinctly: The colonists are entitled “to all the liberties, privileges, franchises that have at any time been held, enjoyed, and possessed by the people of Great Britain.” Provincials resented the fact that Parliament denied them the benefits of several significant statutes, such as the Habeas Corpus Act, the Act of Settlement, and the Bill of Rights.”

(Why They Fought, Thomas Fleming, Chronicles, April 2015, excerpts pp. 8-9) www.chroniclesmagazine.org

In his “Lords of the Loom” study of the years preceding the war, author Thomas H. O’Conner asserts that “Throughout much of traditional historical literature, the conservative Northern Whigs in the decades before the Civil War have either been completely overlooked, or else dismissed out of hand with vague generalizations.” He further credits fellow author Vernon Parrington with cautioning his readers that “the Puritan and the Yankee were two halves of the New England whole.” Conner’s book is the story of what happened “when the Puritan conscience collided head-on with the Yankee zeal for profit – when the moral desire to uproot the evils of slavery reached the point where it had to be weighed against the economic demands for more slave-grown cotton” – for New England mills.

Bernhard Thuersam, www.Circa1865.org

Money Versus Morality Up North

“In 1941, Philip Foner, in his “Business and Slavery,” made an appeal for a more detailed study of the Northern businessman and his reaction to the coming of the Civil War. Countering the popular interpretation that the war was a product of two conflicting economic systems, Professor Foner presented his own observations regarding the concerted efforts of the New York financial interests to check any and all movements which tended to precipitate an intersectional struggle.

Foner’s challenge has failed to arouse very much historical enthusiasm, apparently, for many recent historical treatments of the critical years before the Civil War continue to generalize upon the essential economic antagonisms of the North and the South, and still look upon the Northern industrialist as the catalytic agent which propelled the sections into bloody warfare.

One of the most distinctive presentations of this economic point of view came into the twentieth century with the writings of Charles Beard. The South, according to Beard, was an area of “planters operating in a limited territory with incompetent labor on soil of diminishing fertility,” in contrast to the industrial men of the North who “swept forward . . . exulting in the approaching triumph of machine industry, [and who] warned the planters of their ultimate subjection.”

The economic interpretation was carried into the twenties by the work of Vernon Parrington . . . enthusiastic about the “agrarian democracy” of the West, sympathetic at times toward the interest of the South, Parrington had little regard for the ideals of a middle class which was busily engaged in “creating a plutocracy.” In the decades before the war, claimed Parrington, the major parties of the United States chose to follow the economic interests of “master groups, heedless of all humanitarian issues”; and once the war was over, the “slave economy could never again thwart the ambitions of the capitalist economy.”

[Despite considerable evidence to the contrary], Writers continue to generalize upon New England’s “hatred of Southerners and their institutions” and often describe this hatred so intense that New England would “do everything possible to destroy slavery.”

(Lords of the Loom: The Cotton Whigs and the Coming of the Civil War, Thomas H. O’Conner, Charles Scribner’s & Sons, 1968, excerpts pp. 1- 6)

The land seized, sold and leased in occupied South Carolina by the North’s Direct Tax Commission was dominated by Northern philanthropists and others who had acquired their wealth by exploiting free labor. They developed Northern support for the “Port Royal Experiment” by convincing manufacturers that successful black farmers would become ravenous purchasers of Yankee goods. In a June 15, 1864 letter to the Edward S. Philbrick mentioned below, Northern General Rufus Saxon wrote: “What chance has [the Negro] to get land out of the clutches of the human vulture, who care for him only as they can gorge themselves upon his flesh? If you had seen the hungry swarms gathered here at the land sales in February . . .”

Bernhard Thuersam, www.Circa1865.org

A Superior Race of Yankee Employers

“[In the occupied South Carolina’s Sea Islands], the first purchasers were principally the New England wing of the planter-missionaries [who] welcomed more favorable circumstances in which to prove their theory that free labor could grow more cotton, more cheaply, than slave labor. The largest buyer [of land] was Edward S. Philbrick, backed by wealthy Northern philanthropists . . .

Federal authorities were reluctant to lease or sell subdivided plantation tracts to the freedmen [though some] managed to purchase several thousand acres . . . but the acreage they acquired was always well below that purchased by Northern immigrants, and this result was intended by a majority of the tax commissioners.

The truth is, not many of the liberators had boundless faith in the freedmen’s capacity for “self-directed” labor so soon after their emancipation. When in January 1865 General William T. Sherman set aside a strip of land along the southeastern seaboard for the exclusive occupancy of the thousands of slaves who followed his army to the sea, the news was generally greeted in the North with lamentation and deep foreboding.

It was a great mistake in statesmanship, the New York Times said, for what the ex-slaves needed was not isolation and complete independence, but “all the advantages which the neighborhood of a superior race . . . would bring to them. And what they needed even more was the good example and friendly guidance such as Yankee employers could largely provide. Few doubted, after emancipation, that the freedmen had some promise, provided that Yankee paternalism was allowed full scope.

When the old masters talked of free labor, they really meant slave labor, “only hired, not bought.” And how could men whose habits and customs were shaped by the old order readily grasp the requirements of the new order? The case seemed plain to all who had eyes to see. If the freedmen were ever to be transformed into productive free laborers within the South, the New York Times argued with unintended irony, “it must be done by giving them new masters.”

(New Masters: Northern Planters During the Civil War and Reconstruction, Lawrence N. Powell, Yale University Press, 1980, excerpts, pp. 4-5)

With Lincoln’s approval, former Illinois Congressman William Kellogg advanced a cotton-trading scheme at Northern occupied Helena, Arkansas, which would reap millions for himself and provide slave-produced cotton for hungry Northern mills. Though Secretary of the Treasury Salmon Chase opposed the idea, Kellogg was later appointed chief justice of the Nebraska Territory in early 1865 for his patriotic efforts.

Bernhard Thuersam, www.Circa1865.org

Profiteering in Arkansas

“Upon occupying Helena, Arkansas, in mid-July 1862, Union General Samuel Curtis complained that his camp was “infested with Jews, secessionists and spies.” By issuing orders that restricted trade to a few people he could control under military law as sutlers, Curtis adopted a policy that made him vulnerable to charges of improper monopolization.

Shortly, a steady stream of rumored abuses percolated up to Chicago and the department headquarters for Curtis’s army at St. Louis. Illinois Senator Orville Browning’s diary records Chicago rumors that Curtis deposited $150,000 with a Chicago financier less than three months after occupying Helena. By October 1862, [an] officer said, Curtis had already seized several million dollars worth of [cotton] and “converted it to his own use.”

Later, Curtis wrote Lincoln directly to explain that the complaints originated out of envy from unsavory characters who were unworthy of trade privileges. Nonetheless, within a few months, the general was transferred to St. Louis to become the new department commander, and rumors of his possible fraud trailed along.

An investigating Treasury agent concluded that Helena’s trade “diverted soldiers to become agents and brokers of cotton buying [and had] thrown thousands of dollars into the hands of our enemies.” Corruption flourished at Helena, where the army had little to do during twelve months of idle occupation before invading central Arkansas in late summer of 1863.

Federal soldiers even purchased cotton from slaves with counterfeit Confederate money.

Lincoln’s military governor of Arkansas complained late in 1862 that the idle troops at Helena were principally engaged in profiting from cotton trade. They raided neighboring plantations to confiscate whatever cotton they could get. As an afterthought, they would often destroy the plantation homestead.

Helena’s steady occupation led to deplorable sanitary conditions, particularly among the freed slaves . . . [and] disease, malnutrition, and lack of clothes and shelter took a toll on the blacks who sought refuge in the town.

Before the end of 1862, the inland navy began to get involved. [Admiral David Dixon Porter’s] crews became covetous of cotton as a prize of war . . . [and] 50 percent of a captured cargo was subject to a reward for the crew of the ship making the capture. By the end of the war, Porter had become so aggressive at stealing cotton . . . [he was dubbed] “Thief of the Mississippi.”

His sailors would seize bales and stencil “C.S.A” on them, thereby falsely representing the cotton as property of the Confederate government and therefore subject to prize law.”

(Trading With the Enemy: The Covert Economy During the American Civil War, Philip Leigh, Westholme Publishing, 2014, excerpts pp. 65-66)