Chapter III: Part 3

The legislature paid little attention to Governor Claiborne’s appeals for help in suppressing piracy and smuggling because too many of its members were profiting from the operations of the smugglers or were close friends of Jean and Pierre Laffite.

Honest merchants, competing at great disadvantage against those who bought their goods from the pirates’ stores, were the first to raise a clamor for Claiborne to do something to halt the smuggling. As a result of these demands, Customs Officer Walker Gilbert invaded the pirate country with a company of armed men. As they moved through the marshes south of New Orleans, they encountered Laffite convoying a shipload of contraband goods toward New Orleans. Gilbert and his men attacked the pirates and there was a brief, savage skirmish. Laffite and his group fled from the ship, leaving Gilbert in possession. But before Gilbert could reorganize his forces the pirates counterattacked. One of Gilbert’s men was badly wounded. The Federal officers were driven off. The pirates took over the ship and resumed their journey to New Orleans to sell their booty. It was this episode which caused Claiborne to issue his proclamation that stirred so much amusement.

Piracy and smuggling, after the turn of the century, had become profitable for two prime reasons. The first of these was the worsening relations between the United States and Great Britain, which brought about the embargo on shipping in 1807 and later the War of 1812. Any kind of merchandise was hard to come by and could be sold for a handsome profit. The second reason was the U.S. government’s efforts to outlaw the traffic in slaves.

With the passage of the embargo on slave trade in 1808, the price of Negro slaves in the United States skyrocketed. Slaves could be bought in Cuba for about $300 each and sold for three or four times that amount on the illegal markets in the United States. But then the pirates found it more profitable simply to bypass Cuba and waylay the slave ships at sea. They found a ready market for the slaves in the lower Mississippi Valley, where huge cotton and sugar plantations were being developed and where plantation owners were willing to bid against each other for this cheap labor.

The pirates found Barataria Bay near New Orleans an ideal place from which to operate. In this maze of canals, marshes, bayous and meandering waterways at the mouth of the Mississippi were many hiding places. In addition, the location furnished easy access to the markets of New Orleans.

The Baratarians had a loose organization headed by an Italian named Gamby. The outlaws were forever quarrelling among themselves and Gamby was not strong enough to control them, an internal weakness which was more serious for the pirates than the opposition of Governor Claiborne.

At this time (1810) Jean and Pierre Laffite were living in New Orleans with their younger brother, Antoine, whose name was never to figure in any of their piratical exploits of later years. The elder brothers, all reports agree, were striking-looking men with great personal charm and wit.

Pierre was of medium height, well-built, and handsome, although an illness had affected the muscles in the left side of his face and one of his eyes was slightly crossed. Jean stood 6 feet 2 inches tall, had blue eyes, and black hair. Like his brother, he was shrewd and fearless.

The brothers operated a blacksmith shop in the very heart of the city on St. Philips Street, not far from Bourbon Street. Even on the sultriest, hottest days of summer they kept the bellows blowing on the red-hot coals of the smithy fire. The anvil rang with the blows of their hammers beating lengths of iron into light, strong chains--chains to which slaves would be manacled before being brought to the auctions in the city.

Almost always there were groups of Baratarians lounging in the smithy, rough men with cutlasses at their waists and pistols stuck into their belts. They advised the Laffites on how they wished the chains to be made. And they also talked of their raids on English and Spanish ships, the booty they had brought to their hiding places in the swamps, and the wild parties they had after seizing a ship’s stores of rum, wines and liquors.

For years, the Laffites acted as the “fences” for the pirates, handling slaves as well as other merchandise. It can only be assumed they listened to the tales of adventure, excitement and stolen riches--and became envious of the wealth acquired with such ease by men who were not as intelligent as they. At any rate, Jean Laffite left the smithy regularly to make trips to the pirates’ hideout at Barataria, where he studied their operation.

After a time, Jean won the confidence of the ruffians to such a degree that he was invited to become their leader--despite the mumbling of Gamby. But this gentleman proved to be no problem whatever. He abdicated without a fight after he saw Laffite coldly shoot down one man who questioned his authority.

Laffite had exceptional executive abilities, along with a bold courage. Under his command the pirates of Barataria reached new heights in prosperity and arrogance. Men flocked from New Orleans to his pirate hideout to enlist their services. The stores of stolen goods sometimes were worth hundreds of thousands of dollars. Regular auctions were held on islands near New Orleans.

While he brought piracy to a new height in the Gulf, Laffite perhaps organized it too well. He made it so efficient that some historians believe he was responsible for its downfall sooner than otherwise might have been. This may well be true, because the pirates achieved such great power under Laffite that the government of the United States could not forever condone their brazen disregard of revenue laws, the slave trade embargo, and the authority of government.

At one period, Laffite had from 800 to 1,000 men under his command--an outlaw army which was equipped with the best artillery and huge stores of powder and ammunition. His artillerymen had no peers in any army in the world. His storehouses were filled with stolen merchandise. On one day 400 Negroes were sold during an auction--which meant a gross business of approximately $500,000 in slaves alone.

Laffite had his choice of the best wines of the Old World. He dined on silverplate. In New Orleans, he and Pierre were seen on the streets, in the coffee houses, and in the taverns in the company of many of the city’s leading businessmen, merchants and lawyers.

Jean Laffite did not like the name of pirate. He called himself a privateer. But in the New Orleans of that day his occupation did not bar him from the society of the leading citizens of the city.

In the summer of 1812, Capt. Andrew Hunter Holmes was sworn in as a Customs officer and led an expedition against Laffite and his men. Captain Holmes took a group of thirty or forty men in small boats and proceeded toward Barataria. But Jean Laffite was forewarned of the expedition by his brother Pierre. According to the records of the times Jean Laffite laughed uproariously when he learned that Holmes was heading for Barataria with such a small company. Laffite took his boats loaded with merchandise through devious waterways and avoided Holmes and his men rather than get involved in a skirmish which could end only in disaster for Holmes.

But Holmes was not to be outwitted so easily. In the fall, Holmes returned with a larger force, surprised Jean and Pierre Laffite with contraband merchandise and took them to New Orleans as prisoners. The brothers were released on bail and neither showed up for trial. Six writs of arrest were issued for Jean and Pierre but all were returned with the notation “Not found in New Orleans.” It seemed reasonable to assume that no one seriously wanted to find them.

The acceptance of piracy and smuggling as elements of legitimate trade in New Orleans was not so astonishing as it might seem because Louisiana commerce for many years prior to this time had been built on such a foundation. Smuggling to avoid tariffs and then selling at cheap prices, as one historian said, “had become a part of the habits of life there.” The people were satisfied for the most part because the smuggled goods were cheaper than they would have been had duties been paid. Merchants were satisfied because they were able to obtain scarce merchandise and make a good profit. Men such as Laffite were regarded as performing a necessary function for the community at no little personal risk--and only a minority attached any moral stigma to the trade.

The confidential and intimate relationship between the pirates and their customers reached its peak on New Year’s Day, 1814. Handbills were boldly scattered in public places and prominently displayed throughout New Orleans announcing that the brothers Laffite, on January 20, would offer at auction at “The Temple” a quantity of slaves and merchandise.

The Temple was a favorite market place for the Laffites. It was an ancient Indian mound of white shells where, legend had it, Indians of the area had gathered to give human sacrifices to appease their gods. The pirates had built a platform at the edge of the water, onto which they could unload their boats. There they spread their merchandise for all to see who came from New Orleans. Since it was easily accessible, there was never any lack of buyers when the auctioneer went to work.

Claiborne was infuriated by the distribution of handbills announcing the auction. The pirates were offering for sale 415 slaves in addition to a supply of “fine foreign merchandise.” Claiborne called in the U.S. Collector of Customs to discuss what could be done about this outrageous disregard of the laws of the United States. Both must have known that there was not much that could be done. Nevertheless the Collector ordered a small force to proceed to The Temple to “defeat the purpose of the law infractors.”

Jean Laffite and his companions attacked the Customs men, killing one man and wounding two others fatally. Nine of the officers were held as prisoners by the pirates while they proceeded with their auction as planned. It was reported that buyers came from many parts of Louisiana. They bought all the slaves that were put on the block. And the Laffites considered the auction a great success.

The Collector wrote to Governor Claiborne: “It is high time that the contrabandists, dispersed throughout the State, should be taught to respect our laws, and I hold it my duty to call on your excellency for a force adequate to the exigency of the case.”

Claiborne could have dispatched a state militia against the pirate gang, but he hesitated to do this because he already had had one embarrassing experience with the militia. He had ordered a company of troops to move against the Baratarians, but Jean Laffite had met this problem by the simple expedient of bribing the entire expeditionary force. It has been recorded that “the brave leaders of the Baratarians had spared their lives, loaded them with costly presents and had allowed them to return safely to New Orleans.”

Again Claiborne pleaded in a letter to the legislature for action, saying: “The evil requires a strong corrective. Force must be resorted to. These lawless men can alone be operated upon by their fears and the certainty of punishment. I have not been able to ascertain their numbers ... but they are represented to be from 300 to 500, perhaps more.... So numerous and bold are the followers of Laffite, and, I grieve to say it, such is the countenance afforded him by some of our citizens, to me unknown, that all efforts to apprehend this high offender have hitherto been baffled.” As is the history of many complaints to legislatures, the matter was referred to a committee, where it died quietly.

Failing again to get any action from the legislature, Claiborne resorted to another course. He arranged to have a grand jury, friendly to his views, chosen from the city’s merchants and bankers. Witnesses were called who, in the strictest secrecy, swore to knowledge of piratical acts by the Laffites and their men. Before the news of this grand jury’s meeting spread through the city, Pierre Laffite was arrested. He was taken to jail and bail was denied. Jean Laffite, when he heard of Pierre’s arrest, hurried secretly to the city to talk with friends about releasing his brother. But this time nothing could be done.

It was while Pierre was in jail, on September 3, 1814, that His Britannic Majesty’s brig _Sophie_ sailed into the narrow strait off the island of Grande Terre and dropped anchor. A small boat was lowered and two officers were rowed ashore by sailors. The British were met on the beach by a tall, dark-haired man whom they asked to lead them to Monsieur Laffite. Their guide led them across the beach onto the porch of a breeze-swept house. And then the guide turned and said, “Messieurs, I myself am Laffite.” The visitors were Captain Lockyer from the _Sophie_ and Captain McWilliams of the Royal Colonial Marines. They had brought a most unusual offer.

Laffite refused to discuss business until lunch had been served. They ate their lunch from silverplate. It was an excellent meal, the officers recalled, with fine wines and good conversation. When the meal was finished, the men lit cigars and then Laffite was ready to hear what they had to say. Captain Lockyer disclosed that he brought an offer from Admiral Sir William H. Percy, commanding the British squadron at Pensacola. In brief, the British were offering Laffite $30,000 if he would bring his ships, guns and men to the side of Britain in the war against the United States. Laffite asked them to leave the Admiral’s letters with him and to give him fifteen days in which to study the proposition. Then, he said, “I will be entirely at your disposal.”

But Jean Laffite, pirate and cutthroat though he was, had no intention of betraying the United States. He hastily wrote a letter to his friend Jean Blanque, in New Orleans. He enclosed the letters handed to him by the British, together with a personal message for Governor Claiborne. Laffite said in his letter to Blanque: “Our enemies exerted on my integrity a motive which few men would have resisted. They have represented to me a brother in irons, a brother who to me is very dear! of whom I can become the deliverer ... from your enlightenment will you aid me in a circumstance so grave.”

And then he enclosed this letter to be delivered to the Governor:

MonSieur:

... I offer to return to this State many citizens who perhaps have
lost to your eyes that sacred title. I offer ... their efforts for
the defense of the country.

This point of Louisiana that occupies great importance in the
present situation, I offer myself to defend it ... I am the lost
sheep who desires to return to the flock ... for you to see through
my faults such as they are....

In case, MonSieur Le Gouverneur, your reply should not be favorable
in my ardent wishes I declare to you that I leave immediately so
not to be held to have cooperated with an invasion.... This cannot
fail to take place, and puts me entirely on the judgment of my
conscience.

I have the honor to be, MonSieur Le Gouverneur,

_Laffite_.

Jean Laffite had put loyalty to the United States before profit in this time of peril. But even as Captain Lockyer conferred with Laffite, Claiborne was going forward with plans for a land-sea operation against the pirate stronghold.

After receiving Laffite’s letter, Claiborne called his military advisers into conference. These were Major General Jaques Villere, Commodore Patterson of the U.S. Navy, and Colonel Ross of the regular U.S. Army. The questions they discussed were whether the documents sent by Laffite were genuine and whether the governor should enter into correspondence with Laffite. Villere thought the documents genuine and that the Governor should reply immediately to the Laffite letter. However, Ross and Patterson voted against Villere. The majority favored an attack on the pirate stronghold.

Peculiarly enough, the morning after this meeting at the Governor’s mansion, newspapers carried notices that Pierre Laffite had mysteriously escaped from jail. A notice was posted offering $1,000 reward for his capture.

Eight days after Laffite wrote to Claiborne, the Ross-Patterson expedition set out for Barataria. Three barges were loaded with men and ammunition. It left the levee at New Orleans before dawn and drifted silently downstream with the current. Near the mouth of the river, the barges joined forces with Colonel Ross’ fleet of six gunboats and the schooner _Carolina_. The pirate hideout on the islands of Grande Terre and Grande Isle was sighted on the early morning of September 16.

There were indications at first that the Baratarians were going to resist. They began placing cannon into position and arming themselves. But then apparently they saw the American flag on the approaching ships. They broke ranks and ran. Without firing a shot, the expeditionary force captured the pirate fleet, guns, and stores of merchandise valued at more than $500,000.

When news of the attack on Barataria was received in New Orleans, there was much criticism of the expedition. And there was even more indignation when it was learned that the expedition was launched after Laffite had offered his services and those of his companions to the government in the defense of New Orleans against the expected attack by the British.

The British bribe offer to Laffite came as General Andrew Jackson arrived in New Orleans to arrange for the defense of the city. Claiborne sent copies of Laffite’s documents to Jackson on the chance that they were genuine and contained military information which would be important. Jackson made it quite clear he wanted no traffic with “this hellish banditti” and he rebuked Claiborne for having permitted Laffite and his men in the past to visit the city.

At last Jean Laffite made a secret trip to see Jackson himself. There is no record of what went on between the two men and what was said in that conference. It became known that Laffite offered to put in Jackson’s hands a supply of 750,000 pistol flints and some of the most skilled artillerymen in the world, including Laffite’s lieutenants, Dominique You and Beluche.

Jackson relented and accepted Laffite’s offer of help. The General made You and Beluche captains and they were given command of batteries on the right side of the American line.

On January 8, 1815, the decisive battle of New Orleans was fought. As dawn was breaking, Jackson visited the troops along the front lines and stopped at a battery where the Baratarians were making coffee in an old iron pot.

“That smells good,” Jackson said. “It’s better coffee than we get. Where did it come from? Did you smuggle it in?”

Dominique You grinned. “That may be,” he said, and he ordered a cup filled for the General. As Jackson sat on his horse sipping the strong, black coffee, he remarked to an aide, “I wish I had fifty such guns on this line, with five hundred devils such as those fellows behind them.”

The British advanced on the American positions to be mowed down by withering fire. At the height of the battle, Jackson again visited Dominique You’s battery to see how things were going.

“Ah, we do not make much damage,” You said.

“Why is that?” Jackson demanded.

“The powder!” You replied. “It is not good. The cannon balls, they fall short.”

Jackson said, “I’ll remedy that!” He ordered an aide to see to it that the Baratarians received the best ammunition possible. The General was heard to say later, “Were I ordered to storm the very gates of hell with Dominique You as my lieutenant, I would have no misgivings as to the outcome.”

Jean and Pierre Laffite acquitted themselves with honor in the battle for New Orleans. They and their men were given Presidential pardons, clearing the slate of past crimes, and for some time after the city was saved, they were great heroes. They were wined, dined, and cheered wherever they went.

Perhaps the brothers became bored with respectability. At any rate they drifted back into piracy. They pulled out of their old haunts and moved to Galveston to set up operations, and for several years they carried on business in the slave trade. In 1820, Jean Laffite boarded his favorite boat, _The Pride_, and sailed away into legend. There were stories that he died in Yucatan. Some claimed that he carried on his piracy in the Mediterranean. Still others said that he settled in France and lived to be an old man. All recorded history of Jean Laffite ended when he sailed from Galveston. Pierre Laffite was said to have lived in Louisiana to an old age and to have died a poor man.

The quality and the quantity of piracy subsided along with the fortunes of the brothers Laffite. But not smuggling. Smuggling was to continue to plague the Customs Service, and some of the smuggling would make the Laffites look like amateurs.

5

THE DARK YEARS

Slavery was the issue which exploded into the Civil War in 1861, but twenty-eight years before the first shot was fired on Fort Sumter, the nation was on the edge of open war over a dispute involving the Federal government’s right to force the collection of customs duties.

The spirit of revolt flamed high in South Carolina in 1832–1833. It was fed, too, by sympathy in Virginia and Georgia and other agricultural states which bitterly opposed the system of protective tariffs as being oppressive to the farm states.

Did the central government have the Constitutional right to force the collection of duties in a state which opposed such collections? No! said the “Nullifiers,” who favored striking down the Federal tariff laws. They insisted that any state had the right to withdraw from the Union if it so desired.

The Nullifiers gained control of the government of South Carolina and a call was issued for a convention to meet and abolish by formal state action the collection of duties. There also were loud demands from some state leaders for mobilization of South Carolina troops to oppose any Federal intervention. Customs officers, more sympathetic to the state of South Carolina than to the Union, refused to collect duties. This convention call was the aftermath of a previous convention at which a grim resolution was adopted saying in part: “The state looks to her sons to defend her in whatever form she may proclaim to _Resist_.”

The tariff collection issue became so divisive that reports reached President Jackson in August and September, 1832, that the loyalty of army officers in command of Federal troops at Charleston was suspect.

It was reported to Jackson that in event of Federal “aggression” against South Carolina to enforce tariff collection and oppose secession, these officers were ready to surrender their troops to the state rather than fight to protect the Charleston forts. These same reports said overtures had been made “perhaps not without success” to switch the allegiance of the naval officer in command at Charleston, in order to prevent a Federal blockade of the port.

Jackson advised his Secretary of State, Edward Livingston, that “the Union must be preserved, without blood if this be possible, but it must be preserved at all hazards and at any price.” He changed the garrison at Charleston and sent Maj. Gen. Winfield Scott to take over the command. He warned Secretary of War Lewis Cass that a surprise attack would be made on the Charleston forts by South Carolina militia and directed that such an attack must be “repelled with prompt and exemplary punishment.”

While taking these precautions, Jackson argued that if the doctrine of nullification of customs duties by the states were ever established, then every Federal law for raising revenue could be annulled by the states. He denied the right of secession, declaring that “to say that any state may at pleasure secede from the Union is to say that the United States is not a nation.”

The controversial tariff laws had been a national issue long before Jackson entered the White House in 1828. The major issue in the Presidential campaign of 1823–1824 revolved around tariffs and the use of Federal funds for such internal improvements as roads, harbors, and like projects. The leading candidates for the Presidency that year were John C. Calhoun of South Carolina, Henry Clay of Kentucky, John Q. Adams of Massachusetts, William H. Crawford of Georgia, and finally, Andrew Jackson--with Jackson and Adams emerging as the showdown antagonists.

Adams won the election when Henry Clay threw his support to the New Englander. Under the leadership of Clay and Daniel Webster a high-duty system of tariffs was adopted, which was termed the “Act of Abominations” by its opponents.

When Jackson entered the White House in 1828 the tariff issue was still the most important and also the most divisive issue of the day. In January, 1830, Senator Robert Y. Hayne of South Carolina launched a strong attack in the Senate against the excessively high tariffs. The young Senator sought a coalition between the West and the South, the agricultural areas, to oppose the duties favored by the industrial states.

Hayne’s argument rested on the states’ rights questions which were to plague the nation for many years to come. Hayne contended that “no evil was more to be deprecated than the consolidation of this government.” He argued for the right of any state to set aside “oppressive” Federal legislation, including tariffs.

Daniel Webster picked up the argument against Hayne. He contended that “the Constitution is not the creature of the state government. The very chief end, the main design, for which the whole constitution was framed and adopted was to establish a government that should not ... depend on the state opinion and state discretion.” He said it was folly to support a doctrine of “liberty first and union afterwards,” and he spoke the famous line: “Liberty and union, now and forever, one and inseparable.”

By 1832, the South Carolina Nullifiers were openly led by Vice President Calhoun. The extremists were in control in South Carolina to push events toward the crisis which forced Jackson to rush back to Washington from Nashville. The state’s legislature proclaimed that any effort by Federal authorities to collect the duties after February 1, 1833, would cause South Carolina to secede from the Union.

When news of this proclamation reached Jackson, he ordered seven revenue cutters and a warship dispatched to Charleston. Maj. Gen. Winfield Scott set his men to work preparing harbor defenses against attack from the land. The situation was at the stage where only recklessness was needed to set off a conflict. At this time Jackson wrote a friend that “no state or states has the right to secede ... nullification therefore means insurrection and war; and other states have a right to put it down....”

Jackson issued a proclamation warning the citizens of South Carolina not to follow the Nullifiers, whose “object is disunion.” He warned that “disunion by armed force is treason” and that those who followed this path must suffer the “dreadful consequences.” The proclamation spread excitement throughout the country. Many men volunteered for military duty in case of a conflict. Several state legislatures met to denounce nullification. But in South Carolina Robert Y. Hayne--who had resigned from his Senate seat to become governor of the state--issued his own proclamation in which he vowed to maintain South Carolina’s sovereignty or else to perish “beneath its ruins.” Hayne called for the organization of “Mounted Minute Men,” which, he said, would permit him to place “2,500 of the elite of the whole state upon a given point in three or four days....”

The only concession held forth by Jackson in this cold war was his approval of a bill for introduction in the House which would call for a reduction of tariff rates. His willingness to go along with this measure did not eliminate the threat of a shooting conflict.

While holding an olive twig of compromise in one hand, Jackson held a sword in the other. He sent a request to Congress asking authority to use Federal troops if necessary to collect the customs. Even as the cheers and curses sounded over this move, Jackson sent a letter to Gerald R. Poinsett, a Unionist leader in South Carolina, outlining his plans to use strong measures to enforce Federal authority. No doubt he intended his letter to reach the hands of the Nullificationists. He said should Congress fail to act on his request for authority to use military force, and should South Carolina oppose with armed force the collection of the customs duties, then “I stand prepared to issue my proclamation warning them to disperse. Should they fail to comply I will ... in ten or fifteen days at fartherest have in Charleston ten to fifteen thousand well organized troops well equipped for the field, and twenty or thirty thousand more in their interior. I have a tender of volunteers from every state in the Union. I can if need be, which God forbid, march 200,000 men in forty days to quell any and every insurrection that might arise....”

Not only would he take these measures against South Carolina, Jackson added, but if the governor of Virginia should make any move to prevent Federal troops from moving through the state against South Carolina then “I would arrest him....” The President also was prepared to call on Pennsylvania, New York, Virginia, North Carolina, Ohio, Tennessee, Alabama, Georgia and South Carolina to furnish 35,000 troops to carry out his orders.

Jackson’s request of Congress for authority to use troops in forcing the collection of customs was immediately called the “Force Bill.” To the extremists it was known as the “Bloody Bill.” Vice President John Calhoun said darkly that if the bill should pass then “it will be resisted at every hazard, even that of death.”

It was at this point that the Great Compromiser, Henry Clay, moved to seek the solution which would avoid bloodshed and perhaps civil war. He introduced in the House his own bill to lower tariffs by 20 per cent over a period of ten years. The Clay bill was pushed through Congress along with the Jackson Force Bill and both were sent to the President for his signature. Jackson won his demand for authority to send troops to South Carolina to put down any move toward secession or nullification of the tariff laws, and he signed the compromise tariff bill even though it was, in a measure, appeasement of the Nullificationists. Clay’s tariff bill was a face-saving measure for South Carolina. The head-on conflict between Federal and state forces was averted--at least for the time being.

In Jackson’s administration there was one man whose name appears mostly in the footnotes of that turbulent period, but it is a name that deserves special mention in this chronicle. The man was Samuel Swartwout, Collector of Customs in New York City during Jackson’s two terms in the White House. He rates special mention and a shadowy niche in American history because he was the first and only man to steal a million dollars from the Treasury of the United States. In fact, he stole $1,250,000.

Swartwout was a young man when he plunged into New York politics. He was a dark-haired, personable man who made himself useful by running errands for the political bosses until he reached a position of backroom fixer and schemer with no small amount of influence. He was the bluff, hearty type who made friends easily. And while he never was a central figure in the making of history, he was one of those men whose names continually cropped up in the affairs of the men who did make history in his time.

Swartwout was a protege and confidante of Aaron Burr during the period of Burr’s shady adventure in the West when he was accused of treason in an alleged plot to establish an empire in the southwestern United States. And when Jackson’s star began to rise as a Presidential candidate, Swartwout attached himself to the cause of the Tennessean.

Many of Jackson’s friends and followers resented Swartwout’s close association with Jackson because they regarded him as a doubtful character smeared by the tar of the Burr affair. But when Jackson entered the White House in 1828, Swartwout was among the honored guests at the celebrations.

Jackson’s friends were concerned when it became known that the New Yorker had easy access to the office of the President and was seen coming and going as though he were one of Jackson’s intimate advisers--which he wasn’t. The concern became dismay when rumors spread that Swartwout had come to town seeking from Jackson the nomination as Collector of Customs for New York City, a post of no little prestige and political influence in those days. Jackson’s Secretary of State, Martin Van Buren, was so upset by the reports that he refused to admit Swartwout to his office or to enter into correspondence with him.

Jackson must have felt he owed a political debt to Swartwout because on April 25, 1829, during a recess of Congress, he handed the New Yorker the political plum he had been seeking. Swartwout continued in the office until March 29, 1838, with never any public suspicion that he was involved in thefts of money collected by the Customs House in New York. Only when the records were checked by his successor was the discovery made that his accounts were short by $1,250,000.

The scandal which followed broke like a storm over the young Customs Service. Demands were made in Congress for safeguards to prevent any such future looting of the Treasury. Enemies of Jackson attacked the “spoils system” of appointments and centered much of their assault on Customs.

As for Swartwout, he had foreseen the storm that was to come. He had bade his friends farewell and boarded a ship for Europe several weeks before the shortages in his accounts were discovered. He was in France, safely out of reach of the law, when the scandal broke--and he didn’t bother to return.

By 1849, the Customs Service spanned the continent. It reached the coast of California in the person of John Collier, who was appointed as the first Collector of Customs for San Francisco just as the state was clearing the way for entry into the Union. Collier reached San Francisco on November 13, 1849, after a perilous trip across the country. He arrived at the beginning of the gold rush to find the city and the customs situation in a state of disorganization and confusion.

Collier was overwhelmed by the amount of business being carried on in San Francisco, by the number of vessels arriving and leaving the harbor, by the smuggling which was going on, and by the high prices he found in the city. He advised Secretary of the Treasury W. M. Meredith in a long, rambling letter: “I am perfectly astounded at the amount of business in this office.... The amount of tonnage ... on the 10th instance in port, was 120,317 tons; of which 87,494 were American, and 32,823 were foreign. Number of vessels in the harbor on that day, 10th instance, 312, and the whole number of arrivals since the first of April, 697; of which 401 were American, and 296 foreign. This state of things, so unexpected, has greatly surprised me....”

He found that Customs clerks were being paid from $1800 to $3000 per annum but that the salaries were not particularly attractive in a city gripped by the get-rich-quick fever. Flour was selling for $40 per barrel and pork for $60. Board was $5 a day and a room with a single bed was $150 a month. Wood was $40 a cord and prices for other necessities were equally shocking to a man as obviously thrifty as Collier.

Collier moved into the Old Spanish Custom House to set up shop. It was a dark and gloomy building. The roof leaked. Some of the doors were off the hinges. There was no vault in which to place the money he collected. He confided to the Secretary that “owing to the rates for rents, I am afraid to lease a building. One for myself, containing four rooms, two below and two above, without fireplaces, was offered to me on yesterday at $2400 a month....”

He continued: “To enforce the revenue laws in this district, and to cut up and prevent smuggling, which has been and is now carried on to a great extent, it seems to be necessary that an additional cutter should be sent out or that the _Ewing_, now in this port, should be assigned to that duty.”

In a later letter to the Secretary, Collier wrote: “... San Francisco ... must become to the nation what New York is to the Atlantic.... It is impossible to estimate the extent to which her commerce may reach. It is now large and it will be constantly on the increase. These facts are stated for the double purpose of putting you in position of what may be anticipated from duties, and of impressing upon Congress the necessity of doing something--doing much for California, and that without delay. The responsibilities that rest upon the Collector, in the absence of any legal tribunal, any legal adviser, to which he might resort for redress or advice weigh heavily upon me.”

The troubles experienced by Collier and other early-day collectors along the borders of the growing nation were soon to be submerged in the conflict between the states. At the outbreak of the Civil War most Southern Customs officers simply resigned and accepted appointments to similar posts in the Confederate government.

President Lincoln ordered a blockade of the South on April 19, 1861. At that time the United States naval fleet consisted of only 42 ships carrying some 555 guns. Of this total many were tenders and store ships and among them were old fashioned sailing ships and frigates. For a time, business went on as usual in the Southern ports.

Many in the South laughed at the idea of a blockade. One Southerner in a letter from Charleston, South Carolina, printed in the New York _Illustrated News_ on June 15, 1861, said:

We are now in the enjoyment of a very pleasant spring, and are now
as quiet as a brood of chicks under the parent’s wing. For all
that, however, our head men are not asleep. Everything is going
nicely. You have heard, no doubt, old Abe has blockaded our port.

A nice blockade indeed. On the second day a British ship, the _A
& A_ ran the gauntlet and got in safe. She leaves in a few days
with a snug freight of $30,000. Today two vessels passed safely in,
both British, I understand. A captain told me that one of them can
carry more cotton than the _A & A_ and that she is engaged at 5¢ a
pound, which will give a freight of $35,000 to $40,000....

Under the guns of Admiral Farragut and the troops of General Butler, New Orleans remained securely in the hands of the Northern forces, shutting off this port to the Southern cause. After a short while Galveston fell to the Union and the flow of cotton and smuggled goods from this area was sharply reduced.

In England, the Liverpool firm represented by Thomas E. Taylor owned some fifteen ships which were engaged in blockade running. Among Taylor’s swiftest and most elusive runners was a steel vessel called the _Banshee_, one of the first--if not the first--ship built for the express purpose of evading the Union blockade for the Southern ports. Nassau, in the Bahamas, was the primary staging point where the blockade runners fueled and stocked for the run to the American coast.

The blockade had been underway for two years when Taylor brought the _Banshee_ into Nassau. Workers removed everything aloft except the two lower masts, and the ship was painted an off shade of white which the blockade runners had found made their ships almost invisible at night, even from a distance of only a few yards.

Moving cautiously out of Nassau, the _Banshee_ sailed along the Bahama shores and then began the run toward Charleston. From a crosstree in the masts, a lookout was rewarded with a dollar each time he sighted a sail on the horizon before it was seen from the deck. If someone on the deck spotted the sail first, then the lookout was fined five dollars. It was a system that encouraged alertness by the lookouts. As soon as a ship was sighted, the _Banshee_ turned its stern to the stranger and waited quietly until the vessel was out of sight.

On the fourth day the _Banshee_ reached the American coast some fifteen miles north of Cape Fear and the mouth of the Charleston River. When darkness came she began easing cautiously toward the blockading Union ships, running as close to the pounding surf as the skipper dared. No lights were permitted, not even the glow of a lighted cigar. Tarpaulins covered the engine-room hatchways. And the _Banshee_ was a gray ghost slipping silently through the water while the men aboard talked only in whispers. Occasionally the ship stopped for a seaman to take soundings.

Taylor later recalled one tense moment in these words: “... Suddenly Burruss (the pilot) gripped my arm--‘There is one of them, Mr. Taylor, on the starboard bow.’... A moment afterwards I could make out a long, low, black object on our starboard side, lying perfectly still. Would she see us? That was the question: but no, though we passed within a hundred yards of her, we were not discovered and I breathed again. ‘Steamer on the port bow,’ and another cruiser was made out close to us. Still unobserved, we crept quietly along, when all at once a third cruiser shaped herself out of the gloom straight ahead and steaming slowly across our bow.

“Burruss was now of the opinion that we must be inside the squadron and advocated making the land. So ‘ahead slow’ we went again, until the low-lying coast and the surf line became dimly visible.... It was a big relief when we suddenly heard Burruss saying, ‘It’s all right, I see the big hill!’...”

The Big Hill was near the Confederate-held Fort Fisher at the mouth of the Charleston River. As dawn came, the _Banshee_ was sighted by the Union blockaders and they moved against her with guns blazing. But then the _Banshee_ slipped under the protecting guns of Fort Fisher and safety.

The owners of the _Banshee_ made 700 per cent on their investment before the ship was captured on her ninth round trip between Nassau and Charleston.

The blockade runners, British and Confederate, supplied the armies of Gen. Robert E. Lee with desperately needed arms, clothing and food supplies in the early years of the war. For a time the blockade appeared impotent, while Southern privateers harassed the shipping of the North and captured much booty at sea.

While Lee was winning battles on the land, the Confederates could never gain mastery of the sea. The Union blockade could not be broken, and slowly the superior sea forces of the North strangled the commerce of the South, shutting off her armies from vital sources of supplies overseas.

Soon after the war began, it became evident to President Lincoln, to his Cabinet, and to members of Congress that the revenues collected by the Customs Service were not enough to finance the mounting costs of the massive conflict. The loss of tariff revenues in the Southern states, the South’s raids on the shipping of the North, and the breakdown of normal commerce had reduced Treasury receipts drastically. The President was forced to seek new sources of revenue.

In this emergency, the administration turned for the first time to an income tax. Congress passed a law imposing a tax of 3 per cent on incomes between $600 and $10,000, and a tax of 5 per cent on incomes above $10,000. Later, the taxes on those two income brackets were raised to 5 per cent and 10 per cent.

The income tax collected throughout the struggle--and until the law expired in 1872--helped carry the nation through its money crisis. Then the collection of duties by the Customs Service once more became the country’s primary source of revenue.

But during most of the war and for many years afterward, the venerable Customs Service’s cloak of respectability was at best a tattered and stained garment. It had become, particularly in New York City, the symbol of the political spoils system which had been encouraged by that partisan old fighter, Andrew Jackson.

The office of the Collector of Customs at the Port of New York had become a prize second only in political prestige and influence to a Cabinet appointment. The man receiving this office was in a position to dole out lucrative jobs to hundreds of the party faithful, to collect tribute for his party’s campaign chest, and to use his influence in shaping the affairs of his city, county and state. To a lesser degree, the same situation existed across the country.

Under such blatantly political management, it was hardly surprising that the Customs Service in New York should become the target of bitter charges of graft and corruption. The charges became so loud and persistent in 1863 that the administration ordered an investigation into the management of the New York Customs House.

A report from the Treasury’s solicitor said in part: “As to the accessibility of many of those employed in the Customhouse to corrupt influences, the evidence is conclusive and startling.... The statements herewith submitted seem to justify the belief that the entire body of subordinate officers, in and about the Customhouse, in one way or another, are in habitual receipt of emoluments from importers or their agents.... It is shown that a bond clerk, with a salary of $1,000 per annum, enters upon a term of eight years with nothing, and leaves it with a fortune of $30,000....”

Until Congress slammed the door on such practices in a reform move generated in the 1870s, Customs officers were legally permitted to receive half of any fines and forfeitures resulting from the seizure of imports which had been undervalued or underweighed by an importer, even though the methods of determining dutiable value were complicated and subject to dispute.

However, the law encouraged collectors, appraisers and inspectors to seek out discrepancies in values and weights and to give themselves the benefit of any doubt. In one case, the great Phelps, Dodge & Co., metal importers, was charged with an attempt to evade duties by undervaluing a shipment worth $1,750,000.

The company’s attorneys argued in vain that there had been no attempt to defraud the government; that if a mistake had been made it was an honest error, and that even with the benefit of a doubt, the most that the government could fairly claim in unpaid duties was $1,600.

With the entire shipment subject to forfeiture, the company finally agreed to settle for $271,017.23--50 per cent of which was divided among the Customs officers. Records of the time showed that one of the Customs officials who received an award of $56,120 was Chester A. Arthur, who later would become President of the United States.

Arthur was active for years in Republican politics in New York City, working his way up through the ranks until he became a member of the New York State Republican Executive Committee. He was rewarded for his labors in 1871 with an appointment as Collector of Customs in New York City.

Under Arthur, the Customs House became the center of such open and partisan political activity that it eventually led to conflict between Arthur and President Rutherford B. Hayes. Hayes championed a strong civil service with appointment of Federal employees on a basis of merit rather than political allegiance. The President asked Arthur to resign, and when he refused Hayes removed him from office in 1879.

But this Presidential rebuke by no means dimmed Arthur’s political star. Two years after his removal, he was elected Vice President of the United States, running with James A. Garfield. Garfield was fatally wounded by a disgruntled office-seeker, Charles J. Guiteau, only four months after his inauguration. He died on September 19, 1881, and Arthur took the oath as President. Ironically, once he was in the White House, Arthur became a supporter of a stronger civil service.

Reforms came slowly to the Customs Service in the years that followed the Civil War. But they came, spurred by the efforts of Hayes and then of President Grover Cleveland to establish a civil service and to break up a spoils system in which the “rascals” were thrown out of their jobs with every change in administration.

The demands for further Customs Service reforms were particularly loud in the early years of the twentieth century. One of these resulted in the formation in 1909 of the Customs Court of Appeals, to bring uniformity to the legal decisions governing the huge import trade and to speed up the hearing of Customs cases.

From the earliest days of the Republic, disputes over the appraising of imports had been carried to the U.S. Circuit Courts. The result was a continual conflict in judicial opinions which left importers and Customs officers confused. In 1908, the Secretary of the Treasury reported that the law had made “each of at least 120 judges a possible final judge of Customs appeals, a condition which experience has demonstrated will inevitably result in numerous irreconcilable conflicts of authority.”

In addition to the legal conflicts, the U.S. Circuit Courts had become jammed with Customs cases. It was not unusual for importers to have to wait almost five years to get a judicial settlement of their cases. But the creation of the Customs Court of Appeals by the 1909 Tariff Act removed most of the inequities and brought order out of the judicial chaos.

In this period, the reformers also centered their attention on the system which had permitted pork-barrel legislators to have their towns and cities designated as ports of entry with almost total disregard of the need for such services.

At Saco, Maine, the port’s receipts for fiscal 1910 amounted to $15, while expenses totalled $662--a cost of more than $41 to collect $1. At St. Mary’s, Georgia, the cost of collecting $1 in duties was more than $45. At Annapolis, Maryland, the government paid $309 to collect $3.09. And there were dozens of similar examples throughout the country. The major function of many ports of entry, it was evident, was to give jobs to the workers in the political vineyard.

Congressional investigators also found that the system of paying collectors, surveyors and other Customs officials was a fiscal nightmare--in which thirty-five different methods were used for compensating employees. For example, collectors along the Canadian border were permitted to charge ten cents for each entry blank they executed. Some of them were pocketing, legally, as much as $17,000 a year.

In 1912, Congress authorized the President to overhaul the Customs operation. The day before he stepped out of office, President William Howard Taft issued an executive order establishing 49 Customs districts to replace the existing 126 districts and 36 independent ports. Collectors were placed on a salary basis. Many of the political appointees were dropped from the government payroll.

It was during the early years in this century, too, that the Customs Service relinquished to the Internal Revenue Service its role as the prime collector of revenue in the Federal government.

This change was foreshadowed on December 19, 1907, when a tall, gangling Democratic Congressman from Tennessee arose from his seat in the House of Representatives in Washington, D. C., and called for the attention of Speaker Joe Cannon, the thin, wiry political leader who ruled the House with iron-fisted discipline.

“The gentleman from Tennessee is recognized,” the Speaker intoned dryly.

Then it was that Cordell Hull, a freshman Representative from the foothills of the Cumberland mountains, boldly introduced a bill calling for a Federal tax on all incomes. He long had felt that tariff duties bore too heavily on the consumers of the country and that the wealthy were not paying a fair share of the cost of their government.

Bold though it was, the Tennessean’s move created scarcely a ripple in the capital. The House droned on with its business. The newspapers hardly made mention of the bill or of the new Congressman. It was as though a rock had been tossed into a lonely mountain pool to sink rapidly from sight, leaving no trace after the first plop on the quiet surface.

But Cordell Hull’s action on that cold December day marked the beginning of a long and bitter fight which would end six years later with an amendment to the Constitution authorizing Congress to enact an income tax law. With the passage of this law, the Customs Service became a secondary producer of Federal revenue.

The reforms of these years, together with those which came in the Tariff Act of 1922, established Customs on its present base. It was a leaner and more efficient service which shouldered the increased burdens imposed by the outbreak of World War I.