By 1860 there were an estimated 150,000 to 200,000 Jewish people in the United States, up from 15,000 in 1840. That dramatic rise was the result of poverty and discrimination in Germany and Central Europe, where Jewish people were often excluded from trade, prevented from marrying and subject to pogroms and other violence.
The United States offered the promise of economic and social freedom. But Jewish immigrants were not always welcomed into their new communities, especially in the North. New Jewish enclaves in American cities were viewed with suspicion by those who recognized neither their language nor their religion. Once the Civil War broke out, things got even worse.
In the North, popular newspapers disparaged Jews as secessionists and rebels and blamed them for destroying the national credit. And though some Jews occupied high-ranking roles within the Confederacy, anti-Semitism was widespread in the South as well.
Almost as soon as the war began, illegal trade and smuggling between North and South started. Though the Union blockaded Southern ports, goods still made their way over the border, and profiteers continued their trade illicitly, especially as the price of cotton rose due to the embargo. Not only did illicit trading flout Union rules, but it threatened the war effort itself.
“When cotton came from Confederate territory,” writes historian Ludwell H. Johnson, “there was always the danger that it would be paid for in supplies or munitions.” The black market was everywhere, and it frustrated both governments. And there was a seemingly perfect scapegoat: Jews, who had been stereotyped in the press as avaricious and opportunistic.
General Ulysses S. Grant, one of the Union Army’s most influential officials, was infuriated by the cotton smuggling that damaged the Union’s ability to squeeze the South economically. In his eyes, the perpetrators were all Jews. This wasn’t borne out by evidence—though Jewish people were active as peddlers, merchants and traders, and some undoubtedly made money speculating on cotton, they did not make up the bulk of the black marketeers.
In August 1862, as Grant was preparing the Union Army to take Vicksburg, he commanded his men to examine the baggage of all speculators, giving “special attention” to Jews. In November, he told his subordinates to refuse to let Jews receive permits to travel south of Jackson, Mississippi or travel southward on the railroad.
For Grant, prejudice against Jews mingled with personal animosity. He began his crackdown after discovering a Jewish family’s involvement in a scheme to help use his father’s name to get a legal cotton trading permit in Cincinnati.