Smuggler Nation

1. America's founding and development were shaped by smuggling

Smuggling, it turns out, has been as much about building up the American state as about subverting it.

Colonial smuggling. The American colonies thrived on illicit trade, particularly smuggling molasses from the West Indies to supply New England rum distilleries. This trade defied British mercantilist policies and generated tensions that contributed to the American Revolution. Smuggling was not just about evading taxes, but about asserting economic independence and challenging imperial authority.

Early republic smuggling. After independence, smuggling continued to play a vital role in America's economic development. It helped the new nation acquire British industrial technologies and skilled workers, fueling early industrialization. Smuggling also facilitated westward expansion and the growth of the slave-based economy in the South. Throughout this period, efforts to regulate and police smuggling contributed to the growth of federal authority and bureaucracy.

2. Smuggling played a crucial role in the American Revolution

Smuggling and war fighting went hand in hand, from trading with the enemy in the War of 1812 to blockade running during the American Civil War.

Revolutionary smuggling. During the American Revolution, smugglers played a crucial role in supplying George Washington's troops with arms and gunpowder. Without these illicit supplies, the Continental Army may not have been able to sustain its fight against the British. Smugglers also served as privateers, disrupting British maritime trade.

Postwar smuggling. After independence, American merchants continued to engage in illicit trade, particularly with the British West Indies. This trade helped generate the profits needed to finance America's growing imports of British manufactured goods. The new federal government struggled to control this smuggling, highlighting the tensions between local commercial interests and national policy.

3. Illicit trade fueled America's early industrial revolution

Conveniently forgotten in today's intellectual property protection debates is that early U.S. leaders such as Alexander Hamilton enthusiastically encouraged intellectual piracy and technology smuggling during the country's initial industrialization process, especially in the textile industry.

Industrial espionage. America's early industrialization relied heavily on the illicit acquisition of British technologies and skilled workers. The most famous case was Samuel Slater, who memorized the designs of British textile machinery and recreated them in America. This "theft" of industrial secrets was actively encouraged by American leaders like Alexander Hamilton.

Patent system abuse. The early U.S. patent system was designed to facilitate this industrial espionage. It allowed Americans to patent "stolen" foreign inventions and use the courts to protect their claims. This system helped America rapidly catch up to Britain technologically, transforming from a primarily agricultural economy to an industrial powerhouse in just a few decades.

4. Westward expansion and slavery were enabled by smuggling

Commerce soaked in illicit alcohol went hand in hand with blood-soaked conquest, weakening native populations while enriching bootleggers and fur traders.

Frontier smuggling. Westward expansion was facilitated by smugglers who traded alcohol illegally with Native American tribes, often in exchange for furs. This illicit trade undermined Native American societies and helped pave the way for white settlement. Smugglers also played a key role in supplying frontier settlements and moving goods across poorly policed borders.

Slave smuggling. Even after the United States officially banned the importation of slaves in 1808, a significant illicit slave trade continued. This trade brought hundreds of thousands of enslaved Africans to America, particularly to the expanding cotton plantations of the Deep South. American merchants and ships played a major role in the international slave trade well into the 19th century, despite its illegality.

5. The Civil War was prolonged by blockade running and illicit trade

Smugglers contributed to this heavy human toll by arming Confederate forces and thus enabling the war to drag on much longer than would otherwise have been possible.

Blockade running. During the Civil War, blockade runners played a crucial role in sustaining the Confederacy by smuggling cotton out and bringing in vital supplies, including arms and ammunition. This illicit trade, often facilitated by British merchants and ships, helped prolong the war by keeping the Confederate economy and military supplied.

Trading with the enemy. Paradoxically, significant illicit trade also occurred between the North and South during the war. Northern merchants often prioritized profits over patriotism, supplying the Confederacy with goods in exchange for cotton. This "trading with the enemy" undermined the Union's economic warfare strategy and further prolonged the conflict.

6. Tariff evasion and vice trades shaped America's Gilded Age

Smuggling greatly contributed to America's increasingly consumer-oriented and fashion-conscious society in the Gilded Age, an era defined by conspicuous consumption of foreign styles and tastes, imported both licitly and illicitly.

Tariff evasion. In the late 19th century, high tariffs on imported goods created strong incentives for smuggling. Wealthy Americans routinely evaded duties on luxury goods purchased abroad, while commercial smugglers developed sophisticated schemes to undervalue or mislabel imported merchandise. This illicit trade shaped consumer culture and challenged the effectiveness of protectionist policies.

Vice trades. The late 19th century also saw the rise of new forms of smuggling related to "vice" products. This included the illicit importation of pornography, contraceptives, and drugs like opium. Efforts to suppress these trades led to the expansion of federal law enforcement powers and the criminalization of previously tolerated behaviors.

7. Prohibition created a booming illicit alcohol trade

Though America's failed Prohibition experiment was relatively short-lived, it left a long-lasting legacy.

Rumrunning boom. The prohibition of alcohol from 1920 to 1933 created a massive illicit trade in smuggled liquor. Bootleggers and rumrunners developed sophisticated smuggling networks, often with international connections. This trade enriched organized crime groups and corrupted law enforcement and politics on a grand scale.

Enforcement challenges. Prohibition highlighted the difficulties of enforcing unpopular laws and policing America's vast borders. It led to a significant expansion of federal law enforcement capabilities, including the creation of new agencies and the militarization of customs enforcement. These changes had lasting impacts on American governance and society long after Prohibition ended.

8. America's war on drugs transformed smuggling and law enforcement

Drug prohibition sharply accelerated and expanded the broader trend of using federal powers to police vice trades.

Escalating drug war. The criminalization of drugs in the early 20th century, beginning with the Harrison Narcotics Act of 1914, created a new and enduring form of smuggling. As drug prohibition intensified, especially from the 1970s onward, drug smuggling became increasingly sophisticated and profitable. This trade fueled the rise of powerful international criminal organizations.

Law enforcement expansion. The war on drugs led to a massive expansion of federal law enforcement and intelligence capabilities. It militarized the border, expanded surveillance powers, and dramatically increased incarceration rates. These changes had far-reaching impacts on American society, civil liberties, and international relations.

9. Smuggling has been a constant force in shaping American society and policy

Smuggling, in the context of the embargo and subsequent trade restrictions, also shaped American foreign policy by undermining economic coercion as a viable policy instrument.

Policy impacts. Throughout American history, smuggling has consistently challenged and shaped government policies. From colonial-era trade restrictions to modern drug prohibition, illicit trade has often undermined official policies and forced adaptations. The cat-and-mouse game between smugglers and law enforcement has been a driving force in the expansion of state power and the evolution of regulatory approaches.

Social and economic effects. Smuggling has played a significant role in shaping American society and economy. It has facilitated cultural exchange, driven technological innovation, and created alternative paths for social mobility. At the same time, it has fueled corruption, violence, and social problems. Understanding the history of smuggling provides crucial insights into the complex dynamics of American development and the unintended consequences of prohibition policies.

Last updated: October 7, 2024