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S. Isaac, Campbell & Company facts for kids
S. Isaac, Campbell & Company was a company in London that first made boots for the British army. Later, during the American Civil War, it became one of the biggest suppliers of weapons and military goods to the Confederacy.
Before the war, the company had big contracts with the British military. But after a problem where they sold bad quality goods, they lost the right to work with the British government. The company then started supplying British volunteer groups. After that, they turned to the Confederacy, which desperately needed supplies. The Confederacy quickly became their biggest customer. Most of the Confederacy's weapon purchases in Britain were handled by Confederate Major Caleb Huse and Major James Bulloch. They were the main buyers and diplomats for the Confederacy. In the end, the huge amount of money the Confederacy owed to Isaac, Campbell & Company caused the company to go out of business.
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How the Company Started
In 1838, Samuel Isaac began as a merchant. He sold military uniforms, belts, and bags for soldiers and sailors. Soon, he opened a large store in Chatham, Kent. By 1845, he started S. Isaac, Campbell & Company. It was called "Samuel Isaac, Military Contractor & Tailor." The company made leather and clothing goods at 71 High Street in Chatham.
The company first became known for making boots. Then, it started selling other military supplies. By 1848, the company opened a second office in London. It was at 21 St. James Street. The company was now called "Isaac Samuel, Army Contractor." It grew fast by selling more military items.
In 1851, the company changed its name again to "Samuel Isaac & Company." One year later, it became "S. Isaac, Campbell & Company." The company worked in Chatham until mid-1861. Then, its main office moved to 71 Jermyn Street in London. This happened right after the American Civil War began.
The company grew quickly by getting big contracts from the British military. This included a contract to supply uniforms to the entire British Army in the East. In May 1858, the company got a large contract to supply boots to the British Army.
However, in June 1858, a problem came up. The company was accused of selling low-quality goods to the military. Because of this, the company was stopped from doing any more business with the British military. After losing such a big customer, the company started selling supplies to British Volunteer Corps. These groups did not have to meet the strict rules of the British Government.
The American Civil War and Supplies
When the American Civil War started, the Confederacy did not have many factories. They badly needed weapons and other military supplies. So, they looked to other countries, mostly England, to get them.
Just three days after Jefferson Davis became President of the Confederacy on February 18, 1861, he gave orders. He told Josiah Gorgas, who led the new Ordnance Bureau, to send Commander Raphael Semmes north. Semmes tried to buy weapons in the Union States, but it mostly failed. Gorgas also sent Major Caleb Huse to Europe. Huse was the main person buying and shipping weapons, ammunition, and other needed supplies for the Confederacy's war effort.
Buying for the Confederacy
Days after the attack on Fort Sumter, the Confederate Treasury Secretary, Christopher Memminger, contacted George Trenholm. Trenholm worked for John Fraser and Company in Liverpool, England. This company was also a bank that the Confederacy would soon use for many purchases. They had offered Major Huse £5,000 when he arrived.
The war started when the Confederacy's cotton supplies from 1860 and 1861 were gone. There was no way to get more cotton from the South. This situation quickly got the attention of Isaac, Campbell & Company and John Fraser and Company in Britain. Many other merchants and bankers in Europe also noticed.
Major Josiah Gorgas sent Captain Caleb Huse to England. Huse's general orders were to buy 12,000 Pattern 1853 Enfield rifles. He had no specific instructions on how to do it. His main job was to arrange large purchases of weapons and have them sent back to the Confederacy. He had a lot of power to make these decisions.
On May 10, 1861, Huse arrived in Liverpool. He went straight to London and stayed at Morley's, a popular hotel for Americans, at 58 Jermyn Street. This hotel was conveniently across the street from the new offices of S. Isaac, Campbell & Company.
Huse first contacted S. Isaac, Campbell & Company and the London Armoury Company. He was looking for Enfield rifles and similar weapons. As an officer and the main buyer for the Confederacy in England, Huse represented the Confederacy's War Department. He worked without any staff. He was under a lot of pressure to quickly get military goods. He also had to arrange for them to be shipped to neutral ports off the American coast. From there, the goods would be put on fast ships called blockade runners. These ships would try to get past the Union blockade into a Southern port.
At that time, there was a high demand for the good quality rifles made in Britain. Because of the war, the prices were higher. There was also a lot of competition from other buyers. When Huse arrived, he had little money compared to the Northern agents. They had also rushed to Britain to buy many weapons.
Huse got money from Fraser, Trenholm and Company. This allowed him to start looking for Enfield rifles right away. These rifles were as good as the Springfield rifle. However, the market was full of buyers, and there was a great demand for this popular rifle and for ammunition. Huse looked for help from companies like Sinclair, Hamilton and Company and S. Isaac, Campbell & Company. He did not know at the time that S. Isaac, Campbell & Company had recently been in trouble. They had been accused of over-charging the British military for low-quality goods during the Crimean War.
Jefferson Davis and Confederate Secretary of War Leroy Walker were worried about Huse's first reports. They also worried about his background from the North. So, they sent Major Edward C. Anderson to Liverpool. Anderson was to check on Huse's work. He had full power to take over or replace Huse if needed. Anderson arrived in Queenstown on June 22, 1861. He traveled to Liverpool to meet Huse and Bulloch. Walker quickly saw that both men were doing their jobs well and were loyal. He gave them all the help he could.
Weapon Suppliers
S. Isaac, Campbell & Company worked as agents. They connected Huse with weapon suppliers. They also arranged for money and credit through Trenholm. They charged a fee from both sides. S. Isaac, Campbell & Co. quickly became a very important supplier. They provided huge amounts of weapons, ammunition, and other military gear to the Confederacy. They also supplied much-needed leather, cloth, and uniforms. The company also arranged for shipping. They used specially built fast ships called blockade runners.
Huse relied on the company to help him quickly. He soon became the company's best customer. By February 1863, Huse had bought over a million pounds worth of supplies. S. Isaac, Campbell & Company arranged these purchases. This included £417,262 in small arms, £110,525 in uniforms and other clothing, and £54,973 in military accessories.
Union secret agents in Britain, like William M. Walker, U.S.N., noticed this activity. He reported it to his boss, Secretary of State, William H. Seward. Thanks to companies like S. Isaac, Campbell & Company, the Confederacy never ran out of weapons or tools for fighting during the war.
S. Isaac, Campbell & Company and Major Huse spent their own money for supplies. They quickly shipped these to the Confederacy. They expected to be paid back later. By the end of 1862, Huse had spent more than $5,000,000 on supplies. Between January 20 and March 7, 1862, $1,261,600 was sent to Major Caleb. Large amounts were sent before and after this time too. However, in November 1862, the Confederacy still owed S. Isaac, Campbell & Company $2,000,000.
Confederacy Ends Business with the Company
People became concerned when they found out that Huse had been working with S. Isaac, Campbell & Company. The company was secretly keeping two sets of books. One book showed the real price, and the other showed the price they told the Confederacy. When asked about this, the company said this was the only way to protect itself from losing money.
Even though Huse had a good record with the Confederacy, this situation put him in a difficult spot. An investigation was led by Colin J. McRae. He was the Confederacy's financial agent in Britain. The investigation cleared Huse of any wrongdoing. However, McRae ended all business between the Confederacy and S. Isaac, Campbell & Company. He believed the company was purposely overcharging the Confederacy and selling lower quality weapons.
The Company's End
Even though the Confederacy officially stopped working with the company by mid-1863, the Isaac brothers still sold various goods to the South in 1864. They used other people to sell items made by Isaac's factories.
When the Confederacy lost the war, the company quickly started to fail. They still had many unpaid debts from the South. They also had problems with the Erlanger loan. In April and May 1863, the Confederates sold £220,000 of cotton bonds. They sold them for about 91% of their value, bringing in £199,340. In late May, the Confederacy used £150,000 in Erlanger bonds. This was to pay off part of a debt owed to Caleb Huse and Saul Isaac, Campbell and Company. This company received the bonds at 90% of their value and canceled a debt of £135,000.
However, in July 1863, General Grant's victory and the surrender of Vicksburg happened. The Confederacy was cut off from the Mississippi River and its cotton farms. This caused the value of cotton investments to drop sharply. This event ruined the company. It damaged their money and their ability to get credit. Future business looked unlikely. The company was forced to declare bankruptcy in 1869. The Confederate States of America, which was the company's most important customer, ended up causing the Isaac firm to fail financially. By the end of the war, 60% of the cotton produced in the South during the war had gone to Britain.