Confederate extortion trapped this beautiful Maryland city in debt until 1951

General Early’s $200,000 Ransom of Frederick, Maryland

On July 9, 1864, Confederate General Jubal Early gave Frederick, Maryland an ugly choice: pay $200,000 or burn. His 15,000 troops held the town of 8,000 folks hostage while Mayor Cole and city leaders raced to find cash.

Five local banks scraped together the funds as time ran out.

Then, city officials lugged wicker baskets full of money to the Market House while rebel officers sipped champagne nearby. The debt hung over Frederick for nearly a century.

In fact, the town made its final payment in 1951, a whopping 87 years later.

The story of this Civil War ransom still echoes across the fields of Monocacy National Battlefield today.

Lee Sent “His Bad Old Man” on a Desperate Mission

Robert E. Lee took a huge gamble in summer 1864 when he sent Jubal Early with nearly 15,000 troops away from Richmond.

Lee called Early “my bad old man” and trusted him with an important job: clear Union forces from the Shenandoah Valley and threaten Washington D. C.

This bold move aimed to force Grant to pull troops away from Richmond and Petersburg.

Lee’s army was backed into a corner after Grant’s Overland Campaign, and this risky move might change the war when the South needed it most.

Confederates Crossed the Potomac with Revenge on Their Minds

Early’s march north started after he beat Union General David Hunter at Lynchburg on June 18, 1864. His army crossed the Potomac River at Shepherdstown on July 5-6 with about 15,000 men ready to fight.

They quickly got to work, forcing Hagerstown to pay $20,000 on July 6 before heading east toward Frederick through Middletown.

News of Confederate troops on northern soil spread fast, causing panic in Washington and Baltimore.

A Small Maryland City Found Itself Surrounded

Confederate horsemen rode into Frederick on July 7-8, pushing out Union fighters and taking over the city of 8,000 people. Early’s 15,000 soldiers completely surrounded the town, leaving it helpless.

Mayor William G. Cole and the Board of Aldermen faced a tough choice with no Union army to help them.

Local writer Jacob Engelbrecht wrote in his diary: “One day we are as usual and the next day in the hands of the enemy?

Pay Up or Burn Down: The Ultimatum That Shocked Frederick

General Jubal Early dropped his threat on the morning of July 9: pay $200,000 or watch Frederick burn “to ashes” by sunset. This amount was 25 times more than Frederick’s yearly tax income of just $8,000.

Early also wanted loads of supplies including sugar, salt, coffee, flour, and bacon. Mayor Cole tried to reason with him, saying such a huge debt “will bear most onerously upon the people of this place.

The Mayor Tried to Buy Time as a Battle Raged Nearby

Mayor Cole and the aldermen stalled as long as they could, hoping Union troops might win the Battle of Monocacy just three miles south of town.

City leaders pointed out that other Maryland towns got off much easier: Middletown was threatened for $5,000, while Hagerstown paid $20,000. The Confederates wouldn’t budge on their $200,000 demand.

By afternoon, Frederick’s leaders realized they had to pay or watch their homes burn.

Five Local Banks Stepped Up to Save Their City

Frederick’s five banks came through when it mattered most, pooling their money to save the city. Frederick Savings Institution put up $64,000, Central Bank gave $44,000, and Frederick County Bank added $33,000.

Franklin Savings gave $31,000 while Farmers & Mechanics Bank rounded out the total with $28,000. Bank workers rushed to gather all that cash as the Confederate deadline got closer.

Money Arrived in Wicker Baskets Just in Time

At 5:00 PM, nine hours after Early’s first demand, Frederick officials handed over $200,000 in wicker baskets. The payment happened at the old Market House, which served as Frederick’s City Hall.

The Shankle family from nearby Buckeystown even loaned their basket to carry part of the ransom money, according to family stories passed down through generations.

Major J. R. Braithwaite took the payment for the Confederate army.

Rebel Officers Celebrated with Champagne and Ice Cream

After getting their hands on the ransom money, Confederate leaders threw a small party with champagne and ice cream. The successful shakedown gave Early’s army much-needed funds to continue their march toward Washington.

Officers enjoyed these treats while their soldiers got ready for the final push to the Union capital. This $200,000 payment was one of the biggest amounts taken from any Northern city during the entire war.

The Delay at Frederick Helped Save Washington

Early’s army left Frederick and beat Union forces at the Battle of Monocacy on July 9, 1864. The one-day holdup caused by the ransom talks turned out to be crucial, giving Union backup time to reach Washington.

Early got to the outskirts of Washington on July 11-12 but found the capital’s defenses full of veteran troops. The failed attack on Washington forced Early to retreat back across the Potomac.

The City Struggled Under a Mountain of Debt

Frederick now faced the huge task of paying back $200,000 to the five local banks that saved the city. With yearly tax money of only $8,000, the city had to raise taxes a lot to handle this massive debt.

Interest made things worse, eventually pushing the total owed to over $600,000.

Starting in 1889, several bills went before Congress trying to get federal money to pay back Frederick, but they all failed.

The Final Payment Came 87 Years After the War

On September 29, 1951, Frederick made its last payment to the banks, ending 87 years of debt payments. The total amount paid, including all the interest, topped $600,000, three times the original ransom.

Senator Charles McC. Mathias spent decades trying to get federal reimbursement, asking for $4 million with interest.

Despite Frederick’s loyalty to the Union and sacrifice to save the city, Congress never approved the money.

Visiting Monocacy National Battlefield, Maryland

Monocacy National Battlefield at 4632 Araby Church Road in Frederick tells the story of the 1864 battle that led to Frederick’s famous ransom.

You can visit the 1,647-acre battlefield and visitor center for free, though it’s closed Tuesdays and Wednesdays. Take the 4-mile self-guided auto tour through Best Farm, Thomas Farm, and Worthington Farm.

The Worthington Farm Trail offers 1. 6 and 1. 9-mile loops to the historic ford crossing where Confederate forces once marched.

This article was created with AI assistance and human editing.

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