On October 19, 1864, a band of 21 Confederate soldiers under the command of Lieutenant Bennett H. Young carried out a daring raid on the northern border town of St. Albans, Vermont.
Operating from secret bases in neutral Canada, the raiders launched a simultaneous armed assault on three local banks, successfully plundering approximately $208,000 in greenbacks, local bank notes, and US currency. Their objective was to panic northern citizens, disrupt the Union war economy, and secure funds for the financially strapped Confederacy. However, the raid quickly devolved into a logistical and financial disaster upon their return across the Canadian border.
When Canadian authorities arrested Young and several raiders in Montreal, the Confederates discovered a fundamental flaw in their monetary strategy. Neutral Canada operated under strict banking laws that refused to convert looted foreign paper currency—particularly unstable US greenbacks and regional bank paper—into gold or British pound sterling without proof of legitimate ownership. Canadian courts impounded the funds, igniting an intense diplomatic feud between the United States, Britain, and Canada.
Far from funding the Southern war effort, the stolen currency remained locked in legal limbo, forcing Canadian authorities to eventually restore the funds to the Vermont banks to avoid war with the Union, while the raiders gained no usable capital for their cause.