I was unaware of this, but Charles M. Robinson III brought this up in his book "Hurricane of Fire." He suggests that a third possible reason why the Union did not move to close Wilmington was that there was money to be made by illegal trade with the South by certain elements in the North.
He says that this situation has long been established (I never heard of it, but don't doubt it). One blockade-running captain even said that some of the ships were actually fitted out in New York City. There was also trade through neutral countries.
The American counsel in Nassau was aware that American goods there were destined for the Confederacy. The consul in Liverpool complained that beef from Cleveland and pork from Cincinnati were landed there for transshipment to Bermuda and into the South.
Stuff I Didn't Know. --Old B-Runner
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