Letter of Marque go way back before the Civil War. They were often used by young countries with no navy, which was exactly what the Confederacy was. The government would issue the letter to a private individual owners of armed ships which could then go to sea and raid enemy shipping.
They received no money from the government but were allowed to keep whatever they captured.
The US government used it in both the Revolutionary War and the War of 1812. It was considered so important that it was even included in the US Constitution.
From Wikipedia:
A Letter of Marque and Reprisal authorized a private ship to attack and capture enemy vessels and bring them before admiralty courts for condemnation and sale. This was considered an honorable calling, combining patriotism and profit.
The use of privateers goes back to the Middle Ages, but was renounced by many nations at the Congress of Paris in 1856.
A Privateer By Any Other Name Would Be a _______. --Old B-R'er
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