St. Pierre and Miquelon: A Hidden Hub of Financial Crime During the Prohibition Era
A Lucrative Smuggling Operation
France’s smallest colony, St. Pierre and Miquelon, a group of tiny islands off the coast of Newfoundland, played a significant role in the illegal liquor trade during the 1920s and early 1930s. The territory’s strategic location, favorable French laws, and low import duties made it an attractive destination for bootleggers and suppliers.
Factors Contributing to Its Popularity
- Strategic Location: St. Pierre and Miquelon’s proximity to North America made it an ideal spot for smuggling liquor into the United States and Canada.
- Favorable French Laws: The French government had laws that were more lenient than those of other countries, making it easier for smugglers to operate in the territory.
- Low Import Duties: The low import duties charged by St. Pierre and Miquelon made it a more attractive destination for bootleggers compared to other offshore locations.
Notorious Figures Involved
St. Pierre and Miquelon attracted notorious figures such as:
- Al Capone: One of the most infamous American gangsters, who took advantage of the territory’s favorable laws.
- Bill McCoy, also known as “The Real McCoy”: A bootlegger who was famous for his high-quality whiskey.
Financial Benefits
The financial benefits of the liquor trade were substantial:
- Customs Revenue: The French government earned close to 20 million francs from customs alone, which was three times the operating budget of St. Pierre & Miquelon before Prohibition.
- Banking and Trade: A branch of the Canadian Bank of Imperial Commerce was established on the territory, and locals made a living by transporting alcohol along with bootleggers.
The End of an Era
However, the good times did not last. With the repeal of the Eighteenth Amendment in 1933, the demand for liquor dried up almost overnight, causing a massive depression that lasted for years to come. The territory’s economy has since diversified through tourism and oil and gas exploration, but it will never again experience the boom it had during those thirteen years.
Sources
- Anglin, Douglas G. The St. Pierre and Miquelon “Affaire” of 1941: A Study in Diplomacy in the North Atlantic Quadrangle. University of Toronto Press, 1966.
- Hunt, C.W. Booze, Boats & Billions: Smuggling Liquid Gold. McClelland & Stewart, 1988.
- Okrent, Daniel. Last Call: The Rise and Fall of Prohibition. Scribner, 2011.
- Schneider, Stephen. Iced: The Story of Organized Crime in Canada. John Wiley & Sons, 2009.