Alabama was the name of an armed vessel of the Confederate States, which inflicted terrible injury upon the shipping of the Northern States of the American Union during the civil war. She was built by Messrs Laird & Sons at Birkenhead, and was a screw steam-sloop of 1040 tons register, built of wood, and for speed rather than strength. Captain Semmes, who was appointed commander, superintended her equipment, and was enjoined by the Confederate government to keep the destination of the vessel as secret as possible, and carefully to avoid any infringement of law which would give the British government a pretext for seizing her. The destination of 'No. 290,' as she was called, was so well concealed, that the vessel was nearly finished before it was suspected by the agents of the United States. It had heretofore been held lawful to build vessels (not being manifestly war-vessels) for a belligerent in neutral ports, and lawful to purchase guns and stores in neutral ports, though they might be for the equipment of vessels thus built. What had been held unlawful was the equipment with guns and warlike stores, of a vessel built for a belligerent in a neutral port previous to her leaving the neutral jurisdiction. Captain Semmes did not intend to equip his vessel at Birkenhead; but the United States minister called upon the British government to detain 'No. 290,' submitting some evidence that she was intended for a Confederate war-vessel. The British government consulted the crown lawyers, who at first thought the evidence of destination insufficient; but after some delay, an opinion favourable to the detention of the vessel was at length given. The English lawyers were of opinion that there had been no infringement of the law, but that a case had been presented which the British government was bound to submit to a court of law. It was too late: 'No. 290' was gone. The builders, aware of the danger of a seizure, had hastened their work, and the vessel, though unfinished, under pretence of a trial trip made her way down the Mersey to Moelfra Bay, where the work remaining to be done was soon finished. On the morning of the 31st July 1862, warning having been given that she was to be seized that day, 'No. 290' steamed away from the British coast and made for Terceira, one of the Azores, where she shipped her armament and stores, and by the 24th of August was ready for sea; and now Captain Semmes produced his commission to the sailors, named the vessel the Alabama, and hoisted the Confederate flag. The vessel made her first capture on the 5th of September. Within eleven days of that date, she captured and burned property the value of which exceeded her own cost.
Off the American coast, the Alabama gave battle to the United States gunboat Hatteras, an old vessel, and sunk her after a few broadsides. Her subsequent history consists of a monotonous succession of captures made in different seas, her prizes being merchant-vessels incapable of resistance, which were burned, as there was no port available for the disposal of her prizes, or, when there was convincing evidence of the neutral ownership of the cargo, which did not often happen, liberated upon bond. She captured in all 65 vessels; and the value of the property she destroyed was estimated at $4,000,000. It was, however, by the heavy insurance for war-risks to which she subjected the shipowners of the United States, and still more by the difficulty she caused them in getting freights, that the Alabama's career inflicted the greatest injury. After a cruise in the eastern seas, she entered, on the 11th of June 1864, the French port of Cherbourg to refit. Within a few days, the United States steamer Kearsarge, commanded by Captain Winslow, arrived at Cherbourg, and made a demonstration which the officers of the Alabama regarded and accepted as a challenge. The fight took place on Sunday, the 19th of June, outside the port of Cherbourg. Before the fight had lasted an hour, Captain Semmes found his ship was sinking, and gave orders to pull down his flag. See Admiral Semmes, Service Afloat (Lond. 1887).
The 'Alabama Question' was raised in the winter of 1862-63, when Mr Seward declared that the Union held itself entitled to demand full compensation for the damages inflicted on American property; and the divergence of view more than once threatened to issue in the gravest consequences to both nations. In 1871 a commission met at Washington; and by a treaty concluded there, provision was made for referring this claim to a tribunal composed of five arbitrators, of whom the Queen, the president of the United States, the king of Italy, the president of the Swiss Confederation, and the emperor of Brazil, were each to appoint one. The tribunal met at Geneva in December 1871, and by its final award Great Britain was ordered to pay a sum of £3,229,166; this sum covering also some responsibility for the depredations of the ships Florida and Shenandoah. The claim for indirect damage to American commerce was dropped. A court of commissioners was created by congress to adjudicate on 'Alabama claims.' It is understood that the claims established to the satisfaction of the court fell considerably short of the total sum awarded by the Geneva tribunal.