To fight an offensive war, the Confederacy purchased arms in Britain and converted British-built ships into
commerce raiders, which targeted
United States Merchant Marine ships in the Atlantic and Pacific oceans. The Confederacy smuggled 600,000 arms, enabling it to continue fighting for two more years. As insurance rates soared, American-flagged ships largely ceased traveling in international waters, though some were reflagged with European flags, which allowed them to continue operating. After the conclusion of the Civil War, the US government demanded Britain reimburse it for the damage caused by blockade runners and raiders outfitted in British ports. Britain paid the US $15million in 1871, which covered costs associated with commerce raiding but nothing more.