Because of a good harbor, Oyster Bay saw a rise in the ship trade in the early 18th century and Townsend's father Samuel owned a number of merchant vessels.

At the outbreak of the American Revolution Townsend was commanding the ship Glasgow, owned by Thomas Buchanan, which was berthed in London due to the cessation of trade between the two countries.

The ship's owner was reluctant to put the vessel at risk by leaving the harbor, effectively stranding the crew in London.

Franklin commissioned Townsend into the Continental Navy and helped him secure passage back to America on the Frigate USS Providence (1775) under the command of Commodore Abraham Whipple.

The family's home in Oyster Bay was at the time occupied by the British Army, (see Raynham Hall Museum).

In addition to Augusta Forge, he owned a producer of bar iron on the Peconic River near the town of Riverhead.