As one method to counter Union naval power, the Confederacy issued letters of marque to facilitate the use of privateers against northern shipping.

By October 24, 1861, a northern ship master had notified Secretary of the Navy Welles that both Beauregard and Dixie were at Charleston preparing for service as privateers.

[4] The U.S. Navy purchased the Beauregard from the prize court for $1,810 on February 24, 1862[2] and began fitting the schooner for service with the blockading squadrons.

Flag Officer McKean assigned Acting Master David Stearns to command the Beauregard[5] and the ship was commissioned on March 28, 1862.

[3] During the Beauregard's service with the Eastern Gulf squadron, she patrolled the coasts of Florida and was credited with capturing 11 blockade runners.