http://www.slate.com/articles/news_and_politics/history/2012/03/ulysses_s_grant_and_general_orders_no_11_how_the_infamous_order_changed_the_lives_of_jews_in_america_.html
How a notorious anti-Semitic order changed the course of Jewish life in America—ultimately, for the better.
On Dec. 17, 1862, as the Civil War entered its second winter, Gen. Ulysses S. Grant issued the most notorious anti-Jewish official order in American history: “The Jews, as a class violating every regulation of trade established by the Treasury Department and also department orders, are hereby expelled from the department within twenty-four hours from the receipt of this order.” Known as General Orders No. 11, the document blamed Jews for the widespread smuggling and cotton speculation that affected the area under Grant’s command. That area, known as the “Department of the Tennessee,” stretched from northern Mississippi to Cairo, Ill., and from the Mississippi River to the Tennessee River. Grant ordered Jews expelled from every inch of it and warned that “any one returning … will be arrested and held in confinement until an opportunity occurs of sending them out as prisoners.” Lest anyone try to change his mind, Grant made clear that “no passes will be given these people to visit headquarters for the purpose of making personal application for trade permits.”
Americans today are often surprised to learn that Ulysses S. Grant once expelled “Jews as a class” from his war zone. It seems incredible that he could blame Jews for the sins of smugglers and traders—most of whom were not actually Jewish at all—and expel them from the entire territory under his command. Some Jews at the time wondered whether their new homeland was coming to resemble anti-Semitic Europe at its worst.
In the end, only a small number of Jews were seriously affected by General Orders No. 11. Within hours of its issuance, Confederate Gen. Nathan Bedford Forrest staged a daring raid that tore up rail and telegraph lines around Grant’s headquarters at Holly Springs, Miss. The resulting breakdown in communications meant that news of General Orders No. 11 spread slowly.