The Fanny was originally operated by the United States Army Quartermaster Corps. On August 3, 1861, while on the James River, balloonist John La Mountain made an ascent from the deck of the Fanny to observe Confederate positions, making the Fanny a balloon carrier.^[2] Previous water-launched balloon flights had taken place on barges.^[1] Fanny was armed with a 4.62-inch Sawyer rifle forward (Described as a "32-pounder", based on projectile weight, by Confederates after her capture) and with an 8-pounder rifled cannon (possibly another Sawyer design) aft, and was active against Confederate shore positions.^[3][4] It was also part of the Battle of Hatteras Inlet Batteries, the initial invasion of the North Carolina Outer Banks by the Union on August 28–29, 1861. At some later time Fanny was commanded by a Lieutenant Crosby and reported the capture of the blockade runner Mary Emma at the headwaters of the Manokin River in Maryland.^[2]

After the Federals captured Hatteras Inlet the Fanny was used to supply a Union army outpost at Chicamacomico, an Outer Banks settlement north of the Cape Hatteras Lighthouse. While at anchor there it was surprised by a Confederate gunboat squadron on 1 October 1861. This squadron consisted of the CSS Curlew, CSS Raleigh, and CSS Junaluska. The Curlew closed first while the other two gunboats circled around to cut off any escape attempt. After a brisk half-hour engagement the Fanny was run aground in Loggerhead Inlet and surrendered.^[5] A large quantity of commissary and quartermaster's stores was captured with the steamer. Also captured were members of Twentieth Indiana and the New York Zouaves. However, the Fanny's captain, J. H. Morrison, and his crew escaped, having essentially abandoned ship once the Confederate steamers approached. Refloated and taken into the Confederate States Navy, it was placed in command of Midshipman John Langhorne Tayloe, CSN, son of George Plater Tayloe of the Buena Vista estate in Roanoke, VA, and brother to George Edward, John William and Lomax, Tayloe, all officers in the Confederate States Army. Capt John L. Tayloe was later killed at the Battle of Hampton Roads.

Four days later the Fanny participated in a relatively large Confederate naval and army effort to 1) encircle and attack the Union encampment at Chicamacomico, 2) take and destroy the Cape Hatteras lighthouse, and 3) attempt to recapture the forts at Hatteras Inlet. The initial landing effort was successful, and the Union encampment at Chicamacomico was abandoned. However, the encirclement effort failed, and the Union troops were able to retreat back to the Hatteras Lighthouse. The next day Union reinforcements came up from Hatteras Inlet and chased the Confederate troops back to their transports. Both sides then retreated back to their base camps, the Union troops to Hatteras Inlet and the Confederate troops to Roanoke Island.

The Fanny spent the next four months patrolling Pamlico Sound, reconnoitering Hatteras Inlet, and towing supply schooners to Roanoke Island. On 7–8 February 1862 the Fanny engaged the Union invasion force in the battle of Roanoke Island. The Fanny eventually retreated to Elizabeth City with the other surviving members of its gunboat squadron when ammunition supplies ran low. On 10 February the Fanny and the other gunboats were attacked by Federal gunboats advancing from Roanoke Island. In the ensuing battle it was run aground and blown up by her captain who escaped with his crew to shore.^[5] Despite the damage, the Union was able to salvage the ship's main gun.^[3]

The 4.62-inch rifled gun from Fanny, called a "30-pounder Sawyer rifle", was preserved in the Washington Navy Yard, D.C. as of 2012.^[3][6] A Naval Historical Foundation web page notes that the weapon has an erroneous inscription stating that it was captured from the CSS Louisiana. The USS Louisiana was in the Elizabeth City battle, may have been involved in the pursuit and sinking of Fanny, and the recovery of the weapon.^[6]

• Christopher Olson, An Historical and Archaeological Investigation of the CSS Curlew; Masters Thesis, East Carolina University, Greenville, North Carolina,1997.
• John G. Barrett, The Civil War in North Carolina, UNC Press, North Carolina,1963.
• William Parker, Recollections of a Naval Officer, Naval Institute Press, 1985.
•   This article incorporates public domain material from websites or documents of the Naval History and Heritage Command. The entry may be found here
• The Free Dictionary Archived 2006-02-18 at the Wayback Machine
• US Centennial of Flight
• This article incorporates text from a publication now in the public domain: Wilson, J. G.; Fiske, J., eds. (1900). "Sawyer, Sylvanus" . Appletons' Cyclopædia of American Biography. New York: D. Appleton.