The nation may have been declared dry but Americans had no trouble finding other ways to slake their thirst. Lawmakers underestimated the spirit of innovation that Prohibition would inspire. For example, the Volstead Act contained exemptions that allowed for alcohol to be used for industrial purposes as well as for religious and medical use. Lawyer George Remus became rich exploiting this exception. Invoking a bit of creative foresight, Remus used his savings to purchase whiskey certificates, distilleries, and pharmacies so he could sell alcohol, under government license, for "medicinal" purposes. Remus was estimated to have made $40 million before he was caught.

Prohibition also created opportunities for fishermen and boat owners. The lengths of the Canadian and Mexican borders could not be adequately patrolled, and that tempted many fishermen who were experiencing hard times to transport illegal liquor into the United States. There...