British Settlement
In 1770, a grant of the island was made to Captain William Owen (1737–1778) of the Royal Navy, who renamed it Campobello. The island's name was derived from Britain's Governor of Nova Scotia, Lord William Campbell, and was mixed with "bello" from the French, Spanish and Italian origins of the word "beautiful". The creation of the colony of New Brunswick in 1784 saw the island transferred to the new jurisdiction, and by the end of the 18th century the small island had a thriving community and economy, partly aided by Loyalist refugees fleeing the American Revolutionary War. Smuggling was a major part of the island's prosperity after the Revolution, a custom to which local officials largely turned a blind eye. During the War of 1812 the Royal Navy seized coastal lands of Maine as far south as the Penobscot River but returned them following the war, except for offshore islands. In 1817 the U.S. relinquished its claim to the Fundy Isles (Campobello, Deer, and Grand Manan islands), and the British returned islands in Cobscook Bay including Moose Island but notably did not return Machias Seal Island. By the mid-19th century, Campobello Island had a population in excess of 1,000. In 1910, 1,230 people lived there.
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—David Hume (1711–1776)