Bagdad was a small fishing village just south of the Rio Grande. During the Civil War, the US Navy blockaded southern ports and so confederate farmers from all over the south took loads of cotton across the Rio Grande to Matamoros and then to waiting ships at Bagdad. Ship masts stretched across the water as far as the eye could see.
Bagdad exploded into a frontier boom town, complete with saloons, gambling houses, and brothels. The towns population grew to over 20,000 people. A city of smugglers, blockade runners and other desperadoes, it was often compared to the Biblical cities of Sodom and Gomorrah and other well known sinful places. Bagdad began to decline after the war ended and in 1867, a hurricane completely wiped out all signs of the once booming town.
More information on Bagdad, Mexico
Bagdad-Matamoros, C. S. A.
Landing at Bagdad Mexico in 1864