A little History: The Moultrie flag was designed by Colonel William Moultrie by commission in 1775. The blue feild represents the color of the Militia's uniforms and the crescent is a Gorget, which was an emblem on on the Militia's caps.
On June 28th, 1776 the British sent a fleet of ships to take Charleston, SC. Col. Moultrie and a band of volunteers manned the incomplete fort on Sullivans Island, at the mouth of the Charleston harbor, to defend the city from attack. For ten hours the volunteers at the fort blasted away at the british ships, inflicting much damage and finally forcing them to withdraw back to New York. The fort was able to withstand the British attack because of its construction of native palmetto tree logs. The logs are far more elastic than regular wood, and absorbed the British barrage instead of splintering. The Fort was later named in honor of Colonel Moultrie, and the palmetto tree and Gorget became the inspiration for the South Carolina State flag. There are several versions of the Moultrie Flag. Some versions have the word Liberty at the bottom of the flag and some within the gorget in the upper left hand corner.