William Gracey, alias Master Gracey or Captain Blood, was, according to a story the Ghost Host once told about his own life, the mortal identity of said Ghost Host, a human man who would later become a powerful ghost.
According to a story once told by the Ghost Host to a treasure-hunter, his mortal identity of Master Gracey was originally William Gracey, first mate of Randall Pace's merchant ship the Pomona. After a betrayal by his captain, Gracey beheaded him and took control of the ship, amassing a great fortune as the pirate Captain Blood. Eventually, he decided to cast his past behind and use his loot to retire in New Orleans, buying an old mansion and making it his own.
Soon, he fell in love with an innocent young woman, Emily De Claire, and got engaged with her, spurning the advances of Madame Leota, a medium whom he'd hired to help deal with the ghosts haunting his mansion, in the process. On the day that was to be his and Emily's wedding, a revengeful Leota summoned the ghosts of the pirates Gracey had betrayed and killed, who caused the death of his bride. Mad with grief, Gracey hanged himself from the rafters of his Mansion's cupola, becoming the Ghost Host.