From Funk and Wagnall's Standard Dictionary of Folklore, Mythology and Legend.
Jim Carroll

Pepper (1) An aromatic spice made from the berries of the pepper plant (genus Piper) coming originally from the Indian Archipelago. This was one of the earliest known spices and has continued a staple of commerce between India and Europe since earliest times. The ransom of Rome was paid partly in pepper. Its high price at Venice induced the Portuguese to explore the route around the Cape of Good Hope, and was responsible, among other things, for Columbus' voyage. The finest pepper comes from Malabar, and to secure the finest flavor it should be ground fresh at the table. Both black and white pepper come from the same source, the outer skin being removed for the white; this is said to remove much of its value.
In the 13th century pepper was a panacea for all the ills of mankind, from weak eyes to the plague. However, in 1563 Garcia da Orta was seriously doubting some of the uses to which it was being put, and of the Greeks he says, "All agree with one accord not to tell the truth." In Bavaria a paste of black pepper and sugar was used to fill the cavity in an aching tooth. For ague you are advised to swallow a whole peppercorn on each of seven successive mornings, preferably beginning the dosage before beginning to shake. A favorite general medicine was a pepper posset made of peppercorns boiled in whey. In Mexico and Texas, peppercorns are often placed in a wound suspected of being poisoned, as by arrows. In Texas a piece of cotton filled with black pepper is placed in the ear to cure earache. An excess of pepper is said to be aphrodisiac.
(2) The fruit of a plant of the nightshade family (genus Capsicum). This is the pepper from which red pepper, Cayenne, and paprika are made. For success in growing these peppers it is well either to plant them while in a rage, or to hire a red-headed person to do it for you. Strong red-pepper tea is good for a horse with a bellyache. In Texas and Mexico, eating plenty of chili peppers is good for ague, and swallowing whole, small, chili peppers like pills will cure a cold. Boiled pods mixed with buffalo tallow are good for burns. All manner of peppers are said to have strong aphrodisiac properties.