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Thomas Jefferson and the Embargo Act

As the previous posts have shown, in the early years of the American nation, a significant and divisive issue concerned whether the nation would forge stronger ties with Britain, France or try to steer a course between the two global giants of the time. Washington had stressed the principle of neutrality, despite the fact that he had led his countrymen in a war against the British, with the aid of the French. But he also knew that trade with Britain was important for the economic health of the nation, and accordingly he signed the Jay Treaty with Britain, which gave each nation "most favored nation" stats with one another in matters of trade. John Adams followed the course plotted by Washington, but when France tried to retaliate against the United States on the high seas by seizing American ships trading with the British, Adams supported an undeclared "Quasi-War" with France. This was popular with some Americans, but not with everyone.

During the Presidency of George Washington, something happened that Washington had hoped would not. The nation divided into two factions or political parties. Treasury Secretary Alexander Hamilton led the Federalists, a group calling for a stronger central government, while Secretary of State Thomas Jefferson led the Democratic-Republicans, a group that wanted power to vest mainly in the states. Washington had warned, in his farewell address, about the dangers of "foreign entanglements", but the political factions saw benefits of forging an alliance with one of the two great European powers. The Federalists wanted to reestablish ties to Britain, while the Democratic-Republicans looked to France as the best potential ally.

Jefferson

Thomas Jefferson was elected president in 1800, and at the time there was strong anti-British sentiment over issues left unresolved by the Jay Treaty. British raids on American shipping were on the rise. The British would kidnap (or "impress") American seaman and force them into service for the Royal Navy. Britain wanted to maintain a strong Navy to protect itself from the growing power of France under the leadership of Napoleon Bonaparte. It was showing no signs that it wanted to improve relations with the United States. Jefferson realized that his fledgling nation lacked the military strength to go to war with Britain, especially a naval war. He saw economic warfare as his only weapon.

In 1806 Jefferson called for a boycott on British goods. On April 18, 1806, at his urging, Congress passed something called the Non-Importation Acts, but these bills were never proclaimed into force and the date for their implimentation was postponed. Later in 1806, Jefferson asked James Monroe and William Pinkney to negotiate with Great Britain hoping to end the harassment of American shipping. After months of negotiations, a treaty was finalized but it lacked any provisions to end the impressment of United States citizens.

The situation was aggravated with an incident known as the Chesapeake–Leopard Affair. On June 22, 1807, just off the coast of Norfolk, Virginia, the British warship HMS Leopard attacked and boarded the American frigate USS Chesapeake, looking for deserters from the Royal Navy. After a short battle the Chesapeake's commander James Barron surrendered his vessel to the British. Four crew members were removed from the American vessel and were tried for desertion, one of whom was subsequently hanged. American animosity against the British increased over this aggressive act on the part of the British so close to American soil.

Jefferson's supporters urged him to impose an immediate embargo on Britain so as to avoid national humiliation. On December 18th Jefferson pressed congress to pass the Embargo Act of 1807. Jefferson's Secretary of State James Madison supported the embargo even more strongly than Jefferson, but his Secretary of the Treasury Albert Gallatin was against the embargo because, as he correctly predicted, the embargo would hurt Americans more than it would hurt the British.

Gallatin was accurate in his prediction. The embargo was a financial disaster for the United States because although Americans could not export, many disregarded the law when it came to importing British goods, and enforcement was difficult. Jefferson received a great deal of criticism for the Embargo, from supporters and foes alike. The Embargo was hurting the United States more than it was hurting Britain or France. Britain was able to find a new South American market for its exports, and British shipowners were pleased that American competition had been removed by the action of the U.S. government.

Jefferson had previously argued frequently for as little government intervention as possible, but he now found himself supporting extreme intervention in an attempt to enforce his policy. The presidential election of 1808, in which James Madison defeated Charles Cotesworth Pinckney, showed that the Federalists were regaining strength. This helped to convince Jefferson and Madison that the Embargo would have to be removed. Shortly before leaving office, in March 1809, Jefferson signed the repeal of the failed Embargo Act.

In spite of its unpopular nature, the Embargo Act did have some limited, unintended benefits. Entrepreneurs and workers responded by bringing in fresh capital and labor into New England textile and other manufacturing industries, lessening America's reliance on the British merchants.

On March 1, 1809, at the beginning of the month that the new president was to be inaugurated, Congress passed the Non-Intercourse Act, a law that enabled the President to declare the country sufficiently safe and to allow foreign trade with certain nations. In 1810 the government was ready to try yet another tactic of economic coercion, in the desperate measure known as Macon's Bill Number 2. This bill became law on May 1, 1810, replacing the Non-Intercourse Act. Trade with both Britain and France was now thrown open, and the United States attempted to bargain with the two belligerents. If either power would remove her restrictions on American commerce, the United States would reapply non-intercourse against the power that had not so acted. Napoleon responded positively and Madison reinstated the embargo against Britain in the fall of 1810. Napoleon did not fulfill all of his promises however.

In June 1812 Britain finally promised to lift some of its sanctions against the United States. Unfortunately the British concession came too late. By the time the news reached America the United States had already declared the War of 1812 against Britain. America's declaration of war, in mid-June 1812, was followed shortly by the Enemy Trade Act of 1812 on July 6, which employed similar restrictions as previous legislation. It was also ineffective. After existing embargoes expired with the onset of war, the Embargo Act of 1813 was signed into law December 17, 1813. Four new restrictions were included: (1) An embargo prohibiting all American ships and goods from leaving port; (2) a ban on certain commodities customarily produced in Britain; (3) a ban against foreign ships trading in American ports unless 75% of the crew were citizens of the ship's flag; and (4) a ban on ransoming ships. The Embargo of 1813 was the nation's last great trade restriction. This act hurt the northeastern states, since the British kept a tighter blockade on the south, preventing trade there in any event.

On February 15, 1815, Madison signed the Enemy Trade Act of 1815. It was stronger than any previous trade restriction. But it would expire two weeks later when official word of peace from Ghent was received.

thomas-jefferson-statue

Historians generally concur that Jefferson's Embargo Act was ineffective and harmful to American interests. But Jefferson maintained that, had the embargo been respected, it would have avoided war in 1812.