Presidents and Economics: Thomas Jefferson and the Embargo Act
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. The two factions didn't just clash on the issue of where power should be held. They also clashed over foreign affairs. 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, whole the Democratic-Republicans looked to France as the best potential ally.
Thomas Jefferson was elected president in 1800, and at the time there was strong support for anti-British sentiments. British raids on American shipping were on the rise and the British would kidnap (or "impress") American seaman and force them into service for the Royal Navy. Britain 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, at his urging, Congress passed the Non-Importation Acts, but these bills were never proclaimed into force and the date for their implementation 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.
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 correct in his prediction. The embargo was a financial disaster because Americans could not export, but 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. Shortly before leaving office in March 1809, Jefferson signed the repeal of the Embargo. The government found it was impossible to prevent American vessels from trading with the Europeans once they left American ports. Jefferson continued to support the Embargo Act seeing it as an alternative to war and a way to keep the United States out of War with Britain. However, he also realized that the plan had practical flaws. He complained that traders and merchants showed a lack of self-sacrificing "republican virtue" by not complying with the embargo.
Historians generally concur that Jefferson's Embargo Act was ineffective and harmful to American interests. Jefferson maintained that, had the embargo been respected, it would have avoided war in 1812.
Thomas Jefferson was elected president in 1800, and at the time there was strong support for anti-British sentiments. British raids on American shipping were on the rise and the British would kidnap (or "impress") American seaman and force them into service for the Royal Navy. Britain 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, at his urging, Congress passed the Non-Importation Acts, but these bills were never proclaimed into force and the date for their implementation 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.
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 correct in his prediction. The embargo was a financial disaster because Americans could not export, but 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. Shortly before leaving office in March 1809, Jefferson signed the repeal of the Embargo. The government found it was impossible to prevent American vessels from trading with the Europeans once they left American ports. Jefferson continued to support the Embargo Act seeing it as an alternative to war and a way to keep the United States out of War with Britain. However, he also realized that the plan had practical flaws. He complained that traders and merchants showed a lack of self-sacrificing "republican virtue" by not complying with the embargo.
Historians generally concur that Jefferson's Embargo Act was ineffective and harmful to American interests. Jefferson maintained that, had the embargo been respected, it would have avoided war in 1812.