Embargo Act of 1807
The Embargo Act of 1807 was a general trade embargo on all foreign nations that was enacted by the United States Congress. As a successor or replacement law for the 1806 Non-importation Act and passed as the Napoleonic Wars continued, it represented an escalation of attempts to persuade Britain to stop any impressment of American sailors and to respect American sovereignty and neutrality but also attempted to pressure France and other nations in the pursuit of general diplomatic and economic leverage.
Long title
An Act laying an Embargo on all ships and vessels in the ports and harbors of the United States.
December 23, 1807
In the first decade of the 19th century, American shipping grew. During the Napoleonic Wars, rival nations Britain and France targeted neutral American shipping as a means of disrupting the trade of the other nation. American merchantmen who were trading with "enemy nations" were seized as contraband of war by European navies. The British Royal Navy had impressed American sailors who had either been British-born or previously served on British ships, even if they now claimed to be American citizens with American papers. Incidents such as the Chesapeake–Leopard affair outraged Americans.
Congress imposed the embargo in direct response to these events. President Thomas Jefferson acted with restraint, weighed public support for retaliation, and recognized that the United States was militarily far weaker than either Britain or France. He recommended that Congress respond with commercial warfare, a policy that appealed to Jefferson both for being experimental and for foreseeably harming his domestic political opponents more than his allies, whatever its effect on the European belligerents. The 10th Congress was controlled by his allies and agreed to the Act, which was signed into law on December 22, 1807.
In terms of diplomacy, the Embargo failed to improve the American diplomatic position, and sharply increased international political tensions. Both widespread evasion of the embargo and loopholes in the legislation reduced its impact on its targets. British commercial shipping, which already dominated global trade, was successfully adapting to Napoleon's Continental System by pursuing new markets, particularly in the restive Spanish and Portuguese colonies in South America. Thus, British merchants were well-positioned to grow at American expense when the embargo sharply reduced American trade activity.
The Act's prohibition on imports stimulated the growth of nascent US domestic industries across the board, particularly the textile industry, and marked the beginning of the manufacturing system in the United States, reducing the nation's dependence upon imported manufactured goods.[1]
Americans opposed to the Act launched bitter protests, particularly in New England commercial centers. Support for the declining Federalist Party, which intensely opposed Jefferson, temporarily rebounded and drove electoral gains in 1808 (Senate and House). In the waning days of Jefferson's presidency, the Non-Intercourse Act lifted all embargoes on American shipping except for cargos bound for British or French ports. Enacted on March 1, 1809, it exacerbated tensions with Britain and eventually led to the War of 1812.
Passed on December 22, 1807, the Act did the following:[7]
The shipping embargo was a cumulative addition to the Non-importation Act of 1806 (2 Stat. 379), which was a "Prohibition of the Importation of certain Goods and Merchandise from the Kingdom of Great Britain," the prohibited imported goods being defined where their chief value, which consists of leather, silk, hemp or flax, tin or brass, wool, glass, and paper goods, nails, hats, clothing, and beer.[8]
The Embargo Act of 1807 was codified at 2 Stat. 451 and formally titled "An Embargo laid on Ships and Vessels in the Ports and Harbours of the United States". The bill was drafted at the request of President Thomas Jefferson and was passed by the 10th Congress on December 22, 1807, during Session 1; Chapter 5. Congress initially acted to enforce a bill prohibiting only imports, but supplements to the bill eventually banned exports as well.
Case studies[edit]
A case study of Rhode Island shows the embargo to have devastated shipping-related industries, wrecked existing markets, and caused an increase in opposition to the Democratic–Republican Party. Smuggling was widely endorsed by the public, which viewed the embargo as a violation of its rights. Public outcry continued and helped the Federalists regain control of the state government in 1808–1809. The case is a rare example of American national foreign policy altering local patterns of political allegiance.
Despite its unpopular nature, the Embargo Act had some limited unintended benefits to the Northeast, especially by driving capital and labor into New England textile and other manufacturing industries, which lessened America's reliance on British trade.[12]
In Vermont, the embargo was doomed to failure on the Lake Champlain–Richeleiu River water route because of the state's dependence on a Canadian outlet for produce. At St. John, Lower Canada, £140,000 worth of goods smuggled by water were recorded there in 1808, a 31% increase over 1807. Shipments of ashes to make soap nearly doubled to £54,000, but those of lumber dropped by 23% to £11,200. Manufactured goods, which had expanded to £50,000 since Jay's Treaty in 1795, fell by over 20%, especially articles made near tidewater. Newspapers and manuscripts recorded more lake activity than usual, despite the theoretical reduction in shipping that should accompany an embargo. The smuggling was not restricted to water routes, as herds were readily driven across the uncontrollable land border. Southbound commerce gained two thirds overall, but furs dropped a third. Customs officials maintained a stance of vigorous enforcement throughout, and Gallatin's Enforcement Act (1809) was a party issue. Many Vermonters preferred the embargo's exciting game of revenuers versus smugglers, which brought high profits, versus mundane, low-profit normal trade.[13]
The New England merchants who evaded the embargo were imaginative, daring, and versatile in their violation of federal law. Gordinier (2001) examines how the merchants of New London, Connecticut, organized and managed the cargoes purchased and sold and the vessels that were used during the years before, during, and after the embargo. Trade routes and cargoes, both foreign and domestic, along with the vessel types, and the ways that their ownership and management were organized show the merchants of southeastern Connecticut evinced versatility in the face of crisis.[14]
Gordinier (2001) concludes that the versatile merchants sought alternative strategies for their commerce and, to a lesser extent, for their navigation. They tried extralegal activities, a reduction in the size of the foreign fleet, and the redocumentation of foreign trading vessels into domestic carriage. Most importantly, they sought new domestic trading partners and took advantage of the political power of Jedidiah Huntington, the Customs Collector. Huntington was an influential member of the Connecticut leadership class (called "the Standing Order") and allowed scores of embargoed vessels to depart for foreign ports under the guise of "special permission". Old modes of sharing vessel ownership to share the risk proved to be difficult to modify. Instead, established relationships continued through the embargo crisis despite numerous bankruptcies.[14]
Subsequent Wartime legislation[edit]
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.[23] it was likewise ineffective and tightened in December 1813 and debated for further tightening in December 1814. After existing embargoes expired with the onset of war, the Embargo Act of 1813 was signed into law December 17, 1813.[24] Four new restrictions were included: an embargo prohibiting all American ships and goods from leaving port, a complete ban on certain commodities customarily produced in the British Empire, a ban against foreign ships trading in American ports unless 75% of the crew were citizens of the ship's flag, and a ban on ransoming ships. The Embargo of 1813 was the nation's last great trade restriction. Never again would the US government cut off all trade to achieve a foreign policy objective.[25] The Act particularly hurt the Northeast since the British kept a tighter blockade on the South and thus encouraged American opposition to the administration. To make his point, the Act was not lifted by Madison until after the defeat of Napoleon, and the point was moot.
On February 15, 1815, Madison signed the Enemy Trade Act of 1815,[26] which was tighter than any previous trade restriction including the Enforcement Act of 1809 (January 9) and the Embargo of 1813, but it would expire two weeks later when official word of peace from Ghent was received.[27][28]