What was Jeffersons solution to English and French restrictions on American shipping in the early 1800s?

Although Thomas Jefferson came to power determined to limit the reach of the federal government, foreign affairs dominated his presidency and pushed him toward Federalist policies that greatly contrasted with his political philosophy. The first foreign episode involved Jefferson's war with the Barbary pirates. For the previous century or so, Western nations had paid bribes to the Barbary states, which would later become Morocco, Algeria, Tunis, and Tripolitania, to keep them from harassing American and merchant ships. When the Pasha of Tripoli raised his demands in 1801, Jefferson refused to pay the increase, sent warships to the Mediterranean, blockaded the small nation, and tried unsuccessfully to promote a palace coup in Tripoli. This was one of the first covert operations in American history. The war ended with agreements that involved one last payment of tribute, at least to Tripoli. Jefferson's action on this matter caused him to rethink the need for a well-equipped navy and halted his move to reduce the force to a mere token size.

Doubling the Nation's Size: The Louisiana Purchase

When Jefferson learned that Spain had secretly ceded Louisiana to France in 1800, he instructed his ministers to negotiate the purchase of the port of New Orleans and possibly West Florida. Jefferson strategically made this move in order to insure that American farmers in the Ohio River Valley had access to the Gulf of Mexico via the Mississippi River—the river was a key to the farmers' economic well-being, as they needed a vent for their surplus grain and meat. Even before the French took over Louisiana, the Spaniards had closed the Mississippi River in 1802. While Jefferson was known to be partial to the French, having the Emperor Napoleon's driving interests for world domination next door was not an attractive prospect; thus, Jefferson acted swiftly.

To his surprise, Napoleon, needing funds to finance a new European war with England, offered to sell Jefferson most of the land from the Mississippi River to the Rocky Mountains. His price of $15 million amounted to approximately four cents per acre for 828,000 square miles, doubling the size of the nation. Although Jefferson understood that the U.S. Constitution said nothing about the purchase of foreign territory, he set aside his strict constructionist ideals to make the deal—Congress approved the purchase five months after the fact. Jefferson then outfitted a twenty-five man expedition to explore the new lands. Led by his secretary, Meriwether Lewis, and Army Captain William Clark, these adventurers took two and one-half years to cover 8,000 miles. They traveled up the Missouri River, across the Continental Divide, and down the Columbia River to the Pacific before retracing their steps to St. Louis. The expedition is considered one of the great exploratory quests in human history.

Navigating Trade and Impressment Disputes

Several weeks after buying Louisiana, Napoleon declared war on Great Britain. At first, the European fighting benefited the United States since Americans functioned as the merchants carrying supplies to the warring powers. Consequently, between 1803 and 1807, total U.S. exports jumped from $66.5 million to $102.2 million. This service provided by American ships often involved reexporting, meaning European and colonial goods were picked up by American ships for transport to U.S. ports where they were reloaded onto other U.S. ships for export to Europe. During the same four-year period, reexports quadrupled, rising from $13.5 million to $58.4 million. Then, the bottom fell out of the trade industry as England and France each independently outlawed virtually all American commerce with their opponent.

The British navy also began seizing American ships with cargoes bound for Europe and impressing American sailors into the Royal Navy. The problem partly stemmed from the practice of British sailors jumping ship to join U.S. merchant vessels. Thousands of such deserters were considered fair prey by the British navy, which also routinely impressed American citizens on the pretext that they were British deserters, many of whom were in fact just that. Tensions mounted, and in the summer of 1807, the British warship Leopard fired on the American naval frigate Chesapeake, killing three Americans, when the ship refused boarding orders. Cries for war erupted throughout the nation.

Jefferson banned all British ships from U.S. ports, ordered state governors to prepare to call up 100,000 militiamen, and suspended trade with all of Europe. He reasoned that U.S. farm products were crucial to France and England and that a complete embargo would bring them to respect U.S. neutrality. By spring 1808, however, the Embargo Act that was passed by Congress in December 1807 had devastated the American economy. American exports plummeted from $108 million to $22 million. Economic desperation settled upon the mercantile Northeast. Finally, Jefferson backed off in the last months of his administration, and Congress replaced the Embargo Act with the Non-Intercourse Act, which banned trade with England and France but allowed it with all other countries. Eventually, the trade war would propel America into a fighting war with England during the administration of Jefferson's successor, James Madison.

The Embargo Act of 1807 was an attempt by President Thomas Jefferson and the U.S. Congress to prohibit American ships from trading in foreign ports. It was intended to punish Britain and France for interfering with American trade while the two major European powers were at war with each other.

The embargo was precipitated primarily by Napoleon Bonaparte's 1806 Berlin Decree, which announced that neutral ships carrying British-made goods were subject to seizure by France, thus exposing American ships to attacks by privateers. Then, a year later, sailors from the USS Chesapeake were forced into service by officers from the British ship HMS Leopard. That was the final straw. Congress passed the Embargo Act in December 1807 and Jefferson signed it into law on December 22, 1807.

The president hoped that the act would prevent a war between the United States and Britain. At the same time, Jefferson saw it as a way to keep ships as military resources out of harm's way, buy time for the preservation, and signify (after the Chesapeake event) that the U.S. recognized that a war was in the future. Jefferson also saw it as a way to cease non-productive war-profiteering which was undermining the coveted but never achieved goal of American autarky—economic independence from Britain and other economies.

Perhaps inevitably, the Embargo Act was also a precursor to the War of 1812.

Economically, the embargo devastated American shipping exports and cost the American economy about 8 percent in decreased gross national product in 1807. With the embargo in place, American exports declined by 75%, and imports declined by 50%—the act did not completely eliminate trade and domestic partners. Before the embargo, exports to the United States reached $108 million. One year later, they were just over $22 million.

Yet Britain and France, locked in the Napoleonic Wars, were not greatly damaged by the loss of trade with Americans. So the embargo intended to punish Europe's greatest powers instead negatively impacted ordinary Americans.

Although the western states in the Union were relatively unaffected, as they had at that point little to trade, other parts of the country were hit hard. Cotton growers in the South lost their British market entirely. Merchants in New England were the hardest hit. In fact, discontent was so widespread there that there was serious talk by local political leaders of seceding from the Union, decades before the Nullification Crisis or the Civil War.

Another result of the embargo was that smuggling increased across the border with Canada, and smuggling by ship also became prevalent. So the law was both ineffective and difficult to enforce. Many of those weaknesses were addressed by a number of amendments and new acts written by Jefferson's Secretary of the Treasury Albert Gallatin (1769–1849), passed by Congress, and signed into law by the president: but the president himself essentially ceased active support on his own after signaling his decision to not seek a third term in office in December 1807.

Not only would the embargo taint Jefferson's presidency, making him fairly unpopular by its end, but the economic effects also didn't fully reverse themselves until the end of the War of 1812.

The embargo was repealed by Congress early in 1809, just days before the end of Jefferson's presidency. It was replaced by a less restrictive piece of legislation, the Non-Intercourse Act, which prohibited trade with Britain and France.

The newer law was no more successful than the Embargo Act had been, and relations with Britain continued to fray until, three years later, President James Madison obtained a declaration of war from Congress and the War of 1812 began.

  • Frankel, Jeffrey A. "The 1807–1809 Embargo against Great Britain." The Journal of Economic History 42.2 (1982): 291–308.
  • Irwin, Douglas A. "The Welfare Cost of Autarky: Evidence from the Jeffersonian Trade Embargo, 1807–09." Review of International Economics 13.4 (2005): 631–45.
  • Mannix, Richard. "Gallatin, Jefferson, and the Embargo of 1808." Diplomatic History 3.2 (1979): 151–72.
  • Spivak, Burton. "Jefferson's English Crisis: Commerce, Embargo, and the Republican Revolution." Charlottesville: University Press of Virginia, 1979.