This, however, was just the point disputed; and, in default of the experience which the coming years were to furnish, fears not wholly unreasonable, from the particular point of view of sea power, as then understood, were aroused by the known facts of American shipping enterprise, both as ship-builders and carriers, even under colonial trammels. John Adams, who was minister to Great Britain from 1785 to 1788, had frequent cause to note the deep and general apprehension there entertained of the United States as a rival maritime state. The question of admission to the colonial trade, as it presented itself to most men of the day, was one of defence and of offence, and was complicated by several considerations. As a matter of fact, there was no denying the existence of that transatlantic commercial system, in which the former colonies had been so conspicuous a factor, the sole source of certain supplies to an important market, reflecting therein exactly Great Britain's own position relatively to the consumers of the European continent. The prospect of reviving what had always been an imperium in imperio, but now uncontrolled by the previous conditions of political subjection, seemed ominous; and besides, there was cherished the hope, ill-founded and delusive though it was, that the integrity of the empire as a self-sufficing whole, broken by recent revolt, might be restored by strong measures, coercive towards the commerce of the United States, and protective towards Canada and the other remaining continental colonies. It was believed by some that the agriculture, shipping, and fisheries of Canada, Nova Scotia, and Newfoundland, despite the obstacles placed by nature, could be so fostered as to supply the needs of the West Indies, and to develop also a population of consumers bound to take off British manufactures, as the lost colonists used to do. This may be styled the constructive idea, in Sheffield's series of propositions, looking to the maintenance of the British carrying trade at the expense of that of the United States. This expectation proved erroneous. Up to and through the War of 1812, the British provinces, so far from having a surplus for export, had often to depend upon the United States for much of the supplies which Sheffield expected them to send to the West Indies.

The proposition was strongly supported also by a wish to aid the American loyalists, who, to the number of many thousands, had fled from the old colonies to take refuge in the less hospitable North. These men, deprived of their former resources, and having a new start in life to make, desired that the West India market should be reserved for them, to build up their local industries. Their influence was exerted in opposition to the planters, and the mother country justly felt itself bound to their relief by strong obligation. Conjoined to this was doubtless the less worthy desire to punish the successful rebellion, as well as to hinder the growth of a competitor. "If I had not been here and resided here some time," wrote John Adams, in 1785, "I should not have believed, nor could have conceived, such an union of all Parliamentary factions against us, which is a demonstration of the unpopularity of our cause."[69] "Their direct object is not so much the increase of their own wealth, ships, or sailors, as the diminution of ours. A jealousy of our naval power is the true motive, the real passion which actuates them. They consider the United States as their rival, and the most dangerous rival they have in the world. I can see clearly they are less afraid of the augmentation of French ships and sailors than American. They think they foresee that if the United States had the same fisheries, carrying trade, and same market for ready-built ships, they had ten years ago, they would be in so respectable a position, and in so happy circumstances, that British seamen, manufacturers, and merchants too, would hurry over to them."[70] These statements, drawn from Adams's association with many men, reflect so exactly the line of argument in the best known of the many controversial pamphlets published about that time,—Lord Sheffield's "Observations on the Commerce of the American States,"—as to prove that it represented correctly a preponderant popular feeling, not only adverse to the restoration of the colonial privileges contemplated by Pitt, but distinctly inimical to the new nation; a feeling born of past defeat and of present apprehension.

Inextricably associated with this feeling was the conviction that the navigation supported by the sugar islands, being a monopoly always under the control of the mother country, and ministering to the entrepôt on which so much other shipping depended, was the one sure support of the general carrying trade of the nation. "Considering the bulk of West India commodities," Sheffield had written, "and the universality and extent of the consumption of sugar, a consumption still in its infancy even in Europe, and still more in America, it is not improbable that in a few ages the nation which may be in possession of the most extensive and best cultivated sugar islands, subject to a proper policy,[71] will take the lead at sea." Men of all schools concurred in this general view, which is explanatory of much of the course pursued by the British Government, alike in military enterprise, commercial regulation, and political belligerent measures, during the approaching twenty years of war with France. It underlay Pitt's subsequent much derided, but far from unwise, care to get the whole West India region under British control, by conquering its sugar islands. It underlay also the other measures, either instituted or countenanced by him, or inherited from his general war policy, which led through ever increasing exasperation to the war with the United States. The question, however, remained, "What is the proper policy conducive to the end which all desire?" Those who thought with Pitt in 1783 urged that to increase the facilities of the islands, by abundant supplies from the nearest and best source, in America, would so multiply the material of commerce as most to promote the necessary navigation. The West India planters pressed this view with forcible logic. "Navigation and naval power are not the parents of commerce, but its happy fruits. If mutual wants did not furnish the subject of intercourse between distant countries, there would soon be an end of navigation. The carrying trade is of great importance, but it is of greater still to have trade to carry." To this the reply substantially was that if the trade were thrown open to Americans, by allowing them to carry in their own vessels, the impetus so given to their navigation, with the cheapness of their ships, owing to the cheapness of materials, would make them carriers to the whole world, breaking up the monopoly of British merchants, and supplanting the employment of British ships.

A few statesmen, more far seeing and deeper reasoning,—notably Edmund Burke,—came to Pitt's support, and the West India proprietors, largely resident in England, by their knowledge of details contributed much to elucidate the facts; but their efforts were unavailing. Their argument ran thus: "Only the American continent can furnish at reasonable rates the animals required for the agriculture of the islands, the food for the slaves, the lumber for buildings and for packing produce. Only the continent will take the rum which Europe refuses, and with which the planter pays his running expenses. Owing to irreversible currents of trade, neither British nor island shipping can carry this traffic at a profit to themselves, except by ruinously overcharging the planter. Americans only can do it. Concede the exchange by this means, and the development of sugar and coffee raising, owing to their bulk as freight, will enlarge British shipping to Europe by an amount much beyond that lost in the local transport. Of the European carriage you will retain a monopoly, as you will of the produce, which goes into your storehouses alone; whence you reap the advantage of brokerage and incidental handling, at the expense of the continental consumer, while your home navigation is enlarged by its export. Refuse this privilege, and your islands sink under French and Spanish competition. French Santo Domingo, especially, exceeds by far all your possessions, both in the extent of soil and quality of product." Very shortly they were able also to say that the French allowed ships to be bought from Americans; and, although in their treaty with the United States they had refused free intercourse to American vessels, a royal ordinance of 1784 permitted it to vessels of under sixty tons' burden.

Within a month of the introduction of Pitt's bill the ministry to which he then belonged fell. The one which followed refrained from dealing at all with the subject, except by recourse to an expedient not uncommon with party leaders, dealing with a new question of admitted intricacy. They passed a bill leaving the whole matter to the Crown for executive action. Accordingly, in July, 1783, a proclamation was issued permitting intercourse between the islands and the American continent, in a long list of specified articles, but only by British ships, owned and navigated as required by the Navigation Act. American vessels were excluded by omission, and while most necessaries for food, agriculture, and commerce were admitted, one staple article, salt fish, urgently requested by the planters, was forbidden. This was partly to encourage the Newfoundland fisheries and those of Great Britain, and partly to injure American. Both objects were in the line of the Navigation Act, to foster home navigation and impede that of foreigners; fisheries being considered a prime support of each. A generation before, the elder Pitt had inveighed against the Peace of Paris, in 1763, on account of the concession of the cod fisheries. "You leave to France," he said, "the opportunity of reviving her navy." Before the separation, the near and great market of the West India negro population had consumed one-third of the American catch of fish. So profitable a condition could no longer be continued. Salt provisions also, butter, and cheese, were not allowed, being reserved for Irish producers.[72]

The next December the enabling bill was renewed and the proclamation re-issued. At this moment Pitt returned to office. A few months later, in the spring of 1784, Parliament was dissolved, and the ensuing elections carried him into power at the head of a great majority. He made no immediate attempt to resume legislation favoring the American trade with the West Indies. The disposition of the majority of Englishmen in the matter had been plainly shown, and other more urgent commercial reforms engaged his attention. Soon after the receipt of the news in America, some of the states passed retaliatory measures, on their own account, or authorized the Continental Congress so to act for them. The bad feeling already caused by the non-fulfilment, on both sides, of certain stipulations of the treaty of peace was particularly exasperated by this proclamation; for anticipation, aroused by Pitt's proposed measure, had been nursed into confident expectation during the four months' interval, in which intercourse had been openly or tacitly allowed. It was at this period that Nelson first came conspicuously into public notice, by checking the connivance of the West Indian governors in the infractions of the Navigation Laws; the Act authorizing commanders of Kings' ships to seize offending vessels, and bring them before the Court of Admiralty.[73] It is said also that his experience had much to do with shaping subsequent legislation upon the same prohibitory lines. In America disappointment was bitter. Little concern was felt in England. Concerted action by several states was thought most unlikely, and a more perfect union impossible. While Massachusetts, for example, in 1785 forbade import or export in any vessel belonging in whole or in part to British subjects, the state then next to her in maritime importance, Pennsylvania, in 1786 repealed laws imposing extra charges on British ships, and admitted all nations on equal terms with her sister states. "The ministry in England," wrote Adams, "build all their hopes and schemes upon the supposition of such divisions in America as will forever prevent a combination of the States, either in prohibition or in retaliatory duties."[74]

Effective retaliation consequently was not feared, and as for results otherwise, it was doubtless thought best to await the test of experience. Proclamation, annually authorized and re-issued, remained therefore the mode of regulating commerce between the British dominions and the United States up to the date of Jay's treaty. Once only, in 1788, Parliament interfered so far as to pass a law, confining the trade with the West Indies to British-built ships and to certain enumerated articles, in the strict spirit of the Navigation system. Otherwise, intercourse with the United States was throughout this period subject at any moment to be modified or annulled by the single will of the Executive; whereas that with other nations, fixed by statute,—the Navigation Act,—could be altered only by the legislature.[75]

Of this British commercial policy, following immediately upon the recognition of independence, Americans had not the slightest reason to complain. They had insisted upon being independent, and it would be babyish to fret about the consequences, when unpalatable. It was unpleasant to find that Great Britain, satisfied that the carrying trade was the first of her interests, upon which depended her naval supremacy, rigorously excluded Americans from branches of that trade before permitted to them; but in so doing she was simply seeking her own advantage by means of her own laws, as a nation does, for instance, when it imposes heavy protective duties. It is quite as legitimate to protect the carrying trade as any other form of industry; and the Navigation Act was no new device, for the special annoyance of Americans. It is very possible that the action of Great Britain at this time was so stupid, that, to use words of Jefferson's, the only way to prophesy what she would do was to ascertain what she ought to do, and infer the contrary. The rule, he said, never failed. This particular stupidity, if such it were,—and there was at least partial ground for the charge,—was simply another case of a most common form of human dulness of perception, preoccupation with a fixed idea. But were the policy wise or foolish, as regards herself, towards the Americans it was not a wrong, but an injury; and, consequently, what the newly independent people had to do was not to complain, but to strike back with retaliatory commercial measures. Jefferson, no friend generally to coercive action, wrote concerning this particular situation, "It is not to the moderation or justice of others we are to trust for fair and equal access to market with our productions, or for our due share in the transportation of them; but to our own means of independence, and the firm will to use them."[76]

Equally, when Great Britain, under the emergencies of the French Revolution, resorted to measures that overpassed her rights, either municipal or international, and infringed our own, the resort should have been to the remedy with which nations defend their rights, as distinct from their interest. The American people, then poor, and habituated to colonial dependence, failed to create for themselves in due time the power necessary to self-assertion; nor did they as a nation realize, what men like John Adams and Gouverneur Morris saw and preached, that in the complicated tangle of warring interests which constitutes every contemporary situation, the influence of any single factor depends, not merely upon its own value, but upon that value taken in connection with other conditions. A pound is but a pound; but when the balance is nearly equal, a pound may turn a scale. Because America could not possibly put afloat the hundred—or two hundred—ships-of-the-line which Great Britain had in commission, therefore, many argued, as many do to-day, it was vain to have any navy. "I believe," wrote Morris in 1794,[77] and few men better understood financial conditions, "that we could now maintain twelve ships-of-the-line, perhaps twenty, with a due proportion of frigates and smaller vessels. And I am tolerably certain that, while the United States of America pursue a just and liberal conduct, with twenty sail-of-the-line at sea, no nation on earth will dare to insult them. I believe also, that, not to mention individual losses, five years of war would involve more national expense than the support of a navy for twenty years. One thing I am thoroughly convinced of, that, if we do not render ourselves respectable, we shall continue to be insulted."

A singular, and too much disregarded, instance of the insults to which the United States was exposed, by the absence of naval strength, is found in the action of the Barbary Powers towards our commerce, which scarcely dared to enter the Mediterranean. It is less known that this condition of things was eminently satisfactory to British politicians of the old-fashioned school, and as closely linked as was the Navigation system itself to the ancient rivalry with Holland. "Our ships," wrote the Dutch statesman De Witt, who died in 1672, "should be well guarded by convoy against the Barbary pirates. Yet it would by no means be proper to free that sea of those pirates, because we should hereby be put upon the same footing with East-landers, [i.e., Baltic nations, Denmark, Sweden, etc.] English, Spaniards, and Italians; wherefore it is best to leave that thorn in the sides of those nations, whereby they will be distressed in that trade, while we by convoy engross all the European traffic and navigation."[78] This cynical philosophy was echoed in 1784 by the cultured English statesman, Lord Sheffield, the intimate friend of the historian Gibbon, and editor of his memoirs. "If the great maritime powers know their interests," he wrote, "they will not encourage the Americans to be carriers. That the Barbary States are an advantage to the maritime powers is obvious. If they were suppressed, the little states of Italy, etc., would have much more of the carrying trade. The Armed Neutrality would be as hurtful to the great maritime powers as the Barbary States are useful."[79]

It may be a novel thought to many Americans, that at that time American commerce in the Mediterranean depended largely for protection upon Portuguese cruisers; its own country extending none. When peace was unexpectedly made between Portugal and Algiers in 1793, through the interposition of a British consular officer, a wail of dismay went up to heaven from American shipmen. "The conduct of the British in this business," wrote the American consul at Lisbon, "leaves no room to doubt or mistake their object, which was evidently aimed at us, and that they will leave nothing unattempted to effect our ruin." It proved, indeed, that the British consul's action was not that of his Government, but taken on his own initiative; but the incident not only recalls the ideas of the time, long since forgotten, but in its indications, both of British commercial security and American exposure, illustrates the theory of the Navigation Act as to the reciprocal influence of the naval and merchant services. There was then nothing, in the economical conditions of the United States, to forbid a navy stronger than the Portuguese; yet the consul, in his pitiful appeal to the Portuguese Court, had to write: "My countrymen have been led into their present embarrassment by confiding in the friendship, power, and protection of her Most Faithful Majesty," ... which "lulled our citizens into a fatal security."[80] Our lamentable dependence upon others, for the respect we should have extorted ourselves, is shown in the instructions issued to Jay, on his mission to England in 1794. "It may be represented to the British Ministry, how productive of perfect conciliation it might be to the people of the United States, if Great Britain would use her influence with the Dey of Algiers for the liberation of the American citizens in captivity, and for a peace upon reasonable terms. It has been communicated from abroad, to be the fixed policy of Great Britain to check our trade in grain to the Mediterranean. This is too doubtful to be assumed, but fit for inquiry."[81] The Dey had declared war in 1785, this being with the Barbary rulers the customary method of opening piratical action. "If the Dey makes peace with every one," said one of his captains to Nelson, "what is he to do with his ships?"

The experience of the succeeding fifteen years was to give ample demonstration of the truth of Morris's prophecy; but what is interesting now to observe is, that he, who certainly did not imagine twenty ships to be equal to a hundred, accurately estimated the deterrent force of such a body, prepared to act upon an enemy's communications,—or interests,—at a great distance from the strategic centre of operations. A valuable military lesson of the War of 1812 is just this: that a comparatively small force—a few frigates and sloops—placed as the United States Navy was, can exercise an influence utterly disproportionate to its own strength. Instances of Great Britain's extremity, subsequent to Morris's prediction, are easily cited. In 1796, her fleet was forced to abandon the Mediterranean. In 1799, a year after the Nile, Nelson had to implore a small Portuguese division not to relinquish the blockade of Malta, which he could not otherwise maintain. Under such conditions, apprehension of even a slight additional burden of hostility imposes restraint. Had Morris's navy existed in 1800, we probably should have had no War of 1812; that is, if Jefferson's passion for peace, and abhorrence of navies, could have been left out of the account. War, as Napoleon said, is a business of positions. The commercial importance of the United States, and the position of its navy relatively to the major interests of Great Britain, would together have produced an effect, to which, under the political emergency of the time, the mere commercial retaliation then attempted was quite inadequate. This distressed the enemy, but did not reduce him; and it bitterly alienated a large part of our own community, so that we went into the war a discordant, almost a disunited, nation.

During the years of American impotence under the early confederation, the trade regulations of the British Government, framed on the lines advocated by Lord Sheffield, met with a measure of success which was perhaps more apparent than real; due attention being scarcely paid to the actual loss entailed upon British planters by the heightened cost of supplies, and the consequent effect upon British commerce and navigation. "Under the present limited intercourse with America," wrote the planter, Edwards, "the West Indies are subject to three sets of devouring monopolies: 1, the British ship-owners; 2, their agents in American ports; 3, their agents in the ports of the islands; all of whom exact an unnatural profit of the planters."[82] Chalmers, looking only to the navigation of the kingdom, which these culprits represented, admits that in the principal supplies Great Britain cannot compete with America; but, "whatever may be the difference in price to the West Indians, this is but a small equivalent which they ought to pay to the British consumer, for enjoying the exclusive supply of sugar, rum, and other West India products."[83] A few figures show conclusively that under all disadvantages the islands increased in actual prosperity, although they fell behind their French competitors, favored by a more liberal policy. In the quiet year 1770, before the revolt of the continent, the British West Indies shipped to the home country produce amounting to £3,279,204;[84] in 1787 this had risen to £4,839,145,[85] a gain of over 30 per cent. Between the same years, exports to the United States, limited after the peace to British ships, had fallen from £481,407 to £196,461. American produce, confined to British bottoms for admission to British colonies, had gone largely to the French islands, with which before the Revolution they could have only surreptitious intercourse. The result was that the British planter had to pay much more for his plantation supplies than did the French, who were furnished by American vessels, built and run much cheaper than British.[86] He was rigidly forbidden also to seek stores in the French islands. Such circuitous intercourse with America, by depriving British ships of the long voyage to the continent, would place the French islands in the obnoxious relation of entrepôt to their neighbors, which Holland had once occupied towards England. In all legislation minute care was taken to prevent such injury to navigation. Direct trade with British dominions was the fetich of British policy; circuitous trade its abomination.

Despite drawbacks, a distinct advance was observable also in British navigation; in the development of the British-American colonies, continental and island; and in the intercolonial intercourse and shipping. Immediately after the institution of the new government, the United States enacted laws protective of her own navigation; notably by an alien duty laid upon all foreign tonnage. To consider the probable effects of this legislation, and of the new American institutions, upon British commerce and navigation, a committee of the Privy Council was appointed, to which we owe a digested and authoritative summary of the change of conditions effected by the British measures, between 1783 and 1790. From its report, based upon averages of several years, it appears that in the direct trade between Great Britain and the United States, in which American ships stood on equal terms with British, there had been little variation in value of imports or exports, with the single exception of tobacco and rice. These two articles, which formerly had to pass through Great Britain as an entrepôt, now went direct to their destination. The American shipping—navigation—employed in the trade with Great Britain herself, was only one-third of the British; the respective tonnage being 26,564 and 52,595. As this was nearly the proportion of American to British built ships in the colonial period, American shipping before the adoption of the Constitution had not gained at all, under the most favorable treatment conceded to it in British dominions. The Report, indeed, estimated that it had lost by nearly 20 per cent.[87]

In the colonial trade, on the other hand, very marked British gains could be reported. The commercially backward communities of Canada, etc., forbidden now to admit American ships, or to import many articles from the United States, and given special privileges in the West Indies, had more than doubled their imports from the mother country; the amount rising from £379,411 to £829,088. These sums are not to be regarded in their own triviality, but as harbingers of a development, which it was hoped would fill the void in the British imperial system caused by the loss of the former colonies. The West Indies showed a more gradual increase, though still satisfactory; their exports since 1774 had risen 20 per cent. It was, however, in navigation, avowedly the chief aim of the protective legislation, that the intercolonial results were most encouraging. Through the exclusion of American competition, British tonnage to Canada and the neighboring colonies had enlarged fourfold, from 11,219 to 46,106. The national tonnage engaged between the West Indies and the mother country had grown from 80,482 to 133,736; 60 per cent. More encouraging still, from the ideal point of view of a restored system of mutual support, embracing both sides of the Atlantic, the tonnage employed between Canada and the West Indies had risen from 996 only in 1774, to 14,513 in 1789. In brief, after a careful and systematic examination of the whole field, the committee considered that British navigation had gained 111,638 tons by excluding Americans from branches of trade they had once shared, and still eagerly desired.

The effects of the system were most conspicuous in the trade between the West Indies and the United States. The tonnage here employed had fallen from 107,739, before the war, to 62,738. The reflections of the Committee upon this particular are so characteristic of national convictions as to be worth quoting.[88] "This decrease is rather less than half what it was before the war;[89] but before the war five-eighths belonged to merchants, permanent inhabitants of the countries now under the dominion of the United States, and three-eighths to British merchants residing occasionally in the said countries. At that time, very few vessels belonging to British merchants, resident in the British European dominions, or in the British Islands in the West Indies, had a share in this trade. The vessels employed in this trade can now only belong to British subjects residing in the present British dominions. Many vessels now go from the ports of Great Britain, carrying British manufactures to the United States, there load with lumber and provisions for the British Islands in the West Indies, and return with the produce of these islands to Great Britain. The whole of this branch of freight may also be considered as a new acquisition, and was obtained by your Majesty's Order in Council before mentioned,[90] which has operated to the increase of British Navigation, compared to that of the United States in a double ratio; but it has taken from the navigation of the United States more than it has added to that of Great Britain."

The last sentence emphasizes the fact, which John Adams had noted, that the object of the Navigation system was scarcely more defensive than offensive, in the military sense of the word. The Act carried provisions meant distinctly to impede the development of foreign shipping, as far as possible to do so by municipal regulation. The prohibition of entrance to a port of Great Britain by a foreign trader, unless three-fourths manned by citizens of the country whose flag she bore, was distinctly offensive in intent. But for this, other states might increase their tonnage by employing seamen not their own, which Great Britain could not do without weakening the reserves available for her navy, and imperative to her defence. Rivalry was thus engendered, and became bitter and apprehensive in proportion to the national interests involved; but at no time had such considerations persuaded the country to depart from its purpose. "The foreign war which those measures first brought upon us, and the odium which they have never ceased to cause, to the present day (1792) among neighboring nations, have not induced the legislature to give up any one of its principles."[91] In the case of the United States, the exasperation aroused was very great. It perpetuated the national animosity surviving from the War of Independence, and provoked retaliation. Before the formation of the better Union this was too desultory and divided to have much effect, and the artificial system of which Sheffield was the chief public champion had the appearance of success which has been described; but as soon as the thirteen states could wield their power as one whole, under a system at once consistent and permanent, American navigation began to make rapid headway. In 1790 there entered American ports from abroad 355,000 tons of American shipping and 251,000 foreign, of which 217,000 were British.[92] After one year of the discriminating tonnage dues laid by the national Congress, the American tonnage entering home ports from Great Britain had risen, from the 26,564 average of the three years, 1787 to 1789, ascertained by the British committee, to 43,580.[93] In 1801 there entered 799,304 tons of native shipping,[94] and but 138,000 foreign.[95] The amount of British among the latter is not stated; but in the year 1800 there cleared from Great Britain, under her own flag, for the United States, but 14,381 tons.[96] This reversal of the conditions in 1787-89, before quoted,[97] was the result of a gradual progress, noticeable immediately after the American imposition of tonnage duties, and increasing up to 1793, when it was accelerated by the war between Great Britain and France.

It is carefully to be remembered that the British committee, representing strictly the prepossessions of the body by which it was constituted, looked primarily to the development of national carrying trade. "As the security of the British dominions principally depends on the greatness of your Majesty's naval power, it has ever been the policy of the British Government to watch with a jealous eye every attempt that has been made by foreign nations to the detriment of its navigation; and even in cases where the interests of commerce and those of navigation could not be wholly reconciled, the Government of Great Britain has always given the preference to the interests of navigation; and it has never yet submitted to the imposition of any tonnage duties by foreign nations on British ships trading to their ports, without proceeding immediately to retaliation."[98] It had, however, submitted to several such measures, retaliatory for the exclusion from the West India trade, enacted by the separate states in the years 1783 to 1789; as well as to other legislation, taxing British shipping by name much above that of other foreigners. This quiescence was due to confidence, that the advantages possessed by Great Britain would enable her to overcome all handicaps. It was therefore with satisfaction that, after six years of commercial antagonism, the committee was able, not only to report the growth of British shipping, already quoted, but to show by the first official statement of entries issued by the American Government,[99] for the first year of its own existence, that for every five American tons entering American ports from over sea, there entered also three British; and that of the whole foreign tonnage there were six British to one of all other nations together.

Upon the whole, therefore, while regretting the evidence in the American statement which showed increasing activity by American shipping over that ascertained by themselves for the previous years,—to be accounted for, as was believed, by transient circumstances,—the committee, after consultation with the leading merchants in the American trade, thought better to postpone retaliation for the new tonnage duties, which contained no invidious distinction in favor of other foreign shipping against British. The system of trade regulation so far pursued had given good results, and its continuance was recommended; though bitterly antagonizing Americans, and maintaining ill-will between the two countries. Upon one point, especially desired by the United States, the committee was particularly firm. It considered that its Government might judiciously make one proposition—and one only—for a commercial treaty; namely, that there should be entire equality of treatment, as to duties and tonnage, towards the ships of both nations in the home ports of each other. "But if Congress should propose (as they certainly will) that this principle of equality should be extended to the ports of our Colonies and Islands, and that the ships of the United States should there be treated as British ships, it should be answered that this demand cannot be admitted even as a subject of negotiation.... This branch of freight is of the same nature with the freight from one American state to another" (that is, trade internal to the empire is essentially a coasting trade). "Congress has made regulations to confine the freight, employed between the different states, to the ships of the United States, and Great Britain does not object to this restriction."[100] "The great advantages which have resulted from excluding American ships appear in the accounts given in this report; many of the merchants and planters of the West Indies, who formerly resisted this advice, now acknowledge the wisdom of it."[101]

The committee recognized that exclusion from the carrying trade of the British West Indies was in some degree compensated to the American carrier, by the permission given by the Government of France for vessels not exceeding sixty tons to trade with her colonies, actually much greater producers, and therefore larger customers. Santo Domingo in particular, in the period following the American war, had enjoyed a heyday of prosperity, far eclipsing that of all the British islands together. This was due partly to natural advantages, and partly to social conditions,—the planters being generally resident, which the British were not; but cheaper supplies through free intercourse with the American continent also counted for much. From the French West Indies there entered the United States in 1790, 101,417 tons of shipping, of which only 3,925 were French.[102] From the British Islands there came 90,375, but of these all but 4,057 were British.[103] Returning, the exports from the United States to the two were respectively, $3,284,656 and $2,077,757.[104] The flattering testimony borne by these figures to the meagreness of French navigation, in the particular quarter, needed doubtless to be qualified by reference to their home trade from the West Indies, borne in French ships. This amounted in 1788 to 296,435 tons from Santo Domingo alone;[105] whereas the British trade from all their islands employed but 133,736.[106] This, however, was the sole great carrying trade of France; to the United States she sent from her home ports less than 13,000 tons.

It was the opinion of the British committee that the privilege conceded to American shipping in the French islands was so contrary to established colonial policy as to be of doubtful continuance. Still, in concluding its report with a summary of American commercial conditions, which it deemed were in a declining way, it took occasion to utter a warning, based upon these relations of America with the foreign colonies. In case of a commercial treaty, "Should it be proposed to treat on maritime regulations, any article allowing the ships of the United States to protect the property of the enemies of Great Britain in time of war" (that is, the flag to cover the goods), "should on no account be admitted. It would be more dangerous to concede this privilege to the United States than to any other foreign country. From their situation, the ships of these states would be able to cover the whole trade of France and Spain with their islands and colonies, in America and the West Indies, whenever Great Britain shall be engaged with either of those Powers; and the navy of Great Britain would, in such case, be deprived of the means of distressing the enemy, by destroying his commerce and thereby diminishing his resources." It is well to note in these words the contemporary recognition of the importance of the position of the United States; of the value of the colonial trade; of the bearing of commerce destruction on war, by "diminishing the resources" of an enemy; and of the opportunity of the United States, "from their situation," to cover the carriage of colonial produce to Europe; for upon these several points turned much of the troubles, which by their accumulation caused mutual exasperation, and established an antagonism that inevitably lent itself to the war spirit when occasion arose. The specific warning of the committee was doubtless elicited by the terms of the then recent British commercial treaty with France, in 1786, by which the two nations had agreed that, in case of war to which one was a party, the vessels of the other might freely carry all kinds of goods, the property of any person or nation, except contraband. Such a concession could be made safely to France,—was in fact perfectly one-sided in favoring Great Britain; but to America it would open unprecedented opportunity.

To the state of things so far described came the French Revolution; already begun, indeed, when the committee sat, but the course of which could not yet be foreseen. Its coincidence with the formation of the new government of the United States is well to be remembered; for the two events, by their tendencies, worked together to promote the antagonism between the United States and Great Britain, which was already latent in the navigation system of the one and the maritime aptitudes of the other. Washington, the first American President, was inaugurated in March, 1789; in May, the States General of France met. In February, 1793, the French Republic declared war against Great Britain, and in March Washington entered on his second term. In the intervening four years the British Government had persisted in maintaining the exclusion of American carrying trade from her colonial ports. During the same period the great French colony Santo Domingo had undergone a social convulsion, which ended in the wreck of its entire industrial system by the disappearance of slavery, and with it of all white government. The huge sugar and coffee product of the island vanished as a commercial factor, and with it the greater part of the colonial carriage of supplies, which had indemnified American shippers and agriculturists for their exclusion from British ports. Of 167,399 American tonnage entering American ports from the West Indies in 1790, 101,417 had been from French islands.

The removal of so formidable a competitor as Santo Domingo of course inured to the advantage of the British sugar and coffee planter, who was thus more able to bear the burden laid upon him to maintain the navigation of the empire, by paying a heavy percentage on his supplies. This, however, was not the only change in conditions affecting commerce and navigation. By 1793 it had become evident that Canada, Nova Scotia, and their neighbors, could not fill the place in an imperial system which it had been hoped they would take, as producers of lumber and food stuffs. This increased the relative importance of the West India Islands to the empire, just when the rise in price of sugar and coffee made it more desirable to develop their production. Should war come, the same reason would make it expedient to extend by conquest British productive territory in the Caribbean, and at the same time to cut off the supplies of such enemy's possessions as could not be subdued; thus crippling them, and removing their competition by force, as that of Santo Domingo had been by industrial ruin. These considerations tended further to fasten the interest of Great Britain upon this whole region, as particularly conducive to her navigation system. That cheapening supplies would stimulate production, to meet the favorable market and growing demands of the world, had been shown by the object-lesson of the French colonies; though as yet the example had not been followed.

At this time also Great Britain had to recognize her growing dependence upon the sea, because her home territory had ceased to be self-sufficing. Her agriculture was becoming inadequate to feeding her people, in whose livelihood manufactures and commerce were playing an increasing part. Both these, as well as food from abroad, required the command of the sea, in war as in peace, to import raw materials and export finished products; and control of the sea required increase of naval resources, proportioned to the growing commercial movement. According to the ideas of the age, the colonial monopoly was the surest means to this. It was therefore urgent to resort to measures which should develop the colonies; and the question was inevitable whether reserving to British navigation the trade by which they were supplied was not more than compensated by the diminished production, with its effect in lessening the cargoes employing shipping for the homeward voyage.

Thus things were when war broke out. The two objects, or motives, which have been indicated, came then at once into play. The conquest of the French West Indies, a perfectly legitimate move, was speedily undertaken; and meanwhile orders passing the bounds of recognized international law were issued, to suppress, by capture, their intercourse with the United States, alike in import and export. The blow of course fell upon American shipping, by which this traffic was almost wholly maintained. This was the beginning of a long series of arbitrary measures, dictated by a policy uniform in principle, though often modified by dictates of momentary expediency. It lasted for years in its various manifestations, the narration of which belongs to subsequent chapters. Complementary to this was the effort to develop production in British colonies, by extending to them the neutral carriage denied to their enemies. This was effected by allowing direct trade between them and the United States to American vessels of not over seventy tons; a limit substantially the same as that before imposed by France, and designed to prevent their surreptitiously conveying the cargoes to Europe, to the injury of British monopoly of the continental supply, effected by the entrepôt system, and doubly valuable since the failure of French products.

This concession to American navigation, despite the previous opposition, had become possible to Pitt, partly because its advisability had been demonstrated and the opportunity recognized; partly, also, because the immense increase of the active navy, caused by the war, created a demand for seamen, which by impressment told heavily upon the merchant navigation of the kingdom, fostered for this very purpose. To meet this emergency, it was clearly politic to devolve the supply of the British West Indies upon neutral carriers, who would enjoy an immunity from capture denied to merchant ships of a belligerent, as well as relieve British navigation of a function which it had never adequately fulfilled. The measure was in strict accord with the usual practice of remitting in war the requirement of the Navigation Act, that three-fourths of all crews should be British subjects; by which means a large number of native seamen became at once released to the navy. To throw open a reserved trade to foreign ships, and a reserved employment to foreign seamen, are evidently only different applications of the one principle, viz.: to draw upon foreign aid, in a crisis to which the national navigation was unequal.

Correlative to these measures, defensive in character, was the determination that the enemy should be deprived of these benefits; that, so far as international law could be stretched, neutral ships should not help him as they were encouraged to help the British. The welfare of the empire also demanded that native seamen should not be allowed to escape their liability to impressment, by serving in neutral vessels. The lawless measures taken to insure these two objects were the causes avowed by the United States in 1812 for declaring war. The impressment of American seamen, however, although numerous instances had already occurred, had not yet made upon the national consciousness an impression at all proportionate to the magnitude of the wrong; and the instructions given to Jay,[107] as special envoy in 1794, while covering many points at issue, does not mention this, which eventually overtopped all others.