Under these circumstances the blow glanced from the British dominions. At the first announcement of the embargo, prices of provisions and lumber rose heavily in the West Indies; but reaction set in, as the leaks in the dam became manifest and copious. The British Government fostered the rebellious evasions of American citizens by a proclamation, issued April 11, directing commanders of cruisers not to interrupt any neutral vessel laden with provisions or lumber, going to the West Indies; no matter to whom the property belonged, nor whether the vessel had any clearance, or papers of any kind. A principal method of eluding the embargo, Gallatin informed Jefferson, was by loading secretly and going off without clearing. "Evasions are chiefly effected by vessels going coastwise."[247] The two methods were not incompatible. Besides the sea-going vessels already mentioned as lying in New York alone, there were there over four hundred coasters. It was impossible to watch so many. The ridiculous gunboats, identified with this Administration, derisively nicknamed "Jeffs"[248] by the unbelieving, were called into service to arrest the evil; but neither their numbers nor their qualities fitted them to cope with the ubiquity and speed of their nimble opponents. "The larger part of our gunboats," wrote Commodore Shaw[249] from New Orleans, "are well known to be dull sailers." "For enforcing the embargo," said Secretary Gallatin, "gunboats are better calculated as a stationary force, and for the purpose of stopping vessels in certain places, than for pursuit."[250] A double bond was a mockery, when in West Indian ports the cargo was worth from four to eight times what it was at the place of loading. These were the palmier days of the embargo breakers; the ease and frequency with which they escaped soon brought prices down. Randolph, in the House, asserted that in the first four months of embargo one hundred thousand barrels of flour had been shipped from Baltimore alone; and the West India planters, besides opening new sources of supply, devoted part of their ground to raising food. They thus turned farmer, after the Jefferson ideal, supporting themselves off their own grounds; an economical error, for sugar was their better crop, but unavoidable in the circumstances. With all this, the difficulty in the way of exportation so cheapened articles in the United States as to maintain a considerable disproportion in prices there and abroad, which kept alive the spirit of speculation, and maintained the opportunity of large profits,[251] at the same time that it distressed the American grower.

Upon the whole, after making allowance for the boasts which succeeded the first fright in the West Indies, the indications seem to be that they escaped much better than had been expected, either by themselves or by the American Government. Just before adjourning, Congress had passed a supplementary measure, which, besides drawing restrictions tighter, authorized the President to license vessels to go abroad in ballast, in order to bring home property belonging to American citizens. These dispersed in various directions, and in very large numbers.[252] Many doubtless remained away; but those which returned brought constant confirmation of the numerous American shipping in the various ports of the West Indies, and the general abundance of American produce. A letter from Havana, September 12, said: "We have nearly one hundred American vessels in port. Three weeks ago there were but four or five. If the property, for which these vessels were ostensibly despatched, had been really here, why have they been so long delayed? The truth is, the property is not here. A host of people have been let loose, who could not possibly have had any other motive than procuring freight and passengers from merchants of this country, or from the French, who are supposed to be going off with their property [in consequence of the Spanish outbreak]. The vast number of evasions and smugglers which the embargo has created is surprising. For some days after the last influx of American vessels, the quays and custom-house were every morning covered with all kinds of provisions, which had been landed during the preceding night."[253]

To Quebec and Halifax the embargo was a positive boon, from the diversion upon them of smuggling enterprise, by the lakes and by land, or by coasters too small to make the direct voyage to the West Indies. In consequence of the embargo, these towns became an entrepôt of commerce, such as the Orders in Council were designed to make the British Islands. There was, of course, a return trade, through them, of British manufactures smuggled into the United States. These imports seem to have exceeded the exports by the same route. A New Bedford town meeting, in August, affirmed that gold was already at a premium, from the facility with which it was transported through the country, and across the frontier, in payment of purchases.[254] At the end of the summer one hundred and fifty vessels were despatched from Quebec with full cargoes, and it may be believed they had not arrived empty. "From a Canada price current now before us, it will be seen that since the embargo was laid the single port of Quebec has done more foreign business than the whole United States. In less than eleven months there cleared thence three hundred and thirty-four vessels."[255] An American merchant visiting Halifax wrote home: "Our embargo is an excellent thing for this place. Every inhabitant of Nova Scotia is exceedingly desirous of its continuance, as it will be the making of their fortunes."[256] Independent of the entrepôt profit, the British provinces themselves produced several of the articles which figured largely among the exports of the middle and eastern states; not to the extent imagined by Sheffield, sufficient to supply the West Indies, but, in the artificial scarcity caused by the embargo, the enhanced prices redounded directly to their advantage. Sir George Prevost, governor of Nova Scotia, summed up the experience of the year by saying that "the embargo has totally failed. New sources have been resorted to with success to supply deficiencies produced by so sudden an interruption of commerce, and the vast increase of export and import of this province proves that the embargo is a measure well adapted to promote the true interests of his Majesty's American colonies."[257]

Upon the British Islands themselves the injury was more appreciable and conspicuous. It was, moreover, in the direction expected by Jefferson and his supporters. The supply of cotton nearly ceased. Mr. Baring, March 6, 1809, said in the House of Commons that raw material had become so scarce and so high, that in many places it could not be procured. "In Manchester during the greatest part of the past year, only nine cotton mills were in full employment; about thirty-one at half work, and forty-four without any at all."[258] Flaxseed, essential to the Irish linen manufactures, and of which three fourths came from America, had risen from £2-½ to £23 the quarter.[259] The exports for the year 1808 had fallen fifteen per cent; the imports the same amount, involving a total diminution in trade of £14,000,000. An increase of distress was manifested in the poor rates. In Manchester they had risen from £24,000 to £49,000. On the other hand, the harvest for the year, contrary to first anticipation, had been very good; and, in part compensation for intercourse with the United States, there was the opening of Spain, Portugal, and their extensive colonies, the effect of which was scarcely yet fully felt.

There was, besides, the relief of American competition in the carrying trade. This was a singularly noteworthy effect of the embargo; for this industry was particularly adverse to United States navigation, and particularly benefited by the locking up of American shipping. On April 28, 1808, there was not in Liverpool a vessel from Boston or New York.[260] The year before, four hundred and eighty-nine had entered, paying a tonnage duty of £36,960.[261] In Bristol at the same time there were only ten Americans. In consequence of the loss of so much tonnage, "those who have anything to do with vessels for freight or charter are absolutely insolent in their demands. For a ship of 330 tons from this to St. Petersburg and back £3,300 have been paid; £2,000 for a ship of 199 tons to Lisbon and back."[262] At the end of August, in Liverpool, the value of British shipping had increased rapidly, and vessels which had long been laid up found profitable employment at enormous freights.[263]

Thus, while the effect of the embargo doubtless was to raise prices of American goods in England, it stopped American competition with the British carrying trade, especially in West India produce. This occurred also at the time when the revolt of Spain opened to British navigation the colonies from which Americans hitherto had been the chief carriers. The same event had further relieved British shipping by the almost total destruction of French privateering, thenceforth banished from its former ports of support in the Caribbean. From all these causes, the appreciation quoted from a London letter of September 5 seems probably accurate. "The continuance of the embargo is not as yet felt in any degree adequate to make a deep impression on the public mind.... Except with those directly interested [merchants in the American trade], the dispute with the United States seems almost forgotten, or remembered only to draw forth ironical gratitude, that the kind embargo leaves the golden harvest to be reaped by British enterprise alone."[264]

Upon the whole, through silent popular resistance, and the concurrence of the Spanish revolution, the United States by cutting its own throat underwent more distress than it inflicted upon the enemy. Besides the widespread individual suffering,[265] already mentioned, the national revenue, dependent almost wholly on customs, shrank with the imports. Despite the relief afforded by cargoes bound home when the embargo passed, and the permits issued to bring in American property abroad, the income from this source sank from over $16,000,000 to $8,400,000.[266] "However dissimilar in some respects," wrote Gallatin in a public report, "it is not believed that in their effect upon national wealth and public revenue war and embargo would be materially different. In case of war, some part of that revenue will remain; but if embargo and suspension of commerce continue, that which arises from commerce will entirely disappear."[267] Jefferson nevertheless clung to the system, even to the end of his life, with a conviction that defied demonstration. The fundamental error of conception, of course, was in considering embargo an efficient alternative for war. The difference between the two measures, regarded coercively, was that embargo inflicted upon his own people all the loss that war could, yet spared the opponent that which war might do to him. For the United States, war would have meant, and when it came did mean, embargo, and little more. To Great Britain it would have meant all that the American embargo could do, plus the additional effort, expense, and actual loss, attendant upon the increased exposure of her maritime commerce, and its protection against active and numerous foes, singularly well fitted for annoyance by their qualities and situation. War and embargo, combined, with Napoleon in the plenitude of his power, as he was in 1808, would sorely have tried the enemy; even when it came, amid the Emperor's falling fortunes, the strain was severe. But Jefferson's lack of appreciation for maritime matters, his dislike to the navy, and the weakness to which he had systematically reduced it, prevented his realizing the advantages of war over embargo, as a measure of coercion. To this contributed also his conviction of the exposure of Canada to offensive operations, which was just, though fatally vitiated by an unfounded confidence in untrained troops, or militia summoned from their farms. Neither was there among his advisers any to correct his views; rather they had imbibed their own from him, and their utterances in debate betray radical misapprehension of military considerations.

Among the incidents attendant upon the embargo was the continuance abroad of a number of American vessels, which were there at the passage of the Act. They remained, willing exiles, to share the constant employment and large freights which the sudden withdrawal of their compatriots had opened to British navigation. They were doubtless joined by many of those which received permission to sail in quest of American property. One flagrant instance of such abuse of privilege turned up at Leghorn, with a load of tropical produce;[268] and the comments above quoted from an Havana letter doubtless depended upon that current acquaintance with facts which men in the midst of affairs pick up. It was against this class of traders specifically that Napoleon launched the Bayonne Decree, April 17, 1808. Being abroad contrary to the law of the United States, he argued, was a clear indication that they were not American, but British in disguise. This they were not; but they were carrying on trade under the Orders in Council, and often under British convoy.[269] The fact was noteworthy, as bearing upon the contention of the United States Government soon after, that the Non-Intercourse Law was adequate security for the action of American merchant vessels; a grotesque absurdity, in view of the embargo experiences. That it is not consonant with national self-esteem to accept foreign assistance to carry out national laws is undeniable; but it is a step further to expect another nation to accept, as assured, the efficiency of an authority notoriously and continually violated by its own subjects.

Under the general conditions named, the year 1808 wore on to its close. Both the British Orders in Council and the Decrees of the French Emperor continued in force and received execution;[270] but so far as the United States was concerned their effect was much limited, the embargo retaining at home the greater part of the nation's shipping. The vessels which had remained abroad, and still more those which escaped by violation of the law, or abuse of the permission to sail unloaded to bring back American property, for the most part purchased immunity by acquiescence in the British Orders. They accepted British licenses, and British convoy also, where expedient. It was stated in Congress that, of those which went to sea under permission, comparatively few were interrupted by British cruisers.[271] Napoleon's condemnations went on apace, and in the matter of loss,—waiving questions of principle,—were at this moment a more serious grievance than the British Orders. Nor could it be said that the grounds upon which he based his action were less arbitrary or unjust. The Orders in Council condemned a vessel for sailing for an enemy's port, because constructively blockaded—a matter as to which at least choice was free; the Milan Decree condemned because visited by a British cruiser, to avoid which a merchant ship was powerless. The American brig "Vengeance" sailed from Norfolk before the embargo was laid, for Bilboa, then a port in alliance with France. On the passage the British frigate "Iris" boarded her, and indorsed on her papers that, in accordance with the orders of November 11, she must not proceed. That night the "Vengeance" gave the cruiser the slip, and pursued her course. She was captured off Bilboa by a French vessel, sent in as a prize, and condemned because of the frigate's visit.[272] This case is notable because of the pure application of a single principle, not obscured by other incidental circumstances, as often happens. The brig "George", equally bound to Bilboa, after visitation by a British vessel had been to Falmouth, and there received a British license to go to her destination. She was condemned for three offenses: the visit, the entrance to Falmouth, and the license.[272a] These cases were far from isolated, and quite as flagrant as anything done by Great Britain; but, while not overlooked, nor unresented, by the supporters of the embargo, there was not evident in the debates of Congress any such depth of feeling as was aroused by the British measures. As was said by Mr. Bayard, an Opposition Senator, "It may be from the habit of enduring, but we do not feel an aggression from France with the same quickness and sensibility that we do from England."[273]

Throughout the year 1808, the embargo was maintained by the Administration with as much vigor as was possible to the nature of the administrator, profoundly interested in the success of a favorite measure. Congress had supplemented the brief original Act by a prohibition of all intercourse with foreign territories by land, as well as by sea. This was levelled at the Florida and Canada frontiers. Authority had been given also for the absolute detention of all vessels bound coastwise, if with cargoes exciting suspicion of intention to evade the laws. Part of the small navy was sent to cruise off the coast, and the gunboats were distributed among the maritime districts, to intercept and to enforce submission. Steps were taken to build vessels on Lakes Ontario and Champlain; for, in the undeveloped condition of the road systems, these sheets of water were principal means of transportation, after snow left the ground. To the embargo the Navy owed the brig "Oneida", the most formidable vessel on Ontario when war came. All this restrictive service was of course extremely unpopular with the inhabitants; or at least with that active, assertive element, which is foremost in pushing local advantages, and directs popular sentiment. Nor did feeling in all cases refrain from action. April 19, the President had to issue a proclamation against combinations to defy the law in the country about Champlain. The collector at Passamaquoddy wrote that, with upwards of a hundred vessels in port, he was powerless; and the mob threatened to burn his house.[274] A Kennebec paper doubted whether civil society could hang together much longer. There were few places in the region where it was safe for civil officers to execute the laws.[274a] Troops and revenue vessels were despatched to the chief centres of disturbance; but, while occasional rencounters occurred, attended at times with bloodshed, and some captures of smuggled goods were effected, the weak arm of the Government was practically powerless against universal connivance in the disaffected districts. Smuggling still continued to a large extent, and was very profitable; while the determination of the smugglers assumed the character commonly styled desperate.

Such conditions, with a falling revenue, and an Opposition strong in sectional support, confronted the supporters of the Administration when Congress again met in November. Confident that embargo was an efficient coercive weapon, if relentlessly wielded, the President wished more searching enactments, and power for more extensive and vigorous enforcement. This Congress proceeded to grant. Additional revenue cutters were authorized; and after long debate was passed an Act for the Enforcement of the Embargo, approved January 9, 1809.[275] The details of this law were derived from a letter[276] addressed to a Committee of Congress by Gallatin, the Secretary of the Treasury, upon whom the administration of the embargo system chiefly fell. The two principal difficulties so far encountered were the evasions of vessels bound coastwise, and departure without clearance. "The infractions thus practised threaten to prostrate the law and the Government itself." Even to take cargo on board should not be permitted, without authorization from the collector of the district. "The great number of vessels now laden and in a state of readiness to depart shows the necessity of this provision."

It was therefore enacted that no vessel, coasting or registered, should load, without first having obtained permission from the custom-house, and given bond, in six times the value of the cargo, that she would not depart without a clearance, nor after clearing go to any foreign port, or transfer her lading to any other vessel. The loading was to be under the inspection of revenue officers. Ships already loaded, when notice of the Act was received, must unload or give bonds. Further to insure compliance, vessels bound coastwise must, within two months after sailing, deposit with the collector at the port of clearance a certificate from the collector at the port of destination, that they had arrived there. If going to New Orleans from the Atlantic coast, four months were allowed for this formality. Failing this, proof of total loss at sea would alone relieve the bond. "Neither capture, distress, nor any other accident, shall be pleaded or given in evidence." Collectors were empowered to take into custody specie and goods, whether on vessels or land vehicles, when there was reason to believe them intended for exportation; and authority was given to employ the army and navy, and the militia, for carrying out this and the other embargo legislation. A further provision of thirty armed vessels, to stop trade, was made by this Congress; which otherwise, like its predecessors and successors, was perfectly faithful to the party tradition not to protect trade, or seek peace, by providing a navy.

All this was sitting on the safety valve. However unflattering to national self-esteem it might be to see national legislation universally disregarded, the leakage of steam by evasion had made the tension bearable. The Act also opened to a number of subaltern executive officers, of uncertain discretion, an opportunity for arbitrary and capricious action, to which the people of the United States were unaccustomed. Already a justice of a circuit court had decided in opposition to instructions issued by the President himself. The new legislation was followed by an explosion of popular wrath and street demonstrations. These were most marked in the Eastern states, where the opposition party and the shipping interest were strongest. Feeling was the more bitter, because the revolt of Spain, and the deliverance of Portugal, had exempted those nations and their extensive colonies from the operation of the British Orders in Council, had paralyzed in many of their ports the edicts of Napoleon, and so had extended widely the field safe for neutral commerce. It was evident also that, while the peninsula everywhere was the scene of war, it could not feed itself; nor could supplies for the population, or for the British armies there, come from England, often narrowly pressed herself for grain. Cadiz was open on August 26; all neutrals admitted, and the British blockade raised. Through that portal and Lisbon might flow a golden tide for American farmers and shipmen. The town meetings of New England again displayed the power for prompt political agitation which so impressed the imagination of Jefferson. The Governor of Connecticut refused, on constitutional grounds, to comply with the President's request to detail officers of militia, to whom collectors could apply when needing assistance to enforce the laws. The attitude of the Eastern people generally was that of mutiny; and it became evident that it could only be repressed by violence, and with danger to the Union.

Congress was not prepared to run this risk. On February 8, less than a month after the Enforcement Act became law, its principal supporter in the Senate[277] introduced a resolution for the partial repeal of the Embargo Act. "This is not of my choice," he said, "nor is the step one by which I could wish that my responsibility should be tested. It is the offspring of conciliation, and of great concession on my part. On one point we are agreed,—resistance to foreign aggressions. The points of difficulty to be adjusted,—and compromised,—relate to the extent of that resistance and the mode of its application. In my judgment, if public sentiment could be brought to support them, wisdom would dictate the combined measures of embargo, non-intercourse, and war. Sir, when the love of peace degenerates into fear of war, it becomes of all passions the most despicable." It was not the first time the word "War" had been spoken, but the occasion made it doubly significant and ominous; for it was the requiem of the measure upon which the dominant party had staked all to avoid war, and the elections had already declared that power should remain in the same hands for at least two years to come. Within four weeks Madison was to succeed his leader, Jefferson; with a Congressional majority, reduced indeed, but still adequate.

The debate over the new measure, known as the Non-Intercourse Act, was prolonged and heated, abounding in recriminations, ranging over the whole gamut of foreign injuries and domestic misdoings, whether by Government policy or rebellious action; but clearer and clearer the demand for war was heard, through and above the din. "When the late intelligence from the northeast reached us," said an emotional follower of the Administration,[278] "it bore a character most distressful to every man who valued the integrity of the Government. Choosing not to enforce the law with the bayonet, I thought proper to acknowledge to the House that I was ready to abandon the embargo.... The excitement in the East renders it necessary that we should enforce it by the bayonet, or repeal. I will repeal, and could weep over it more than over a lost child." There was, he said, nothing now but war. "The very men who now set your laws at defiance," cried another, "will be against you if you go to war;" but he added, "I will never let go the embargo, unless on the very same day on which we let it go, we draw the sword."[279]

Josiah Quincy, an extremist on the other side, gave a definition of the position of Massachusetts, which from his ability, and his known previous course on national questions, is particularly valuable. In the light of the past, and of what was then future, it may be considered to embody the most accurate summary of the views prevailing in New England, from the time of the "Chesapeake" affair to the war. He "wished a negotiation to be opened, unshackled with the impedimenta which now exist. As long as they remained, people in the part of the country whence he came would not deem an unsuccessful attempt at negotiation cause for war. If they were removed, and an earnest attempt at negotiation made, unimpeded by these restrictions, and should not meet with success, they would join heartily in a war. They would not, however, go to war to contest the right of Great Britain to search American vessels for British seamen; for it was the general opinion with them that, if American seamen were encouraged, there would be no need for the employment of foreign seamen."[280] Quincy therefore condemned the retaliatory temper of the Administration, as shown in the "Chesapeake" incident by the proclamation excluding British ships of war, and in the embargo as a reply to the Orders in Council. The oppression of American trade, culminating in the Orders, was a just cause of war; but war was not expedient before a further attempt at negotiation, favored by a withdrawal of all retaliatory acts. He was willing to concede the exercise of British authority on board American merchantmen on the high seas.

In the main these were the coincident opinions of Monroe, although a Virginian and identified with the opposite party. At this time he wrote to Jefferson privately, urging a special mission, for which he offered his services. "Our affairs are evidently at a pause, and the next step to be taken, without an unexpected change, seems likely to be the commencement of war with both France and Great Britain, unless some expedient consistent with the honor of the Government and Country is adopted to prevent it." To Jefferson's rejection of the proposition he replied: "I have not the hope you seem still to entertain that our differences with either Power will be accommodated under existing arrangements. The embargo was not likely to accomplish the desired effect, if it did not produce it under the first impression.... Without evidence of firm and strong union at home, nothing favorable to us can be expected abroad, and from the symptoms in the Eastern states there is much cause to fear that tranquillity cannot be secured at present by adherence only to the measures which have heretofore been pursued."[281] Monroe had already[282] expressed the opinion—not to Jefferson, who had refused to ratify, but to a common intimate—that had the treaty of December 31, 1806, signed by himself and Pinkney, been accepted by the Administration, none of the subsequent troubles with France and Great Britain would have ensued; that not till the failure of accommodation with Great Britain became known abroad was there placed upon the Berlin Decree that stricter interpretation which elicited the Orders in Council, whence in due sequence the embargo, the Eastern commotions, and the present alarming outlook. In principle, Quincy and Monroe differed on the impressment question, but in practical adjustment there was no serious divergence. In other points they stood substantially together.

Under the combined influences indicated by the expressions quoted, Congress receded rapidly from the extreme measures of domestic regulation embodied in the various Embargo Acts and culminating in that of January 9. The substitute adopted was pronouncedly of the character of foreign policy, and assumed distinctly and unequivocally the hostile form of retaliation upon the two countries under the decrees of which American commerce was suffering. It foreshadowed the general line of action followed by the approaching new Administration, with whose views and purposes it doubtless coincided. Passed in the House on February 27, 1809, it was to go into effect May 20, after which date the ports of the United States were forbidden to the ships of war of both France and Great Britain, except in cases of distress, or of vessels bearing despatches. Merchant vessels of the two countries were similarly excluded, with a provision for seizure, if entering. Importation from any part of the dominions of those states was prohibited, as also that of any merchandise therein produced. Under these conditions, and with these exceptions, the embargo was to stand repealed from March 15 following; but American and other merchant vessels, sailing after the Act went into operation, were to be under bonds not to proceed to any port of Great Britain or France, nor during absence to engage in any trade, direct or indirect, with such port. From the general character of these interdictions, stopping both navigation and commerce between the United States and the countries proscribed, this measure was commonly called the Non-Intercourse Act. Its stormy passage through the House was marked by a number of amendments and proposed substitutes, noticeable principally as indicative of the growth of warlike temper among Southern members. There were embodied with the bill the administrative and police clauses necessary for its enforcement. Finally, as a weapon of negotiation in the hands of the Government, there was a provision, corresponding to one in the original Embargo Act, that in case either France or Great Britain should so modify its measures as to cease to violate the neutral commerce of the United States, the President was authorized to proclaim the fact, after which trade with that country might be renewed. In this shape the bill was returned to the Senate, which concurred February 28. Next day it became law, by the President's signature.

The Enforcement Act and the Non-Intercourse Act, taken together and in their rapid sequence, symbolize the death struggle between Jefferson's ideal of peaceful commercial restriction, unmitigated and protracted, in the power of which he had absolute faith, and the views of those to whom it was simply a means of diplomatic pressure, temporary, and antecedent to war. Napoleon himself was not more ruthless than Jefferson in his desired application of commercial prohibition. Not so his party, in its entirety. The leading provisions of the Non-Intercourse Act, by partially opening the door and so facilitating abundant evasion, traversed Jefferson's plan. It was antecedently notorious that their effect, as regarded Great Britain, would be to renew trade with her by means of intermediary ports. Yet that they were features in the policy of the men about to become prominent under the coming Administration was known to Canning some time before the resolution was introduced by Giles; before the Enforcement Act even could reach England. Though hastened by the outburst in New England, the policy of the Non-Intercourse Act was conceived before the collapse of Jefferson's own measure was seen to be imminent.

On January 18 and 22 Canning, in informal conversations with Pinkney, had expressed his satisfaction at proceedings in Congress, recently become known, looking to the exclusion of French ships equally with British, and to the extension of non-importation legislation to France as well as Great Britain.[283] He thought that such measures might open the way to a withdrawal of the Orders in Council, by enabling the British Government to entertain the overture, made by Pinkney August 23, under instructions, that the President would suspend the embargo, if the British Government would repeal its orders. This he conceived could not be done, consistently with self-respect, so long as there was inequality of treatment. In these anticipations he was encouraged by representations concerning the attitude of Madison and some intended members of his Cabinet, made to him by Erskine, the British Minister in Washington, who throughout seems to have cherished an ardent desire to reconcile differences which interfered with his just appreciation even of written words,—much more of spoken.

In the interview of the 22d Pinkney confined himself to saying everything "which I thought consistent with candor and discretion to confirm him in his dispositions." He suggested that the whole matter ought to be settled at Washington, and "that it would be well (in case a special mission did not meet their approbation) that the necessary powers should be sent to Mr. Erskine."[284] He added, "I offered my intervention for the purpose of guarding them against deficiencies in these powers."[285] The remark is noteworthy, for it shows Pinkney's sense that Erskine's mere letter of credence as Minister Resident, not supplemented by full powers for the special transaction, was inadequate to a binding settlement of such important matters. In the sequel the American Administration did not demand of Erskine the production either of special powers or of the text of his instructions; a routine formality which would have forestalled the mortifying error into which it was betrayed by precipitancy, and which became the occasion of a breach with Erskine's successor.

The day after his interview with Pinkney, Canning sent Erskine instructions,[286] the starting-point of which was that the Orders in Council must be maintained, unless their object could be otherwise accomplished. Assuming, as an indispensable preliminary to any negotiation, that equality of treatment between British and French ships and merchandise would have been established, he said he understood further from Erskine's reports of conversations that the leading men in the new Administration would be prepared to agree to three conditions: 1. That, contemporaneously with the withdrawal of the Orders of January 7 and November 11, there would be a removal of the restrictions upon British ships and merchandise, leaving in force those against French. 2. The claim, to carry on with enemies' colonies a trade not permitted in peace, would be abandoned for this war. 3. Great Britain should be at liberty to secure the operation of the Non-Intercourse measures, still in effect against France, by the action of the British Navy, which should be authorized to capture American vessels seeking to enter ports forbidden them by the Non-Intercourse Act. Canning justly remarked that otherwise Non-Intercourse would be nugatory; there would be nothing to prevent Americans from clearing for England or Spain and going to Holland or France. This was perfectly true. Not only had a year's experience of the embargo so demonstrated, but a twelvemonth later[287] Gallatin had to admit that "the summary of destinations of these exports, being grounded on clearances, cannot be relied on under existing circumstances. Thus, all the vessels actually destined for the dominions of Great Britain, which left the United States between April 19 and June 10, 1809, cleared for other ports; principally, it is believed, for Sweden." Nevertheless, the proposition that a foreign state should enforce national laws, because the United States herself could not, was saved from being an insult only by the belief, extracted by Canning from Erskine's report of conversations, that Madison, or his associates, had committed themselves to such an arrangement. He added that Pinkney "recently (but for the first time)" had expressed an opinion to the same effect.

The British Government would consent to withdraw the Orders in Council on the conditions cited; and for the purpose of obtaining a distinct and official recognition of them, Canning authorized Erskine to read his letter in extenso to the American Government. Had this been done, as the three concessions were a sine quâ non, the misunderstanding on which the despatch was based would have been at once exposed; and while its assumptions and tone could scarcely have failed to give offence, there would have been saved the successive emotions of satisfaction and disappointment which swept over the United States, leaving bitterness worse than before. Instead of communicating Canning's letter, Erskine, after ascertaining that the conditions would not be accepted, sent in a paraphrase of his own, dated April 18,[288] in which he made no mention of the three stipulations, but announced that, in consequence of the impartial attitude resulting from the Non-Intercourse Act, his Majesty would send a special envoy to conclude a treaty on all points of the relations between the two countries, and meanwhile would be willing to withdraw the Orders of January 7 and November 11, so far as affecting the United States, in the persuasion that the President would issue the proclamation restoring intercourse. This advance was welcomed, the assurance of revocation given, and the next day Erskine wrote that he was "authorized to declare that the Orders will have been withdrawn as respects the United States on the 10th day of June next." The same day, by apparent preconcertment, in accordance with Canning's requirement that the two acts should be coincident, Madison issued his proclamation, announcing the fact of the future withdrawal, and that trade between the United States and Great Britain might be renewed on June 10.

Erskine's proceeding was disavowed instantly by the British Government, and himself recalled. A series of unpleasant explanations followed between him and the members of the American Government,[289] astonished by the interpretation placed upon their words, as shown in Canning's despatch. Canning also had to admit that he had strained Erskine's words, in reaching his conclusions as to the willingness of Madison and his advisers to allow the enforcement of the Non-Intercourse Act by British cruisers;[290] while Pinkney entirely disclaimed intending any such opinion as Canning imagined him to have expressed.[291] The British Secretary was further irritated by the tone of the American replies to Erskine's notes; but he "forbore to trouble"[292] Pinkney with any comment upon them. That would be made through Erskine's successor; an unhappy decision, as it proved. No explanation of the disavowal was given; but the instructions sent were read to Pinkney by Canning, and a letter followed saying that Erskine's action had been in direct contradiction to them. Things thus returned to the momentarily interrupted condition of American Non-Intercourse and British Orders in Council; the British Government issuing a temporary order for the protection of American vessels which might have started for the ports of Holland in reliance upon Erskine's assurances. From America there had been numerous clearances for England; and it may be believed that there would have been many more if the transient nature of the opportunity had been foreseen. August 9, Madison issued another proclamation, annulling the former.

While Erskine was conducting his side negotiation, the British Government had largely modified the scope of the restrictions laid upon neutral trade. In consequence of the various events which had altered its relations with European states and their dependencies, the Orders of November, 1807, were revoked; and for them was substituted a new one, dated April 26, 1809,[293] similar in principle but much curtailed in extent. Only the coasts of France itself, of Holland to its boundary, the River Ems, and those of Italy falling under Napoleon's own dominion, from Orbitello to Pesaro, were thenceforth to be subject to "the same restrictions as if actually blockaded." Further, no permission was given, as in the former Orders, to communicate with the forbidden ports by first entering one of Great Britain, paying a transit duty, and obtaining a permit to proceed. In terms, prohibition was now unqualified; and although it was known that licenses for intercourse with interdicted harbors were freely issued, the overt offence of prescribing British channels to neutral navigation was avoided. Within the area of restriction, "No trade save through England" was thus converted, in form, to no trade at all. This narrowing of the constructive blockade system, combined with the relaxations effected by the Non-Intercourse Act, and with the food requirements of the Spanish peninsula, did much to revive American commerce; which, however, did not again before the war regain the fair proportions of the years preceding the embargo. The discrepancy was most marked in the re-exportation of foreign tropical produce, sugar and coffee, a trade dependent wholly upon war conditions, and affecting chiefly the shipping interest engaged in carrying it. For this falling off there were several causes. After 1809 the Continental system was more than ever remorselessly enforced, and it was to the Continent almost wholly that Americans had carried these articles. The Spanish colonies were now open to British as well as American customers; and the last of the French West Indies having passed into British possession, trade with them was denied to foreigners by the Navigation Act. In 1807 the value of the colonial produce re-exported from the United States was $59,643,558; in 1811, $16,022,790. The exports of domestic productions in the same years were: 1807, $48,699,592; in 1811, $45,294,043. In connection with these figures, as significant of political conditions, it is interesting to note that of the latter sum $18,266,466 went to Spain and Portugal, chiefly to supply demands created by war. So with tropical produce; out of the total of $16,022,790, $5,772,572 went to the Peninsula, and an equal amount to the Baltic, that having become the centre of accumulation, from which subsequent distribution was made to the Continent in elusion of the Continental System. The increasing poverty of the Continent, also, under Napoleon's merciless suppression of foreign commerce, greatly lessened the purchasing power of the inhabitants. The great colonial trade had wasted under the combined action of British Orders and French Decrees, supplemented by changes in political relations. The remote extremities of the Baltic lands and the Spanish peninsula now alone sustained its drooping life.

Coincident with Erskine's recall had been the appointment of his successor, Mr. Francis J. Jackson, who took with him not only the usual credentials, but also full powers for concluding a treaty or convention.[294] He departed for his post under the impulse of the emotions and comments excited by the manner and terms in which Erskine's advances had been met, with which Canning had forborne to trouble Pinkney. Upon his arrival in Washington, disappointment was expressed that he had no authority to give any explanations of the reasons why his Government had disavowed arrangements, entered into by Erskine, concerning not only the withdrawal of the Orders in Council,—as touching the United States,—but also the reparation for the "Chesapeake" business. This Erskine had offered and concluded, coincidently with the revocation of the Orders, though not in connection with it; but in both instances his action was disapproved by his Government. After two verbal conferences, held within a week of Jackson's arrival, the Secretary of State, Mr. Robert Smith, notified him on October 9 that it was thought expedient, for the present occasion, that further communication on this matter should be in writing. There followed an exchange of letters, which in such circumstances passed necessarily under the eyes of President Madison, who for the eight preceding years had held Smith's present office.

This correspondence[295] presents an interesting exhibition of diplomatic fencing; but beyond the discussion, pro and con, of the matters in original and continuous dispute between the two countries, the issue turned upon the question whether the United States had received the explanation due to it,—in right and courtesy,—of the reasons for disavowing Erskine's agreements. Smith maintained it had not. Jackson rejoined that sufficient explanation had been given by the terms of Canning's letter of May 27 to Pinkney, announcing that Erskine had been recalled because he had acted in direct contradiction to his instructions; an allegation sustained by reading to the American minister the instructions themselves. In advancing this argument, Jackson stated also that Canning's three conditions had been made known by Erskine to the American Government, which, in declining to admit them, had suggested substitutes finally accepted by Erskine; so that the United States understood that the arrangement was reached on another basis than that laid down by Canning. This assertion he drew from the expressions of Erskine in a letter to Canning, after the disavowal. Smith replied that Erskine, while not showing the despatch, had stated the three stipulations; that they had been rejected; and that the subsequent arrangement had been understood to be with a minister fully competent to recede from his first demand and to accept other conditions. Distinctly he affirmed, that the United States Government did not know, at any time during the discussion preceding the agreement, that Erskine's powers were limited by the conditions in the text of his instructions, afterwards published. That he had no others, "is now for the first time made known to this Government," by Jackson's declaration.