On This Day: Embargo Act pumps up American manufacturing, at short-term cost - Dec. 22, 1807
(edited from Wikipedia)
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Embargo Act of 1807
The Embargo Act of 1807 was a general trade embargo on all foreign nations that was enacted by the United States Congress. As a successor or replacement law for the 1806 Non-importation Act and passed as the Napoleonic Wars continued, it represented an escalation of attempts to persuade Britain to stop any impressment of American sailors and to respect American sovereignty and neutrality but also attempted to pressure France and other nations in the pursuit of general diplomatic and economic leverage.
In the first decade of the 19th century, American shipping grew. During the Napoleonic Wars, rival nations Britain and France targeted neutral American shipping as a means to disrupt the trade of the other nation. American merchantmen who were trading with "enemy nations" were seized as contraband of war by European navies. The British Royal Navy had impressed American sailors who had either been British-born or previously serving on British ships, even if they now claimed to be American citizens with American papers. Incidents such as the Chesapeake–Leopard affair outraged Americans.
Congress imposed the embargo in direct response to these events. President Thomas Jefferson acted with restraint, weighed public support for retaliation, and recognized that the United States was militarily far weaker than either Britain or France. He recommended that Congress respond with commercial warfare, a policy that appealed to Jefferson both for being experimental and for foreseeably harming his domestic political opponents more than his allies, whatever its effect on the European belligerents. The 10th Congress was controlled by his allies and agreed to the Act, which was signed into law on December 22, 1807.
In terms of diplomacy, the Embargo failed to improve the American diplomatic position, and sharply increased international political tensions. Both widespread evasion of the embargo and loopholes in the legislation reduced its impact on its targets. British commercial shipping, which already dominated global trade, was successfully adapting to Napoleon's Continental System by pursuing new markets, particularly in the restive Spanish and Portuguese colonies in South America. Thus, British merchants were well-positioned to grow at American expense when the embargo sharply reduced American trade activity.
The Act's prohibition on imports stimulated the growth of nascent US domestic industries across the board, particularly the textile industry, and marked the beginning of the manufacturing system in the United States, reducing the nation's dependence upon imported manufactured goods.
Americans opposed to the Act launched bitter protests, particularly in New England commercial centers. Support for the declining Federalist Party, which intensely opposed Jefferson, temporarily rebounded and drove electoral gains in 1808 (Senate and House). On March 1, 1809, the Replacement legislation for the embargo was enacted during the last days of Jefferson's presidency. Tensions with Britain continued to grow and eventually led to the War of 1812.
Consequences
The immediate effect of the embargo hurt the United States as much as it did Britain and France. Britain, expecting to suffer most from the American regulations, built up a new South American market for its exports, and the British shipowners were pleased that American competition had been removed by the action of the US government.
Jefferson placed himself in a strange position with his embargo policy. Though he had frequently argued for as little government intervention as possible, he now found himself assuming extraordinary powers in an attempt to enforce his policy. The presidential election of 1808 had James Madison defeat Charles Cotesworth Pinckney but showed that the Federalists were regaining strength and helped to convince Jefferson and Madison that the embargo should end. Shortly before leaving office in March 1809, Jefferson signed the repeal of the embargo.
Despite its unpopular nature, the Embargo Act had one longterm positive impact. Unfulfilled domestic demand for manufactured goods stimulated the growth of the Industrial Revolution in the United States, resulting in an emerging American domestic manufacturing system.
Chesapeake–Leopard affair
The Chesapeake–Leopard affair was a naval engagement off the coast of Norfolk, Virginia, on June 22, 1807, between the British fourth-rate HMS Leopard and the American frigate USS Chesapeake. The crew of Leopard pursued, attacked, and boarded the American frigate, looking for deserters from the Royal Navy. Chesapeake was caught unprepared and after a short battle involving broadsides received from Leopard, the commander of Chesapeake, James Barron, surrendered his vessel to the British. Chesapeake had fired only one shot.
Four crew members were removed from the American vessel and were tried for desertion, one of whom was subsequently hanged. Chesapeake was allowed to return home, where James Barron was court martialed and relieved of command.
The Chesapeake–Leopard affair created an uproar among Americans. There were strident calls for war with Great Britain, but these quickly subsided. President Thomas Jefferson initially attempted to use this widespread bellicosity to diplomatically threaten the British government into settling the matter. The United States Congress backed away from armed conflict when British envoys showed no contrition for the Chesapeake affair, delivering proclamations reaffirming impressment. Jefferson's political failure to coerce Great Britain led him toward economic warfare: the Embargo of 1807.
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https://en.wikipedia.org/wiki/Embargo_Act_of_1807
https://en.wikipedia.org/wiki/Chesapeake%E2%80%93Leopard_affair
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