Non-intercourse Act (March 1, 1809)

The hopelessness of the struggle against the disregard of the law by the Americans themselves finally led the President and Congress to give it up, and that, too, shortly after the passing of the Enforcement Act in January, 1809. The fact is that this law gave rise to disturbances and to a still greater feeling of irritation in the shipping states, so much the more so as the insurrection in Spain in the late summer of 1808 seemed to open up new and bright prospects to American trade. The result was a new and famous law, the Non-intercourse Act, passed on March 1, 1809. That law repealed the Embargo Act as a complete all-round self-blockade, and limited the embargo so as to make it apply only to the two sets of belligerents, Great Britain and France; but by way of compensation it was made, if possible, still more strict against them. Over and above the prohibition of American trade and shipping contained in the Embargo Act, which remained in force with regard to those two countries, all British and French vessels, all goods shipped from Great Britain and France, and all goods produced there, were now forbidden to enter American ports as from May 20, 1809. The substitution of the two-sided prohibition for the one-sided Non-importation Act, which was exclusively directed against Great Britain, gave a really consistent expression to an impartial policy of reprisals. The intention was to provide an outlet for American trade which could make the measure feasible without blunting the edge of its task as a measure of reprisal; and it was thus, practically speaking, a rationalization of the Embargo Act. But it was obvious beforehand that any control of its observance must be more difficult than ever when once American vessels obtained the right to sail to Europe. The character of the law as a means of exerting pressure was further marked by the fact that the President was authorized to announce by proclamation when either of the two belligerents revoked or amended its laws to such an extent that they no longer violated the trade of the United States; after which event commercial intercourse with the country of that belligerent was to be renewed.

The natural result was a considerable recovery in American foreign trade, in the first place with the more or less neutral places, such as the Hanse Towns, Altona, and especially Tönning in Schleswig and probably Gothenburg. The trade with England continued to go chiefly to Canada and Nova Scotia, and also, especially for cotton, via Amelia Island in the St. Mary's River and thence to Europe in British bottoms, which could not be regarded as attractive from an American standpoint. Cotton went also via Lisbon, Cadiz, the Azores or other permitted ports, while persons who had no reputation to lose made shipments direct to Liverpool. But the need of the goods was so small, comparatively, in Great Britain, that the increased prices which were a consequence of the roundabout journey and the difficulties of transportation lowered profits for the American exporters.

But while the economic effects continued to arouse discord, the political effects seemed, though somewhat late, to promise the results expected from a policy of reprisals. Madison, who had succeeded Jefferson as President three days after the passing of the Non-intercourse Act, was rejoiced to receive an English proposal for a settlement, which rapidly attained an apparent result. In reality, to be sure, Canning's conditions for an agreement were entirely unacceptable by the American government. But the British minister at Washington, Erskine, son of the Lord Chancellor in the 'All the Talents' ministry, went in his zeal for a settlement quite beyond his instructions and promised on behalf of his government the rescinding of the Orders in Council as against the United States from June 10, 1809. On this, Madison, in accordance with the authority given him in the Non-intercourse Act, announced this concession on the part of Great Britain in a proclamation which suspended the American act from the same day. An immense movement immediately began in all American ports, where six hundred vessels lay ready to sail on the appointed day; and during the week June 16-23, Liverpool received more American cotton than it had received throughout the entire year of 1807. At this point, however, it was found that the British government disavowed its minister, and the President was compelled to revoke his proclamation. The new British envoy who succeeded Erskine came immediately into sharp conflict with the American government and was recalled; after which all prospects of an immediate settlement in this quarter were again blighted.