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Under the Navigation Act, and throughout the colonial period, the transatlantic colonies of Great Britain had grown steadily; developing a commercial individuality of their own, depending in each upon local conditions. The variety of these, with the consequent variety of occupations and products, and the distance separating all from the mother country, had contributed to develop among them a certain degree of mutual dependence, and consequent exchange; the outcome of which was a commercial system interior to the group as a whole, and distinct from the relations to Great Britain borne by them individually and collectively. There was a large and important intercolonial commerce,³⁸ consistent with the letter of the Navigation Act, as well as a trade with Great Britain; and although each of these exerted an influence upon the other, it was indirect and circuitous. The two were largely separate in fact, as well as in idea; and the interchange between the various colonies was more than double that with the mother country. It drew in British as well as American seamen, and was considered thus to entail the disadvantage that, unless America were the scene of war, the crews there were out of reach of impressment; that measure being too crude and unsystematic to reach effectively so distant a source of supply. Curiously enough, also, by an act passed in the reign of Queen Anne, seamen born in the American colonies were exempted from impressment.³⁹ "During the late Civil War (of American Independence) it has been found difficult sufficiently to man our fleet, from the seamen insisting that, since they had been born in America, they could not be pressed to serve in the British navy."⁴⁰ In these conditions, and especially in the difficulty of distinguishing the place of birth by the language spoken, is seen the foreshadowing of the troubles attending the practice of Impressment, after the United States had become a separate nation.

The British American colonies were divided by geographical conditions into two primary groups: those of the West India Islands, and those of the Continent. The common use of the latter term, in the thought and speech of the day, is indicated by the comprehensive adjective "Continental," familiarly applied to the Congress, troops, currency, and other attributes of sovereignty, assumed by the revolted colonies after their declaration of independence. Each group had special commercial characteristics—in itself, and relatively to Great Britain. The islands, whatever their minor differences of detail, or their mutual jealousies, or even their remoteness from one another,—Jamaica being a thousand miles from her eastern sisters,—were essentially a homogeneous body. Similarity of latitude and climate induced similarity of social and economical conditions; notably in the dependence on slave labor, upon which the industrial fabric rested. Their products, among which sugar and coffee were the most important, were such as Europe did not yield; it was therefore to their advantage to expend labor upon these wholly, and to depend upon external sources for supplies of all kinds, including food. Their exports, being directed by the Navigation Act almost entirely upon Great Britain, were, in connection with Virginia tobacco, the most lucrative of the "enumerated" articles which rendered tribute to the entrepôt monopoly of the mother country. It was in this respect particularly, as furnishing imports to be handled and re-exported, that the islands were valuable to the home merchants. To the welfare of the body politic they contributed by their support of the carrying trade; for the cargoes, being bulky, required much tonnage, and the entire traffic was confined to British ships, manned three-fourths by British seamen. As a market also the islands were of consequence; all their supplies coming, by law, either from or through Great Britain, or from the continental colonies. Intercourse with foreign states was prohibited, and that with foreign colonies allowed only under rare and disabling conditions. But although the West Indies thus maintained a large part of the mother country's export trade, the smallness of their population, and the simple necessities of the slaves, who formed the great majority of the inhabitants, rendered them as British customers much inferior to the continental colonies; and this disparity was continually increasing, for the continent was growing rapidly in numbers, wealth, and requirements. In the five years 1744-48, the exports from Great Britain to the two quarters were nearly equal; but a decade later the continent took double the amount that the islands demanded. The figures quoted for the period 1754-58 are: to the West Indies, £3,765,000; to North America, £7,410,000.⁴¹ In the five years ending 1774 the West Indies received £6,748,095; the thirteen continental colonies, £13,660,180.⁴²

Imports from the continent also supported the carrying trade of Great Britain, but not to an extent proportionate to those from the islands; for many of the continental colonies were themselves large carriers. The imports to them, being manufactured articles, less bulky than the exports of the islands, also required less tonnage. The most marked single difference between the West India communities and those of the continent was that the latter, being distributed on a nearly north and south line, with consequent great divergences of climate and products, were essentially not homogeneous. What one had, another had not. Such differences involve of course divergence of interests, with consequent contentions and jealousies, the influence of which was felt most painfully prior to the better Union of 1789, and never can wholly cease to act; but, on the other hand, it tends also to promote exchange of offices, where need and facility of transport combine to make such exchange beneficial to both. That the intercourse between the continental colonies required a tonnage equal to that employed between them and the West Indies,—testified by the return of 1770 before quoted,⁴³—shows the existence of conditions destined inevitably to draw them together. The recognition of such mutual dependence, when once attained, furthers the practice of mutual concession for the purpose of combined action. Consequently, in the protracted struggle between the centripetal and centrifugal forces in North America, the former prevailed, though not till after long and painful wavering.

While thus differing greatly among themselves in the nature of their productions, and in their consequent wants, the continental colonists as a whole had one common characteristic. Recent occupants of a new, unimproved, and generally fertile country, they turned necessarily to the cultivation of the soil as the most remunerative form of activity, while for manufactured articles they depended mainly upon external supplies, the furnishing of which Great Britain reserved to herself. For these reasons they afforded the great market which they were to her, and which by dint of habit and of interest they long continued to be. But, while thus generally agricultural by force of circumstances, the particular outward destinations of their surplus products varied. Those of the southern colonies, from Maryland to Georgia, were classed as "enumerated," and, with the exception of the rice of South Carolina and Georgia, partially indulged as before mentioned, must be directed upon Great Britain. Tobacco, cotton, indigo, pitch, tar, turpentine, and spars of all kinds for ships, were specifically named, and constituted much the larger part of the exports of those colonies. These were carried also chiefly by British vessels, and not by colonial. The case was otherwise in the middle colonies, Pennsylvania, New York, New Jersey, and in Connecticut and Rhode Island of the eastern group. They were exporters of provisions,—of grain, flour, and meat, the latter both as live stock and salted; of horses also. As the policy of the day protected the British farmer, these articles were not required to be sent to Great Britain; on the contrary, grain was not allowed admission except in times of scarcity, determined by the price of wheat in the London market. The West Indies, therefore, were the market of the middle colonies; the shortness of the voyage, and the comparatively good weather, after a little southing had been gained, giving a decisive advantage over European dealers in the transportation of live animals. Flour also, because it kept badly in the tropics, required constant carriage of new supplies from sources near at hand. Along with provisions the continental vessels took materials for building and cooperage, both essential to the industry of the islands,—to the housing of the inhabitants, and to the transport of their sugar, rum, and molasses. In short, so great was the dependence of the islands upon this trade, that a well-informed planter of the time quotes with approval the remark of "a very competent judge," that, "if the continent had been wholly in foreign hands, and England wholly precluded from intercourse with it, it is very doubtful whether we should now have possessed a single acre in the West Indies."⁴⁴

Now this traffic, while open to all British shipping, was very largely in the hands of the colonists, who built ships decidedly cheaper than could be done in England, and could distribute their tonnage in vessels too small to brave the Atlantic safely, but, from their numbers and size, fitted to scatter to the numerous small ports of distribution, which the badness of internal communications rendered advantageous for purposes of supply. A committee of the Privy Council of Great Britain, constituted soon after the independence of the United States to investigate the conditions of West India trade, reported that immediately before the revolt the carriage between the islands and the continent had occupied 1610 voyages, in vessels aggregating 115,634 tons, navigated by 9718 men. These transported what was then considered "the vast" American cargo, of £500,000 outward and £400,000 inward. But the ominous feature from the point of view of the Navigation Act was that this was carried almost wholly in American bottoms.⁴⁵ In short, not to speak of an extensive practice of smuggling, facilitated by a coast line too long and indented to be effectually watched,—mention of which abounds in contemporary annals,⁴⁶—a very valuable part of the British carrying trade was in the hands of the middle colonists, whose activity, however, did not stop even there; for, not only did they deal with foreign West Indies,⁴⁷ but the cheapness of their vessels, owing to the abundance of the materials, permitted them to be used also to advantage in a direct trade with southern Europe, their native products being for the most part "not enumerated." As early as 1731, Pennsylvania employed eight thousand tons of shipping, while the New England colonies at the same time owned forty thousand tons, distributed in six hundred vessels, manned by six thousand seamen.

The New Englanders, like their countrymen farther south, were mostly farmers; but the more rugged soil and severer climate gave them little or no surplus for export. For gain by traffic, for material for exchange, they therefore turned to the sea, and became the great carriers of America, as well as its great fishers. An English authority, writing of the years immediately preceding the War of Independence, states that most of the seamen sailing out of the southern ports were British; from the middle colonies, half British and half American; but in the New England shipping he admits three-fourths were natives.⁴⁸ This tendency of British seamen to take employment in colonial ships is worthy of note, as foreshadowing the impressment difficulties of a later day. These, like most of the disagreements which led to the War of 1812, had their origin in ante-revolutionary conditions. For example, Commodore Palliser, an officer of mark, commanding the Newfoundland station in 1767, reported to the Admiralty the "cruel custom," long practised by commanders of fishing ships, of leaving many men on the desert coast of Newfoundland, when the season was over, whereby "these men were obliged to sell themselves to the colonists, or piratically run off with vessels, which they carry to the continent of America. By these practices the Newfoundland fishery, supposed to be one of the most valuable nurseries for seamen,⁴⁹ has long been an annual drain."⁵⁰ In the two years, 1764-65, he estimates that 2,500 seamen thus went to the colonies; in the next two years, 400. The difference was probably due to the former period being immediately after a war, the effects of which it reflected.

The general conditions of 1731 remained thirty years later, simply having become magnified as the colonies grew in wealth and population. In 1770 twenty-two thousand tons of shipping were annually built by the continental colonists. They even built ships for Great Britain; and this indulgence, for so it was considered, was viewed jealously by a class of well-informed men, intelligent, but fully imbued with the ideas of the Navigation Act, convinced that the carrying trade was the corner-stone of the British Navy, and realizing that where ships were cheaply built they could be cheaply sailed, even if they paid higher wages. It is true, and should be sedulously remembered, especially now in the United States, that the strength of a merchant shipping lies in its men even more than in its ships; and therefore that the policy of a country which wishes a merchant marine should be to allow its ships to be purchased where they most cheaply can, in order that the owner may be able to spend more on his crew, and the nation consequently to keep more seamen under its flag. But in 1770 the relative conditions placed Great Britain under serious disadvantages towards America in the matter of ship-building; for the heavy drafts upon her native oak had caused the price to rise materially, and even the forests of continental Europe felt the strain, while the colonies had scarcely begun to touch their resources. In 1775, more than one-third of the foreign trade of Great Britain was carried in American-built ships; the respective tonnage being, British-built, 605,545; American, 373,618.⁵¹

British merchants and ship-owners knew also that the colonial carriers were not ardent adherents of the Navigation Act, but conducted their operations in conformity with it only when compelled.⁵² They traded with the foreigner as readily as with the British subject; and, what was quite unpardonable in the ideas of that time, after selling a cargo in a West Indian port, instead of reloading there, they would take the hard cash of the island to a French neighbor, buying of him molasses to be made into rum at home. In this commercial shrewdness the danger was not so much in the local loss, or in the single transaction, for in the commercial supremacy of England the money was pretty sure to find its way back to the old country. The sting was that the sharp commercial instinct, roving from port to port, with a keen scent for freight and for bargains, maintained a close rivalry for the carrying trade, which was doubly severe from the natural advantages of the shipping and the natural aptitudes of the ship-owners. Already the economical attention of the New Englanders to the details of their shipping business had been noted, and had earned for them the name of the Dutchmen of North America; an epithet than which there was then none more ominous to British ears, and especially where with the carrying trade was associated the twin idea of a nursery of seamen for the British Navy.

A fair appreciation of the facts and relations, summarized in the preceding pages from an infinitude of details, is necessary to a correct view of the origin and course of the misunderstandings and disagreements which finally led to the War of 1812. In 1783, the restoration of peace and the acknowledgment of the independence of the former colonies removed from commerce the restrictions incident to hostilities, and replaced in full action, essentially unchanged, the natural conditions which had guided the course of trade in colonial days. The old country, retaining all the prepossessions associated with the now venerable and venerated Navigation Act, saw herself confronted with the revival of a commercial system, a commercial independence, of which she had before been jealous, and which could no longer be controlled by political dependence. It was to be feared that supplying the British West Indies would increase American shipping, and that British seamen would more and more escape into it, with consequent loss to British navigation, both in tonnage and men, and discouragement to British maritime industries. Hence, by the ideas of the time, was to be apprehended weakness for war, unless some effective check could be devised.

What would have been the issue of these anxieties, and of the measures to which they gave rise, had not the French Revolution intervened to aggravate the distresses of Great Britain, and to constrain her to violent methods, is bootless to discuss. It remains true that, both before and during the conflict with the French Republic and Empire, the general character of her actions, to which the United States took exception, was determined by the conditions and ideas that have been stated, and can be understood only through reference to them. No sooner had peace been signed, in 1783, than disagreements sprang up again from the old roots of colonial systems and ideals. To these essentially was due the detailed sequence of events which, influenced by such traditions of opinion and policy as have been indicated, brought on the War of 1812, which has not inaptly been styled the second War of Independence. Madison, who was contemporary with the entire controversy, and officially connected with it from 1801 to the end of the war, first as Secretary of State, and later as President, justly summed up his experience of the whole in these words: "To have shrunk from resistance, under such circumstances, would have acknowledged that, on the element which forms three-fourths of the globe which we inhabit, and where all independent nations have equal and common rights, the American People were not an independent people, but colonists and vassals. With such an alternative war was chosen."⁵³ The second war was closely related to the first in fact, though separated by a generation in time.

CHAPTER II
FROM INDEPENDENCE TO JAY'S TREATY, 1794

The colonial connection between Great Britain and the thirteen communities which became the original States of the American Union was brought to a formal conclusion in 1776, by their Declaration of Independence. Substantially, however, it had already terminated in 1774. This year was marked by the passage of the Boston Port Bill, with its accessory measures, by the British Parliament, and likewise by the renewal, in the several colonies, of the retaliatory non-importation agreements of 1765. The fundamental theory of the eighteenth century concerning the relations between a mother country and her colonies, that of reciprocal exclusive benefit, had thus in practice yielded to one of mutual injury; to coercion and deprivation on the one side, and to passive resistance on the other. On September 5 the representatives of twelve colonies assembled in Philadelphia; Georgia alone sending no delegates, but pledging herself in anticipation to accept the decisions taken by the others. One of the first acts of this Congress of the Continental Colonies was to indorse the resolutions by which Massachusetts had placed herself in an attitude of contingent rebellion against the Crown, and to pledge their support to her in case of a resort to arms. These several steps were decisive and irrevocable, except by an unqualified abandonment, by one party or the other, of the principles which underlay and dictated them. The die was cast. To use words attributed to George the Third, "the colonies must now either submit or triumph."

The period which here began, viewed in the aggregate of the national life of the United States, was one of wavering transition and uncertain issue in matters political and commercial. Its ending, in these two particulars, is marked by two conspicuous events: the adoption of the Constitution and the Commercial Treaty with Great Britain. The formation of the Federal Government, 1788-90, gave to the Union a political stability it had hitherto lacked, removing elements of weakness and dissensions, and of consequent impotence in foreign relations; the manifestation of which since the acknowledgment of independence had justified alike the hopes of enemies and the forebodings of friends. Settled conditions being thus established at home, with institutions competent to regulate a national commerce, internal and external, as well as to bring the people as a whole into fixed relations with foreign communities, there was laid the foundations of a swelling prosperity to which the several parts of the country jointly contributed. The effects of these changes were soon shown in a growing readiness on the part of other nations to enter into formal compacts with us. Of this, the treaty negotiated by John Jay with Great Britain, in 1794, is the most noteworthy instance; partly because it terminated one long series of bickerings with our most dangerous neighbor, chiefly because the commercial power of the state with which it was contracted had reached a greater eminence, and exercised wider international effect, than any the modern world had then seen.

Whatever the merits of the treaty otherwise, therefore, the willingness of Great Britain to enter into it at all gave it an epochal significance. Since independence, commercial intercourse between the two peoples had rested on the strong compelling force of natural conditions and reciprocal convenience, the true foundation, doubtless, of all useful relations; but its regulation had been by municipal ordinance of either state, changeable at will, not by mutual agreement binding on both for a prescribed period. Since the separation, this condition had seemed preferable to Great Britain, which, as late as 1790, had evaded overtures towards a commercial arrangement.⁵⁴ Her consenting now to modify her position was an implicit admission that in trade, as in political existence, the former mother country recognized at last the independence of her offspring. The latter, however, was again to learn that independence, to be actual, must rest on something stronger than words, and surer than the acquiescence of others. This was to be the lesson of the years between 1794 and 1815, administered to us not only by the preponderant navy of Great Britain, but by the petty piratical fleets of the Barbary powers.

From the Boston Port Bill to Jay's Treaty was therefore a period of transition from entire colonial dependence, under complete regulation of all commercial intercourse by the mother country, to that of national commercial power, self-regulative and efficient, through the adoption of the Constitution. Upon this followed international influence, the growing importance of which Great Britain finally recognized by formal concessions, hitherto refused or evaded. During these years the policy of her government was undergoing a process of adjustment, conditioned on the one hand by the still vigorous traditional prejudices associated with the administration of dependencies, and on the other by the radical change in political relations between her remaining colonies in America and the new states which had broken from the colonial bond. This change was the more embarrassing, because the natural connection of specific mutual usefulness remained, although the tie of a common allegiance had been loosed. The old order was yielding to the new, but the process was signalized by the usual slowness of men to accept events in their full significance. Hitherto, all the western hemisphere had been under a colonial system of complete monopoly by mother countries, and had been generally excluded from direct communication with Europe, except the respective parent states. In the comprehensive provisions of the British Navigation Act, America was associated with Asia and Africa. Now had arisen there an independent state, in political standing identical with those of Europe, yet having towards colonial America geographical and commercial relations very different from theirs. Consequently there was novelty and difficulty in the question, What intercourse with the remaining British dominions, and especially with the American colonies, should be permitted to the new nation? Notwithstanding the breach lately made, it continued a controlling aim with the British people, and of the government as determined by popular pressure, to restore the supremacy of British trade, by the subjection of America, independent as well as colonial, to the welfare of British commerce. Notably this was to be so as regards the one dominant interest called Navigation, under which term was comprised everything relating to shipping,—ship-building, seafaring men, and the carrying trade. Independence had deprived Great Britain of the right she formerly had to manipulate the course of the export and import trade of the now United States. It remained to try whether there did not exist, nevertheless, the ability effectually to control it to the advantage of British navigation, as above defined. "Our remaining colonies on the Continent, and the West India Islands," it was argued, "with the favorable state of English manufactures, may still give us almost exclusively the trade of America;" provided these circumstances were suitably utilized, and their advantages rigorously enforced, where power to do so still remained, as it did in the West Indies.

Although by far the stronger and more flourishing part of her colonial dominions had been wrested from Great Britain, there yet remained to her upon the continent, in Canada and the adjacent provinces, a domain great in area, and in the West India Islands another of great productiveness. Whatever wisdom had been learned as regards the political treatment of colonies, the views as to the nature of their economical utility to the mother country, and their consequent commercial regulation, had undergone no enlargement, but rather had been intensified in narrowness and rigor by the loss of so valuable a part of the whole. No counteractive effect to this prepossession was to be found in contemporary opinion in Europe. The French Revolution itself, subversive as it was of received views in many respects, was at the first characterized rather by an exaggeration of the traditional exclusive policy of the eighteenth century relating to colonies, shipping, and commerce. In America, the unsettled commercial and financial conditions which succeeded the peace, the divergence of interests between the several new states, the feebleness of the confederate government, its incompetency to deal assuredly with external questions, and lack of all power to regulate commerce, inspired a conviction in Great Britain that the continent could not offer strong, continued resistance to commercial aggression, carried on under the peaceful form of municipal regulation. It was generally thought that the new states could never unite, but instead would drift farther apart.

The belief was perfectly reasonable; a gift of prophecy only could have foretold the happy result, of which many of the most prominent Americans for some time despaired. "It will not be an easy matter," wrote Lord Sheffield,⁵⁵ "to bring the American States to act as a nation; they are not to be feared as such by us. It must be a long time before they can engage, or will concur, in any material expense.... We might as reasonably dread the effects of combinations among the German as among the American states, and deprecate the resolves of the Diet, as those of Congress." "No treaty can be made that will be binding on the whole of them." "A decided cast has been given to public opinion here," wrote John Adams from London, in November, 1785, "by two presumptions. One is, that the American states are not, and cannot, be united."⁵⁶ Two years later Washington wrote: "The situation of the General Government, if it can be called a government, is shaken to its foundation, and liable to be overturned at every blast. In a word, it is at an end.... The primary cause of all our disorders lies in the different state governments, and in the tenacity of that power which underlies the whole of their systems. Independent sovereignty is so ardently contended for." "At present, under our existing form of confederation, it would be idle to think of making commercial regulations on our part. One state passes a prohibitory law respecting one article; another state opens wide the avenue for its admission. One assembly makes a system, another assembly unmakes it."⁵⁷

Under such conditions it was natural that a majority of Englishmen should see power and profit for Great Britain in availing herself of the weakness of her late colonists, to enforce upon them a commercial dependence as useful as the political dependence which had passed away. Were this realized, she would enjoy the emoluments of the land without the expense of its protection. This gospel was preached at once to willing ears, and found acceptance; not by the strength of its arguments, for these, though plausible, were clearly inferior in weight to the facts copiously adduced by those familiar with conditions, but through the prejudices which the then generation had received from the three or four preceding it. The policy being adopted, the instrument at hand for enforcing it was the relation of colonies to mother countries, as then universally maintained by the governments of the day. The United States, like other independent nations, was to be excluded wholly from carrying trade with the British colonies, and as far as possible from sending them supplies. It was urged that Canada, and the adjacent British dominions, encouraged by this reservation of the West India market for their produce, would prove adequate to furnishing the provisions and lumber previously derived from the old continental colonies. The prosperity once enjoyed by the latter would be transferred, and there would be reconstituted the system of commercial intercourse, interior to the empire, which previously had commanded general admiration. The new states, acting commercially as separated communities, could oppose no successful rivalry to this combination, and would revert to isolated commercial dependence; tributary to the financial supremacy of Great Britain, as they recently had been to her political power. In debt to her for money, and drawing from her manufactures, returns for both would compel their exports to her ports chiefly, whence distribution would be, as of old, in the hands of British middlemen and navigators. Just escaped from the fetters of the carrying trade and entrepôt regulations, the twin monopolies in which consisted the value of a colonial empire, it was proposed to reduce them again under bondage by means for which the West India Islands furnished the leverage; for "the trade carried on by Great Britain with the countries now become the United States was, and still is, so connected with the trade carried on to the remaining British colonies in America, and the British islands in the West Indies, that it is impossible to form a true judgment of the past and present of the first, without taking a comprehensive view of all, as they are connected with, and influence, each other."⁵⁸