These irregular and arbitrary proceedings are chiefly significant as showing the lack of any fixed principles of action on the part of the French government and its agents; and they were closely connected with similar courses towards neutral vessels in French ports. At the outbreak of hostilities in 1793, one hundred and three American ships were embargoed at Bordeaux and detained more than a year, without any reason given; nor had the owners been indemnified in 1796. [321] Cargoes were forcibly taken from vessels and payment either refused or offered in kind, and so delayed that in the West Indies alone the American losses were calculated at two million dollars. Besides these acts, which had the character of spoliations, the contracts and other financial obligations of the French government and its agents with citizens of the United States remained undischarged. The irritation between the two governments, and on the part of American merchants, continued to increase rapidly. The decree of July 2, the essence of which was the formal repudiation of a clause of the treaty of 1778, at the time when alone it became applicable, remained in force; and was rendered more obnoxious by a further order, of March 2, 1797, making more stringent the proofs of neutrality to be adduced before French tribunals and requiring papers which had long been disused.
At this time the astonishing successes of Bonaparte's Italian campaigns were approaching their triumphant conclusion. The battle of Rivoli had been fought on the 14th of January, 1797, [322] Mantua capitulated on the 2d of February, and the Pope had been compelled to sue for peace. To Austria there remained only the hope of contesting the approach to her German dominions. The confidence of the Directors knew no bounds, and they now began to formulate the policy toward British commerce which Napoleon inherited from them. The design was formed of forcing the United States to recede from the obnoxious conventions of Jay's treaty; and the government of Holland, then entirely dependent upon that of France, was pressed to demand that Dutch property on board American vessels should be protected against British seizure, and to suggest the concurrence of the three republics against Great Britain. [323] The Dutch accordingly represented "that, when circumstances oblige our commerce to confide its interests to the neutral flag of American vessels, it has a just right to insist that that flag be protected with energy;" [324] in other words, that, when the British control of the sea forced the Dutch ships from it, Dutch trade should be carried on under the American flag, and that the United States should fight to prevent the seizure of the Dutch property, although it admitted that the traditional law of nations would not justify it in so doing. On the 6th of May, 1797, Spain also, doubtless under the dictation of France, made the same demand. [324] Similar representations were made to the other neutral country, Denmark. Here is seen the forerunner of Napoleon's contention that, as against Great Britain's control of the sea, no state had a right to be neutral. Soon afterward the idea was carried farther. Denmark was requested to close the mouth of the Elbe to British commerce. "The French," wrote our minister to London on the 12th of March, 1797, "assign our treaty with England as the cause of their maritime conduct toward us, but they have recently demanded of Hamburg and Bremen to suspend all commerce with England. These have not complied, and the French minister has been recalled from Hamburg. The same demand has been made at Copenhagen, and the refusal has produced a sharp diplomatic controversy. These powers have made no late treaty with England." [325]
Hostilities with Austria had ceased by the preliminaries of Leoben, April 18, followed, after long negotiations, by the treaty of Campo Formio, October 17, 1797. Of the coalition against France, Great Britain alone remained upright and defiant. She had in 1797, after Austria had yielded, offered to negotiate; but the terms demanded were such that she refused to accept them, and her envoy was ordered out of France as peremptorily as Mr. Pinckney had been a few months before. The Directory thought that the time was now come when she could be brought to unconditional surrender, and the weapon by which her commerce should be annihilated was already forged to its hand. On the 31st of October, 1796 (Brumaire 10, An 5), [326] a law had been passed by the Legislature forbidding entirely the admission of any British manufactured goods, directing that all persons who already had such in possession should declare them within three days, and that they should be at once packed and stored for re-exportation. In order to insure the execution of the statute, domiciliary visits were authorized everywhere within three leagues of the frontiers or sea-board, and throughout France the dwellings of all tradesmen were also open to search. Laws of similar purpose had been passed early in the war; [327] but they either had been found insufficient or were no longer applicable to the changed conditions of affairs. "Now that," to use the words of a deputy, "the flags of the Republic or those of its allies float over the sea from Embden to Trieste, and almost all the ports of the European seas are closed to England, we must stop the voluntary subsidies which are paid her by the consumers of English merchandise." [328] With Belgium annexed, with Spain and Holland vassals rather than allies, with the greater part of Italy in military occupation, it seemed possible to repel the entrance points of British goods to the Continent far from the French frontier, and by strict watchfulness to close the latter against such as worked their way to it.
The expectation, however, was deceived; the superior quality and abundance of British manufactures created a demand which evaded all watchfulness and enlisted all classes against the officials. The Directory therefore determined, toward the end of 1797, to put the law into force with all severity and to introduce another and final rigor into its maritime prize code. On the 4th of January, 1798, a message was sent to the council of Five Hundred, announcing that "on that very day the municipal administrators, the justices of the peace, the commissaries of the Directory, and the superintendents of customs, are proceeding in all the chief places of the departments, in all the ports, and in all the principal communes, to seize all English merchandise now in France in contravention of the law of Brumaire 10, An 5. Such is the first act by which, now that peace is given to the Continent, the war declared long since against England is about to assume the real character that belongs to it." But more was needed. Neutral vessels were in the habit of entering British ports, shipping British goods, and carrying on British trade; they were even known, when opportunity offered, to introduce articles of British manufacture, directly or indirectly, into France. By so doing they aided Great Britain and actually took part in the war. "The Directory, therefore, thinks it urgent and necessary to pass a law declaring that the character of vessels, rela tive to their quality of neutral or enemy, shall be determined by their cargo; ... in consequence, that every vessel found at sea, having on board English merchandise as her cargo, in whole or in part, shall be declared lawful prize, whosoever shall be the proprietor of this merchandise, which shall be reputed contraband for this cause alone, that it comes from England or her possessions." This decree was adopted without discussion, in the very terms of the Directory's message, on the 18th of January, 1798. From that time forward, to use the expression of a French deputy, speaking a year later on the proposed repeal of the law, "if a handkerchief of English origin is found on board a neutral ship, both the rest of the cargo and the ship itself are subject to condemnation." It is, perhaps, well to point out that this differed from the Rule of 1756, by forbidding a trade which at all times had been open to neutrals, in peace as in war. It differed from the old rule condemning enemy's property found in neutral bottoms, by condemning also neutral property of hostile origin, together with the whole cargo and the ship, as contaminated by the presence of any British goods.
Nevertheless, British commerce continued to thrive, and was rather benefited than injured by the new law. What the indomitable purpose, unlimited power, and extraordinary mental and physical activity of Napoleon could only partially accomplish, proved to be wholly beyond the weak arm of the Directory. When war first shut the ports of France to Great Britain, her trade thither passed through the Netherlands and Holland. When the Netherlands were overrun, Amsterdam monopolized the traffic. With the fall of Holland, it passed away to Bremen and Hamburg. The latter port, being farther east and more remote from the French armies, naturally drew the greater part and became the real heir of Amsterdam. [329] It was the emporium of Northern Germany, through which poured the colonial produce of the world and the manufactures of the British Islands, and from which they were distributed over the Continent. The enormous subsidies paid by the United Kingdom to Germany found their way back, in part at least, by the increased purchasing power of the belligerent countries, [330] which consumed the manufactures of Great Britain and the coffee and sugar which had passed through her ports and paid toll to her revenues. [331] The shipping clearing for Hamburg from British ports, which was naught in 1793, rose to fifty-three thousand tons in 1795; and in 1798, the year during which the new French law operated, increased to seventy-four thousand. But, while Hamburg was the great centre, all the northern German ports shared the same prosperity. After Prussia retired from the war against France, in April, 1795, a neutral North German territory was established, behind a line agreed upon between the two countries. The total tonnage entering the ports of this region increased from one hundred and twenty thousand in 1792 to two hundred and six thousand in 1795; and in 1798 reached three hundred and three thousand. The value of merchandise imported rose from £2,200,000 in 1792, to £8,300,000 in 1795, £11,000,000 in 1798, and £13,500,000 in 1800. [332]
A similar elasticity was shown by British trade throughout the world. Only in the Mediterranean was there a marked decrease both of exports and imports,—a loss partly filled by the enterprise of American merchants; [333] but only partly, for the Barbary pirates seconded the sweeping French decrees in excluding neutrals from that sea. But it was in the West Indies, together with the German ports, that the commercial activity of Great Britain found its greatest resources; and in the steady support contributed by that region to her financial stability is to be found the justification of the much derided policy of Pitt in capturing sugar islands. Alike as valuable pieces of property, as possessions to be exchanged when framing a treaty, and as bases for cruisers, which not merely seized upon British shipping but disturbed the commercial development of the whole region, each hostile island should at once have been seized by Great Britain. In a contest between equal navies for the control of the sea, to waste military effort upon the capture of small islands, as the French did in 1778, is a preposterous misdirection of effort; but when one navy is overwhelmingly preponderant, as the British was after 1794, when the enemy confines himself to commerce-destroying by crowds of small privateers, then the true military policy is to stamp out the nests where they swarm. If, by so doing, control is also gained of a rich commercial region, as the Caribbean Sea then was, the action is doubly justified. The produce of the West Indies, as of the East, figured doubly in the returns of British commerce,—as imports, and as re-exported to the Continent. [334] Each captured island contributed to swell the revenues by which the war was maintained. [335] The disappearance of the merchant fleets of France, Spain, and Holland, the ruin of San Domingo, and the general disorganization of such French islands as were not taken, threw the greater part of the production of tropical articles into British hands; and the practice of the day, which confined its transport to British ships, helped to support the shipping interest also in the strain brought upon it by the war. The Americans alone could compete in the continental market as carriers of such produce. Debarred from going with it direct to Europe by the Rule of 1756, the rise in price, due to the diminished production and decrease of transport just mentioned, allowed them to take the sugar and coffee of the colonies at war with England to American ports, reship it to the Continent, and yet make a good profit on the transaction. As the British colonists were in full possession of the home market, and their produce commanded high prices, the outcry which caused so much trouble ten years later was not now raised. On the contrary, their prosperous condition facilitated the British orders of January, 1798, exempting from capture Danes, Swedes, and other neutral ships, when carrying coffee and sugar of hostile origin to their own country, or to England.
It was against this great system of trade that the law of Nivôse 29 was launched. British manufactured goods, rather than British gold and silver, bought and paid for the produce of the East and West Indies, for that of the United States and of the Levant. The Continent consumed the manufactures of Great Britain, the sugar and coffee of her colonies, and obtained through British merchants the spices and wares of the East; for all which it for the most part paid back specie. The United States took specie from France herself for the colonial produce carried there in its vessels, and with it paid Great Britain for her manufactures. France herself received British goods through continental channels, and paid hard cash for them. The money thus coming to London had flowed back as subsidies to the armies of the coalitions. Now, thanks to Bonaparte, Great Britain stood alone. The French navy was powerless to contend with her fleets; but, by actual possession or by treaty, the Directory had excluded her ships from a great part of the Continent. Nevertheless, British goods abounded in all parts through the complicity of neutral carriers. If these could be stopped, the market for British manufactures would be closed; therefore against them were launched the cruisers of France, with the authority of the decree to capture any one of them found with a bale or box of British origin on board. The result was curious.
After the lapse of a year, on the 13th of January, 1799, the Directory addressed a message to the lower house of the Legislature [336] on the subject of maritime prizes, in which occurred the celebrated avowal, already quoted, that not a single merchant ship under French colors sailed the deep seas. But this was not all. The irregularities and outrages of privateers had so terrified neutrals that there had been an immense diminution in the entries of neutral tonnage, although Great Britain had rather relaxed than increased the severe rules she had adopted early in the war. In consequence of the smaller importations from abroad, there were necessarily smaller sales of French goods, and the decrease of neutral carriers impeded the export of agricultural produce and manufactures, as well as the importation of raw materials essential to the latter. The Directory attributed the evil to an existing ordinance, which left the final determination of prize cases in the hands of the courts, instead of attributing it to the executive. It argued that if there were a right of final appeal to the latter, it could check the arbitrary proceedings of the cruisers and the erroneous decisions of the judges. If, as was represented by the American consulate at Paris, the courts of first instance were chiefly composed of merchants in the sea-ports, most of whom were, directly or indirectly, interested in fitting out privateers, [337] there was certainly need of some change in the existing legislation. In the Conseil des Anciens, however, a different view prevailed. On the 17th of January, 1799, a debate began in that body, on a resolution fixing the date when the law of January 18, 1798, became operative. [338] The consequent discussion took a wide range over the policy and results of the enactment, as shown by the year it had been in force. The disastrous commercial condition of France was freely admitted on all sides; but in several powerful speeches it was attributed directly and convincingly to the working of the law itself. "Neutrals repelled from our ports; our agricultural products without any outlet abroad; our industry and commerce annihilated; our colonies helpless; our shipping ways deserted; a balance of twenty thousand sailors in English prisons; our ships of war without seamen,—such are the political effects of the law which is ruining, crushing us." [339]
In less impassioned words, other deputies showed the unfairness of the law. If, on the land frontier, a wagon was stopped carrying a bale of British goods, the bale was confiscated, but the rest of the load escaped. If in a ship a like bale was found, not only it, but all the rest of the cargo and the ship itself were condemned. Even in the fiercest heat of the Revolution and the utmost danger to the country, it had never been attempted, as now, to forbid neutrals carrying British goods to their own country. [340] The step could not be justified under the plea of reprisals; for "if the English have seized French goods on these same neutrals, they have not confiscated the rest of the cargo. These are, therefore, not reprisals, but new proceedings on our part, which neutrals could neither expect nor guard against." [341] A neutral ship came within reach of the French coast only at her extreme peril. A small package of British goods would justify her capture by a French privateer, whatever her destination; nay, even if she were bringing to France articles urgently needed, and intended to take away French produce in exchange for them. Neutrals, allies, even French vessels themselves, carrying on the little trade with neighboring states, were preyed on by French corsairs. This condition reacted on the enterprise of the cruisers themselves. It was much safer, and quite as profitable, to keep close to the home coast and board passing vessels. The merest trifle, smuggled on board by one of the crew, or shipped unknown to the master and owner, made them good prize. Owing to this caution, the captures brought into French home ports had dropped, from six hundred and sixty-two in the previous year, to four hundred and fifty-two, notwithstanding the vast extension of the field for seizures. [342]
The loss of prizes, however, was far from being the worst effect of the law. Neutrals being repelled, friendly and French shipping scared away, commerce had been seriously crippled for want of carriage. In the year before the enactment the coasting trade employed 895,000 tons; of which 120,000 were neutrals, by whom goods were transported from one sea frontier of France to another, as from the Bay of Biscay to the French Mediterranean coast. In the year following, the total fell to 746,000; but the neutrals dropped to 38,000. In the foreign trade 860,000 tons were employed in the year before the law, of which 623,000 were neutral. In the year following, the total fell to 688,000, of which 468,000 were neutrals. There thus resulted a total loss of 322,000 tons in a commerce of only 1,750,000. To this the speaker added a striking comparison: "In the same year in which we lost 322,000 tons by the operation of the law, we took four hundred and fifty-two prizes. Assuming—what is not the case—that these were all English, and that they averaged two hundred tons burden—an excessive allowance—we have taken from our enemy 90,400 tons against 322,000 we have lost." "All the sufferings of ourselves and allies might be borne, if good resulted to ourselves or harm to England; but it has not." "English ships are insured at a premium of five per cent, while neutrals bound to France have to pay twenty to thirty per cent. Neutrals themselves seek English convoy. [343] French merchants would gladly charter neutral ships to carry to San Domingo the produce that is overflowing our storehouses, and to bring back the coffee and sugar for which we are paying such extravagant rates; but they will not come near us. So, instead of paying a moderate price with French goods, we are paying exorbitant rates in specie, which goes straight to England, our most cruel foe." [344] The policy of the law was condemned by the results. In support of its justice, it was alleged that there were at sea only French and British ships, whence it followed that all which were not French could be seized,—a contention which derives its sole present interest from being the same as that put forth by Napoleon ten years later. It shows again—what can scarcely be too often asserted in the interests of truth—that the emperor was but the full and perfect incarnation of the spirit that animated the Convention and the Directory.