Of the extent of this commerce, and of its dependence upon the interruption, by Great Britain, of the ordinary channels for French and Dutch trade, a few figures will give an idea. In 1792, before the war, the United States exported to Europe 1,122,000 pounds of sugar, and 2,136,742 of coffee; in 1796, 35,000,000 of sugar and 62,000,000 of coffee; in 1800, 82,000,000 of sugar and 47,000,000 coffee. In 1803, during the short peace, the exports fell to 20,000,000 of sugar and 10,000,000 coffee; in 1804, a year of war, they again rose to 74,000,000 sugar, and 48,000,000 coffee. The precise destination cannot be given; but the trade between France and her West India Islands, carried on by American ships, amounted in 1805 to over $20,000,000, of which only $6,000,000 were United States produce. In like manner the trade with Holland was over $17,000,000, of which $2,000,000 were of American origin.

Upon the return of Mr. Pitt to power, in 1804, the attempt was made to strengthen the fabric of British commercial prosperity in the Caribbean, by an extension of the system of free ports in the different colonies; by means of which, and of their large merchant shipping, the British collected in their own hands, by both authorized and contraband traffic, so much of the carrying trade of this region, extending their operations to the mainland as well as throughout the islands. More, however, was needed to restrain the operations of the Americans, who, by reducing the price of coffee on the Continent, diminished the re-exportation from Great Britain, thus affecting the revenue of the kingdom and the profits of the planters; and who also, by acting as carriers, interfered with the accumulations at the free ports and the consequent employment of British ships. All the classes interested joined in urging the government to find some relief; and the clamor was increased by a sense of indignation at the tricks by which belligerent rights were believed to be evaded by the Americans. The Rule of 1756 did not allow the latter to carry their cargoes direct to Europe; but, as the trade winds compelled vessels to run to the northward until they reached the westerly winds prevailing in the higher latitudes, no great delay was involved in making an American port, or even in trans-shipping the cargo to a vessel bound for Europe. [357] Great Britain admitted that articles of hostile origin, but become neutral property, could be carried freely to the neutral country; and, when so imported, became part of the neutral stock and could then be freely re-exported to a hostile state.

The question of a bonâ fide importation, like all others involving a question of intention, could be determined only by the character of the transactions attending it; but it was held generally that actual landing and storage, with payment of the duties, was sufficient proof, unless rebutted by other circumstances. Early in the war following the peace of Amiens, the British courts awoke to the fact that the duties paid on goods so imported were simply secured by a bond, and that on re-exportation a drawback was given, so that a very small percentage of the nominal duties was actually paid. [358] Upon this ground a ship was condemned in May, 1805, and great numbers of American vessels carrying colonial produce to Europe were seized and brought into port, as well as others proceeding from the United States to the West Indies, with cargoes originating in the mother countries; and when, in the opinion of the court, the duties had been only nominally paid, they were condemned. It is hard to see the soundness of an objection to these decisions, based on the validity of the payments; but the action of the British government is open to severe censure in that no warning was given of its purpose no longer to accept, as proof of importation, the payment of duties by bond, on which drawback was given. Whether it had known the law of the United States or not, that law had been open to it, and ignorance of its provisions was due not to any want of publicity, but to the carelessness of British authorities. Under the circumstances, the first seizures were little short of robbery.

The reclamations of the United States met with little attention during Pitt's brief second administration; but after his death, in January, 1806, and the accession to office of Grenville and Fox, a more conciliatory attitude was shown,—especially by the latter, who became Minister of Foreign Affairs. Favorably inclined to the Americans since his opposition to the policy of the Revolutionary War, he seemed desirous of conceding their wishes; but the pressure from without, joined to opposition within the ministry, prevented a frank reversal of the course pursued. Instead of the Rule of 1756, Fox obtained an Order in Council, dated May 16, 1806, placing the coast of the Continent, from Brest to the Elbe, in a state of blockade. The blockade, however, was only to be enforced strictly between the mouth of the Seine and Ostend. Into ports between those two points no neutral would be admitted on any pretext, and, if attempting to enter, would be condemned; but on either side, neutral ships could go in and out freely, provided they "had not been laden at any port belonging to his Majesty's enemies, or, if departing, were not destined to any port belonging to his Majesty's enemies." The wording of the order was evidently framed to avoid all question as to the origin of cargoes, upon which the Rule of 1756 hinged. Not the origin of the cargo, but the port of lading, determined the admission of the neutral ship to the harbors partially blockaded; and if to them, then, a fortiori, to all open ports of the enemy. On the other hand, the strict blockade already established of the Elbe and Weser was by this order partially relieved, in the expectation that neutrals would carry British manufactures to those northern markets. In short, the Order was a compromise, granting something both to the mercantile interest and to the Americans, though not conceding the full demands of either. It is at best doubtful whether the British were able to establish an effective blockade over the extent of coast from Brest to the Elbe, but the United States and Napoleon had no doubts whatever about it; and it thus fell, by a singular irony of fate, to the most liberal of the British statesmen, the friend of the Americans and of Napoleon, as almost the last act of his life, to fire the train which led to the Berlin and Milan decrees, to the Orders in Council of 1807, and to the war with the United States six years later.

Fox died on the 13th of September, 1806, and was succeeded as Minister of Foreign Affairs by Lord Howick. On the 25th of the same month the partial restrictions still imposed on the Elbe and the Weser were removed; so that neutral ships, even though from the ports of an enemy of Great Britain, were able to enter. In the mean time, war had broken out between France and Prussia; the battle of Jena was fought October 14, and on the 26th Napoleon entered Berlin. The battle of Trafalgar, a twelvemonth before, had shattered all his confidence in the French navy and destroyed his hopes of directly invading Great Britain. On the other hand the short campaign of 1805 had overthrown the Austrian power, and that of 1806 had just laid Prussia at his feet. The dream of reducing Great Britain by the destruction of her commercial prosperity, long floating in his mind, now became tangible, and was formulated into the phrase that he "would conquer the sea by the land." Two of the great military monarchies were already prostrate. Spain, Holland, Italy, and the smaller German states were vassals, more or less unwilling, but completely under his control; there seemed no reason to doubt that he could impose his will on the Continent and force it to close every port to British trade. On the 21st of November, 1806, the emperor issued the famous Berlin Decree; and then, having taken the first in the series of fated steps which led to his ruin, he turned to the eastward and plunged with his army into the rigors of a Polish winter to fulfil his destiny.


CHAPTER XVIII.

The Warfare against Commerce, 1806-1812.

The Berlin and Milan Decrees of Napoleon, 1806 and 1807.—The British Orders in Council, 1807-1809.—Analysis of the Policy of these Measures of the two Belligerents.—Outline of Contemporary Leading Events.