Great Britain and the American Civil War

by Ephraim Douglass Adams

The acquisition of California brought up a new problem of quick transit between Atlantic and Pacific, and a canal was planned across Central America. Here Britain and America acted together, at first in amity, though the convention signed in 1850 later developed discord as to the British claim of a protectorate over the Atlantic end of the proposed canal at San Juan del Nicaragua. But Britain was again at war in Europe in the middle 'fifties, and America was deep in quarrel over slavery at home. On both sides in spite of much diplomatic intrigue and of manifestations of national pride there was governmental desire to avoid difficulties. At the end of the ten-year period Britain ceded to Nicaragua her protectorate in the canal zone, and all causes of friction, so reported President Buchanan to Congress in 1860, were happily removed. Britain definitely altered her policy of opposition to the growth of American power.

In 1860, then, the causes of governmental antagonisms were seemingly all at an end. Impressment was not used after 1814. The differing theories of the two Governments on British expatriation still remained, but Britain attempted no practical application of her view. The right of search in time of peace controversy, first eased by the plan of joint cruising, had been definitely settled by the British renunciation of 1858. Opposition to American territorial advance but briefly manifested by Britain, had ended with the annexation of Texas, and the fever of expansion had waned in America. Minor disputes in Central America, related to the proposed canal, were amicably adjusted.

But differences between nations, varying view-points of peoples, frequently have deeper currents than the more obvious frictions in governmental act or policy, nor can governments themselves fail to react to such less evident causes. It is necessary to review the commercial relations of the two nations--later to examine their political ideals.

In 1783 America won her independence in government from a colonial status. But commercially she remained a British colony--yet with a difference. She had formed a part of the British colonial system. All her normal trade was with the mother country or with other British colonies. Now her privileges in such trade were at an end, and she must seek as a favour that which had formerly been hers as a member of the British Empire. The direct trade between England and America was easily and quickly resumed, for the commercial classes of both nations desired it and profited by it. But the British colonial system prohibited trade between a foreign state and British colonies and there was one channel of trade, to and from the British West Indies, long very profitable to both sides, during colonial times, but now legally hampered by American independence. The New England States had lumber, fish, and farm products desired by the West Indian planters, and these in turn offered needed sugar, molasses, and rum. Both parties desired to restore the trade, and in spite of the legal restrictions of the colonial system, the trade was in fact resumed in part and either permitted or winked at by the British Government, but never to the advantageous exchange of former times.

The acute stage of controversy over West Indian trade was not reached until some thirty years after American Independence, but the uncertainty of such trade during a long period in which a portion of it consisted in unauthorized and unregulated exchange was a constant irritant to all parties concerned. Meanwhile there came the War of 1812 with its preliminary check upon direct trade to and from Great Britain, and its final total prohibition of intercourse during the war itself. In 1800 the bulk of American importation of manufactures still came from Great Britain. In the contest over neutral rights and theories, Jefferson attempted to bring pressure on the belligerents, and especially on England, by restriction of imports. First came a non-importation Act, 1806, followed by an embargo on exports, 1807, but these were so unpopular in the commercial states of New England that they were withdrawn in 1810, yet for a short time only, for Napoleon tricked the United States into believing that France had yielded to American contentions on neutral rights, and in 1811 non-intercourse was proclaimed again with England alone. On June 18, 1812, America finally declared war and trade stopped save in a few New England ports where rebellious citizens continued to sell provisions to a blockading British naval squadron.

For eight years after 1806, then, trade with Great Britain had steadily decreased, finally almost to extinction during the war. But America required certain articles customarily imported and necessity now forced her to develop her own manufactures. New England had been the centre of American foreign commerce, but now there began a trend toward manufacturing enterprise. Even in 1814, however, at the end of the war, it was still thought in the United States that under normal conditions manufactured goods would again be imported and the general cry of "protection for home industries" was as yet unvoiced. Nevertheless, a group of infant industries had in fact been started and clamoured for defence now that peace was restored. This situation was not unnoticed in Great Britain where merchants, piling up goods in anticipation of peace on the continent of Europe and a restored market, suddenly discovered that the poverty of Europe denied them that market. Looking with apprehension toward the new industries of America, British merchants, following the advice of Lord Brougham in a parliamentary speech, dumped great quantities of their surplus goods on the American market, selling them far below cost, or even on extravagant credit terms. One object was to smash the budding American manufactures.

This action of British merchants naturally stirred some angry patriotic emotions in the circles where American business suffered and a demand began to be heard for protection. But the Government of the United States was still representative of agriculture, in the main, and while a Tariff Bill was enacted in 1816 that Bill was regarded as a temporary measure required by the necessity of paying the costs of the recent war. Just at this juncture, however, British policy, now looking again toward a great colonial empire, sought advantages for the hitherto neglected maritime provinces of British North America, and thought that it had found them by encouragement of their trade with the British West Indies. The legal status of American trade with the West Indies was now enforced and for a time intercourse was practically suspended.

This British policy brought to the front the issue of protection in America. It not only worked against a return by New England from manufacturing to commerce, but it soon brought into the ranks of protectionists a northern and western agricultural element that had been accustomed to sell surplus products to West Indian planters seeking cheap food-stuffs for their slaves. This new protectionist element was as yet not crystallized into a clamour for "home markets" for agriculture, but the pressure of opinion was beginning to be felt, and by 1820 the question of West Indian trade became one of constant agitation and demanded political action. That action was taken on lines of retaliation. Congress in 1818 passed a law excluding from American ports any British vessel coming from a port access to which was denied to an American vessel, and placing under bond in American ports British vessels with prohibition of their proceeding to a British port to which American vessels could not go. This act affected not merely direct trade with the West Indies, but stopped the general custom of British ships of taking part cargoes to Jamaica while en route to and from the United States. The result was, first, compromise, later, under Huskisson's administration at the British Board of Trade, complete abandonment by Britain of the exclusive trade basis of her whole colonial system.

The "retaliatory system" which J.Q. Adams regarded as "a new declaration of independence," was, in fact, quickly taken up by other non-colonial nations, and these, with America, compelled Great Britain to take stock of her interests. Huskisson, rightly foreseeing British prosperity as dependent upon her manufactures and upon the carrying trade, stated in Parliament that American "retaliation" had forced the issue. Freedom of trade in British ports was offered in 1826 to all non-colonial nations that would open their ports within one year on terms of equality to British ships. J.Q. Adams, now President of the United States, delayed acceptance of this offer, preferring a treaty negotiation, and was rebuffed by Canning, so that actual resumption of West Indian trade did not take place until 1830, after the close of Adams' administration. That trade never recovered its former prosperity.

Meanwhile the long period of controversy, from 1806 to 1830, had resulted in a complete change in the American situation. It is not a sufficient explanation of the American belief in, and practice of, the theory of protection to attribute this alone to British checks placed upon free commercial rivalry. Nevertheless the progress of America toward an established system, reaching its highest mark for years in the Tariff Bill of 1828, is distinctly related to the events just narrated. After American independence, the partially illegal status of West Indian trade hampered commercial progress and slightly encouraged American manufactures by the mere seeking of capital for investment; the neutral troubles of 1806 and the American prohibitions on intercourse increased the transfer of interest; the war of 1812 gave a complete protection to infant industries; the dumping of British goods in 1815 stirred patriotic American feeling; British renewal of colonial system restrictions, and the twelve-year quarrel over "retaliation" gave time for the definite establishment of protectionist ideas in the United States. But Britain was soon proclaiming for herself and for the world the common advantage and the justice of a great theory of free trade. America was apparently now committed to an opposing economic theory, the first great nation definitely to establish it, and thus there resulted a clear-cut opposition of principle and a clash of interests. From 1846, when free trade ideas triumphed in England, the devoted British free trader regarded America as the chief obstacle to a world-wide acceptance of his theory.