In September, 1806, Charles Fox, who had always been friendly and conciliatory in his dealings with the United States, died, and what was known as "The ministry of all the talents" was dissolved. Early in 1807, the Duke of Portland's ministry was formed, of which Spencer Perceval and George Canning were the leading spirits. In France, Talleyrand was still foreign minister, although his influence was waning, and he no longer approved of Napoleon's methods. He had been foreign minister under the Directory when he attached himself to the growing power of the First Consul; and while the great diplomat remained at his side, Napoleon's career was one of continued success. Soon after this date, as Prince of Benevento, Talleyrand disappears from the field of politics.

In America, Jefferson was assisted in his second administration by Madison and Gallatin, while Monroe and Pinkney and Armstrong were his ministers abroad.

The Berlin decrees

News came early in 1807 of Napoleon's further triumphs. The victories of Jena and Auerstadt followed Austerlitz, and on October 27th Napoleon entered Berlin, and from that city on November 2nd issued the famous Berlin decrees against British commerce. They began by charging that England disregarded the law of nations, that she made non-combatants prisoners of war, confiscated private property, blockaded unfortified harbours and considered places as blockaded although she had not a single ship before them.

By the Berlin decrees it was proclaimed that the British Isles were in a state of blockade. Intercourse with them was prohibited. All British subjects within French authority were to be held as prisoners of war. All British property, private and public, was declared prize of war. No British ships were to be admitted to any port of France or her allies. Every vessel eluding this rule was to be confiscated. These decrees not only affected England but struck at the roots of neutral rights and of American commerce with Europe. The motive was obvious. Stung by his repeated defeats at sea, and unable to cope with his great enemy on the ocean, Napoleon had turned his attention to the utter destruction of the trade of Great Britain. At this moment the latter had not one ally on the continent of Europe.

"Leopard" and "Chesapeake"

The treaty with America that had been under consideration for some time, had been signed in London by Monroe and Pinkney on behalf of the United States. It had, however, been repudiated by the president, and the unfriendly feeling towards England had been still further increased by the affair of the Leopard and Chesapeake on June 21st, 1807. This arose from the desertion in March of certain seamen from the sloop Halifax commanded by Lord Townshend, while lying in Hampton Roads, Virginia. One of its boats and five men with a petty officer had been sent on some duty. The men rose against their officer, and threatened to throw him overboard. They then rowed to shore, landed at Norfolk, Virginia, and immediately enlisted on board the Chesapeake. On a formal demand being made for the men to be given up, the municipal authorities refused to interfere, although in similar cases of desertion at Gibraltar and elsewhere, British municipal assistance had been rendered to the United States. Three deserters from H.M.S. Melampus were also alleged to have enlisted on the Chesapeake.

On June 21st, the Leopard, under command of Captain Humphrey met the Chesapeake, under the command of Commodore Barren, and demanded the British deserters who were on board. On the latter's refusal to have his crew mustered, the Leopard fired a broadside doing considerable damage. The Chesapeake, not being in a condition to resist, then struck, and the captain offered to give her up as a prize, which Captain Humphrey refused, saying that he had executed the order of his commander and had nothing more to do. Four deserters were brought as prisoners on board the Leopard, two more were killed by her fire and one jumped overboard. The responsibility for the order rested on Admiral Berkeley, then stationed at Halifax.

Intense excitement was caused by this event and the president issued a proclamation ordering all armed British vessels to depart from the harbours of the United States. In England, Canning, who was then secretary of war, had some correspondence on the subject with Monroe, the American representative. The British minister expressed regret and offered to make reparation if it should be proved such was due. Monroe, in pursuance of his instructions, demanded that the men taken from the Chesapeake should be restored, the offenders punished, that a special mission should be sent to the United States to announce the reparation, and that all impressment from merchant vessels should cease. Canning absolutely refused to consider the latter clause. He also asked whether the proclamation of the president as to British ships of war was authentic, or would be withdrawn on the disavowal of the act which led to it. The nationality of the men seized, he added, must also be considered, not in justification of their seizure, but in the estimate of the redress asked. As to impressment, Canning said, the mode of regulating the practice might be considered, but if Monroe's instructions left him no discretion it was useless to discuss the matter.

Then followed a proclamation by the government regarding the desertion of British seamen. Naval officers were ordered to seize them from merchant vessels without unnecessary violence. All who returned to their allegiance would be pardoned. Those who served on ships of war at enmity with Great Britain, would be punished with extreme severity.