Chapter 10.3

List the benefits and risk of trade of overeats trade.

Describe how the British and French violated the neutrality of American ships.

Explain why Jefferson decided to impose an embargo

America’s merchants and sea trade in 1800’s spanned around the world. New England ice traded for India’s silk. Fur trapped in North America traded in China for

huge profit. The use of Yankee Clipper ships made fast

transit to foreign ports and allowed merchants to get rich.

The War between France and Britain placed America’s merchants with a challenge. Trade with either nation, the other would be upset. 1805-1807, hundreds of ships stopped by both nations. Napoleon seized ships as reprisal. British navy in need of sailors, stopped U.S. merchants

ships looking for British nationals, then used impressment (practice of forcing people into service, example forcing them to serve in the British navy).

American’s furious; advocated for war.

Jefferson uses a total ban (embargo), by getting Congress to pass Embargo Act.

Embargo Act costs exports loss of 90 million dollars, tobacco, sugar, rice hurts merchants

Some merchants turned to smuggling (importing/exporting against trade laws).

Jefferson uses small navy and army to enforce, ban is not complete, totally unfair.

1809, Jefferson replaced Embargo Act with Nonintercourse Act, which allows trade with all nations except England and France.

Embargo very unpopular, eventually fails! Thomas Jefferson in 1808, does not run for third

term of office, James Madison easily wins election.

Madison hopes that France and England will now respect U.S. neutrality.