Embargo Act of 1807

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Embargo Act of 1807,

passed Dec. 22, 1807, by the U.S. Congress in answer to the British orders in councilorders in council,
in British government, orders given by the sovereign on the advice of all or some of the members of the privy council, without the prior consent of Parliament. Orders in council, first so named in the 18th cent.
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 restricting neutral shipping and to Napoleon's restrictive Continental SystemContinental System,
scheme of action adopted by Napoleon I in his economic warfare with England from 1806 to 1812. Economic warfare had been carried on before 1806, but the system itself was initiated by the Berlin Decree, which claimed that the British blockade of purely
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. The U.S. merchant marine suffered from both the British and French, and Thomas Jefferson undertook to answer both nations with measures that by restricting neutral trade would show the importance of that trade. The first attempt was the Nonimportation Act, passed Apr. 18, 1806, forbidding the importation of specified British goods in order to force Great Britain to relax its rigorous rulings on cargoes and sailors (see impressmentimpressment,
forcible enrollment of recruits for military duty. Before the establishment of conscription, many countries supplemented their militia and mercenary troops by impressment.
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). The act was suspended, but the Embargo Act of 1807 was a bolder statement of the same idea. It forbade all international trade to and from American ports, and Jefferson hoped that Britain and France would be persuaded of the value and the rights of a neutral commerce. In Jan., 1808, the prohibition was extended to inland waters and land commerce to halt the skyrocketing trade with Canada. Merchants, sea captains, and sailors were naturally dismayed to find themselves without income and to see the ships rotting at the wharves. All sorts of dodges were used to circumvent the law. The daring attempt to use economic pressure in a world at war was not successful. Britain and France stood firm, and not enough pressure could be brought to bear. Enforcement was difficult, especially in New England, where merchants looked on the scheme as an attempt to defraud them of a livelihood. When in Jan., 1809, Congress, against much opposition, passed an act to make enforcement more rigid, resistance approached the point of rebellion—again especially in New England—and the scheme had to be abandoned. On Mar. 1, 1809, the embargo was superseded by the Nonintercourse Act. This allowed resumption of all commercial intercourse except with Britain and France. Jefferson reluctantly accepted it. Not unexpectedly, it failed to bring pressure on Britain and France. In 1810 it was replaced by Macon's Bill No. 2 (named after Nathaniel Macon), which virtually ended the experiment. It provided for trade with both Britain and France unless one of those powers revoked its restrictions; in that case, the President was authorized to forbid commerce with the country that had not also revoked its offensive measures.


See L. M. Sears, Jefferson and the Embargo (1927, repr. 1967).

References in periodicals archive ?
The Havens for the money laundering schemes - and certain of the names and places of these entities - are located in such venues as Switzerland, the Isle of Man, Luxembourg, Malaysia, Cypress and entities controlled by governments adverse to the interests of the United States Sanctions and Embargo Act against Iran, and are also identified in both the United Nations and the U.
The War of 1812 was also unpopular in New England, and states officially resisted federal authority to mobilize their militias and enforce a new embargo act.
1) The Embargo Act of 1807, however, supposedly halted this period of growth and prosperity.
4) An examination of these data, (never previously utilized for this purpose) motivated by a theoretical model of money, banking, and financial markets, can contribute to the long-standing discussion of the effects of the Embargo Act of 1807 upon the economy of the United States.
The theoretical model underlying our analysis of the economic impact of the Embargo Act of 1807 is based upon a theory of money and loanable funds markets operating within the context of a real business cycle model.
Following the predictions of a real business cycle model, the passage and enforcement of the Embargo Act would initially cause a decrease in the level of foreign trade (as indicated in Table I) and a corresponding decrease in the current level of real output and income.
Embargo Act upon key New england money, banking, and financial variables.
If the Embargo Act had a significant impact upon economic activity in the United States, this impact should be reflected in actual changes in the New England macroeconomic variables that conform with the predicted changes of the theoretical model.
To measure the effect of the Embargo Act upon these variables, Box-Jenkins intervention analyses were conducted on six proxies of bank stock interest yields developed for 426 weeks between 1803 through 1811, inclusive, and on U.
This study examines the impact of the Embargo Act of 1807 on New England economic activity during the years the law was in effect.
Again, an absence of good yearly estimates of real income and national output for the period under examination precludes a rigorous test of whether the embargo Act significantly affected the trend toward domestic manufacturing and self-sufficiency for the United States.