The English retaliated with an Order in Council, dated May 16, 1806, by which the whole coast from Brest to the river Elbe was declared blockaded. There was no blockading squadron; yet American vessels were captured as they left their own ports bound for places within the specified limit. Napoleon retorted with the Berlin Decree of Nov. 21, 1806, in which he declared the whole British Islands in a state of blockade; the trade in English merchandise was forbidden, and no vessel that had touched at a British port could enter a French port. These measures were plainly intended to cut off the commerce of neutrals; and as the European wars had now swept in almost every seafaring power, on one side or the other, the Americans were the great neutral carriers. In January, 1807, Great Britain announced that neutral vessels trading from one port under French influence to another were subject to capture, and that all French ports were blockaded. The Milan Decree of December, 1807, completed the structure of injustice by ordering the capture of all neutral vessels which had been searched by an English vessel. In 1806 the Jay Treaty expired, and the Americans lost its slight protection. The effect of this warfare of proclamations was at once seen in the great increase of captures: one hundred and ninety-four American vessels were taken by England in 1807, and a large number by the French. 103. POLICY OF NON-RESISTANCE (1805-1807). [Sidenote: Prosperity of American trade.] The wholesale seizure of American property was exasperating to the last degree. The disdainful impressment of American seamen, and still more the unofficial blockade of the ports, would have justified war. Yet notwithstanding the loss of American shipping, trade continued to prosper, and vessels engaged in foreign commerce increased; freights were so high that an annual loss by capture of ten per cent could be made up out of the profits. The New Englanders, therefore, who suffered most were not most anxious for war, nor could Jefferson bear to give up his policy of debt- reduction and of peaceful trade. Toward France, indeed, he showed remarkable tenderness, because that power controlled Spain, from which Jefferson was eagerly seeking the cession of West Florida. [Sidenote: Gunboat system.]