History of the United States of America, Volume 4 (of 9) : $b During the second administration of Thomas JeffersonAdams, Henry
History
History of the United States of America, Volume 4 (of 9) : $b During the second administration of Thomas Jefferson
Adams, Henry
United States -- History -- 1801-1809; United States -- History -- 1809-1817
While the constitutional cost of the two systems was not altogether
unlike, the economical cost was a point not easily settled. No
one could say what might be the financial expense of embargo as
compared with war. Yet Jefferson himself in the end admitted that the
embargo had no claim to respect as an economical measure. The Boston
Federalists estimated that the net American loss of income, exclusive
of that on freights, could not be less than ten per cent for interest
and profit on the whole export of the country,--or ten million eight
hundred thousand dollars on a total export value of one hundred and
eight millions.[230] This estimate was extravagant, even if the
embargo had been wholly responsible for cutting off American trade;
it represented in fact the loss resulting to America from Napoleon’s
decrees, the British orders, and the embargo taken together. Yet at
least the embargo was more destructive than war would have been to
the interests of foreign commerce. Even in the worst of foreign wars
American commerce could not be wholly stopped,--some outlet for
American produce must always remain open, some inward bound ships
would always escape the watch of a blockading squadron. Even in 1814,
after two years of war, and when the coast was stringently blockaded,
the American Treasury collected six million dollars from imports; but
in 1808, after the embargo was in full effect, the customs yielded
only a few thousand dollars on cargoes that happened to be imported
for some special purpose. The difference was loss, to the disadvantage
of embargo. To this must be added loss of freight, decay of ships and
produce, besides enforced idleness to a corresponding extent; and
finally the cost of a war if the embargo system should fail.
In other respects the system was still costly. The citizen was not
killed, but he was partially paralyzed. Government did not waste money
or life, but prevented both money and labor from having their former
value. If long continued, embargo must bankrupt the government almost
as certainly as war; if not long continued, the immediate shock to
industry was more destructive than war would have been. The expense of
war proved, five years afterward, to be about thirty million dollars
a year, and of this sum much the larger portion was pure loss; but
in 1808, owing to the condition of Europe, the expense need not have
exceeded twenty millions, and the means at hand were greater. The
effect of the embargo was certainly no greater than the effect of war
in stimulating domestic industry. In either case the stimulus was
temporary and ineffective; but the embargo cut off the resources of
credit and capital, while war gave both an artificial expansion. The
result was that while embargo saved perhaps twenty millions of dollars
a year and some thousands of lives which war would have consumed, it
was still an expensive system, and in some respects more destructive
than war itself to national wealth.
Public-domain text, read in full here on John Shaqi.
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