Outline of the development of the internal commerce of the United States: 1789-1900Van Metre, Thurman William
History
Outline of the development of the internal commerce of the United States: 1789-1900
Van Metre, Thurman William
United States -- Commerce -- History
Especially was communication between the Ohio Valley and the outside
world difficult and expensive. The natural outlet for the surplus of
this valley was the Mississippi River. During the Revolutionary War,
the Spanish government had given the people of the colonies the right
of free navigation of the river and a brisk trade had sprung up between
the western settlements and New Orleans, but in 1784 Spain had put an
end to this trade by withdrawing the right of free navigation. The
people of the West, enraged at being deprived of what they considered
their natural right, protested furiously and appealed to Congress for
protection, but their appeals were unavailing and the river remained
closed for more than a decade. The only market left to the western
farmers was the cities on the eastern coast. Peltry, ginseng and
whiskey were almost the only products that would pay their cost of
transportation to Philadelphia, and the proceeds derived from the sale
of these were sufficient to purchase only a few things of prime
necessity such as salt, gunpowder, and some indispensable articles of
iron. Even this small trade of the West was crippled when the new
government placed an excise tax on whiskey, and the resentment felt
against the federal authorities for their apparent disregard of the
economic interests of the western people blazed forth in open
rebellion.
The commercial isolation of the Ohio Valley ended, however, in 1795,
when the national government, spurred to action by the threats of
secession and clamor for protection coming from the western farmers,
secured a treaty with Spain opening the Mississippi River to
navigation. The successful conclusion of the negotiations was hailed
with great rejoicing in Tennessee, Kentucky, Pennsylvania and Ohio.
Fleets of flat-boats loaded with tobacco, pork, flour, grain and
whiskey began to move down the river. In 1799, more than a million
dollars worth of goods were received at New Orleans from the country up
the Mississippi. In October, 1802, the Spanish Intendant at New
Orleans, acting on his own responsibility, suddenly withdrew the "right
of deposit" at the city, and contrary to the provisions of the treaty,
he refused to assign an equivalent establishment at any other place on
the banks of the river. The western people were wild with rage. It was
necessary to send troops to Kentucky to prevent an armed expedition
against the Spanish province. Fortunately, the Spanish government
disavowed the action of the Intendant and in April, 1803, the river
trade was again restored. Desirous of avoiding such difficulties in the
future, Jefferson pushed the negotiations already begun with Napoleon,
to whom Spain had ceded her claims to Louisiana, for the purchase of
New Orleans and the territory through which the river flowed from the
possessions of the United States to the Gulf of Mexico. The
negotiations ended in October, 1803, with a wholly unexpected
result--the purchase of the entire Louisiana province.
Public-domain text, read in full here on John Shaqi.
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