About State of the Union History

1802 Thomas Jefferson - French Tobacco Trade Monopoly



In his second annual address to Congress, President Thomas Jefferson addressed the trade situation around the world and particularly in France.  The French revolution had ended, and peace had been restored in Europe (albeit temporarily).  As expected, this new peace brought forth much more much more competition from European merchants.  But, what was not expected was that some parts of Europe were introducing restrictive trade policies to create monopolies. 

"On the restoration of peace in Europe that portion of the general carrying trade which had fallen to our share during the war was abridged by the returning competition of the belligerent powers. This was to be expected, and was just. But in addition we find in some parts of Europe monopolizing discriminations, which in the form of duties tend effectually to prohibit the carrying thither our own produce in our own vessels. From existing amities and a spirit of justice it is hoped that friendly discussion will produce a fair and adequate reciprocity. but should false calculations of interest defeat our hope, it rests with the Legislature to decide whether they will meet inequalities abroad with countervailing inequalities at home, or provide for the evil in any other way."

One such monopoly, was the tobacco duties that France imposed on foreign ships.  In 1800, France ratified the Treaty of Mortefontaine, but added a clause which removed all prior alliances and trade agreements between the Untied States and France.  With these agreements removed, there was no way to stop the French from imposing an additional 30 Franks per hundred pounds of all tobacco imported in foreign ships.   This in essence gave French merchants a monopoly over the shipping of tobacco into France.  In 1802, Secretary of State James Madison wrote a letter to Robert R. Livingston, the U.S. minister to France regarding this issue.   Madison wrote that America intended to conform to all of France's regulations, so long as they were moderate and fair, but they were concerned about their laws which favored their own navigation.  Madison stated that while the United States was not accusing France of purposefully trying to establish a monopoly, they would still have to take reciprocal action to protect her own interests.  Here is an excerpt from Madison's letter to Livingston.

"You may assure the French Government of the disposition of the United States to conform all their regulations on this subject to the scale of moderation and equality, that the discriminating duties now
imposed by their laws in favor of their own navigation were dictated not by a spirit of monopoly or unfair advantage, but by the reasonable wish to protect our bottoms against the effects of the numerous discriminations of various kinds in foreign ports, and that nothing more is claimed for the navigation of the United States, than the just and reciprocal share to which it is unquestionably entitled by the nature of their productions, and by their carrying faculties"


http://www.presidency.ucsb.edu/ws/index.php?pid=29444
http://founders.archives.gov/documents/Madison/02-02-02-0479
https://en.wikipedia.org/wiki/Convention_of_1800

1 comment:

  1. The tobacco business contains those people and organizations occupied with the development, arrangement available vape distributors to be purchased, shipment, commercial, and appropriation of tobacco and tobacco-related items. It is a worldwide industry; tobacco can develop in any warm, sodden condition, which implies it very well may be cultivated on all mainlands.

    ReplyDelete