In 1804, the Mobile Act proclaimed by Jefferson was believed to have settled the territorial disputes with Spain over the Mobile river and West Florida. Yet the borders and ownership of West Florida was still a big mess. Both the United States and Spain laid claim to the land between the Mobile and the Perdido rivers and Spain was still attempting to obstruct navigation and commerce on the Mobile River. On one instance in July of 1805, there was a report that two vessels loaded with cotton attempted to pass Mobile without paying the duty to Spain. One of the vessels succeeded by using the eastern fork of the river, but upon returning, their cargo and their ship was seized by the Spaniards. The owners appealed to Congress through the territorial delegate, and eventually to Secretary of State James Madison. The Secretary of State took this opportunity to make it clear to Spain that the claim of West Florida gave his country the exclusive right to navigate the river.
Thomas Jefferson, in his 1805 address to congress reported that the negotiations to settle our differences with Spain had failed. He stated that Spain was refusing to pay for the the seizures of cargo and men that occurred in previous wars that she herself was reasonable. Jefferson explained that their refusal to pay was based upon conditions having nothing to do with the claims themselves, and that Spain continued these same practices in what Jefferson termed the "present war". Despite earlier attempts, Spain was attempting to obstruct commerce in the Mobile District and had not yet conceded the boundaries of Louisiana to include the Mobile. Yet, Jefferson told Congress that until this is settled, "we have avoided changing the state of things by taking new posts or strengthening ourselves in the disputed territories". Jefferson did not want to risk war with Spain. Rather, he chose to bide his time, anticipating that as more and more Americans settled in the provinces of West Florida, the balance would eventually tilt in favor of America. Jefferson was relying on adventurers and their passions to incorporate the Gulf Coast into the United States. Unfortunately, Jefferson would soon learn that some of these individuals had agendas of their own (e.g. Aaron Burr).
Here are Jefferson's own words on the subject from his 1805 annual address to Congress;
"With Spain our negotiations for a settlement of differences have not had a satisfactory issue. Spoliations during a former war, for which she had acknowledged herself responsible, have been refused to be compensated but on conditions affecting other claims in no wise connected with them. Yet the same practices are renewed in the present war and are already of great amount. On the Mobile, our commerce passing through that river continues to be obstructed by arbitrary duties and vexatious searches. Propositions for adjusting amicably the boundaries of Louisiana have not been acceded to. While, however, the right is unsettled, we have avoided changing the state of things by taking new posts or strengthening ourselves in the disputed territories, in the hope that the other power would not by a contrary conduct oblige us to meet their example and endanger conflicts of authority the of which may not be easily controlled. But in this hope we have now reason to lessen our confidence."http://www.presidency.ucsb.edu/ws/index.php?pid=29447
The West Florida Controversy, 1798-1813: A Study in American Diplomacy by Isaac Joslin Cox, pg. 177
http://www.independent.org/publications/working_papers/article.asp?id=1478
https://upload.wikimedia.org/wikipedia/commons/e/e9/Map_of_the_province_of_West_Florida_%284578749095%29.jpg
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