As Secretary of State, John Quincy Adams played hardball with Great Britain demanding they open up trade with her colonies before the United States would grant them a reciprocal trade agreement. Now, as President John Quincy Adams in his first term, asks Congress to make the first move, by expanding an 1824 act, and open up reciprocal trade agreements to all of Europe.
Throughout President Monroe's administration, especially during his second term. he urged Congress to establish treaties of commerce with the powers of Europe based upon the principle of reciprocity and equality. If a nation was willing to remove discriminating duties on American goods and vessels, then the United States would follow suit. In 1821, Congress passed an act to remove discriminating duties of French ships, and later that year, Monroe urged Congress to do the same for the Kingdom of Sweden. President Monroe and his Secretary of State John Quincy Adams worked hard to establish reciprocal trade agreements. In 1821, Adams sent a stern letter with the Kingdom of Norway, stating that American duties on their tonnage would not be removed until they first remove all "discriminating or countervailing duties in the kingdom of Norway". By the end of 1821, the Kingdoms of the Netherlands, Sweden, Prussia, and with Hamburg, Lubeck, and Oldenburg were all ready to sign reciprocal trade agreements. And, by 1824, the list also included the Empire of Russia.
Congress responded on January 7, 1824 by approving "an Act concerning discriminating duties of tonnage and impost." This act, suspended several previous acts imposing discriminating duties on vessels owned by Kingdom of the Netherlands, Imperial Hanseatic cities of Lumburg, Lubek and Bremen, the Dukedom of Oldenburg, the Kingdom of Norway, the Kingdom of Sardinia, and the Empire of Russia. The reciprocal agreement included not only the vessels, but also goods, wares and merchandise that is primarily found in those territories even if carried in vessels not owned by the territories. The suspension of the discriminating duties remained dependent upon reciprocal treatment of U.S. vessels and products. Aside from the nations listed, the act also extended authority to the President to lift discriminatory duties on any nation so long as equal and reciprocal treatment was provided to the United States first.
When John Quincy Adams became president in 1825, one of his first orders of duty was to continue pursuing reciprocal trade deals. During the Monroe administration, America had played hard ball with Great Britain and passed an act in 1823, which promised to remove restrictive duties on British vessels only if American vessels were granted full and reciprocal treatment in all of Great Britain's colonies. It was a bold request, but now that Adams was president he seemed to be softening just a bit. After describing the relative peace in Europe over the last decade where our trade had been peaceful and friendly, President Adams turned to Great Britain. Adams explained that Great Britain had made important changes to regulations in the areas of commerce and trade which might benefit the U.S., and more importantly diplomatic missions with them had been renewed. Adams believed that this was evidence that the Great Britain was now ready to open up reciprocal trade with here colonies, since "many points of difference" between the two nations had already been resolved. Adams did not use the words "trade with her colonies", but he spoke of the "ultimate satisfactory adjustment", which I believe referred back to the Act of 1823 which demanded free and reciprocal trade with the colonies of Great Britain.
"Europe, with a few partial and unhappy exceptions, has enjoyed 10 years of peace, during which all her Governments, what ever the theory of their constitutions may have been, are successively taught to feel that the end of their institution is the happiness of the people, and that the exercise of power among men can be justified only by the blessings it confers upon those over whom it is extended.What Adams now wanted, was for Congress to make the first move by extending the act of 1824 to include "include all articles of merchandise not prohibited, of what country so ever they may be the produce or manufacture". Adams argued that since a proposition to this effect had already been offered to us by several nations of Europe, it might be made by all of Europe if only Congress would make the first move and pass new legislation to this effect. President Adams at the beginning of his presidency now seemed to be displaying a softening of the stance he took as Secretary of State under James Monroe. Perhaps, he was just willing to try a new approach. Nevertheless, as President, John Quincy Adams argued that the policy of the United Sates regarding commercial intercourse with other nations had always "been of the most liberal character". Immediately after the War of 1812, Congress enacted new laws to lay aside the retaliatory restrictions and exclusions to create trade agreements that were fair and equal. The most recent act of 1824, confirmed reciprocity with all nations that acceded to it, and promised it to all nations who would be willing to abide by the principle in the future. But, Adams argued now that all of these trade deals had one very important restriction. They required that the products whether grown or produced came from the ports where they "are most usually for shipped from". For example, if products that originated from Denmark were shipped in vessels from Russia, the United States would still apply discriminating tariffs on them. Or more blatantly applied to Great Britain, British vessels carrying products from her colonies would have to pay discriminating duties to the United States. Adams concluded that if the US Congress would make the first move and remove these discriminating duties once and for all, then perhaps all of Europe may follow suit, including Great Britain.
During the same period our intercourse with all those nations has been pacific and friendly; it so continues. Since the close of your last session no material variation has occurred in our relations with any one of them. In the commercial and navigation system of Great Britain important changes of municipal regulation have recently been sanctioned by acts of Parliament, the effect of which upon the interests of other nations, and particularly upon ours, has not yet been fully developed. In the recent renewal of the diplomatic missions on both sides between the two Governments assurances have been given and received of the continuance and increase of the mutual confidence and cordiality by which the adjustment of many points of difference had already been effected, and which affords the surest pledge for the ultimate satisfactory adjustment of those which still remain open or may hereafter arise."
"The policy of the United States in their commercial intercourse with other nations has always been of the most liberal character. In the mutual exchange of their respective productions they have abstained altogether from prohibitions; they have interdicted themselves the power of laying taxes upon exports, and when ever they have favored their own shipping by special preferences or exclusive privileges in their own ports it has been only with a view to countervail similar favors and exclusions granted by the nations with whom we have been engaged in traffic to their own people or shipping, and to the disadvantage of ours. Immediately after the close of the last war a proposal was fairly made by the act of Congress of 1815-03-03, to all the maritime nations to lay aside the system of retaliating restrictions and exclusions, and to place the shipping of both parties to the common trade on a footing of equality in respect to the duties of tonnage and impost. This offer was partially and successively accepted by Great Britain, Sweden, the Netherlands, the Hanseatic cities, Prussia, Sardinia, the Duke of Oldenburg, and Russia. It was also adopted, under certain modifications, in our late commercial convention with France, and by the act of Congress of 1824-01-08, it has received a new confirmation with all the nations who had acceded to it, and has been offered again to all those who are or may here after be willing to abide in reciprocity by it. But all these regulations, whether established by treaty or by municipal enactments, are still subject to one important restriction.In 1826, when Denmark introduced a bounty of 10% on the return of duties to their national vessels without allowing US merchants to participate , it constituted a breach in the reciprocal trade agreement. In the 1824 act, the President not only had the right to lift discriminatory tariffs, but could also reinstate them if a nation failed to live up to their end of the agreement. So in 1826, President John Quincy Adams had every right to raise tariffs on Denmark by proclamation, but in the State of the Union Address of that year, after reporting on the situation to Congress, he asked them to determine the proper course of action.
The removal of discriminating duties of tonnage and of impost is limited to articles of the growth, produce, or manufacture of the country to which the vessel belongs or to such articles as are most usually first shipped from her ports. It will deserve the serious consideration of Congress whether even this remnant of restriction may not be safely abandoned, and whether the general tender of equal competition made in the act of 1824-01-08, may not be extended to include all articles of merchandise not prohibited, of what country so ever they may be the produce or manufacture. Propositions of this effect have already been made to us by more than one European Government, and it is probable that if once established by legislation or compact with any distinguished maritime state it would recommend itself by the experience of its advantages to the general accession of all."
"With the Government of the Netherlands the mutual abandonment of discriminating duties had been regulated by legislative acts on both sides. The act of Congress of 1818-04-20, abolished all discriminating duties of impost and tonnage upon the vessels and produce of the Netherlands in the ports of the United States upon the assurance given by the Government of the Netherlands that all such duties operating against the shipping and commerce of the United States in that Kingdom had been abolished. These reciprocal regulations had continued in force several years when the discriminating principle was resumed by the Netherlands in a new and indirect form by a bounty of 10% in the shape of a return of duties to their national vessels, and in which those of the United States are not permitted to participate. By the act of Congress of 1824-01-07, all discriminating duties in the United States were again suspended, so far as related to the vessels and produce of the Netherlands, so long as the reciprocal exemption should be extended to the vessels and produce of the United States in the Netherlands. But the same act provides that in the event of a restoration of discriminating duties to operate against the shipping and commerce of the United States in any of the foreign countries referred to therein the suspension of discriminating duties in favor of the navigation of such foreign country should cease and all the provisions of the acts imposing discriminating foreign tonnage and impost duties in the United States should revive and be in full force with regard to that nation.
In the correspondence with the Government of the Netherlands upon this subject they have contended that the favor shown to their own shipping by this bounty upon their tonnage is not to be considered a discriminating duty; but it can not be denied that it produces all the same effects. Had the mutual abolition been stipulated by treaty, such a bounty upon the national vessels could scarcely have been granted consistent with good faith. Yet as the act of Congress of 1824-01-07 has not expressly authorized the Executive authority to determine what shall be considered as a revival of discriminating duties by a foreign government to the disadvantage of the United States, and as the retaliatory measure on our part, however just and necessary, may tend rather to that conflict of legislation which we deprecate than to that concert to which we invite all commercial nations, as most conducive to their interest and our own, I have thought it more consistent with the spirit of our institutions to refer to the subject again to the paramount authority of the Legislature to decide what measure the emergency may require than abruptly by proclamation to carry into effect the minatory provisions of the act of 1824."In that same year, President Adams reviewed the treaties made with other countries including the colonies in Denmark and the newly independent nations of Central America. With the colonies of Denmark, those in the Arctic seas were an exception to the convention. One of those Kingdoms was Sweden. The King of Sweden proposed to renew the expired treaty in 1826, and President John Quincy Adams also submitted this to Congress for their consideration.
"During the last session of Congress treaties of amity, navigation, and commerce were negotiated and signed at this place with the Government of Denmark, in Europe, and with the Federation of Central America, in this hemisphere. These treaties then received the constitutional sanction of the Senate, by the advice and consent to their ratification. They were accordingly ratified on the part of the US, and during the recess of Congress have been also ratified by the other respective contracting parties. The ratifications have been exchanged, and they have been published by proclamations, copies of which are herewith communicated to Congress.
These treaties have established between the contracting parties the principles of equality and reciprocity in their broadest and most liberal extent, each party admitting the vessels of the other into its ports, laden with cargoes the produce or manufacture of any quarter of the globe, upon the payment of the same duties of tonnage and impost that are chargeable upon their own. They have further stipulated that the parties shall hereafter grant no favor of navigation or commerce to any other nation which shall not upon the same terms be granted to each other, and that neither party will impose upon articles of merchandise the produce or manufacture of the other any other or higher duties than upon the like articles being the produce or manufacture of any other country. To these principles there is in the convention with Denmark an exception with regard to the colonies of that Kingdom in the arctic seas, but none with regard to her colonies in the West Indies.
In the course of the last summer the term to which our last commercial treaty with Sweden was limited has expired. A continuation of it is in the contemplation of the Swedish Government, and is believed to be desirable on the part of the United States. It has been proposed by the King of Sweden that pending the negotiation of renewal the expired treaty should be mutually considered as still in force, a measure which will require the sanction of Congress to be carried into effect on our part, and which I therefore recommend to your consideration."Finally, just a little more than two years into his presidency, on March 17, 1827 John Quincy Adams by proclamation rescinded the Act of 1823 which regulated the commercial intercourse between the United States and certain British colonial ports". In doing so, Adams softened his stance on Great Britain and opened the door to extending a reciprocal trade agreement with Great Britain and it's colonies. Unfortunately, many of his rivals in Congress of which Adams had many, prevented Adams from fully resolving the ongoing issues of trade with the British West Indies.
References
Presidency.ucsb.edu. (2017). John Quincy Adams: First Annual Message. [online] Available at: http://www.presidency.ucsb.edu/ws/index.php?pid=29467 [Accessed 18 Dec. 2017].Miller Center. (2017). John Quincy Adams: Foreign Affairs | Miller Center. [online] Available at: https://millercenter.org/president/jqadams/foreign-affairs [Accessed 18 Dec. 2017].
Peters, R. (1845). By authority of Congress. The public statutes at large of the United States of America from the organization of the government in 1789, to march 3, 1845. Boston: Charles C. Little and James Brown.
Wagner, D. (2017). 1820 James Monroe - Repealing tonnage duties Act on French Vessels. [online] Stateoftheunionhistory.com. Available at: http://www.stateoftheunionhistory.com/2017/06/1820-james-monroe-repealing-tonnage.html [Accessed 18 Dec. 2017].
Wagner, D. (2017). 1821 James Monroe - Free Trade Agreement with the King of Sweden. [online] Stateoftheunionhistory.com. Available at: http://www.stateoftheunionhistory.com/2017/06/1821-james-monroe-free-trade-agreement.html [Accessed 18 Dec. 2017].
Wagner, D. (2017). 1824 James Monroe - Our next blunder, the famous act of March, 1823. [online] Stateoftheunionhistory.com. Available at: http://www.stateoftheunionhistory.com/2017/10/1823-james-monroe-our-next-blunder.html [Accessed 18 Dec. 2017].
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