In 1796, George Washington signed a peace treaty with Algiers to release current hostages and pay tribute of up to $1 million annually to protect ships from piracy. 6 years later when Thomas Jefferson became President, the Barbary states once again demanded tributes, but Jefferson refused and the Pasha declared war on the U.S. by cutting down the flagstaff in front of the U.S. Consulate. Then after the American's won a decisive victory in Barbary States at Derne, the American flag was raise not only in the consulate but above the city of Derne.
Then, in the fall of 1807, three American vessels were detained by a frigate under the Dey of Algiers. The three vessels were full of cargo including glass bottles, sugar, hides, indigo and were headed towards the Spanish port of Leghorn in the Barbary states. The Dey of Algiers demanded payment of tribute for these. The reason given by the Dey of Algiers was that annuities in naval and military stores had not been sent from the United States as stipulated in the treaty, even though the consul had repeatedly offered cash in it's place. The consulate office reported that the people on board were treated well and no pillage of any kind had been committed. The consulate office also reported that an agreement was reached with the Dey of Algiers by which a cash payment in lieu of the naval and military stores was accepted and the vessels were released. Unfortunately, the Dey of Algiers continued to make further demands for additional payments under the threat that Algerian frigates would begin capturing American vessels. In March of 1808, Tobias Lear, once George Washington's personal secretary now consul General to the North African Cast wrote to James Madison, Jefferson's Secretary of State that he was obliged to make an unjust payment to the Dey of Algiers. It was a very painful payment for Mr. Lear to make, since he feared the consequences of doing sow would have him discharged of his position as General Consul, but when he considered the safety of Americans and their properties, he was obliged to make the payment.
Yet in Jefferson's final address to Congress, he seems to have stood up for the payments of tribute that Tobias Lear took made to the Dey of Algiers and described them as actions "within the limits of the Executive authority". If additional action was to be taken, then it was now up to Congress to decide.
"With the Barbary Powers we continue in harmony, with the exception of an unjustifiable proceeding of the Dey of Algiers toward our consul to that Regency. Its character and circumstances are now laid before you, and will enable you to decide how far it may, either now or hereafter, call for any measures not within the limits of the Executive authority."One year later, James Madison addressed the situation with a statement that little had changed. In his first annual address, Madison told Congress that there had been no positive changes on the Barbary Coast that would inspire confidence of a continuing friendly relationship with them.
"In relation to the powers on the coast of Barbary, nothing has occurred which is not of a nature rather to inspire confidence than distrust as to the continuance of the existing amity."
http://www.presidency.ucsb.edu/ws/index.php?pid=29450
http://www.presidency.ucsb.edu/ws/index.php?pid=29451
American State Papers. Documents, legislative and executive, of the Congress of the United States. Part 1 Volume 3, Gales and Seaton 1832 pages 24-36
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