Just prior to the war of 1812, President James Madison and his Treasury Secretary Albert Gallatin had serious concerns regarding the situation of trade in American ports. Madison's policy of non-intercourse with Great Britain was being side-stepped through smuggling and through trade under false papers and false flags. In a letter to Madison October 1811, Secretary Gallatin described a situation where ships coming from "St. Bartholomew or from Spanish or other permitted ports" were actually containing British goods. The ships carried papers that listed the products as Spanish, Swedish or other permitted products, but they were actually from British colonies. For example, sugar and rum of the British colonies was being reported as being from Spanish or Other Colonies. Gallatin, suggested that there is no mistaking British rum from Spanish rum, yet our inspectors were allowing it. If this is allowed to continue, then the restrictive trade laws of America would be entirely defeated. Gallatin explained, "if Jamaica Spirits can, with the help of an Havanna certificate, be forced upon us as Spanish Rum, there is nothing to prevent the importation of Irish linens or British cloth, under the name of German or Danish manufactures, or even that of Madeira wine, under the designation of Teneriffe".
Shown in the picture is the Appleton Estate, the oldest sugar estate and distillery in Jamaica. The Appleton Estate began producing Rum in 1749 and still does today.
Madison shared this news with Congress during his state of the union in 1811. He urged Congress to consider expanding the laws to enforce the restrictive American trade laws. It was not good, while Great Britain, France and Spain were restricting our ships from entering their ports, we were looking the other way while they enter ours. Madison, pointed out that "the effect can not be mistaken". Foreign merchants were trading foreign products for American goods in American ports, and then selling those American goods in other countries. These countries were profiting off of our goods and training their mariners. In times of danger, this practice can not be continued. Thus Madison urged Congress to take action to secure greater respect in the American economy and it's financial interests. Madison suggested two items. First, we need to punish those individuals who accept foreign licenses to trade items which are prohibited by American law, or trade under "false colors or papers of any sort". And, second enforce laws which restrict foreign vessels from entering certain American ports.
Finally, Madison asked Congress to expand on the "just and sound" policies which had protected American manufacturing during the trade embargoes. Among these policies were tariffs, a national bank, and federal spending on internal improvements as outlined in Henry Clay's "American System". Madison said it was a matter of national security; Aside from the common sense of protecting our manufacturing and preparing for any "change of circumstances", it is in our national interest to protect the supply of items necessary to our primary needs and defense. To be dependent upon foreign nations for these items, would put our national security at risk.
Here is the full section from Madison's address in 1811:
"To secure greater respect to our mercantile flag, and to the honest interests which it covers, it is expedient also that it be made punishable in our citizens to accepts licenses from foreign governments for a trade unlawfully interdicted by them to other American citizens, or to trade under false colors or papers of any sort.
A prohibition is equally called for against the acceptance by our citizens of special licenses to be used in a trade with the United States, and against the admission into particular ports of the United States of vessels from foreign countries authorized to trade with particular ports only.
Although other subjects will press more immediately on your deliberations, a portion of them can not but be well bestowed on the just and sound policy of securing to our manufactures the success they have attained, and are still attaining, in some degree, under the impulse of causes not permanent, and to our navigation, the fair extent of which is at present abridged by the unequal regulations of foreign governments.http://www.presidency.ucsb.edu/ws/index.php?pid=29453
Besides the reasonableness of saving our manufactures from sacrifices which a change of circumstances might bring on them, the national interest requires that, WRT such articles at least as belong to our defense and our primary wants, we should not be left in unnecessary dependence on external supplies. And whilst foreign governments adhere to the existing discriminations in their ports against our navigation, and an equality or lesser discrimination is enjoyed by their navigation in our ports, the effect can not be mistaken, because it has been seriously felt by our shipping interests; and in proportion as this takes place the advantages of an independent conveyance of our products to foreign markets and of a growing body of mariners trained by their occupations for the service of their country in times of danger must be diminished."
http://founders.archives.gov/documents/Madison/03-03-02-0567
http://appletonrumtour.com/
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