10. The Diplomacy of the Confederation

Not all the diplomacy of the postwar period was such a failure as the negotiations with Spain and Great Britain. As soon as the peace treaty was signed, America, freed from the fetters of British mercantilism and eager to trade with all nations, instructed the peace commissioners (John Jay, John Adams, and Benjamin Franklin) to negotiate commercial treaties with all willing countries. While peace negotiations were still underway, Franklin had already signed a treaty with Sweden in April 1783. The treaty was based on the libertarian American “Plan of 1776” for freedom of trade and the safeguarding of neutrals’ rights: in particular, restricting contraband that could be seized by belligerent partners, the freedom of neutral shipping between belligerent ports, and the principle that free ships make free goods. The Swedish treaty made the further liberal addition of agreeing to convoy each other’s neutral ships in time of war.11

In 1784 Congress established another treaty commission, with Thomas Jefferson replacing John Jay. Their new instructions—in the “Plan of 1784”—added advanced libertarian features to the old Plan: e.g., providing immunity to civilians and unfortified towns during war, prohibiting privateering between the treaty parties in case of war between them, and restricting the scope of blockades. But the most creative innovation in the Plan for protecting neutrals’ rights was a new rule on contraband. Previously, warring nations could confiscate contraband articles even on neutral ships; now contraband was to be purchased, rather than seized by force (John Adams, indeed, wished to abolish the contraband category altogether and thus preserve neutral rights totally).

The first treaty concluded under the new instructions was signed with Prussia in 1785. This admirably advanced treaty not only provided for neutral convoys, but also for purchase of contraband and abolition of all privateering between the two countries, even if they were at war. These provisions were, in the words of Franklin, “for the interest of humanity in general, that the occasions of war, and the inducements to it, should be diminished.” The ultimate goal of these endeavors, according to Jefferson, was to be “the total emancipation of commerce and the bringing together of all nations for a free intercommunication of happiness.”

In colonial days British payment of tribute had protected American shipping from depredations by pirates from the Barbary States of North Africa. The good offices of Spain, however, enabled Adams and Jefferson to conclude a favorable treaty in 1787 with the Sultan of Morocco. Exacting only nominal tribute, the Sultan agreed on friendly peaceful commercial relations and on treating captives of any mutual wars of the future as prisoners of war, rather than slaves, as had been the custom. However, the rulers of the other Barbary States—Algiers, Tripoli, Tunis—continued to prey on American ships and enslave their sailors or hold them for ransom. For a peace treaty they demanded from the United States a large tribute. The aggressive Jefferson preferred war to tribute and tried to organize a joint European war against the Barbary pirates, but Congress would not support this bellicosity. Thus, John Adams trenchantly pointed out that the demanded tribute would be far cheaper than any American war against Barbary, but John Jay, the Secretary for Foreign Affairs, preferred to do nothing about Barbary in order to win American public opinion for his nationalist schemes: the lure being the use of national force to the benefit of American shipping in the Mediterranean. This Mediterranean trade particularly included exports of fish, wheat, and flour. In fact, Jay could breezily write upon hearing of Algiers declaring war against American shipping: “This war does not strike me as a great evil. The more we are ill-treated abroad, the more we shall unite and consolidate at home. Besides, as it may become a nursery for seamen, and lay the foundation for a respectable navy, it may eventually prove more beneficial than otherwise.” In short, welcome pillaging of American ships so as to seduce the public into looking for a strong national government for protection.

As for Great Britain, it not only refused to leave the Northwest forts, but also to sign any commercial treaties with the United States. Here, Prime Minister William Pitt the Younger yielded to the pressure of British shipowners and American Tories in Canada who wanted a monopoly of the British West Indies export trade. Indeed, although John Adams was sent as Minister to Great Britain, Britain refused to send even a diplomatic representative to the new nation. Instead, Britain intrigued not only with Indians and westerners, but also with the independent state of Vermont. Still kept out of the Union, Vermont was at least willing to listen to the idea of Union with Canada, since its natural trade route was the St. Lawrence River. The British as late as 1789 talked with Ethan and Ira Allen about a commercial treaty and possible reunion with Britain. Vermont, however, decided against this course and would eventually be admitted as the first new state of the Union in early 1791.12

 

• 11[Editor’s footnote] The Plan of 1776 refers to the agreement made with France to recognize American independence and promote free trade. Rothbard, Conceived in Liberty, vol. 4, pp. 1346–53; pp. 232–39.
• 12[Editor’s footnote] Nettels, The Emergence of a National Economy, pp. 5–6, 67; Jensen, The New Nation, pp. 161–68, 211–13; Dumas Malone, Jefferson and the Rights of Man (Boston: Little, Brown and Co., 1951), pp. 22–33; Chilton Williamson, Vermont in Quandary, 1763–1825 (Montpelier: Vermont Historical Society, 1949), pp. 156–61, 294.