Neutral Trade (1789-1815).— The United States was the first American state; it set up a new force in the-world and opened a new kind of international relations. When, in 1793, revo lution and war came upon Europe and lasted with little interruption for 22 years, there was great danger that the United States would be swept from its moorings and drawn into the in fluence of one or the other of the two warring groups, of which Great Britain and France were the leaders.
In view of this danger, Washington, John Adams Jefferson and other statesmen advised a °Policy of Isolation" on the ground that the United States was not primarily interested in European controversies and wars and, there fore, should remain neutral. After reaching the verge of war with Great Britain in 1794 on questions of neutral trade and impressment, and actually engaging in naval war with France in 1798, the country settled down to a policy of keeping out of hostilities and enjoying trade with both groups of powers in Europe.
This was always difficult because of the de termination of both sides to seize American ships and cargoes on novel and often illegal ap plications of the international law of contra brand, blockade, free ships and colonial trade ("Rule of 1756"). Some of these difficulties were covered by the Jay Treaty of 1794, which was allowed to expire in 1807. The Barbary wars somewhat diverted public attention for a few years (1801-05); but the breaking out of a new European war in 1803 led to fresh cap tures of American vessels and to renewed im pressment of American seamen by the British.
The disregard to neutral rights reached its height in the attempt of Napoleon to found a "Continental System," intended to cut off all the commercial intercourse of Great Britain. This led to the British Orders in Council and French decrees, which perhaps suggested sim ilar acts of the British and German governments in the European War of 1914. The diplomatic protests of the Americans were disregarded; and since the United States had no military or naval force able to protect its commerce, there was nothing for it butJefferson's policy of commercial restrictions. This took various forms such as non-intercourse, non-importa tion and non-exportation, which last was car ried out by the Embargo Act of 1807.
This method, which was substantially a boy cott, came near success; but in the end was ig nored by both the belligerents. The interfer ence with neutral trade, combined with im pressments and some minor grievances, even tually led to the War of 1812, in which the American cruisers and privateers captured 1,800 British ships. The territorial motive also came in; the United States confidently ex pected to conquer Canada; but no territory was added and several areas of the United States fell,for the time into the hands of the enemy.
However, the naval prowess of the Ameri can ships of war and privateers made such an impression on the British mind that a favor able peace was obtained at Ghent in 1814. No agreement was reached either as to neutral trade or impressments; but the European strife was ended and both those questions were shelved. In course of time the United States secured considerable money payments France and other European powers for illegal captures during the Napoleonic wars.
Latin-American Policy (1815-26).—Dur ing the period just discussed, a new group of nations was growing up in the Spanish-Ameri can Empire. The LaPlata colony made itself practically independent in 1807 and there were risings elsewhere. Soon after the restoration of the Bourbon monarchy to Spain (1814) the flame of rebellion ran through the whole Span ish continental area, except the islands of Cuba and Porto Rico. By 1821 independent govern ments were set up in Chile, Peru, what is now Colombia, Central America and Mexico, be sides the empire of Brazil, previously a Portu guese colony.
The natural policy of the United States to ward these new neighbors was one of sym pathy with rising republics, and friendship with powers which opened new fields of com merce. The sudden appearance of these new planets in the political solar system disturbed Europe, which after Napoleon's fall was organ ized in the so-called Holy Alliance. That com bination of powers put down a revolution in Spain and seemed on the brink of sending a French expedition to overcome the new Ameri can states, when (December 1823) President Monroe made public his famous Doctrine.