HISTORY

British Blockade Toll

The British Blockade of the American coast during the War of 1812 caused crippling economic problems. The marine insurance rate increased by 50%. This cost would usually come to about half the combined value of the ship and its cargo. American roads in the interior were staggeringly bad. For example, intercostal ship transport between Alexandria and Fredericksburg Virginia was only eighteen hours. The fifty-mile trip by road took 38 hours. Sailing from Oswego to FT. Niagara took only 24 hours. By road, it took two weeks. Roads between Trenton, NJ and New York City were so muddy, wagons sank axle-deep. Many stream crossings lacked bridges, forcing travel over fords… which were only usable in good weather. The result would be a post-war boom in government-sponsored transportation improvements like bridges and the Erie Canal.

One hundred pounds of rice cost $3 in Charleston, $9 in New York and $12 in Boston. A barrel of flour was $4.50, $8.50, and $12 in those same cities. In other words, goods were only at regular prices in areas less affected by the overseas blockade. The only exception to this was trade between New England and Canada. The Royal Navy let all this trade through, as it was required to supply the British army in Canada! The biggest problem was that Government funds were obtained through taxes on trade. The drastic cut back in trade meant that Government revenue was equally curtailed. To make matters worse, ships turned to privateering, reducing the merchant fleet by as much as 50%. With the increased cost of insurance, privateering was a much more lucrative enterprise. But privateering became difficult to accurately tax.

Henry Eckford was selected to oversee naval operations at the harbor and to organize the construction of warships. One of the first vessels constructed by Eckford was the USS Madison (20 Guns). The entire ship was built in only 40 days and launched on November 20, 1812.

The only upside to the effectiveness of the British blockade was the unemployment caused by the reduction in trade. This created a huge pool of unemployed citizenry who found paid employment as a soldier advantageous, despite the hardships and risk.