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The Treaty Everyone Hated but America Desperately Needed (How Britain and America Went from Enemies to Allies – Part 1)

On November 19, 1794, the Treaty of Amity, Commerce, and Navigation, Between His Britannic Majesty and the United States of America aka the Jay Treaty was signed.

What was the Jay Treaty and why was it needed? Let’s find out.

Background

After the British surrender at Yorktown which commenced on October 17, 1781, the American Revolution as an armed conflict ended. Legally, the war would continue for another two years until the Treaty of Paris was signed on September 3, 1783.

As schoolchildren used to be taught, Cornwallis surrendered, in part, because his army was trapped between the French and American troops on land and the French Navy just off the coast. In other words, the French were an ally of the United States during the American Revolution with the Marquis de Lafayette having trained American soldiers earlier in the war.

The reason it took so long to end the American Revolution legally was that France and Spain were still at war with England and those conflicts had to cease before the treaty could take effect. The United States Congress ratified the Treaty of Paris on January 14, 1784. Then, according to Wikipedia,

Copies were sent back to Europe for ratification by the other parties involved, the first reaching France in March 1784. British ratification occurred on April 9, 1784, and the ratified versions were exchanged in Paris on May 12, 1784.

So, now the war was finally legally over and the United States had its Independence…

…except…

…the British still occupied forts in parts of what was officially the United States.

The British Lien

And why hadn’t the British left the forts eleven years after the war ended? Because London treated those forts as a lien — their only leverage to force payment of the millions in pre-war private debts that American borrowers, especially Virginians and Carolinians, had stopped paying once the shooting started.

Article 4 of the Treaty of Paris explicitly required the United States to let British creditors sue for those old debts in American courts without “lawful impediment”:

It is agreed that Creditors on either Side shall meet with no lawful Impediment to the Recovery of the full Value in Sterling Money of all bona fide Debts heretofore contracted.

But many Americans were broke after having fought off the most powerful nation on earth even if they did have the French as an ally.

Pressed Into Service

Additionally, the British were capturing American ships that were trading with France because Britain and France were at war. And when those American ships were captured, their American crews were pressed into service in the British Navy.

West Indies Closed for Business

The British had closed trade between the United States and the West Indies.

The Enemy of My Enemy

And because the British couldn’t resist needling an old enemy, they used the forts they still occupied as based for arming and supplying Native Americans.

If that wasn’t bad enough, the Governor-General of Canada Lord Dorchester (Guy Carleton) and Lieutenant-Governor of Upper Canada John Graves Simcoe openly declared that Britain did not recognize the Treaty of Paris boundary and considered the Ohio River the true border between the U.S. and Indian country.

This lead to the Northwest Indian War aka “Little Turtle’s War“ which had its roots in the end of hostilities between Britain and the United States1. That war didn’t end until August 20, 1794.

Clearly, something had to be done.

Jay Treaty To the Rescue

As you can imagine, the Jay Treaty addressed most of these problems.

The British agreed to

Vacate all the northwestern forts (Detroit, Niagara, Michilimackinac, etc.) by June 1, 1796 — ending 13 years of illegal–if somewhat justified–occupation.
Open the Canadian border to free American-Indian-British trade across land and inland waterways (Article 3) — a huge economic win for American fur traders and settlers.
Allow American ships into British East Indies (India) ports on equal terms (Article 13) — first real U.S. foothold in Asian trade.
Grant most-favored-nation treatment in British European ports (Articles 14–15) — direct trade with Britain exploded after 1796.
Settle the St. Croix River boundary and other disputed borders by arbitration (Articles 4–5) — prevented another war in Maine.
Pay compensation for illegal ship seizures during the current European war (Article 7 commission).
The Americans agreed to:

Pay British creditors for pre-war private debts that state laws had blocked (Article 6) — the federal Treasury effectively paid millions that individual Americans owed.
Accept severely restricted West Indies trade (Article 12 — tiny 70-ton ships, no re-export of sugar/molasses/coffee/cotton). But this point of negotiation was so bad the Senate suspended the entire article.
Do absolutely nothing about impressment…..