Clashing Over Commerce: A History of US Trade Policy (Markets and Governments in Economic History)

by Douglas A. Irwin

repercussions. In 1794, Hamilton argued against any embargo against Britain and predicted: “The consequences of so great and so sudden a disturbance of our Trade which must affect our exports as well as our Imports are not to be calculated. An excessive rise in the price of foreign commodities—a proportional decrease of price and demand for our own commodities—the derangement of our revenue and credit—these circumstances united may occasion the most dangerous dissatisfaction & disorders in the community and may drive the government to a disgraceful retreat—independent of foreign causes.”119 With the except for the derangement of credit, which was more firmly established in 1808 than it had been in 1794, each one of Hamilton’s predictions came true.