By August 1808, Treasury Secretary Albert Gallatin had lost all hope that the embargo would be successful. Gallatin told President Jefferson that the embargo was defeated by open violations.
Another of Jefferson's supporters gave the president some advice: If the embargo could be enforced, and if the people would accept it, then I am sure it would be the wisest course. But if it cannot be enforced completely, and if the people will not accept it, then it will not serve its purpose and it should not be continued.
Jefferson, however, was not ready to give up his plan. In his last State of the Union message to Congress, he painted a bright picture of the nation.
He reported that American industry was making progress. Many goods that had been imported before the embargo were now being made at home. He said almost all of the national debt had been paid. And he said more than 100 gunboats had been built — enough, he declared, to defend the country.
Jefferson said nothing about opposition to the embargo. Nor did he talk about the serious economic problems caused by it. He said only that Britain and France still refused to honor American neutrality, and so the embargo must continue.
The rest of the nation was not so sure. Congress began debating a number of proposals to either lift or amend the embargo. In the first months of 1809, Congress finally approved a bill. The bill lifted the ban on trade with all European countries except Britain and France.
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