The new United States of America was desperate for trade in the 1780s.
Its economy was in shambles, its paper money was nearly worthless, and
the ousted British excluded American vessels from Canada, the West Indies
and Britain. Moreover, the British no longer protected American merchant
ships, which had traded extensively in the Mediterranean before the Revolutionary
War. As a result, in July 1785, Algerine Barbary pirates seized two American
ships off of the coast of Portugal and forced 21 American sailors into
slave labor. Morocco seized another ship, but soon freed the American
crew in exchange for a ransom of $25,000. Thus began the first foreign
policy crisis for the US—how to manage the Barbary pirates who demanded “tributes” from
the US in return for the safe passage of her ships and ransoms for captured
sailors and passengers.

The Barbary Coast showing main piratical sovereign states of Morocco, Algiers,
Tunis, and Tripoli.
Who were the Barbary pirates? The Barbary pirates were residents of
the “Barbary States,” which was the collective name given
to Morocco, Algiers, Tunis, and Tripoli, the four North African seaports
along the “Barbary Coast.” These ports were under the nominal
control of the Muslim Ottoman Empire headquartered in Istanbul, yet their
real rulers were Mussulman [Turkish Muslim] corsairs [pirates] who plundered
Mediterranean ships and captured sailors for slave labor and ransom.
How did the Barbary States come under control of the Muslim Turks of
the Ottoman Empire? One of the earliest and most powerful corsairs was
Khair ad Din, known in the West as Barbarossa (in English, Redbeard).
Born in Greece in the 1470s on the island of Lesbos to a Turkish father,
Yacoup, and a Christian mother, Katalina, Barbarossa and his three brothers
worked as sailors and privateers in the Mediterranean, counteracting the
privateering of the Knights of St. John of the Island of Rhodes and attacking
islands controlled by Christians. [ To privateer is to operate a ship
privately owned and crewed but authorized by a government during wartime
to attack and capture enemy vessels.]

The Barbary Coast showing main piratical sovereign states of Morocco, Algiers,
Tunis, and Tripoli.

Map of the Bay of Algiers: its forts and its environs, observed by Colonel
Rottiers in 1825 and drawn by PJ Witdoeck. Source: http://historic-cities.huji.ac.il/algeria/algiers/maps/rottiers_witdoeck_1828_b.jpg
In 1510, Barbarossa seized Algiers and appointed himself the first
ruler of a sovereign pirate state. His territorial seizure should have
threatened the sultan in Istanbul, but when he pledged his fealty to the
throne in exchange for a large payment for services provided to the throne,
he was given regency of “Maghrib”--the region of northwest
Africa comprising the coastlands and the Atlas Mountains of Morocco, Algeria,
and Tunisia (see map below). Hence, Barbarossa brought Turkish Ottoman
rule to Algiers specifically and the Maghrib generally. “His descendants,
both biological and methodical, maintained control over the shores of
Northern Africa for the next two hundred years.”*
By 1662, piracy had blossomed into a highly disciplined and sophisticated
racket. “In that year, England revived the ancient custom of paying
tribute, which meant that corsairs agreed to spare English ships for an
annual bribe paid in gold, jewels, arms, and supplies. The custom quickly
spread to all countries trading the Mediterranean.** Capturing and looting
ships and collecting ransoms for captured sailors comprised the revenues
that financed Algiers and the other three Barbary States.
In May 1785, John Adams (1735-1826) became the new American ambassador
to the Court of St. James in London. There, in a July 1785 meeting with
His Excellency Abdrahaman, envoy of the Sultan of Tripoli, Adams was told “ America
was a great nation, but unfortunately a state of war existed between America
and Tripoli. Adams questioned how that could be, given there had been
no injury, insult, or provocation on either side. The Barbary States were
the sovereigns of the Mediterranean all the same, he was told, and without
a treaty of peace there could be no peace between Tripoli and America.
His Excellency was prepared to arrange such a treaty…The sooner
peace was made between America and the Barbary States the better. Were
a treaty delayed, it would be more difficult to make. A war between Christian
and Christian was mild, prisoners were treated with humanity; but, warned
His Excellency, a war between Muslim and Christian could be horrible.” ***
Adams summoned Thomas Jefferson (1743-1826), the new ambassador to
nearby France, to London to discuss this turn of events. At a meeting
with Ambassador Abdrahaman, Adams and Jefferson were told that peace with
all of the Barbary States might cost 200,000 to 300,000 guineas [a huge
amount]. One year earlier, in 1784, the Continental Congress had authorized
Adams and Jefferson to negotiate treaties with the Barbary States. But
the request for such a large sum of money left them no choice but to refer
the matter to Congress.
The US was in a quandary. Two factors—military and financial— influenced
the decision making of its leadership. First, the US had no navy with
which to fight the Barbary pirates. “The Continental Navy of the
Revolutionary War was disbanded in 1784, and the navy was not reestablished
until the Navy Act of 1794. During the intervening years, the US had minimal
naval power. Disbanding the Continental Navy was primarily a cost-savings
measure. However, there were also important non-financial arguments for
and against the navy. Some Americans who favored reestablishing close
ties with England feared that the presence of a US navy on the high seas
would lead to confrontations with the British Navy. Other Americans, including
John Adams, viewed a strong navy as the best national defense against
foreign threats. Many Americans preferred the prospect of building a navy
over an army due to their general distrust of standing armies—the
result of their experience with the British occupation in America during
the latter part of the Colonial Era.” ****
“The financial factor that influenced the US response to the
Barbary pirates was that any effective response would require a significant
expense relative to the government’s funds. The US government found
itself in a precarious financial condition in the years immediately following
the Revolutionary War. The Continental Congress and individual states
borrowed over $40 million to finance the war, including about $6 million
from France. From 1781 to 1788, the period during which the United States
operated under the Articles of Confederation, the federal government did
not have the power to tax its citizens, levy tariffs, or regulate commerce.
The cost of operating the government during this time was about $500,000
annually, not including funding the debt. Some income was generated by
the post office and from sales of public lands, but the two principal
revenue sources available to the government were requesting support from
the states and issuing paper money. State contributions to the federal
government constituted only a small fraction of what was needed, and issuing
paper money was an inflationary measure that had already been used extensively
during the Revolutionary war. The financial plight of the new nation was
sufficiently acute that during this period, the government borrowed from
foreign sources just to meet the interest obligations on existing foreign
debt.” ****
John Adams’ expressed his view on the matter in a letter to Thomas
Jefferson, as follows:
+++
Grosvenor Square June 6, 1786
Dear Sir
…The first Question is, what will it cost us to make Peace with
all [of the Barbary States]? Set it if you will at five hundred thousand
pounds Sterling, tho I doubt not it might be done for Three or perhaps
for two.
The Second Question is, what Damage shall we suffer, if we do not treat.
Compute Six of Eight Per Cent Insurance upon all your Exports, and
Imports. Compute the total Loss of all the Mediterranean and Levant Trade.
Compute the Loss of half your Trade to Portugal and Spain.
These computations will amount to more than half a Million sterling
a year.
The third Question is what will it cost to fight them? I answer, at
least half a Million sterling a year without protecting your Trade, and
when you leave off fighting you must pay as much Money as it would cost
you now for Peace.
The Interest of half a Million Sterling is, even at Six Per Cent, Thirty
Thousand Guineas a year. For an Annual Interest of 30,000 [pounds sterling]
st. then and perhaps for 15,000 or 10,000, we can have Peace, when a War
would sink us annually ten times as much.”****
+++
To this, Jefferson replied as follows:
Paris July 11, 1789
Dear Sir
…I ask a fleet of 150 guns, the one half of which shall be in constant cruise. This fleet built … will cost 450,000 pounds sterling. It’s annual expence is 300 pounds sterling a gun, including every thing: this will be 45,000 pounds sterling a year. … Were we to charge all this to the Algerine war it would amount to little more than we must pay if we buy peace. But as it is proper and necessary that we should establish a small marine force (even were we to buy a peace from the Algerines,) and as that force laid up in our dockyards would cost us half as much annually as if kept in order for service, we have a right to say that only 22,500 pounds sterling per annum should be charged to the Algerine war. (Cappon 1959, 142-143)"
+++
While George Washington and John Adams were US President (1789-1797
and 1797-1801, respectively), the US acquiesced to the demands (i.e.,
bought peace) of the Barbary States as all the while the Barbary pirates
continued to capture additional US ships and crews. Jefferson meanwhile
(as President Washington’s Secretary of State) was exasperated and
suggested that war was the only solution. Tribute money, he declared,
was “money thrown away” and that “the most convincing
argument that these outlaws would understand was gunpowder and shot. The
future president proposed a multi-national effort between European powers
and America that would in effect economically blockade North Africa and
ultimately provide for a multi-national military force to combat pirate
terrorism. The European powers chose to continue paying tribute to the
Barbary States.”**
Finally, in 1794, Congress authorized the construction of six ships—the
birth of the US Navy—in anticipation of fighting the Barbary pirates.
Yet, in 1795, Congress approved a treaty with Algiers that led to the
release of the hostages the following year, but that cost the US nearly
$642,500 in cash, munitions, and a 36-gun frigate, besides a yearly tribute
of $21,600 worth of naval supplies! Ransom rates were officially set for
those Americans already in Barbary prisons: $4000 for each passenger and
$1,400 for each cabin boy. In a humiliating incident, the Dey of Algiers
in 1800 directed Captain William Bainbridge to sail the “George
Washington,” which was docked in Algiers with a consignment of tribute
from the US to Algiers, to Istanbul to impress the Sultan of Turkey. The
ship’s American flag was replaced by Algerian colors in a final
shameless slap. Upon viewing the Americans’ weakness, the other
Barbary States stepped up their blackmail demands (which is a good example
of “demonstration effect” as described in Biot #173 at: http://www.semp.us/biots/biot_173.html).

USS Constitution ("Old Ironsides"): Old
Ironsides is the oldest active commissioned warship in the world. US Navy
photo. Source: http://saltydog.freeservers.com/navy.html
By 1797, three ships, including the USS Constitution (Old Ironsides)
were completed. When George Washington died on Dec. 14, 1799, Yusuf, the
Pasha of Tripoli, informed “President Adams that it was customary
when a great man passed away form a tributary state to make a gift in
his name to the crown of Tripoli. Yusuf estimated Washington to be worth
about $10,000.”** When, in the spring of 1801, Yusuf had not received
the cash, he summoned the American representative to his court, demanded
that he kiss his hand and then relay to the US that the annual tribute
would be raised to $250,000 plus $25,000 annually in goods o f his choice.
If refused, the alternative was war. “To make his point, Yusuf had
his soldiers chop down the flagpole in front of the American consulate,
a significant gesture in a land of no tall trees and one that meant war.”**
The reason no tribute had been forthcoming is that Thomas Jefferson
had been elected President. To his horror, he learned that tribute and
ransoms paid to Barbary had exceeded $2,000,000, or about one-fifth of
the entire annual income of the US government !*****
Continued in Biot #221 : “How Thomas Jefferson Tamed the Barbary
Coast Mussulmen: America’s First Foreign Policy Crisis” at: http://www.semp.us/biots/biot_221.html.
Editor’s Note : If you are interested in seeing more rare maps
of the Barbary States, go to http://historic-cities.huji.ac.il/historic_cities.html.
If you are interested in viewing the covers of beautiful books on the
Barbary pirates, go to: http://larryvoyer.com/Piratical/pirate%20pages/barbary.htm.
Sources:
* “ America’s First War on Terror” by Paul Fallon,
October 17, 2002. Available at: http://www.deansemay.comarchives/000374.html.
** “Terrorism in Early America: The US Wages War Against the
Barbary States to End International Blackmail and Terrorism” by
Thomas Jewett. Available at: http://www.earlyamerica.com/review/2002_winter_spring/terrorism.htm.
*** “John Adams” by David McCullough. Simon & Schuster,
2001, pp. 353-4.
**** “John Adams, Thomas Jefferson, and the Barbary pirates:
an illustration of relevant costs for decision making” by Dennis
Caplan. Issues in Accounting Education – August 1, 2003. Available
for download for a modest cost from Amazon.com. Go to: http://www.amazon.com/exec/obidos/tg/detail/-/B0008DVQW0/qid=1117852667/sr=8-1/ref=sr_8_xs_ap_i1_xgl14/103-4869687-6578255?v=glance&s=books&n=507846.
***** For more on the Barbary Treaties of Tripoli 1796, go to the Avalon
Project at Yale Law School at: http://www.yale.edu/lawweb/avalon/diplomacy/barbary/bar1796e.htm.