But the benefits were so small that the bad was outweighing the good, and the Embargo was crippling the nations economy. .
If the embargo wasn't the answer the question was, what did the United States need? Jefferson was forced the repeal the Embargo Act, and replaced it with a watered down version, known as the Non-Intercourse Act. The Non-Intercourse Act allowed the United States to resume trade, with everyone, except Britain and France. This seemed reasonable, but problems still arose. Britain still controlled the Atlantic, and if they did not want the Untied States trading with a nation, they could regulate it. France controlled much of the land area in Europe. Since America wasn't allowed by the British to trade with the French, chances are they would not allow them to trade with nations under France's control. The Americans were again loosing money, and the economy continued to lower as it had under the embargo, the only difference was that had trade been possible the United States was allowed to participate in it. .
Finally America was forced to ditch both embargo and non-intercourse and create Macon's Bill No. 2. Macon's Bill was another desperate attempt by the Americans to have the British present some kind of need for United States trade. It was stated that if a nation dropped its trading regulations the United States would reinstate the embargo on the other nation. Madison was really hoping the Britain would take the bait and drop the Orders in Council, but again the United States was over estimating the its importance to Britain. The French were the first to respond to the offer, saying if the Orders in Council were removed they would resume normal trade. Of course the French had no real power in the matter, but the United States brought it in front of Britain, giving them 30 days to repeal the Orders in Council or face the Embargo again. Britain refused again, which led to the Embargo being reinstated solely against Great Britain.
