Condy Raguet
Encyclopedia
Condy Raguet was the first chargé d'affaires
from the United States
to Brazil
and a noted politician and free trade
advocate from Philadelphia, Pennsylvania
. Of French descent, Raguet was educated at the University of Pennsylvania
. After graduating he began studying law but had to give up his studies after the death of his father. He briefly worked as supercargo
for a counting house
, before going into business for himself. He later worked as manager or president for several companies, the most notable being the Philadelphia Savings Fund Society
. In 1816 Raguet read about the growth of savings bank
s in Great Britain and liked the idea; he approached other Philadelphia business associates and together they created the Society, the first savings bank in the United States.
As a member of the Federalist Party Raguet was elected to the Pennsylvania House of Representatives
in 1815 and to the Pennsylvania State Senate
in 1818. In 1821 President James Monroe
made Raguet consul to Brazil. After Brazil became independent, President John Quincy Adams
made Raguet the chargé d'affaires
to Brazil. In this post, Raguet became increasingly frustrated with Brazil's lack of response to complaints by the United States of its citizens being forced to work on Brazilian warships against their will. Raguet's communications with the Brazilian government became increasingly forceful and undiplomatic to the point that he once wrote to the U.S. State Department
that he was so frustrated he could hardly consider the Brazilians a civilized people. Despite urges from Washington, D.C. to improve his approach to Brazil, Raguet abruptly left the country after the Brazilian Navy
seized a former U.S. warship. Adams would later write that, despite having good intentions, Raguet's "rashness and intemperance" nearly "brought this country and Brazil to the very verge of war."
After Adams rejected any possibility of Raguet's returning to diplomatic work, Raguet returned to business in Philadelphia. Having his economic views shaped by the Panic of 1819
, he became one of the most prominent advocates of free trade in the United States. He edited numerous journals relating to free trade and wrote and published works on the subject. The most notable was On Currency and Banking; published in 1839, Samuel J. Tilden
called it "the best treatise on banking ever published in the country".
. Of French descent, Raguet was educated at the University of Pennsylvania
and for eighteen months after graduating he studied law. He had to give up his studies after the death of his father and became a merchant for a counting house
. In 1804 he was sent to Santo Domingo
as supercargo
for a ship. He spent four months there and on his return he wrote and published A Short Account of the Present State of Affairs in St. Domingo. Raguet returned for eight months in 1805 and again published a book about events on the island. On December 23, 1807, Raguet was married to Catherine S. Simmons.
In 1806, Raguet went into business and soon became the president and manager of several companies. During the War of 1812
he served as a colonel and took a prominent role in preparing defenses for Philadelphia. In 1815 Raguet went into politics when he was elected to the Pennsylvania House of Representatives
as a member of the Federalist Party. In 1818 he was elected as a state senator
, a position he held until 1821.
s in Great Britain. Interested in the idea, he communicated the concept to some other businessmen he knew, and together they created the Philadelphia Savings Fund Society
. The first savings bank in the United States, the Philadelphia Savings Fund Society would eventually grow into a respected Philadelphia institution that would last until 1992. Raguet was active in the early workings of the Philadelphia Savings Fund Society, working on committees to set up company operations, drafting by-laws, and creating a charter. In 1820 he submitted his resignation to the Board of Directors of the Philadelphia Savings Fund Society due to planned absences from the city. Initially the board rejected his resignation, but after he stopped attending board meetings, the board accepted his resignation in July 1821.
Other activities of Raguet included law, with Raguet being admitted to the Philadelphia bar association
in 1820. At other points in his life Raguet was president of the Chamber of Commerce and a member of the American Philosophical Society
. As early as 1817 Raguet was also active in creation of a congregation based on Swedenborgianism.
appointed Raguet the United States consul
in Rio de Janeiro
. During his tenure, between 1822 and 1825, he negotiated a commercial treaty with Brazil. When the United States was preparing to formally recognize a newly independent Brazil through appointment of a chargé d'affaires
, Secretary of State John Quincy Adams
recommended Raguet for the post. Despite urges to complete formalizing relations between the United States and Brazil, President James Madison did not appoint anyone before the end of his term. Almost immediately after taking office, President Adams appointed Raguet chargé d'affaires to Brazil on March 9, 1825.
Raguet became the first chargé d'affaires from the United States to Brazil on October 29, 1825. One of the first issues he dealt with was the blockade
of Argentine ports by the Brazilian navy during the Argentina–Brazil War. Argentina was a growing trade partner of the United States and Raguet and his counterpart in Argentina worked to convince Brazil to restrict its blockade to only certain ports and that ships approaching the blockade should be given warning before being seized by Brazil. After negotiations, Brazil restricted its blockade to only ports in the Río de la Plata
, but the blockade still encompassed more ports than the United States was pressing for. Brazil never made it a policy to give ships warning, but many ships were warned and let go.
Relations between Brazil and the United States were strained over the recruiting of United States seamen for Brazilian warships through fraud and coercion. United States citizens were enticed onto Brazilian ships and after the end of their voluntary enlistment period were forced to stay. Raguet became exhausted with how the Brazilian government never followed up its promises to investigate the complaints. The issue only got worse as United States merchant ships were seized by Brazil for attempting or intending to bypass the blockade. The crews of the ships were often manipulated into Brazilian service or imprisoned. Tensions over the issue continued to rise particularly after a US Navy commander, backed by force, procured the release of two detained Americans. Eventually the Brazilian Navy ordered all ships to immediately surrender all improperly detained United States citizens. Despite the order, Raguet was increasingly frustrated with what he felt was Brazil's purposeful delay in processing detained United States ships and citizens. After receiving approval from Secretary of State Henry Clay on his efforts, Raguet was emboldened and his notes to the Brazilian government became more forceful and undiplomatic.
After a letter from a Brazilian foreign minister requested that Raguet use more moderation in his communications, he wrote to Clay that the Brazilian government was offended by his communications, that he had lost his patience with them, and that he hardly considered the Brazilians a civilized people. By the end of 1826 copies of letters of Raguet's communications to the Brazilian government had reached the State Department
in Washington, D.C.
Henry Clay wrote back indicating it would be best to use "language firm and decisive, but at the same time temperate and respectful. No cause is ever benefited by the manifestation of passion, or by the use of harsh and uncourtious language." Responding to a request Raguet made to threaten to sever diplomatic relations with Brazil if they did not release their ships, Clay said "war or threats of war ought not to be employed as instruments of redress until after the failure of every peaceful experiment."
By early 1827 relations with Brazil improved after a new foreign minister took office, but that quickly changed in March when Brazil seized the USS Spark
, a recently decommissioned U.S. warship. After a rebuffed offer to the sell the Spark to Brazil, the ship headed for Montevideo
. On the way, the ship was seized by a Brazilian man-of-war and its crew imprisoned. Brazil demanded an explanation for what it said were irregularities in the Sparks activities and suspected the ship was a privateer
going to join Argentina. Raguet didn't believe the Brazilians actually believed the Spark was a privateer, and felt that what he called "the most deliberate and high handed insult" against the United States was planned days in advance. The incident with the Spark was the last straw for Raguet. He sent a letter to the Brazilian government saying "that recent occurrences induce him to withdraw from the court of Brazil, and he therefore requests that his excellency will furnish him the necessary passports." He left his position as chargé d'affaires ended on April 16, 1827.
Once Washington found out that Raguet had left Brazil, the State Department quickly worked to appoint someone new to repair any damage caused by Raguet and to continue working on solving the issues with Brazil that had led Raguet to leave. Adams would later write that relations between the United States and Brazil were "aggravated by the rashness and intemperance of Condy Raguet, ... [who had] brought this country and Brazil to the very verge of war." On Raguet's return to the United States he held a meeting with Clay and Adams who said "I told him that my opinion of his integrity, patriotism, and zeal was unimpaired; that I was convinced of the purity of his motives to the step he had taken; but that I thought it would have been better if he had, before taking that step, consulted his government." When Raguet was suggested for another ambassadorial position in 1828 Adams felt that while Raguet's motives were good he felt putting someone with "such a temper and want of judgment, who took blustering for bravery and insolence for energy, was too dangerous."
In 1836 he returned to the Philadelphia Savings Fund Society where he worked until his death a few years later. Raguet died in Philadelphia on March 22, 1842 and was interred at Lower Burial Ground (Hood Cemetery) in Philadelphia.
through increasing the available supply of currency and credit. However, his position changed after the Panic of 1819
. The Panic also converted Raguet from a protectionist
to a leading promoter of free trade
. While a state senator, Raguet sent a questionnaire to legislators and prominent citizens in each county of the state to determine the extent of the depression. One of the questions was "Do you consider that the advantages of the banking system outweigh its evils?" Sixteen out of nineteen counties answered in the negative. Raguet concluded that the depression was a result of bank credit expansion and the subsequent contraction as physical money was drained from the bank's vaults. He promoted restrictions on banks and of granting bank charters.
After returning to the United States from Brazil, he became a publicist on free trade doctrines contributing to the Port-Folio and other periodicals. He also edited several journals relating to free trade, including The Free-Trade Advocate, The Examiner and The Financial Register. In the late 1830s he continued writing, authoring The Principals of Free Trade (1835) and On Currency and Banking (1839). On Currency and Banking, which was called "the best treatise on banking ever published in the country" by Samuel J. Tilden
, was republished in Great Britain in 1839 and translated into French in 1840.
Chargé d'affaires
In diplomacy, chargé d’affaires , often shortened to simply chargé, is the title of two classes of diplomatic agents who head a diplomatic mission, either on a temporary basis or when no more senior diplomat has been accredited.-Chargés d’affaires:Chargés d’affaires , who were...
from the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
to Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
and a noted politician and free trade
Free trade
Under a free trade policy, prices emerge from supply and demand, and are the sole determinant of resource allocation. 'Free' trade differs from other forms of trade policy where the allocation of goods and services among trading countries are determined by price strategies that may differ from...
advocate from Philadelphia, Pennsylvania
Pennsylvania
The Commonwealth of Pennsylvania is a U.S. state that is located in the Northeastern and Mid-Atlantic regions of the United States. The state borders Delaware and Maryland to the south, West Virginia to the southwest, Ohio to the west, New York and Ontario, Canada, to the north, and New Jersey to...
. Of French descent, Raguet was educated at the University of Pennsylvania
University of Pennsylvania
The University of Pennsylvania is a private, Ivy League university located in Philadelphia, Pennsylvania, United States. Penn is the fourth-oldest institution of higher education in the United States,Penn is the fourth-oldest using the founding dates claimed by each institution...
. After graduating he began studying law but had to give up his studies after the death of his father. He briefly worked as supercargo
Supercargo
Supercargo is a term in maritime law that refers to a person employed on board a vessel by the owner of cargo carried on the ship...
for a counting house
Counting house
A counting house, or compting house, literally is the building, room, office or suite in which a business firm carries on operations, particularly accounting. By a synecdoche, it has come to mean the accounting operations of a firm, however housed...
, before going into business for himself. He later worked as manager or president for several companies, the most notable being the Philadelphia Savings Fund Society
Philadelphia Savings Fund Society
The Philadelphia Savings Fund Society , originally called the Philadelphia Saving Fund Society, was a savings bank headquartered in Philadelphia, Pennsylvania, United States. PSFS was founded in December 1816, becoming the first savings bank to organize and do business in the United States...
. In 1816 Raguet read about the growth of savings bank
Savings bank
A savings bank is a financial institution whose primary purpose is accepting savings deposits. It may also perform some other functions.In Europe, savings banks originated in the 19th or sometimes even the 18th century. Their original objective was to provide easily accessible savings products to...
s in Great Britain and liked the idea; he approached other Philadelphia business associates and together they created the Society, the first savings bank in the United States.
As a member of the Federalist Party Raguet was elected to the Pennsylvania House of Representatives
Pennsylvania House of Representatives
The Pennsylvania House of Representatives is the lower house of the bicameral Pennsylvania General Assembly, the legislature of the U.S. state of Pennsylvania. There are 203 members, elected for two year terms from single member districts....
in 1815 and to the Pennsylvania State Senate
Pennsylvania State Senate
The Pennsylvania State Senate has been meeting since 1791. It is the upper house of the Pennsylvania General Assembly, the Pennsylvania state legislature. The State Senate meets in the State Capitol building in Harrisburg. Senators are elected for four year terms, staggered every two years such...
in 1818. In 1821 President James Monroe
James Monroe
James Monroe was the fifth President of the United States . Monroe was the last president who was a Founding Father of the United States, and the last president from the Virginia dynasty and the Republican Generation...
made Raguet consul to Brazil. After Brazil became independent, President John Quincy Adams
John Quincy Adams
John Quincy Adams was the sixth President of the United States . He served as an American diplomat, Senator, and Congressional representative. He was a member of the Federalist, Democratic-Republican, National Republican, and later Anti-Masonic and Whig parties. Adams was the son of former...
made Raguet the chargé d'affaires
Chargé d'affaires
In diplomacy, chargé d’affaires , often shortened to simply chargé, is the title of two classes of diplomatic agents who head a diplomatic mission, either on a temporary basis or when no more senior diplomat has been accredited.-Chargés d’affaires:Chargés d’affaires , who were...
to Brazil. In this post, Raguet became increasingly frustrated with Brazil's lack of response to complaints by the United States of its citizens being forced to work on Brazilian warships against their will. Raguet's communications with the Brazilian government became increasingly forceful and undiplomatic to the point that he once wrote to the U.S. State Department
United States Department of State
The United States Department of State , is the United States federal executive department responsible for international relations of the United States, equivalent to the foreign ministries of other countries...
that he was so frustrated he could hardly consider the Brazilians a civilized people. Despite urges from Washington, D.C. to improve his approach to Brazil, Raguet abruptly left the country after the Brazilian Navy
Brazilian Navy
The Brazilian Navy is a branch of the Brazilian Armed Forces responsible for conducting naval operations. It is the largest navy in Latin America...
seized a former U.S. warship. Adams would later write that, despite having good intentions, Raguet's "rashness and intemperance" nearly "brought this country and Brazil to the very verge of war."
After Adams rejected any possibility of Raguet's returning to diplomatic work, Raguet returned to business in Philadelphia. Having his economic views shaped by the Panic of 1819
Panic of 1819
The Panic of 1819 was the first major financial crisis in the United States, and had occurred during the political calm of the Era of Good Feelings. The new nation previously had faced a depression following the war of independence in the late 1780s and led directly to the establishment of the...
, he became one of the most prominent advocates of free trade in the United States. He edited numerous journals relating to free trade and wrote and published works on the subject. The most notable was On Currency and Banking; published in 1839, Samuel J. Tilden
Samuel J. Tilden
Samuel Jones Tilden was the Democratic candidate for the U.S. presidency in the disputed election of 1876, one of the most controversial American elections of the 19th century. He was the 25th Governor of New York...
called it "the best treatise on banking ever published in the country".
Biography
Condy Raguet was born on January 28, 1784 in Philadelphia, PennsylvaniaPennsylvania
The Commonwealth of Pennsylvania is a U.S. state that is located in the Northeastern and Mid-Atlantic regions of the United States. The state borders Delaware and Maryland to the south, West Virginia to the southwest, Ohio to the west, New York and Ontario, Canada, to the north, and New Jersey to...
. Of French descent, Raguet was educated at the University of Pennsylvania
University of Pennsylvania
The University of Pennsylvania is a private, Ivy League university located in Philadelphia, Pennsylvania, United States. Penn is the fourth-oldest institution of higher education in the United States,Penn is the fourth-oldest using the founding dates claimed by each institution...
and for eighteen months after graduating he studied law. He had to give up his studies after the death of his father and became a merchant for a counting house
Counting house
A counting house, or compting house, literally is the building, room, office or suite in which a business firm carries on operations, particularly accounting. By a synecdoche, it has come to mean the accounting operations of a firm, however housed...
. In 1804 he was sent to Santo Domingo
Santo Domingo
Santo Domingo, known officially as Santo Domingo de Guzmán, is the capital and largest city in the Dominican Republic. Its metropolitan population was 2,084,852 in 2003, and estimated at 3,294,385 in 2010. The city is located on the Caribbean Sea, at the mouth of the Ozama River...
as supercargo
Supercargo
Supercargo is a term in maritime law that refers to a person employed on board a vessel by the owner of cargo carried on the ship...
for a ship. He spent four months there and on his return he wrote and published A Short Account of the Present State of Affairs in St. Domingo. Raguet returned for eight months in 1805 and again published a book about events on the island. On December 23, 1807, Raguet was married to Catherine S. Simmons.
In 1806, Raguet went into business and soon became the president and manager of several companies. During the War of 1812
War of 1812
The War of 1812 was a military conflict fought between the forces of the United States of America and those of the British Empire. The Americans declared war in 1812 for several reasons, including trade restrictions because of Britain's ongoing war with France, impressment of American merchant...
he served as a colonel and took a prominent role in preparing defenses for Philadelphia. In 1815 Raguet went into politics when he was elected to the Pennsylvania House of Representatives
Pennsylvania House of Representatives
The Pennsylvania House of Representatives is the lower house of the bicameral Pennsylvania General Assembly, the legislature of the U.S. state of Pennsylvania. There are 203 members, elected for two year terms from single member districts....
as a member of the Federalist Party. In 1818 he was elected as a state senator
Pennsylvania State Senate
The Pennsylvania State Senate has been meeting since 1791. It is the upper house of the Pennsylvania General Assembly, the Pennsylvania state legislature. The State Senate meets in the State Capitol building in Harrisburg. Senators are elected for four year terms, staggered every two years such...
, a position he held until 1821.
Philadelphia Savings Fund Society
In 1816, while president of the Pennsylvania Company for Insurances on Lives and Granting Annuities, Raguet read journals and pamphlets about the growth of savings bankSavings bank
A savings bank is a financial institution whose primary purpose is accepting savings deposits. It may also perform some other functions.In Europe, savings banks originated in the 19th or sometimes even the 18th century. Their original objective was to provide easily accessible savings products to...
s in Great Britain. Interested in the idea, he communicated the concept to some other businessmen he knew, and together they created the Philadelphia Savings Fund Society
Philadelphia Savings Fund Society
The Philadelphia Savings Fund Society , originally called the Philadelphia Saving Fund Society, was a savings bank headquartered in Philadelphia, Pennsylvania, United States. PSFS was founded in December 1816, becoming the first savings bank to organize and do business in the United States...
. The first savings bank in the United States, the Philadelphia Savings Fund Society would eventually grow into a respected Philadelphia institution that would last until 1992. Raguet was active in the early workings of the Philadelphia Savings Fund Society, working on committees to set up company operations, drafting by-laws, and creating a charter. In 1820 he submitted his resignation to the Board of Directors of the Philadelphia Savings Fund Society due to planned absences from the city. Initially the board rejected his resignation, but after he stopped attending board meetings, the board accepted his resignation in July 1821.
Other activities of Raguet included law, with Raguet being admitted to the Philadelphia bar association
Bar association
A bar association is a professional body of lawyers. Some bar associations are responsible for the regulation of the legal profession in their jurisdiction; others are professional organizations dedicated to serving their members; in many cases, they are both...
in 1820. At other points in his life Raguet was president of the Chamber of Commerce and a member of the American Philosophical Society
American Philosophical Society
The American Philosophical Society, founded in 1743, and located in Philadelphia, Pa., is an eminent scholarly organization of international reputation, that promotes useful knowledge in the sciences and humanities through excellence in scholarly research, professional meetings, publications,...
. As early as 1817 Raguet was also active in creation of a congregation based on Swedenborgianism.
Brazil
In 1821 President James MonroeJames Monroe
James Monroe was the fifth President of the United States . Monroe was the last president who was a Founding Father of the United States, and the last president from the Virginia dynasty and the Republican Generation...
appointed Raguet the United States consul
Consul
Consul was the highest elected office of the Roman Republic and an appointive office under the Empire. The title was also used in other city states and also revived in modern states, notably in the First French Republic...
in Rio de Janeiro
Rio de Janeiro
Rio de Janeiro , commonly referred to simply as Rio, is the capital city of the State of Rio de Janeiro, the second largest city of Brazil, and the third largest metropolitan area and agglomeration in South America, boasting approximately 6.3 million people within the city proper, making it the 6th...
. During his tenure, between 1822 and 1825, he negotiated a commercial treaty with Brazil. When the United States was preparing to formally recognize a newly independent Brazil through appointment of a chargé d'affaires
Chargé d'affaires
In diplomacy, chargé d’affaires , often shortened to simply chargé, is the title of two classes of diplomatic agents who head a diplomatic mission, either on a temporary basis or when no more senior diplomat has been accredited.-Chargés d’affaires:Chargés d’affaires , who were...
, Secretary of State John Quincy Adams
John Quincy Adams
John Quincy Adams was the sixth President of the United States . He served as an American diplomat, Senator, and Congressional representative. He was a member of the Federalist, Democratic-Republican, National Republican, and later Anti-Masonic and Whig parties. Adams was the son of former...
recommended Raguet for the post. Despite urges to complete formalizing relations between the United States and Brazil, President James Madison did not appoint anyone before the end of his term. Almost immediately after taking office, President Adams appointed Raguet chargé d'affaires to Brazil on March 9, 1825.
Raguet became the first chargé d'affaires from the United States to Brazil on October 29, 1825. One of the first issues he dealt with was the blockade
Blockade
A blockade is an effort to cut off food, supplies, war material or communications from a particular area by force, either in part or totally. A blockade should not be confused with an embargo or sanctions, which are legal barriers to trade, and is distinct from a siege in that a blockade is usually...
of Argentine ports by the Brazilian navy during the Argentina–Brazil War. Argentina was a growing trade partner of the United States and Raguet and his counterpart in Argentina worked to convince Brazil to restrict its blockade to only certain ports and that ships approaching the blockade should be given warning before being seized by Brazil. After negotiations, Brazil restricted its blockade to only ports in the Río de la Plata
Río de la Plata
The Río de la Plata —sometimes rendered River Plate in British English and the Commonwealth, and occasionally rendered [La] Plata River in other English-speaking countries—is the river and estuary formed by the confluence of the Uruguay River and the Paraná River on the border between Argentina and...
, but the blockade still encompassed more ports than the United States was pressing for. Brazil never made it a policy to give ships warning, but many ships were warned and let go.
Relations between Brazil and the United States were strained over the recruiting of United States seamen for Brazilian warships through fraud and coercion. United States citizens were enticed onto Brazilian ships and after the end of their voluntary enlistment period were forced to stay. Raguet became exhausted with how the Brazilian government never followed up its promises to investigate the complaints. The issue only got worse as United States merchant ships were seized by Brazil for attempting or intending to bypass the blockade. The crews of the ships were often manipulated into Brazilian service or imprisoned. Tensions over the issue continued to rise particularly after a US Navy commander, backed by force, procured the release of two detained Americans. Eventually the Brazilian Navy ordered all ships to immediately surrender all improperly detained United States citizens. Despite the order, Raguet was increasingly frustrated with what he felt was Brazil's purposeful delay in processing detained United States ships and citizens. After receiving approval from Secretary of State Henry Clay on his efforts, Raguet was emboldened and his notes to the Brazilian government became more forceful and undiplomatic.
After a letter from a Brazilian foreign minister requested that Raguet use more moderation in his communications, he wrote to Clay that the Brazilian government was offended by his communications, that he had lost his patience with them, and that he hardly considered the Brazilians a civilized people. By the end of 1826 copies of letters of Raguet's communications to the Brazilian government had reached the State Department
United States Department of State
The United States Department of State , is the United States federal executive department responsible for international relations of the United States, equivalent to the foreign ministries of other countries...
in Washington, D.C.
Washington, D.C.
Washington, D.C., formally the District of Columbia and commonly referred to as Washington, "the District", or simply D.C., is the capital of the United States. On July 16, 1790, the United States Congress approved the creation of a permanent national capital as permitted by the U.S. Constitution....
Henry Clay wrote back indicating it would be best to use "language firm and decisive, but at the same time temperate and respectful. No cause is ever benefited by the manifestation of passion, or by the use of harsh and uncourtious language." Responding to a request Raguet made to threaten to sever diplomatic relations with Brazil if they did not release their ships, Clay said "war or threats of war ought not to be employed as instruments of redress until after the failure of every peaceful experiment."
By early 1827 relations with Brazil improved after a new foreign minister took office, but that quickly changed in March when Brazil seized the USS Spark
USS Spark (1813)
USS Spark was a heavily-armed brig in the services of the United States Navy, built for service in the War of 1812. However, she was completed too late for that war and was assigned, instead, to the Barbary Wars in the Mediterranean...
, a recently decommissioned U.S. warship. After a rebuffed offer to the sell the Spark to Brazil, the ship headed for Montevideo
Montevideo
Montevideo is the largest city, the capital, and the chief port of Uruguay. The settlement was established in 1726 by Bruno Mauricio de Zabala, as a strategic move amidst a Spanish-Portuguese dispute over the platine region, and as a counter to the Portuguese colony at Colonia del Sacramento...
. On the way, the ship was seized by a Brazilian man-of-war and its crew imprisoned. Brazil demanded an explanation for what it said were irregularities in the Sparks activities and suspected the ship was a privateer
Privateer
A privateer is a private person or ship authorized by a government by letters of marque to attack foreign shipping during wartime. Privateering was a way of mobilizing armed ships and sailors without having to spend public money or commit naval officers...
going to join Argentina. Raguet didn't believe the Brazilians actually believed the Spark was a privateer, and felt that what he called "the most deliberate and high handed insult" against the United States was planned days in advance. The incident with the Spark was the last straw for Raguet. He sent a letter to the Brazilian government saying "that recent occurrences induce him to withdraw from the court of Brazil, and he therefore requests that his excellency will furnish him the necessary passports." He left his position as chargé d'affaires ended on April 16, 1827.
Once Washington found out that Raguet had left Brazil, the State Department quickly worked to appoint someone new to repair any damage caused by Raguet and to continue working on solving the issues with Brazil that had led Raguet to leave. Adams would later write that relations between the United States and Brazil were "aggravated by the rashness and intemperance of Condy Raguet, ... [who had] brought this country and Brazil to the very verge of war." On Raguet's return to the United States he held a meeting with Clay and Adams who said "I told him that my opinion of his integrity, patriotism, and zeal was unimpaired; that I was convinced of the purity of his motives to the step he had taken; but that I thought it would have been better if he had, before taking that step, consulted his government." When Raguet was suggested for another ambassadorial position in 1828 Adams felt that while Raguet's motives were good he felt putting someone with "such a temper and want of judgment, who took blustering for bravery and insolence for energy, was too dangerous."
In 1836 he returned to the Philadelphia Savings Fund Society where he worked until his death a few years later. Raguet died in Philadelphia on March 22, 1842 and was interred at Lower Burial Ground (Hood Cemetery) in Philadelphia.
Economic views
Since the end of the War of 1812, Raguet was a leading inflationist, supporting deliberate inflationInflation
In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a...
through increasing the available supply of currency and credit. However, his position changed after the Panic of 1819
Panic of 1819
The Panic of 1819 was the first major financial crisis in the United States, and had occurred during the political calm of the Era of Good Feelings. The new nation previously had faced a depression following the war of independence in the late 1780s and led directly to the establishment of the...
. The Panic also converted Raguet from a protectionist
Protectionism
Protectionism is the economic policy of restraining trade between states through methods such as tariffs on imported goods, restrictive quotas, and a variety of other government regulations designed to allow "fair competition" between imports and goods and services produced domestically.This...
to a leading promoter of free trade
Free trade
Under a free trade policy, prices emerge from supply and demand, and are the sole determinant of resource allocation. 'Free' trade differs from other forms of trade policy where the allocation of goods and services among trading countries are determined by price strategies that may differ from...
. While a state senator, Raguet sent a questionnaire to legislators and prominent citizens in each county of the state to determine the extent of the depression. One of the questions was "Do you consider that the advantages of the banking system outweigh its evils?" Sixteen out of nineteen counties answered in the negative. Raguet concluded that the depression was a result of bank credit expansion and the subsequent contraction as physical money was drained from the bank's vaults. He promoted restrictions on banks and of granting bank charters.
After returning to the United States from Brazil, he became a publicist on free trade doctrines contributing to the Port-Folio and other periodicals. He also edited several journals relating to free trade, including The Free-Trade Advocate, The Examiner and The Financial Register. In the late 1830s he continued writing, authoring The Principals of Free Trade (1835) and On Currency and Banking (1839). On Currency and Banking, which was called "the best treatise on banking ever published in the country" by Samuel J. Tilden
Samuel J. Tilden
Samuel Jones Tilden was the Democratic candidate for the U.S. presidency in the disputed election of 1876, one of the most controversial American elections of the 19th century. He was the 25th Governor of New York...
, was republished in Great Britain in 1839 and translated into French in 1840.
Published works
- A Short Account of the Present State of Affairs in St. Domingo (1804)
- A Circumstantial Account of the Massacre in St. Domingo (1805)
- An Inquiry into the Causes of the Present State of the Circulating Medium of the United States (1815)
- The Principals of Free Trade (1835)
- On Currency and Banking (1839)