Nobody has extrapolated this from those specific facts but you.
@The Gunslinger absolutely correctly questioned whether the US could pay for these new steamships, and you told him categorically that the United States in the War of 1812 was entirely capable of paying its contractors. I then illustrated, from about five minutes on Google, that they weren't - whereupon you hastily move the goalposts to try and bring the conversation onto something other than your own unfamiliarity with the topic at hand.
As I said, I don't think I'll ever stop being amazed at your ability to say with an atmosphere of utter confidence things that are not only completely wrong, but
that you could have disproved with a simple Google search.
"the naval contractors A. and N. Brown, employing "one thousand Carpenters" building warships on Lake Ontario, protested that "it will ruin us if money is not Sent from the Navy Department that will pass in this State." "[O]ne hundred thousand Dollars was Due on 22nd December 1814, and the Like Sum on the first of febuary [sic] 1815... if we are to be paid in money Seven Per Cent under par we never will be able to fulfil our contract.'
Having already been caught out on the question of whether the United States was paying its contractors, you doubled down and picked an even more specific reference without even bothering to check whether the shipbuilders on Lake Ontario were on the verge of a stoppage. It's just incredible: surprises me every time you do it. But needless to say, those steamship builders are going to see how the US government is treating contractors on Lake Ontario and jump right into bed with them.
I like how you stick a ridiculously high bar on the demand - a whole field army disbanding - when what the lack of pay actually means is that men desert. "
desertion affected the [US] army to the same extent as sickness, 12.7 per cent... being recorded as deserters";
comparable average for the British army (1812-15) was 3.4%. Or they go home when their time expires, or they don't bother joining up in the first place.
Bring on the quotes:
- 'On November 9 [1812], Smyth informed General Dearborn that two militia regiments, one at Utica and another at Manlius (near Syracuse), as well as a volunteer company at Buffalo, had mutinied because they had received no pay. Also, another volunteer militia company threatened not to cross into Canada unless it received pay and a clothing allowance.'
- 'Brig. Gen. George McClure was left with only about 100 troops to defend Fort George on the Niagara peninsula in December 1813 when his militiamen departed as soon as their terms expired, despite his pleas to stay longer. McClure noted that "having to live in tents at this inclement season, added to that [circumstance] of the pay-master coming on only prepared to furnish them with one out of three month's pay has had all the bad effects that can be imagined." He noted that his militiamen, "finding that their wages were not ready for them, became with some meritorious exceptions, a disaffected and ungovernable multitude."'
- 'With only limited means, the national government understandably tried to curtail excessive state use of militiamen by refusing to pay for them unless they were called for by the federal government and inspected by a regular army officer. In fact, numerous claims for payment for militia drafts were denied when established rules were not followed. There were occasions, however, where states had to respond promptly to invasion by the enemy before the federal government authorized them. Governor James Barbour of Virginia expressed his anger and amazement when Secretary of War John Armstrong refused to pay for militiamen summoned by the governor to protect Norfolk early in 1813. Instead of "generous and unsuspecting confidence" in furthering the wishes of the government, Barbour declared, states would adopt "the close suspicion of the miser, who before he acts demands solid and unquestionable pledges." To appease Virginia, the administration paid that state's militia expenses. This step, however, angered Maryland, which had also been refused compensation for unauthorized militia drafts. A committee report of the Executive Council of Maryland accused the Madison administration of partiality in assuming Virginia's militia expenses while denying Maryland's. The Council adopted a resolution denouncing the administration's action as "partial, unjust, and contrary to the spirit of our constitution."'
- 'Even when the states conformed to all of the federal requirements, such as getting the militia mustered and inspected by a regular officer, the national government was unable, or unwilling, to pay the militia because of a lack of funds. The shortage of money was due to the difficulty that Secretary of the Treasury Albert Gallatin had in borrowing capital from the financial markets, particularly in New England. Consequently, Secretary Armstrong opted to divert most War Department funds to the northern front. As a result, money to pay militia, build fortifications, and reimburse states was simply not available. The bureaucracy was also overwhelmed by bills forwarded for payment, often accompanied by improper or inadequate paperwork, and it refused to pay without adequate documentation.'
- 'The fact remains that the states were not promptly remunerated for expenses, and by late 1814 the government had no money for reimbursement. This situation did not reduce the number of complaints. Governor William Miller of North Carolina, for example, informed his legislature in December 1814 that none of the troops or individuals who had furnished them supplies in 1813 had received payment. He asserted bluntly that "patriotism alone cannot be relied upon as a sufficient incentive to endure the hardships and privations of war. Men must be paid or they cannot be expected to fight."... Similarly, Governor Isaac Shelby of Kentucky admonished Armstrong in August 1814 for the government's failure to pay the state's militia for past service. Shelby complained particularly about the treatment of the men who had marched with him into Canada in 1813. Because the government was withholding their pay, it had become his duty "to be more cautious in future, in complying with demands on this State for troops; and to come to an explicit understanding with the War Department on this subject."'
- 'After his campaign against the Creek Indians in the fall of 1813, General Claiborne wrote Armstrong on January 24, 1814, explaining why his militiamen refused to enlist in the regular army. His Mississippi Volunteers were returning to their homes "with eight months pay due to them and almost literally naked. They have served for two or three months of an inclement winter, without shoes or blankets and almost without shirts." He added that they were "still attached to their country, and properly impressed with the justice and necessity of the war," but "as they believe that some of these sufferings and privations were not unavoidable, they have for some months past almost uniformly declined prolonging their terms of service by enlisting in the regular army."'
- 'Perhaps the most damning indictment of the militia system, and an indication of its failure during the war, was the establishment of state armies. Had the war continued another year, it seems certain that a significant majority of the states would have forsaken reliance upon the militia and established permanent (standing) state armies. By 1815, at least ten of the eighteen states had adopted, or were in the process of adopting, laws establishing state armies. In three other states their governors recommended consideration of such a force... It is quite possible that the states would have adopted the idea broached in the Hartford Convention and suggested as well by Ohio and Virginia near the end of the war, namely, withholding direct taxes owed by the state to the federal government to cover the state's costs in paying their militias and providing for their defense. The case of Massachusetts and Connecticut is easily understood because of their long-standing differences with the administration. Connecticut governor John Cotton Smith affirmed his support for the recommendation of the Hartford Convention that states assuming the burden of defense should retain a portion of the taxes collected within the state to meet state defense needs.
But
why restrict ourselves to the army?
- On one occasion the ship's company of an American privateer, which had been destroyed after a desperate and celebrated resistance to attack by British armed boats, arrived at St. Mary's. Of one hundred and nineteen American seamen, only four could be prevailed upon to enter the district naval force. This was partly due to the embarrassment of the national finances. "The want of funds to pay off discharged men," wrote the naval captain at Charleston, "has given such a character to the navy as to stop recruiting." "Men could be had," reported his colleague at St. Mary's, now transferred to Savannah, "were it not for the Treasury notes, which cannot be passed at less than five per cent discount. Men will not ship without cash. There are upwards of a hundred seamen in port, but they refuse to enter, even though we offer to ship for a month only."
The Second Barbary War (17–19 June 1815; 3 frigates, 3 brigs, 2 schooners, 2 sloops) is a major naval build-up? Perhaps, for the United States. In 1816 the British take five ships of the line, four frigates, five brig-sloops, four bombs, and 55 smaller vessels to Algiers, and they don't even call it a war.
It's a good job
the United States doesn't need ships to move goods from one bit of the country to another, isn't it?
Whatever more or less of success or injury attended the coastwise trade in the several localities, the point to be observed is that the enemy's operations effectually separated the different sections of the country from one another, so far as this means of intercourse was concerned; thereby striking a deadly blow at the mutual support which might be given by communities differing so markedly in resources, aptitudes, and industries... To get by sea from one end of the country to the other it was necessary to break the blockade in starting, to take a wide sweep out to sea, and again to break it at the desired point of entrance. This, however, is not coasting.
The effect which this coast pressure produced upon the welfare of the several sections is indicated here and there by official utterances. The war party naturally inclined to minimize unfavorable results, and their opponents in some measure to exaggerate them; but of the general tendency there can be no serious doubt. Mr. Pearson, an opposition member of the House from North Carolina, speaking February 16, 1814, when the record of 1813 was made up, and the short-lived embargo of December was yet in force, said: "Blocked up as we are by the enemy's squadron upon our coast, corked up by our still more unmerciful embargo and non-importation laws, calculated as it were to fill up the little chasm in the ills which the enemy alone could not inflict; the entire coasting trade destroyed, and even the little pittance of intercourse from one port to the other in the same state destroyed [by the embargo], the planters of the Southern and Middle states, finding no market at home for their products, are driven to the alternative of wagoning them hundreds of miles, in search of a precarious market in the Northern and Eastern states, or permitting them to rot on their hands."
Please don't tell me that when you see a reference to the blockade destroying "commerce", you assume it only means the international trade of the United States and not inter-state commerce.
I get the idea that the British can do it more easily than the United States, because structural weaknesses (e.g. not having a national bank) meant that a debt of only 7.26% of GDP hit the creditworthiness of the United States federal government so hard that individual officers were having to sign IOUs to feed their troops. If both sides spend another $100m on continuing the war, with a third coming out of taxation and two-thirds out of borrowing, then the US national debt goes from $127m to $193m (52% increase) and the British national debt goes from £679m to £692m (1.9% increase).
As ancien regime France proves, it's not the size of the debt but its size relative to people's confidence in your ability to pay it back that matters:
France's budgetary difficulties stood in sharp contrast to Britain, where authority over taxation, borrowing, and expenditure was held solely by Parliament. Although Britain financed its wars primarily by borrowing, Parliament could and did alter taxation unlike the French government. These differences enabled Britain to assume higher ratios of taxes and debt to GNP than France while debt service absorbed proportionally less revenue... For 1788, Weir finds government debt to be 56 percent of GNP for France and 182 percent for Britain, taxes to be 7 percent of GNP for France and 12 percent for Britain, with the ratio of debt service to tax revenue 62 and 56 percent respectively. The relative cost of funding, measured by debt service to debt was 7.5 percent for France and 3.8 percent for Britain.