Ottoman Algeria in Western Diplomatic History with ... - Bibliothèque

importance to relations with Algiers up to that date. During that early period,
the two ministers debated two courses of action on the basis of cost. 109
The
first view consisting of making peace was defended by Adams while the
second standing for war was defended by Jefferson. 110 From the following
exchange of views, it comes out that both were more concerned about the
expenses involved rather than about establishing peaceful relations with
Algiers according to the laws and usage of nations.
Adams favored negotiating a peace treaty with Algiers, not because his
intentions were peaceful, but because he estimated that war would cost the
United States more than concluding a peace treaty including tributes and
consular presents. 111 He was also convinced that paying tribute to Algiers “was
simply the price of doing business in the Mediterranean.” 112 Calculating the
cost of war against the benefits from Mediterranean trade and the loss in
insurance, he argued:
To fight them at the expense of millions, and make peace, after all, by
giving more money and larger presents than would now procure
perpetual peace seems not to be economical.” 113
109 A case study illustrating various cost concepts (incremental cost, opportunity cost, sunk cost, and
cost allocation) based on Adam’s and Jefferson’s exchange of views is discussed in Dennis Caplan,
“John Adams, Thomas Jefferson, and the Barbary Pirates: An Illustration of Relevant Costs for
Decision-Making,” Issues in Accounting Education, 18: 3 (Aug. 2003), pp. 265-274. The Adam-
Jefferson exchange appears in Appendix D.
110 For an alternative discussion of both views see Sofka, “Jeffersonian Idea of National Security,” pp.
532-34.
111 WJA, 8:400-01, To Thomas Jefferson, 6 June, 1786; also WJA, 8:406-07, To Thomas Jefferson, 3
July, 1786. The Adams exchange of letters with Jefferson is reproduced in Appendix 5A and 5C.
112 Allison, “The Jihad of America’s Founding Fathers.”
113 WJA, 8:400, To Thomas Jefferson, 6 June, 1786; in the other letter he started: “At present we are
sacrificing a million annually, to save one gift of £200,000. This is not good economy.” Ibid., 8:407,
To Thomas Jefferson, 3 July, 1786.
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