Continental System, the name given to Napoleon's plan for shutting England out from all connection with the continent of Europe. This system began with Napoleon's famous 'Berlin Decree' of November 21, 1806, which declared the British Islands in a state of blockade, and prohibited all commerce and correspondence with them; all merchandise belonging to an Englishman became a lawful prize, and all trade in English goods entirely prohibited. No ship coming direct from Britain or from a British colony was allowed to enter any port.
Britain was not long in making reprisals. By an 'Order in Council,' issued January 7, 1807, all neutral vessels were prohibited from entering any port belonging to France or her allies, or under her control. Every neutral vessel violating this order was to be confiscated with its cargo. Still more oppressive for neutral commerce was a second order in council of November 11, 1807, by which all harbours and places of France and her allies in Europe and the colonies, as well as of every country with which England was at war, and from which the English flag was excluded, were placed under the same restrictions as if strictly blockaded. These orders were followed by new French measures. By the Milan Decree of December 17, 1807, strengthened by a second of January 11, 1808, from the Tuileries, any vessel, of whatever nation, that had been searched by an English ship, had submitted to be sent on a voyage to England, or paid any duty to the English government, was to be declared denationalised, and treated as English.
Most of the countries of Europe were coerced by Napoleon into joining the continental system. The great war of 1812 against Russia was largely owing to her refusal to adhere to it any longer. It was a violent interruption of human intercourse, which could not last long, and could only serve to strengthen the hatred of Europe against French tyranny. Accordingly, with the breaking up of Napoleon's power, the continental system fell to the ground. The policy of England in connection with the continental system can be justified only on the ground that it was necessary to avert a supreme national danger. It was not without its mischievous results, for the measures adopted in regard to neutral commerce led to the American war of 1812.