The federal government early recognized the importance of the fisheries, and from time to time granted bounties for their encouragement, and imposed protective duties upon the importation of foreign-caught fish. The first act was passed in 1789, which granted a bounty of 5 cents per quintal on dried and 5 cents per barrel on pickled fish exported, in lieu of a drawback of the duties on imported salt used in the cure, and imposed a duty of 50 cents per quintal on imported fish. In 1790 the bounties were doubled. By the act of Feb. 16, 1792, the bounty on dried fish was discontinued, and a specific allowance was made to vessels employed exclusively in the cod fishery at sea for four months between the last day of February and the last day of November: to vessels of between 20 and 30 tons, $1 50 per ton annually; and to those of more than 30 tons, $2 50 per ton; but the annual allowance to any vessel was limited to $170. Three eighths of the bounty was given to the owners, and the remaining five eighths was to be divided among the fishermen. To boats of between 5 and 20 tons, $1 per ton, to be divided among the fishermen, was allowed annually, provided they had brought in 12 quintals of cured fish per ton during the season.

The act of May 2, 1792, fixed the allowance on pickled fish at 8 cents a barrel, and increased the bounties on vessels 20 per cent., after Jan. 1, 1793. In 1797 an act was passed, which increased the bounty on pickled fish to 12 cents a barrel, and further raised the allowances to vessels 33 1/3 per cent., after Jan. 1, 1798. An act of 1799 increased the bounty on pickled fish to 30 cents a barrel. In 1807 all bounties were abolished. The act of 1813, similar in its provisions to those mentioned above, revived the bounty, and fixed the allowance to vessels of from 5 to 20 tons at $1 60 per ton; to those of from 20 to 30 tons, at $2 40; to those of more than 30 tons, at $4; and on pickled fish, at 20 cents a barrel; but no vessel was to receive over $272. The law was modified in 1819, and allowances were granted to vessels of from 5 to 30 tons of $3 50 per ton; to those of more than 30 tons, $4 per ton, and if having a crew of 10 men, and employed 3 1/2 months but less than 4 months, $3 50 per ton; no vessel to receive more than $300. In 1846 the bounty on pickled fish was discontinued, and a drawback of the duties on imported salt used in the euro was substituted.

The bounties to vessels were abolished by the act of July 28, 1866, but the duties on foreign salt used in curing fish were remitted. An act - of 1817 required the master and three fourths of the crew to be citizens of the United States, to entitle the vessel to bounty; but this act was repealed, except as to the master, in 1864. By an act of 1789, vessels of 20 tons and upward destined for the fishery were required to be enrolled, and they as well as registered vessels might be licensed for one year, which exempted them from the necessity of entering and clearing during that period. Vessels of from 5 to 20 tons were required to be licensed. The act of 1793 required vessels of 20 tons and upward to be enrolled and licensed, and those of less than 20 tons to be licensed. In 1828 an act was passed requiring a special license for vessels employed in the mackerel fishery; and in 1836 such vessels were given the privilege of engaging in the cod or other fishery, but they were not entitled to the bounty. During the war with England in 1812-'15 the British cruisers kept the fishermen from the distant fishing grounds. Many of them entered the navy, and the frigate Constitution was chiefly manned by them, while great numbers engaged in privateering.

In the negotiations for peace the British endeavored in vain to procure from the United States a relinquishment of their right to the fishing grounds, and maintained, after peace was concluded, that the state of hostilities had abrogated the concession of rights made in 1783. Discussions ensued between the two governments, which resulted in 1818 in a convention, by which it was agreed that the Americans should have the liberty of taking fish on the S. coast of Newfoundland between Cape Ray and the Ra-meau islands; from Cape Ray to the Quirpon islands; on the shores of the Magdalen islands; and also on the S. coast of Labrador from Mount Joly to and through the strait of Belle Isle, and thence northward indefinitely along the coast. The United States on their part renounced formally the right of fishing on or within three marine miles of the British dominions in America not included in the above specified limits. In the summer of 1852 serious troubles broke out between the American fishermen and the British authorities, who claimed the right to exclude the former from the bays and inlets of the British possessions.

The dispute was temporarily settled by mutual concessions, and in 1854 a reciprocity treaty was agreed upon by the two countries, containing the following stipulations concerning the fisheries, in addition to those contained in the convention of 1818:The inhabitants of the United States shall have, in common with the subjects of her Britannic majesty, the liberty to take fish of every kind except shell fish on the sea coasts and shores, and in the bays, harbors, and creeks of Canada, New Brunswick, Nova Scotia, Prince Edward island, and of the several islands thereunto adjacent, without being restricted to any distance from the shore, with permission to land upon the coasts and shores of those colonies, and the islands thereof, and also upon the Magdalen islands, for the purpose of drying their nets and curing their fish." It was specified that the liberty thus granted should apply solely to sea fisheries, and not to salmon, shad, or other river fisheries; and that the fishermen should not interfere with the rights of private property, or trespass on parts of the shore occupied by British fishermen. Similar rights, with similar reservations, were granted to British fishermen on the E. coast of the United States N. of lat. 36°. This treaty was terminated.