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In December 1807, news arrived that Napoleon had extended the Berlin Decree, globally banning British imports. The Royal Navy, meanwhile continued to impress sailors from American merchant ships. However, Congress had no appetite to prepare the U.S. for war; Jefferson asked for and received the Embargo Act, an alternative that allowed the U.S. more time to build up defensive works, militias, and naval forces. Meacham argued that the Embargo Act was a projection of power that surpassed the Alien and Sedition Acts, and R. B. Bernstein said that Jefferson "was pursuing policies resembling those he had cited in 1776 as grounds for independence and revolution". In November 1807, Jefferson, for several days, met with his cabinet to discuss the deteriorating foreign situation. Secretary of State James Madison supported the embargo, while Treasury Secretary Gallatin opposed it, due to its indefinite time frame and the risk to the policy of American neutrality. The U.S. economy suffered, criticism grew, and opponents began evading the embargo. Instead of retreating, Jefferson sent federal agents to secretly track down smugglers and violators. Three acts were passed in Congress during 1807 and 1808, called the Supplementary, the Additional, and the Enforcement acts. The government could not prevent American vessels from trading with the European belligerents once they had left American ports, although the embargo triggered a devastating decline in exports. In December 1807, Jefferson announced his intention not to seek a third term. He turned his attention increasingly to Monticello during the last year of his presidency, giving Madison and Gallatin almost total control of affairs. Shortly before leaving office in March 1809, Jefferson signed the repeal of the Embargo. In its place, the Non-Intercourse Act was passed, but it proved no more effective. The day before Madison was inaugurated as his successor, Jefferson said that he felt like "a prisoner, released from his chains".

=== Cabinet ===

== Post-presidency (18091826) ==

After his presidency, Jefferson remained influential and continued to correspond with many of the country's leaders (including his two protégées, Madison and Monroe, who succeeded him as president); the Monroe Doctrine strongly resembles solicited advice that Jefferson gave to Monroe in 1823.

=== University of Virginia ===

Jefferson envisioned a university free of church influences where students could specialize in new areas not offered at other colleges. He believed that education engendered a stable society, which should provide publicly funded schools accessible based solely on ability. He initially proposed his university in a letter to Joseph Priestley in 1800 and, in 1819, founded the University of Virginia. He organized the state legislative campaign for its charter and, with the assistance of Edmund Bacon, purchased the location. He was the principal designer of the buildings, planned the university's curriculum, and served as the first rector upon its opening in 1825. Jefferson was a strong disciple of Greek and Roman architectural styles, which he believed to be most representative of American democracy. Each academic unit, called a pavilion, was designed with a two-story temple front, while the library "Rotunda" was modeled on the Roman Pantheon. Jefferson referred to the university's grounds as the "Academical Village", and he reflected his educational ideas in its layout. The ten pavilions included classrooms and faculty residences; they formed a quadrangle and were connected by colonnades, behind which stood the student rooms. Gardens and vegetable plots were placed behind the pavilions and were surrounded by serpentine walls, affirming the importance of the agrarian lifestyle. The university had a library rather than a church at its center, emphasizing its secular nature—controversial at the time. When Jefferson died in 1826, James Madison replaced him as rector. Jefferson bequeathed most of his reconstructed library of almost 2,000 volumes to the university. Only one other ex-president has founded a university; Millard Fillmore founded the University at Buffalo in 1846.

=== Reconciliation with Adams ===

Jefferson and John Adams became good friends in the first decades of their political careers, serving together in the Continental Congress in the 1770s and in Europe in the 1780s. The Federalist/Republican split of the 1790s divided them, however, and Adams felt betrayed by Jefferson's sponsorship of partisan attacks, such as those of James Callender. Jefferson was angered by Adams' appointment of "midnight judges". The two men did not communicate directly for more than a decade after Jefferson succeeded Adams as president. A brief correspondence took place between Abigail Adams and Jefferson after Jefferson's daughter Polly died in 1804, in an attempt at reconciliation unknown to Adams. However, an exchange of letters resumed open hostilities between Adams and Jefferson. As early as 1809, Benjamin Rush began to prod the two through correspondence to re-establish contact. In 1812, Adams wrote a short New Year's greeting to Jefferson, prompted earlier by Rush, to which Jefferson warmly responded. This initial correspondence began what historian David McCullough calls "one of the most extraordinary correspondences in American history". Over the next 14 years, Jefferson and Adams exchanged 158 letters discussing their political differences, justifying their respective roles in events, and debating the revolution's import to the world. When Adams died on July 4, 1826, the 50th anniversary of the Declaration of Independence, his last words were an acknowledgment of his longtime friend and rival. "Thomas Jefferson survives", Adams said, unaware that Jefferson had died a few hours earlier.