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Macdonough's victory had stopped the British offensive in its tracks. Also, Prévost had achieved what the U.S. government had been unable to do for the entire war up to that point: to bring the state of Vermont into the war.
The British had used their victories at the Battle of Bladensburg and the Burning of Washington to counter any U.S. demands during the peace negotiations up to this point. The Americans were able to use the repulse at Plattsburgh to demand exclusive rights to Lake Champlain and deny the British exclusive rights to the Great Lakes. The American victory at Plattsburgh and the British failure at the Siege of Baltimore, which came a few days later, denied the British any advantage they could use to make demands for territorial gains in the Treaty of Ghent.
The failure at Plattsburgh, with other complaints about his conduct of active operations, resulted in Sir George Prévost being relieved of command in Canada. When he returned to Britain his version of events was accepted at first. As was customary after the loss of a ship or a defeat, Captain Pring and the surviving officers and men of the squadron faced a court martial, which was held aboard HMS Gladiator at Portsmouth, between 18 and 21 August 1815. The court commended Pring and honorably acquitted all of those charged. The dispatches of Sir James Yeo were published about the same time, and emphatically placed the blame for the defeat on Prévost for forcing the British squadron into action prematurely. Prévost in turn demanded a court martial to clear his name, but died in 1816 before it could be held.
Alexander Macomb was promoted to Major General and became commanding general of the United States Army in 1828. Thomas Macdonough was promoted to Captain (and given the honorary rank of Commodore for his command of multiple ships in the battle) and is remembered as the "Hero of Lake Champlain". To honor the American commanders, Congress struck four Congressional Gold Medals, a record number for the time. These were awarded to Captain Thomas Macdonough, Captain Robert Henley, and Lieutenant Stephen Cassin of the U.S. Navy, and to Alexander Macomb (20 October 1814 3 Stat. 245–247). Macomb and his men were also formally given the thanks of Congress.
Seven currently active regular battalions of the United States Army (4-1 FA, 1-2 Inf, 2-2 Inf, 1-5 Inf, 2-5 Inf, 1-6 Inf and 2-6 Inf) perpetuate the lineages of American units that were present at the battle (Brooks's Company, Corps of Artillery, and the 6th, 13th and 29th Infantry Regiments).
Read more about this topic: Battle Of Plattsburgh
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