Jay's Treaty and Jefferson's Resignation.

       Washington issued the Proclamation of Neutrality in 1793, but he quickly found out that in order for the United States to remain neutral he would need the support and cooperation of the European powers.  Despite being neutral the United States was treated by the British as if they were at war.  Americans ships were attacked and their goods were seized by the British while in the Caribbean the British denied American merchants access to certain ports.  In the Great Lakes region the British had kept several forts on American soil and were trading weapons with Native Americans.

      George Washington sent John Jay to Great Britain to try and negotiate a treaty that would resolve these issues.  The British promised to remove the troops from the U.S., pay the U.S. for the damages done to merchant ships, and to reopen some of the Caribbean to American trade.  The British refused to compensate the Americans for money that was lost from slaves that were liberated during the American Revolution.   In return, the United States granted Britain a "favored nation" status that would guarantee the British exclusive trading rights as well as to pay the British back debt from the American Revolution.   John Jay knew that most Americans would not like these terms but understood that there was little the United States could do.  

        Alexander Hamilton and his supporters began to stage rallies in support of Jay's Treaty to help it get passed by the Senate and the House of Representatives.  Northern merchants and business leaders supported Jay's Treaty which guaranteed that trade with Britain would continue.  Thomas Jefferson and James Madison began to rally support against the treaty in the South and in rural communities.  Both groups used newspapers and demonstrations to try and convince the public.

       Thomas Jefferson did not want to be Secretary of State. He enjoyed his time working as a diplomat in France and believed that he would serve his country best as an ambassador. He only took the position after George Washington insisted on it. Jefferson quickly grew to dislike his position, he did not like living in New York City and Philadelphia. Government ceremonies and regal forums reminded him of the monarchies in Europe.

He also began to quickly distrust the Secretary of Treasury, Alexander Hamilton. He thought that Hamilton's Financial Plan was unwise and that the National Bank was unconstitutional. When Hamilton announced that the Federal Government would be assuming the debts of all the states, Jefferson saw this as a means of weakening the authority of the states. Jefferson believed that Hamilton and his supporters were betraying the values and principles of the American Revolution.

Tiring of arguing with Hamilton and realizing that he was a minority in the Cabinet, Thomas Jefferson asked George Washington to allow him to retire. Washington begged Jefferson to stay on for another year, to which Jefferson complied. On December 31, 1793, Thomas Jefferson submitted his resignation to Washington and returned to his home in Virginia.

H.W. Questions:

1.  Why do you think that most Southerners were against Jay's Treaty?

2. Thomas Jefferson believed that George Washington was favoring Alexander Hamilton.  What are two examples that support his theory?

3. Thomas Jefferson and James Madison organized a political party called The Democratic-Republicans.  In what part of the United States would you most likely find members of the party?

4.  What were two basic beliefs of the Democratic-Republican Party?