1. Signed 1794. Goes into effect 1796
Jay’s Treaty
Signed Goes into effect 1796
Signed with Great Britain
British agreed to remove troops from NW Territory
Strengthened Economic Ties With England
Gave England “Favored Nation” status when it came to trade
Federalists (Hamiltonians) saw this as a good thing, while Democratic Republicans were very against.
Helped to further drive Americans to political parties

2. Pinckney’s Treaty Treaty between the United States and Spain 1795
Resolved territorial disputes between the countries (set borders)
Granted American ships right to free navigation of the Mississippi River
Also granted American ships duty free transport through New Orleans

3. After Washington’s retirement, the Democratic-Republicans and Federalists campaigned for the presidency in 1796
Federalist John Adams defeated Republican Thomas Jefferson and won the presidency 10 10

4. The war between England & France was still going on and continued to cause problems for America
France was frustrated with American neutrality and began to seize U.S. merchant ships
Adams sent diplomats to France to negotiate an agreement on American trade rights in Europe 10 10

5. Three French officials (nicknamed X, Y, and Z) demanded a bribe to meet with French ministers
Americans were offended by this XYZ Affair and called for war with France, but Adams kept his cool
Credit: Forms part of: British Cartoon Prints Collection, Library of Congress Prints and Photographs Division  In the 1790s the U.S. struggled to remain neutral in a war between Britain and France that would not end until the final defeat of Napoleon in In 1797 three French officials requested bribes from American diplomats to end the undeclared "Quasi War" during which the French navy had captured more than 300 American merchant ships. In this British satire of Franco-American relations after what became known as the XYZ Affair, a group of Frenchmen flatter "Madame Amerique" with promises of the wealth that their friendship can provide, while John Bull looks on from his stronghold atop "Shakespeare's cliff." 
Madame Amerique

6. Federalists in Congress passed the Alien & Sedition Acts
President Adams’ handling of the conflict with France led to criticisms by Democratic-Republicans
Federalists in Congress passed the Alien & Sedition Acts
The laws made it a crime to criticize government leaders, restricted citizenship for new immigrants, and made deporting immigrants easier
This attack on free speech and citizenship backfired and badly damaged President Adams and the Federalist Party

7. Republicans Thomas Jefferson and James Madison wrote the Kentucky and Virginia Resolutions to attack the Federalist Party
These essays presented an argument for states’ rights suggesting that states could ignore (nullify) unfair national laws
These arguments of states’ rights and nullification will be used by the South to secede from the USA by 1861 and start the Civil War 22 22

8. Adams and his Federalist Party were unpopular by the election of 1800
Republican Jefferson defeated Adams in the election of 1800
The 1800 election marked the first time in U.S. history when one political party transferred power to another political party
Jefferson’s victory over Adams marked the beginning of 30 years of dominance by the Democratic-Republican Party