Washington retired, in 1796, at the end of two terms.  John Adams, who had been Ambassador to France, Holland and England, became second President.  The Democratic-Republican party, originated at this time, stood for a strict construction of the constitution and favoured France rather than England.  Its leader was Thomas Jefferson.  Adams proved but a poor party leader, and the power of the Federalists failed after eight years.  He had gained some popularity in the early part of his first term when France began to retaliate for the Jay Treaty by seizing American ships, and would not receive the American minister.  He appointed Charles Coatesworth Pinckney, with John Marshall and Elbridge Gerry, as a commission to treat with the French.  The French commissioners who met them demanded $24,000,000.00 as a bribe to draw up a treaty.  The names of the French commissioners were referred to in American newspapers as X, Y and Z. Taking advantage of the popular favour gained in the conduct of this affair, the Federalists succeeded in passing the Alien and Sedition Laws.

Napoleon seized the power in France and made peace with the United States.  In the face of impending war between France and England, Napoleon gave up his plans of an empire in America and sold Louisiana to the United States for $15,000,000.00.  The territory included 1,500,000 square miles.  The Lewis and Clarke Expedition, sent out by Jefferson, started from St. Louis May 14, 1804, crossed the Rocky Mountains and discovered the Oregon country.

Aaron Burr was defeated for Governor of New York, and in his Presidential ambitions, and in revenge killed Hamilton in a duel.  He fled the Ohio River country and made active preparations to carry out some kind of a scheme.  He probably intended to proceed against the Spanish possessions in the Southwest and Mexico, and set himself up as a ruler.  He was betrayed by his confidante, Wilkinson, and was tried for treason and acquitted in Richmond, Va., in 1807.

The momentous question of slavery in the territories came up in Jefferson’s administration.  The institution was permitted in Mississippi, but the ordinance of 1787 was maintained in Indiana.  The importation of slaves was prohibited after January 1, 1808.

James Madison, a Republican, became President, in 1809.  The Indians, under Tecumseh, attacked the Western settlers, but were defeated at Tippecanoe by William Henry Harrison in 1811.  In the same year, Congress determined to break with England.  Clay and Calhoun led the agitation.  Madison acceded, and war was declared June 18, 1812.  The Treaty of Ghent was signed on December 24, 1814.  British commerce had been devastated.  A voyage even from England to Ireland was made unsafe.