When President George Washington was elected in the year 1789, Alexander Hamilton was appointed as Secretary of Treasury. Establishing himself as a big influence in domestic affairs, Hamilton soon used his power as Secretary of Treasury to put his big plans for the country in action. While Hamilton’s plans did repay the United States’ debts, they forced tensions between the north and south in terms of state debt assumption. Hamilton’s idea of a National Bank sparked huge debate with the American public, and even more with the government leaders. This became a cause for the separation of political parties. This domestic affair proved to be the important event for our two party system today. It also led to how the Constitution should be interpreted, with the Federalist’s going for a loose interpretation and the Jeffersonian Democratic-Republicans for a strict interpretation of its meanings. Hamilton’s relentless economic changes also caused the Whiskey Rebellion, which demonstrated the federal government’s ability to enforce its laws. This was a great change for the government that had not been able to stop Shay’s Rebellion. The early domestic affairs soon rose as the United States faced increasing threatening foreign powers.
With the French Revolution causing a commotion in France, and also coming into the United States, the foreign affairs the federal government dealt with were as nearly as important as the domestic affairs of the United States. With the arrival of Genet, tensions between France and the United States grew to the point of a possible war. Jay’s failed treaty, along with the XYZ affair and the undeclared war with France, caused even more tensions not only in the actual relationship between France and the United States but also the domestic affairs. As John Adams was now the president, the passing of the Alien and Sedition