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When war threatened with Britain in 1794, Washington sent [[John Jay]] to negotiate the [[Jay treaty]] with Britain; it was signed in late 1794, and ratified in 1795. It averted a possible war and settled many (but not all) the outstanding issues between the U.S. and Britain., <ref>Elkins and McKitrick, 405-12</ref> the Jeffersonians vehemently denounced it as a sell-out to Britain, saying it threatened to undermine republicanism by giving the aristocratic British and their Federalist allies too much influence.  The Federalists said it avoided war, reduced the Indian threat, created good trade relations with the world's foremost economic power, and ended lingering disputes from the Revolutionary War. The Federalists used the enormous prestige of President Washington to secure senate approval by the needed 2/3 vote.<ref>Elkins and McKitrick, 417-8; Goodman (1964) 71-2.</ref> The fierce debates over the Jay Treaty in 1794-96 according to William Nisbet Chambers, nationalized politics and  turned a faction in Congress into a nationwide party. To fight the treaty the Jeffersonians "established coordination in activity between leaders at the capital, and leaders, actives and popular followings in the states, counties and towns." <ref> Chambers, ''Political Parties'' p. 80</ref> When Jefferson came to power in 1801 he honored the Jay treaty, but new disputes with Britain ended friendly relations in 1805 and led to the [[War of 1812]]. <ref>Miller, ''Federalist Era'' pp 165-78</ref>
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When war threatened with Britain in 1794, Washington sent [[John Jay]] to negotiate the [[Jay treaty]] with Britain; it was signed in late 1794, and ratified in 1795. It averted a possible war and settled many (but not all) the outstanding issues between the U.S. and Britain., <ref>Elkins and McKitrick, 405-12</ref> the Jeffersonians vehemently denounced it as a sell-out to Britain, saying it threatened to undermine republicanism by giving the aristocratic British and their Federalist allies too much influence.  The Federalists said it avoided war, reduced the Indian threat, created good trade relations with the world's foremost economic power, and ended lingering disputes from the Revolutionary War. The Federalists used the enormous prestige of President Washington to secure senate approval by the needed 2/3 vote.<ref>Elkins and McKitrick, 417-8; Goodman (1964) 71-2.</ref> The fierce debates over the Jay Treaty in 1794-96 according to William Nisbet Chambers, nationalized politics and  turned a faction in Congress into a nationwide party. To fight the treaty the Jeffersonians "established coordination in activity between leaders at the capital, and leaders, actives and popular followings in the states, counties and towns."<ref>Chambers, ''Political Parties'' p. 80</ref> When Jefferson came to power in 1801 he honored the Jay treaty, but new disputes with Britain ended friendly relations in 1805 and led to the [[War of 1812]]. <ref>Miller, ''Federalist Era'' pp 165-78</ref>
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In 1796 Jefferson challenged [[John Adams]] for the presidency and lost. The [[Electoral College]] made the decision, and it was chosen by the state legislatures, which still lacked parties.
 
In 1796 Jefferson challenged [[John Adams]] for the presidency and lost. The [[Electoral College]] made the decision, and it was chosen by the state legislatures, which still lacked parties.
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