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The outbreak in Europe of the "War of the First Coalition" between Britain and France produced, after 1792, an economic upheaval which both revived and entangled the Federalist-mercantile interests. The sale of grain to France, and the replacement of the British merchant flag by the neutral American one in Near Eastern trade, proved enormously profitable to Americans. The British tried to stifle, by blockade, the French grain trade. The major issues with Britain, including its occupation of forts in the Ohio Valley, were resolved by [[Jay's Treaty]] of 1795, which brought ten years of peace and profitable trade between the U.S. and Britain.

The outbreak in Europe of the "War of the First Coalition" between Britain and France produced, after 1792, an economic upheaval which both revived and entangled the Federalist-mercantile interests. The sale of grain to France, and the replacement of the British merchant flag by the neutral American one in Near Eastern trade, proved enormously profitable to Americans. The British tried to stifle, by blockade, the French grain trade. The major issues with Britain, including its occupation of forts in the Ohio Valley, were resolved by [[Jay's Treaty]] of 1795, which brought ten years of peace and profitable trade between the U.S. and Britain.

At the same time the insolent conduct of the French minister [[Edmond Genet]] ("Citizen Genet") forced President [[George Washington]] and Secretary of State [[Thomas Jefferson]] to demand his recall. The ruling French Directory saw thge recall as hostile. They continued to be upset by the pro-British policy of the Federalist administration of [[John Adams]]. Both as a war measure and to relieve its financial strain, the Directory inspired the seizure of 316 U.S. merchant vessels, and even went so far as to seize British merchantmen within U.S. territorial waters.  

At the same time the insolent conduct of the French minister [[Edmond Genet]] ("Citizen Genet") forced President [[George Washington]] and Secretary of State [[Thomas Jefferson]] to demand his recall. The ruling French Directory saw the recall as hostile. They continued to be upset by the pro-British policy of the Federalist administration of [[John Adams]]. Both as a war measure and to relieve its financial strain, the Directory inspired the seizure of 316 U.S. merchant vessels, and even went so far as to seize British merchantmen within U.S. territorial waters.  

==The XYZ Affair==

==The XYZ Affair==

* see [[XYZ Affair]]

* see [[XYZ Affair]]

In July, 1798, and over Republican protests, Congress denounced all treaties with France, authorized the raising of an army of 10,000 men commanded by former president [[George Washington]], and provided for the establishment of a new [[United States Navy|Navy Department]] and the commissioning of fifteen cruisers for reprisals upon the French. It also attempted to take advantage of the war spirit by enacting the four [[Alien and Sedition Acts]], ostensibly aimed against French revolutionary agitators and doctrines, but also intended to suppress the Republican opposition.  

In July, 1798, and over Republican protests, Congress denounced all treaties with France, authorized the raising of an army of 10,000 men commanded by former president [[George Washington]], and provided for the establishment of a new [[United States Navy|Navy Department]] and the commissioning of fifteen cruisers for reprisals upon the French. It also attempted to take advantage of the war spirit by enacting the four [[Alien and Sedition Acts]], ostensibly aimed against French revolutionary agitators and doctrines, but also intended to suppress the Republican opposition.  

The merchants of Newburyport, Massachusetts, and those of Philadelphia signed subscription lists to build warships for loan to the navy even before the government discussed or authorized such a construction program. Baltimore and three Virginia cities followed shortly thereafter, all before Benjamin Stoddert took office as the first secretary of the new Navy Department. Charleston, Boston, and Salem subscribed ships after Congress enacted legislation to reimburse subscribers with "navy stock" paying 6% interest, which was 2% lower than other government securities.<ref> See Frederick C. Leiner, ''Millions for Defense: The Subscription Warships of 1798.'' (1999) </ref>  

The merchants of Newburyport, Massachusetts, and those of Philadelphia signed subscription lists to build warships for loan to the navy even before the government discussed or authorized such a construction program. Baltimore and three Virginia cities followed shortly thereafter, all before Benjamin Stoddert took office as the first secretary of the new Navy Department. Charleston, Boston, and Salem subscribed ships after Congress enacted legislation to reimburse subscribers with "navy stock" paying 6% interest, which was 2% lower than other government securities.<ref>See Frederick C. Leiner, ''Millions for Defense: The Subscription Warships of 1798.'' (1999)</ref>

 

==The War at Sea==

==The War at Sea==