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The treaty, ratified by both parties in 1795, averted war, solved many issues left over from the American Revolution, and opened ten years of peaceful trade in the midst of the wars of the [[French Revolution]]. It was hotly contested by [[Democratic-Republican Party|Jeffersonian]]s but passed Congress  and became a central issue in the formation of the [[First Party System]].  Signed in November 1794, ratified and put into effect in 1795, it was a major success for early American diplomacy.  
 
The treaty, ratified by both parties in 1795, averted war, solved many issues left over from the American Revolution, and opened ten years of peaceful trade in the midst of the wars of the [[French Revolution]]. It was hotly contested by [[Democratic-Republican Party|Jeffersonian]]s but passed Congress  and became a central issue in the formation of the [[First Party System]].  Signed in November 1794, ratified and put into effect in 1795, it was a major success for early American diplomacy.  
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==terms==
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==Terms==
 
The treaty included three major provisions:<ref>http://www.u-s-history.com/pages/h455.html</ref>
 
The treaty included three major provisions:<ref>http://www.u-s-history.com/pages/h455.html</ref>
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# The establishment of a commission to resolve American losses in British ship seizure and loyalist losses during the [[American Revolutionary War]].
 
# The establishment of a commission to resolve American losses in British ship seizure and loyalist losses during the [[American Revolutionary War]].
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The terms were designed primarily by Treasury Secretary [[Alexander Hamilton]], with strong support from President [[George  Washington]] and chief negotiator [[John Jay]].  Both sides achieved some of their objectives (especially averting possible war and increasing trade), but Jeffersonians thought it aligned the new nation too closely with Britain and thus threatened republican values. Jay obtained the primary American requirements, chiefly British withdrawal from the posts they occupied in the Northwest Territory of the United States, which they had promised to abandon in 1783. Wartime debts and the US-Canada boundary were sent to arbitration--one of the first major uses of arbitration in diplomatic history.  The British also granted some rights to trade with British possessions in India and the Caribbean, in exchange for American limits on the export of cotton. The treaty averted possible war but immediately became one of the central issues in domestic American politics, with [[Thomas Jefferson]] and [[James Madison]] leading the opposition.  They feared that closer economic ties with Britain would strengthen the Federalists and might undercut [[Republicanism in the United States|republican values]]. The treaty encouraged trade between the two nations for a decade; but it broke down after 1803; efforts to agree on a replacement treaty failed in 1807 as tensions escalated to the [[War of 1812]].<ref> Marshall Smelser, ''The Democratic Republic: 1801-1815'' (1968) p 139, 145, 155-56</ref>
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The terms were designed primarily by Treasury Secretary [[Alexander Hamilton]], with strong support from President [[George  Washington]] and chief negotiator [[John Jay]].  Both sides achieved some of their objectives (especially averting possible war and increasing trade), but Jeffersonians thought it aligned the new nation too closely with Britain and thus threatened republican values. Jay obtained the primary American requirements, chiefly British withdrawal from the posts they occupied in the Northwest Territory of the United States, which they had promised to abandon in 1783. Wartime debts and the US-Canada boundary were sent to arbitration--one of the first major uses of arbitration in diplomatic history.  The British also granted some rights to trade with British possessions in India and the Caribbean, in exchange for American limits on the export of cotton. The treaty averted possible war but immediately became one of the central issues in domestic American politics, with [[Thomas Jefferson]] and [[James Madison]] leading the opposition.  They feared that closer economic ties with Britain would strengthen the Federalists and might undercut [[republicanism|republican values]]. The treaty encouraged trade between the two nations for a decade; but it broke down after 1803; efforts to agree on a replacement treaty failed in 1807 as tensions escalated to the [[War of 1812]].<ref> Marshall Smelser, ''The Democratic Republic: 1801-1815'' (1968) p 139, 145, 155-56</ref>
    
==Issues==
 
==Issues==
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