trade with the English islands. Washington added
his signature, the British government accepted the amendment, and the
treaty came into effect. The West India privilege was, in fact,
granted by the Pitt Ministry, as in the treaty, owing to the demands of
the West India planters. In America the storm blew itself out in a few
weeks of noise and anger, and the country settled down to make the best
of the privileges {168} gained, which, however incomplete, were well
worth the effort.

So the Federalist administration kept the United States neutral, and
gave it at last a definite commercial status with England. It did
more, for in August, 1795, the north-western Indians, beaten in battle
and deprived of the presence of their protectors, made a treaty
abandoning all claims to the region south of Lake Erie. The Spanish
government, on hearing of the Jay treaty, came to terms in October,
1795, agreeing to the boundaries of 1783, granting a "right of deposit"
to American trades down the Mississippi at or near New Orleans, and
promising to abandon Indian intrigues. The diplomatic campaign of the
Federalists seemed to be crowned with general success.

But in the process the passions of the American people had become
deeply stirred, and by the end of 1795 the Federalist party could no
longer, as at the outset, count on the support of all the mercantile
elements and all the townspeople, for, by their policy toward France
and England, Washington, Hamilton, and their associates had set
themselves against the underlying prejudices and beliefs of the voters.
The years of the strong government reaction were at an end. The time
had come to fight for party existence.

{169}

CHAPTER IX

THE TRIUMPH OF DEMOCRACY IN THE UNITED STATES, 1795-1805

With the temporary shelving of British antagonism, the Federalist
administration passed its second great crisis; but it was immediately
called upon to face new and equally serious differences with France
which were ultimately to prove the cause of its downfall. The
fundamental difficulty in the political situation in America was that
the two parties were now so bitterly opposed as to render every
governmental act a test of party strength. The Republicans, who
accepted the leadership of Jefferson or of Clinton of New York,
comprised all who favoured democracy in any sense--whether that of
human equality, or local self-government, or freedom from taxes, or
sympathy with France--a