portending the first party system. secretary of the treasury alexander hamilton formed the federalist party to promote national credit and a financially powerful nation. secretary of state thomas jefferson opposed hamilton's agenda and founded the jeffersonian republicans. washington favored hamilton's agenda, however, and it ultimately went into effect—resulting in bitter controversy. washington proclaimed november 26, 1789, as a day of thanksgiving to encourage national unity. "it is the duty of all nations to acknowledge the providence of almighty god, to obey his will, to be grateful for his benefits, and humbly to implore his protection and favor." he spent that day fasting and visiting debtors in prison to provide them with food and beer. african americans in response to two antislavery petitions that were presented to congress in 1790, slaveholders in georgia and south carolina objected and threatened to "blow the trumpet of civil war". washington and congress responded with a series of racist measures: naturalized citizenship was denied to black immigrants; blacks were barred from serving in state militias; the southwest territory that would soon become the state of tennessee was permitted to maintain slavery; and two more slave states were admitted (kentucky in 1792 and tennessee in 1796). on february 12, 1793, washington signed into law the fugitive slave act, which overrode state laws and courts, allowing agents to cross state lines to capture and return escaped slaves. many free blacks in the north decried the law believing it would allow bounty hunting and the kidnappings of blacks. the fugitive slave act gave effect to the constitution's fugitive slave clause, and the act was passed overwhelmingly in congress (e.g. the vote was 48 to 7 in the house). on the anti-slavery side of the ledger, washington signed a reenactment of the northwest ordinance in 1789, which had freed all slaves brought after 1787 into a vast expanse of federal territory north of the ohio river, except for slaves escaping from slave states. that 1787 law lapsed when the new u.s. constitution was ratified in 1789. the slave trade act of 1794, which sharply limited american involvement in the atlantic slave trade, was also signed by washington. congress also acted on february 18, 1791, to admit the free state of vermont into the union as the 14th state as of march 4, 1791. national bank the president's house in philadelphia was washington's residence from 1790 to 1797 and later the residence of john adams until construction of the white house was completed in 1800. washington's first term was largely devoted to economic concerns, in which hamilton had devised various plans to address matters. the establishment of public credit became a primary challenge for the federal government. hamilton submitted a report to a deadlocked congress, and he, madison, and jefferson reached the compromise of 1790 in which jefferson agreed to hamilton's debt proposals in exchange for moving the nation's capital temporarily to philadelphia and then south near georgetown on the potomac river. the terms were legislated in the funding act of 1790 and the residence act, both of which washington signed into law. congress authorized the assumption and payment of the nation's debts, with funding provided by customs duties and excise taxes. hamilton caused controversy among cabinet members by advocating for the establishment of the first bank of the united states. madison and jefferson objected to the idea, but legislation creating the bank easily passed congress. jefferson and randolph insisted the federal government was going beyond its constitutional authority by establishing the new bank. hamilton argued the government could charter the bank under the implied powers granted by the constitution. washington sided with hamilton and signed the bank legislation on february 25, 1791. meanwhile, the rift between hamilton and jefferson became openly hostile. the nation's first financial crisis occurred in march 1792. hamilton's federalists exploited large loans to gain control of u.s. debt securities, causing a run on the national bank; the markets returned to normal by mid-april. jefferson believed hamilton was part of the scheme, despite hamilton's efforts to ameliorate, and washington again found himself in the middle of a feud. jefferson–hamilton feud jefferson and hamiltonthomas jeffersonalexander hamilton jefferson and hamilton adopted diametrically opposed political principles. hamilton believed in a strong national government requiring a national bank and foreign loans to function, while jefferson believed the states and the farm element should primarily direct the government; he also resented the idea of banks and foreign loans. to washington's dismay, the two men persistently entered into disputes and infighting. hamilton demanded that jefferson resign if he could not support washington, and jefferson told washington that hamilton's fiscal system would lead to the overthrow of the republic. washington urged them to call a truce for the nation's sake, but they ignored him. washington reversed his decision to retire after his first term to minimize party strife, but the feud continued after his re-election. jefferson's political actions, his support of freneau's national gazette, and his attempt to undermine hamilton nearly led washington to dismiss him from the cabinet; jefferson ultimately resigned his position in december 1793, and washington forsook him from that time on. the feud led to the well-defined federalist and republican parties, and party affiliation became necessary for election to congress by 1794. washington remained aloof from congressional attacks on hamilton, but he did not publicly protect him, either. the hamilton–reynolds sex scandal opened hamilton to disgrace, but washington continued to hold him in "very high esteem" as the dominant force in establishing federal law and government. whiskey rebellion in march 1791, at hamilton's urging, with support from madison, congress imposed an excise tax on distilled spirits to help curtail the national debt, which took effect in july. grain farmers strongly protested in pennsylvania's frontier districts; they argued that they were unrepresented and were shouldering too much of the debt, comparing their situation to excessive british taxation before the revolutionary war. on august 2, washington assembled his cabinet to discuss how to deal with the situation. unlike washington, who had reservations about using force, hamilton had long waited for such a situation and was eager to suppress the rebellion by using federal authority and force. not wanting to involve the federal government if possible, washington called on pennsylvania state officials to take the initiative, but they declined to take military action. on august 7, washington issued his first proclamation for calling up state militias. after appealing for peace, he reminded the protestors that, unlike the rule of the british crown, the federal law was issued by state-elected representatives. threats and violence against tax collectors, however, escalated into defiance against federal authority in 1794 and gave rise to the whiskey rebellion. washington issued a final proclamation on september 25, threatening the use of military force to no avail. the federal army was not up to the task, so washington invoked the militia act of 1792 to summon state militias. governors sent troops, initially commanded by washington, who gave the command to light-horse harry lee to lead them into the rebellious districts. they took 150 prisoners, and the remaining rebels dispersed without further fighting. two of the prisoners were condemned to death, but washington exercised his constitutional authority for the first time and pardoned them. washington's forceful action demonstrated that the new government could protect itself and its tax collectors. this represented the first use of federal military force against the states and citizens, and remains the only time an incumbent president has commanded troops in the field. washington justified his action against "certain self-created societies", which he regarded as "subversive organizations" that threatened the national union. he did not dispute their right to protest, but he insisted that their dissent must not violate federal law. congress agreed and extended their congratulations to him; only madison and jefferson expressed indifference. foreign affairs john jay negotiated the jay treaty in 1794. in april 1792, the french revolutionary wars began between great britain and france, and washington declared america's neutrality. the revolutionary government of france sent diplomat edmond-charles genêt to america, and he was welcomed with great enthusiasm. he created a network of new democratic-republican societies promoting france's interests, but washington denounced them and demanded that the french recall genêt. the national assembly of france granted washington honorary french citizenship on august 26, 1792, during the early stages of the french revolution. hamilton formulated the jay treaty to normalize trade relations with great britain while removing them from western forts, and also to resolve financial debts remaining from the revolution. chief justice john jay acted as washington's negotiator and signed the treaty on november 19, 1794; critical jeffersonians, however, supported france. washington deliberated, then supported the treaty because it avoided war with britain, but was disappointed that its provisions favored britain. he mobilized public opinion and secured ratification in the senate but faced frequent public criticism. the british agreed to abandon their forts around the great lakes, and the united states modified the boundary with canada. the government liquidated numerous pre-revolutionary war debts, and the british opened the british west indies to american trade. the treaty secured peace with britain and a decade of prosperous trade. jefferson claimed that it angered france and "invited rather than avoided" war. relations with france deteriorated afterward, leaving succeeding president john adams with prospective war. james monroe was the american minister to france, but washington recalled him for his opposition to the treaty. the french refused to accept his replacement charles cotesworth pinckney, and the french directory declared the authority to seize american ships two days before washington's term ended. native american affairs seneca chief red jacket was washington's peace emissary with the northwestern confederacy. battle of fallen timbers by r. f. zogbaum (1896), depicting the battle of fallen timbers, the final battle of the northwest indian war. the ohio country was ceded to the united states after its victory in this battle. ron chernow describes washington as always trying to be even-handed in dealing with the natives. he states that washington hoped they would abandon their itinerant hunting life and adapt to fixed agricultural communities in the manner of white settlers. he also maintains that washington never advocated outright confiscation of tribal land or the forcible removal of tribes and that he berated american settlers who abused natives, admitting that he held out no hope for pacific relations with the natives as long as "frontier settlers entertain the opinion that there is not the same crime (or indeed no crime at all) in killing a native as in killing a white man." by contrast, colin g. calloway writes that, "washington had a lifelong obsession with getting indian land, either for himself or for his nation, and initiated policies and campaigns that had devastating effects in indian country." "the growth of the nation," galloway has stated, "demanded the dispossession of indian people. washington hoped the process could be bloodless and that indian people would give up their lands for a "fair" price and move away. but if indians refused and resisted, as they often did, he felt he had no choice but to "extirpate" them and that the expeditions he sent to destroy indian towns were therefore entirely justified." during the fall of 1789, washington had to contend with the british refusing to evacuate their forts in the northwest frontier and their concerted efforts to incite indian tribes to attack american settlers. the northwest tribes under miami chief little turtle allied with the british army to resist american expansion, and killed 1,500 settlers between 1783 and 1790. as documented by harless in 2018, washington declared that, "the government of the united states are determined that their administration of indian affairs shall be directed entirely by the great principles of justice and humanity", and provided that treaties should negotiate their land interests. the administration regarded powerful tribes as foreign nations, and washington even smoked a peace pipe and drank wine with them at the philadelphia presidential house. he made numerous attempts to conciliate them; he equated killing indigenous peoples with killing whites and sought to integrate them into european american culture. secretary of war henry knox also attempted to encourage agriculture amongst non-agriculturalist tribes. in the southwest, negotiations failed between federal commissioners and raiding indian tribes seeking retribution. washington invited creek chief alexander mcgillivray and 24 leading