That same year, the Washington administration concluded the Treaty of San Lorenzo with Spain, settling borders disputes and granting American ships unrestricted navigation rights on the Mississippi River.
[5] Robert Morris, appointed as superintendent of finance in 1781, won passage of major centralizing reforms such as the partial assumption of state debts, the suspension of payments to military personnel, and the creation of the Bank of North America.
However, British trade with Prussia was too important to lose, and there was risk of attack from Austria, so he pursued a peace policy and officially maintained strict neutrality.
[39] In March 1778, Gérard de Rayneval sailed to America with d'Estaing's fleet; he received his first audience of Congress on August 6, 1778, as the first accredited Minister from France to the United States.
[citation needed] Spain was not an ally of the United States, (although an informal alliance had existed since at least 1776 between the Americans and Bernardo de Gálvez, Spanish governor of Louisiana, one of the most successful leaders in the entire war).
[46] Empress Catherine II of Russia began the first League with her declaration of Russian armed neutrality on 11 March (28 February, Old Style), 1780, during the War of American Independence.
[citation needed] After the American victory at the Battle of Yorktown in September 1781 and the collapse of British Prime Minister North's ministry in March 1782, both sides sought a peace agreement.
The treaty granted the United States independence, as well as control of a vast region south of the Great Lakes and extending from the Appalachian Mountains west to the Mississippi River.
The 1784 closure of the Mississippi River by Spain denied access to the sea for the exports of Western farmers, greatly impeding efforts to settle the West, and they provided arms to Native Americans.
However, Congress lacked the power to regulate foreign commerce or compel the states to follow a unified trade policy, and Britain proved unwilling to negotiate.
The American public, remembering the aid provided by the French during the Revolutionary War, was largely enthusiastic, and hoped for democratic reforms that would solidify the existing Franco-American alliance and transform France into a republican ally against aristocratic and monarchical Great Britain.
[65] Shortly after the Bastille fell, the main prison key was turned over to the Marquis de Lafayette, a Frenchman who had served under Washington in the American Revolutionary War.
[66] In the Caribbean, the revolution destabilized the French colony of Saint-Domingue (present-day Haiti), as it split the government into royalist and revolutionary factions, and aroused the people to demand civil rights for themselves.
[67] Soon after the revolt began, the Washington administration, at French request, agreed to send money, arms, and provisions to Saint-Domingue to assist distressed slave-owning colonists.
Then followed a period labeled by some historians as the "Reign of Terror," between the summer of 1793 and the end of July 1794, during which 16,594 official death sentences were carried out against those accused of being enemies of the revolution.
[76][77] Hamiltonians warned that Jefferson's Republicans would replicate the terrors of the French revolution in America – "crowd rule" akin to anarchy, and the destruction of "all order and rank in society and government.
"[78] Although President Washington sought to avoid any and all foreign entanglements,[79] a sizable portion of the American public was ready to help the French and their fight for "liberty, equality, and fraternity."
[91] Many Jeffersonians in Congress demanded a declaration of war, but Congressman James Madison instead called for strong economic retaliation, including an embargo on all trade with Britain.
[92] Further inflaming anti-British sentiment in Congress, news arrived while the matter was under debate that the Governor General of British North America, Lord Dorchester, had made an inflammatory speech inciting Native tribes in the Northwest Territory to resist American settler encroachment.
[103] Protests, organized by Republicans, included petitions, incendiary pamphlets, and a series of public meetings held in the larger cities, each of which addressed a memorial to the president.
[103] Through it all, Washington responded to his critics by using his prestige, political skills, and the power of office in a sincere and straightforward fashion to broaden public support for his stance.
[114][115] Adams hoped to maintain friendly relations with France, and he sent a delegation to Paris, consisting of John Marshall, Charles Cotesworth Pinckney and Elbridge Gerry, to ask for compensation for the French attacks on American shipping.
[122] In light of the threat of invasion from the more powerful French forces, Adams asked Congress to authorize a major expansion of the navy and the creation of a twenty-five thousand man army.
Americans had long recognized the importance of navigation rights on the Mississippi River, as it was the only realistic outlet for many settlers in the trans-Appalachian lands to ship their products to other markets, including the Eastern Seaboard of the United States.
As Spain's prime minister, Manuel de Godoy, was attempting to do so, he learned of John Jay's mission to London, and became concerned that those negotiations would result in an Anglo-American alliance and an invasion of Spanish possessions in North America.
Sensing the need for rapprochement, Godoy sent a request to the U.S. government for a representative empowered to negotiate a new treaty; Washington sent Thomas Pinckney to Spain in June 1795.
[149] The final treaty also voided Spanish guarantees of military support that colonial officials had made to Native Americans in the disputed regions, greatly weakening those communities' ability to resist encroachment upon their lands.
Shortly after Adams took office, Senator William Blount's plans to drive the Spanish out of Louisiana and Florida became public, causing a deterioration in relations between the U.S. and Spain.
Many in the Continental Congress wanted to keep the ship in active service, but the lack of funds for repairs and upkeep, coupled with a shift in national priorities, eventually prevailed over sentiment.
[153] Soon afterward, Congress also authorized funds to obtain a treaty with Algiers and to ransom Americans held captive (199 were alive at that time, including a few survivors from the Maria and the Dauphin).