As the nation's first president, George Washington set several precedents—creating a cabinet, directing foreign affairs, and serving as "chief legislator." His secretary of treasury, Alexander Hamilton, carried out a financial policy that restored the credit of the United States. Hamilton's program met with bitter opposition from people who believed that the federal government should not wield such power. These disagreements eventually led to the formation of the nation's first political parties: the Federalists and the Republicans. The Federalists favored a strong central government, while the Republicans wanted to grant more power to the citizens and states.
Under Washington, the defeat of the Native Americans in the Northwest opened the way for continued western settlement. In overseas matters, the United States adopted a policy of neutrality. To keep the peace, however, the country agreed to treaties with Britain and Spain.
John Adams, who succeeded Washington as the nation's leader, faced a difficult term in office. Adams's tenure was marked by the XYZ affair, undeclared war with France, and anti-Republican legislation that ultimately hurt Adams's Federalist party.
Thomas Jefferson served as the nation's third president. He favored a decreased role for the federal government in national affairs. However, much of the earlier Federalist legislation remained in effect. In addition, the Federalist Chief Justice John Marshall of the Supreme Court established the principle of judicial review.
A major event during Jefferson's presidency was the Louisiana Purchase, which doubled the size of the United States by extending its boundaries west of the Mississippi. Despite the threat of foreign attacks on American ships, Jefferson tried to remain neutral on foreign affairs. Under James Madison, Jefferson's successor, the United States fought an unpopular war against Britain, which ended in 1814 with the Treaty of Ghent.
