Years of Crisis, 1792–1796

By 1792 Hamilton had succeeded in implementing his plan for U.S. economic development. Yet as Washington began his second term in the spring of 1793, signs of strain appeared throughout the nation. The French Revolution, which had begun to dissolve into chaos and terror, posed challenges to foreign trade and diplomacy. Reduced prices for western land fueled migration to the frontier, intensified conflicts between Indians and white settlers, and increased hostilities between the United States and Great Britain. Finally, the excise tax on whiskey inspired discontent among frontier farmers. This cluster of crises reinforced disagreements among Federalists, splitting them into warring factions during Washington’s second term.