With tempers so dangerously high and fears that political dissent was akin to treason, Federalist leaders moved to muffle the opposition. In mid-1798, Congress passed the Sedition Act, which not only made conspiracy and revolt illegal but also criminalized any speech or words that defamed the president or Congress. One Federalist warned of the threat that existed “to overturn and ruin the government by publishing the most shameless falsehoods against the representatives of the people.” In all, twenty-five men, almost all Republican newspaper editors, were charged with sedition; twelve were convicted.

Congress also passed two Alien Acts. The first extended the waiting period for an alien to achieve citizenship from five to fourteen years and required all aliens to register with the federal government. The second empowered the president in time of war to deport or imprison without trial any foreigner suspected of being a danger to the United States. The clear intent of these laws was to harass French immigrants already in the United States and to discourage others from coming.

Republicans strongly opposed the Alien and Sedition Acts on the grounds that they were in conflict with the Bill of Rights, but they did not have the votes to revoke the acts in Congress, nor could the federal judiciary, dominated by Federalist judges, be counted on to challenge the acts. Jefferson and Madison turned to the state legislatures, the only other competing political arena, to press their opposition. Each man anonymously drafted a set of resolutions condemning the acts and convinced the legislatures of Virginia and Kentucky to present them to the federal government in late fall 1798. The Virginia and Kentucky Resolutions tested the novel argument that state legislatures have the right to judge and even nullify the constitutionality of federal laws, bold claims that held the risk that one or both men could be accused of sedition. The resolutions in fact made little dent in the Alien and Sedition Acts, but the idea of a state’s right to nullify federal law did not disappear. It would resurface several times in decades to come, most notably in a major tariff dispute in 1832 and in the sectional arguments that led to the Civil War.

Amid all the war hysteria and sedition fears in 1798, President Adams regained his balance. He was uncharacteristically restrained in pursuing opponents under the Sedition Act, and he finally refused to declare war on France, as extreme Federalists wished. No doubt he was beginning to realize how much he had been the dupe of Hamilton. He also shrewdly realized that France was not eager for war and that a peaceful settlement might be close at hand. In January 1799, a peace initiative from France arrived in the form of a letter assuring Adams that diplomatic channels were open again and that new peace commissioners would be welcomed in France.

Adams accepted this overture and appointed new negotiators. By late 1799, the Quasi-War with France had subsided, and in 1800 the negotiations resulted in a treaty declaring “a true and sincere friendship” between the United States and France. But Federalists were not pleased; Adams lost the support of a significant part of his own party and sealed his fate as the first one-term president of the United States.

The election of 1800 was openly organized along party lines. The self-designated national leaders of each group met to handpick their candidates for president and vice president. Adams’s chief opponent was Thomas Jefferson. When the election was finally over, President Jefferson mounted the inaugural platform to announce, “We are all republicans, we are all federalists,” an appealing rhetoric of harmony appropriate to an inaugural address. But his formulation perpetuated a denial of the validity of party politics, a denial that ran deep in the founding generation of political leaders.

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