Adams, of course, knew quite well that such matters did not settle themselves, but he seems to have imagined that all he had to do was to sit tight and that matters would have to come his way. The tricky and shuffling behavior to which he descended would be unbelievable of a man of his standing were there not an authentic record made by himself. The suspense finally became so intolerable that the Cabinet acted without consulting the President any longer on the point. The Secretary of War submitted to his colleagues all the correspondence in the case and asked their advice. The Secretaries of State, of the Treasury, and of the Navy made a joint reply declaring "the only inference which we can draw from the facts before stated, is, that the President consents to the arrangement of rank as proposed by General Washington," and that therefore "the Secretary of War ought to transmit the commissions, and inform the generals that in his opinion the rank is definitely settled according to the original arrangement." This was done; but Knox declined an appointment ranking him below Hamilton and Pinckney. Thus, Adams despite his obstinacy, was completely baffled, and a bitter feud between him and his Cabinet was added to the causes now at work to destroy the Federalist party.

The Federalist military measures were sound and judicious, and the expense, although a subject of bitter denunciation, was really trivial in comparison with the national value of the enhanced respect and consideration obtained for American interests. But these measures were followed by imprudent acts for regulating domestic politics. By the Act of June 18,1798, the period of residence required before an alien could be admitted to American citizenship was raised from five years to fourteen. By the Act of June 25, 1798, the efficacy of which was limited to two years, the President might send out of the country "such aliens as he shall judge dangerous to the peace and safety of the United States, or shall have reasonable grounds to suspect are concerned in any treasonable or secret machinations against the government thereof." The state of public opinion might then have sanctioned these measures had they stood alone, but they were connected with another which proved to be the weight that pulled them all down. By the Act of July 14, 1798, it was made a crime to write or publish "any false, scandalous, and malicious" statements about the President or either House of Congress, to bring them "into contempt or disrepute," or to "stir up sedition within the United States."

There were plenty of precedents in English history for legislation of such character. Robust examples of it were supplied in England at that very time. There were also strong colonial precedents. According to Secretary Wolcott, the sedition law was "merely a copy from a statute of Virginia in October, 1776." But a revolutionary Whig measure aimed at Tories was a very different thing in its practical aspect from the same measure used by a national party against a constitutional opposition. Hamilton regarded such legislation as impolitic, and, on hearing of the sedition bill, he wrote a protesting letter, saying, "Let us not establish tyranny. Energy is a very different thing from violence."

But in general the Federalist leaders were so carried away by the excitement of the times that they could not practice moderation. Their zealotry was sustained by political theories which made no distinction between partisanship and sedition. The constitutional function of partisanship was discerned and stated by Burke in 1770, but his definition of it, as a joint endeavor to promote the national interest upon some particular principle, was scouted at the time and was not allowed until long after. The prevailing idea in Washington's time, both in England and America, was that partisanship was inherently pernicious and ought to be suppressed. Washington's Farewell Address warned the people "in the most solemn manner against the baneful effects of the spirit of party." The idea then was that government was wholly the affair of constituted authority, and that it was improper for political activity to surpass the appointed bounds. Newspaper criticism and partisan oratory were among the things in Washington's mind when he censured all attempts "to direct, control, counteract, or awe the regular deliberation and action of the constituted authorities." Hence judges thought it within their province to denounce political agitators when charging a grand jury. Chief Justice Ellsworth, in a charge delivered in Massachusetts, denounced "the French system-mongers, from the quintumvirate at Paris to the Vice-President and minority in Congress, as apostles of atheism and anarchy, bloodshed, and plunder." In charges delivered in western Pennsylvania, Judge Addison dealt with such subjects as Jealousy of Administration and Government, and the Horrors of Revolution. Washington, then in private life, was so pleased with the series that he sent a copy to friends for circulation.

Convictions under the sedition law were few, but there were enough of them to cause great alarm. A Jerseyman, who had expressed a wish that the wad of a cannon, fired as a salute to the President, had hit him on the rear bulge of his breeches, was fined $100. Matthew Lyon of Vermont, while canvassing for reëlection to Congress, charged the President with "unbounded thirst for ridiculous pomp, foolish adulation, and a selfish avarice." This language cost him four months in jail and a fine of $1000. But in general the law did not repress the tendencies at which it was aimed but merely increased them.

The Republicans, too weak to make an effective stand in Congress, tried to interpose state authority. Jefferson drafted the Kentucky Resolutions, adopted by the state legislature in November, 1798. They hold that the Constitution is a compact to which the States are parties, and that "each party has an equal right to judge for itself as well of infractions as of the mode and measure of redress." The alien and sedition laws were denounced, and steps were proposed by which protesting States "will concur in declaring these Acts void and of no force, and will each take measures of its own for providing that neither these Acts, nor any others of the general Government, not plainly and intentionally authorized by the Constitution, shall be exercised within their respective territories." The Virginia Resolutions, adopted in December, 1798, were drafted by Madison. They view "the powers of the federal Government as resulting from the compact to which the States are parties," and declare that, if those powers are exceeded, the States "have the right and are in duty bound to interpose." This doctrine was a vial of woe to American politics until it was cast down and shattered on the battlefield of civil war. It was invented for a partisan purpose, and yet was entirely unnecessary for that purpose.

The Federalist party as then conducted was the exponent of a theory of government that was everywhere decaying. The alien and sedition laws were condemned and discarded by the forces of national politics, and state action was as futile in effect as it was mischievous in principle. It diverted the issue in a way that might have ultimately turned to the advantage of the Federalist party, had it possessed the usual power of adaptation to circumstances. After all, there was no reason inherent in the nature of that party why it should not have perpetuated its organization and repaired its fortunes by learning how to derive authority from public opinion. The needed transformation of character would have been no greater than has often been accomplished in party history. Indeed, there is something abnormal in the complete prostration and eventual extinction of the Federalist party; and the explanation is to be found in the extraordinary character of Adams's administration. It gave such prominence and energy to individual aims and interests that the party was rent to pieces by them.

In communicating the X.Y.Z. dispatches to Congress, Adams declared: "I will never send another Minister to France without assurance that he will be received, respected, and honored, as the representative of a great, free, powerful, and independent nation." But on receiving an authentic though roundabout intimation that a new mission would have a friendly reception, he concluded to dispense with direct assurances, and, without consulting his Cabinet, sent a message to the Senate on February 18, 1799, nominating Murray, then American Minister to Holland, to be Minister to France. This unexpected action stunned the Federalists and delighted the Republicans as it endorsed the position they had always taken that war talk was folly and that France was ready to be friendly if America would treat her fairly. "Had the foulest heart and the ablest head in the world," wrote Senator Sedgwick to Hamilton, "been permitted to select the most embarrassing and ruinous measure, perhaps it would have been precisely the one which has been adopted." Hamilton advised that "the measure must go into effect with the additional idea of a commission of three." The committee of the Senate to whom the nomination was referred made a call upon Adams to inquire his reasons. According to Adams's own account, they informed him that a commission would be more satisfactory to the Senate and to the public. According to Secretary Pickering, Adams was asked to withdraw the nomination and refused, but a few days later, on hearing that the committee intended to report against confirmation, he sent in a message nominating Chief Justice Ellsworth and Patrick Henry, together with Murray, as envoys extraordinary. The Senate, much to Adams's satisfaction, promptly confirmed the nominations, but this was because Hamilton's influence had smoothed the way. Patrick Henry declined, and Governor Davie of North Carolina was substituted. By the time this mission reached France, Napoleon Bonaparte was in power and the envoys were able to make an acceptable settlement of the questions at issue between the two countries. The event came too late to be of service to Adams in his campaign for reëlection, but it was intensely gratifying to his self-esteem.

Some feelers were put forth to ascertain whether Washington could not be induced to be a candidate again, but the idea had hardly developed before all hopes in that quarter were abruptly dashed by his death on December 14, 1799, from a badly treated attack of quinsy. Efforts to substitute some other candidate for Adams proved unavailing, as New England still clung to him on sectional grounds. News of these efforts of course reached Adams and increased his bitterness against Hamilton, whom he regarded as chiefly responsible for them. Adams had a deep spite against members of his Cabinet for the way in which they had foiled him about Hamilton's commission, but for his own convenience in routine matters he had retained them, although debarring them from his confidence. In the spring of 1800 he decided to rid himself of men whom he regarded as "Hamilton's spies." The first to fall was McHenry, whose resignation was demanded on May 5, 1800, after an interview in which—according to McHenry—Adams reproached him with having "biased General Washington to place Hamilton in his list of major-generals before Knox." Pickering refused to resign, and he was dismissed from office on May 12. John Marshall became the Secretary of State, and Samuel Dexter of Massachusetts, Secretary of War. Wolcott retained the Treasury portfolio until the end of the year, when he resigned of his own motion.

The events of the summer of 1800 completed the ruin of the Federalist party. That Adams should have been so indifferent to the good will of his party at a time when he was a candidate for reëlection is a remarkable circumstance. A common report among the Federalists was that he was no longer entirely sane. A more likely supposition was that he was influenced by some of the Republican leaders and counted on their political support. In biographies of Gerry it is claimed that he was able to accomplish important results through his influence with Adams. At any rate, Adams gave unrestrained expression to his feelings against Hamilton, and finally Hamilton was aroused to action. On August 1, 1800, he wrote to Adams demanding whether it was true that Adams had "asserted the existence of a British faction in this country" of which Hamilton himself was said to be a leader. Adams did not reply. Hamilton waited until October 1, and then wrote again, affirming "that by whomsoever a charge of the kind mentioned in my former letter, may, at any time, have been made or insinuated against me, it is a base, wicked, and cruel calumny; destitute even of a plausible pretext, to excuse the folly, or mask the depravity which must have dictated it."