The Little Sarah, an English merchantman, had been captured by a French frigate and brought into the port of Philadelphia, where she was completely equipped as a privateer, and was just about to sail on a cruise, under the name of le Petit Democrat, when Hamilton communicated her situation to Jefferson and Knox, the Secretaries of State and of War; in consequence of which, Governor Mifflin was desired to cause an examination of the fact. The warden of the port was directed to institute the proper inquiries, and, late in the evening of the 6th of July, he reported her situation, and that she was to sail the next day.

In pursuance of the instructions which had been given by the President, the governor immediately sent Secretary Dallas for the purpose of prevailing on Genet to relieve him from the employment of force, by detaining the vessel in port until the arrival of Washington, who was then on his way from Mount Vernon. Mr. Dallas communicated this message to the French minister in terms as conciliatory as its nature would permit. On receiving it, he gave aloose to the most extravagant passion. After exclaiming with vehemence against the measure, he complained, in strong terms, and with many angry epithets, of the ill treatment which he had received from some of the officers of the general government, which he contrasted with the cordial attachment that was expressed by the people at large for his nation. He ascribed the conduct of those officers to principles inimical to the cause of France and of liberty. He insinuated that, by their influence, Washington had been misled, and observed, with considerable emphasis, that the President was not the sovereign of this country. The powers of peace and war being vested in Congress, it belonged to that body to decide those questions growing out of treaties which might involve peace or war, and the President, therefore, ought to have assembled the national Legislature before he ventured to issue his proclamation of neutrality, or to prohibit, by his instructions to the State governors, the enjoyment of the particular rights which France claimed under the express stipulations of the treaty of commerce. The executive construction of that treaty was neither just nor obligatory, and he would make no engagement which might be construed into a relinquishment of rights which his constituents deemed indispensable. In the course of this vehement and angry declamation, he spoke of publishing his correspondence with the officers of government, together with a narrative of his proceedings, and said that, although the existing causes would warrant an abrupt departure, his regard for the people of America would induce him to remain here, amidst the insults and disgusts that he daily suffered in his official character from the public officers, until the meeting of Congress, and if that body should agree in the opinions and support the measures of the President, he would certainly withdraw, and leave the dispute to be adjusted between the two nations themselves. His attention being again called by Mr. Dallas to the particular subject, he peremptorily refused to enter into any arrangements for suspending the departure of the privateer, and cautioned him against any attempt to seize her, as she belonged to the republic, and, in defense of the honor of her flag, would unquestionably repel force by force.

On receiving the report of Mr. Dallas, Governor Mifflin ordered out 120 militia, for the purpose of taking possession of the privateer, and communicated the case, with all its circumstances, to the officers of the executive government. On the succeeding day, Jefferson waited on Genet, in the hope of prevailing on him to pledge his word that the privateer should not leave the port until the arrival of the President. The minister was not less intemperate with Jefferson than he had been with Dallas. He indulged himself in a repetition of nearly the same passionate language, and again spoke, with extreme harshness of the conduct of the executive. He persisted in refusing to make any engagements for the detention of the vessel, and, after his rage had in some degree spent itself, he entreated that no attempt might be made to take possession of her, as her crew was on board, and force would be repelled by force.

He then also said that she was not ready to sail immediately. She would change her position and fall down the river a small distance on that day, but was not yet ready to sail.

In communicating this conversation to Governor Mifflin, Jefferson stated his conviction that the privateer would remain in the river until the President should decide on her case, in consequence of which, the governor dismissed the militia, and requested the advice of the heads of departments on the course which it would be proper for him to pursue. Both the governor and Jefferson stated, that in reporting the conversation between Genet and himself, Dallas had said that Genet threatened, in express terms, "to appeal from the President to the people."

Thus braved and insulted in the very heart of the country, Hamilton and Knox were of opinion that it was expedient to take immediate measures for establishing a battery on Mud Island, under cover of a party of militia, with directions, that if the vessel should attempt to depart before the pleasure of the President should be known concerning her, military coercion should be employed to arrest her progress.

The Secretary of State dissenting from this opinion, the measure was not adopted. The vessel fell down to Chester before the arrival of Washington and sailed on her cruise before the power of the government could be interposed.

On the 11th of July (1793), Washington reached Philadelphia, and requested that the Cabinet ministers would convene at his house the next day at 9 in the morning.

Among the important papers placed in his hands, which required immediate attention were those which related to the Little Democrat. On reading them, a messenger was immediately dispatched for Jefferson, but he had retired, indisposed, to his seat in the country. Upon hearing this, the President instantly addressed a letter to him, of which the following is an extract:

"What is to be done in the case of the Little Sarah, now at Chester? Is the minister of the French republic to set the acts of this government at defiance with impunity and then threaten the executive with an appeal to the people? What must the world think of such conduct, and of the government of the United States in submitting to it?