this also met with great
opposition in Congress among the anti-Federalists and the partisans of
Jefferson, fearful and jealous of a moneyed power. In the end the
measures which Hamilton suggested were generally adopted, and the good
results were beginning to be seen, but the financial position of the
country for several years after the formation of the Federal government
was embarrassing, if not alarming.

Again, there was no national capital, and Congress, which had begun its
labors in New York, could not agree upon the site, which was finally
adopted only by a sort of compromise,--the South accepting the financial
scheme of Hamilton if the capital should be located in Southern
territory. All the great national issues pertaining to domestic
legislation were in embryo, and no settled policy was possible amid so
many sectional jealousies.

It was no small task for Washington to steer the ship of state among
these breakers. No other man in the nation could have done so well as
he, for he was conciliatory and patient, ever ready to listen to reason
and get light from any quarter, modest in his recommendations, knowing
well that his training had not been in the schools of political economy.
His good sense and sterling character enabled him to surmount the
difficulties of his situation, which was anything but a bed of roses.

In the infancy of the republic the foreign relations of the government
were deemed more important and excited more interest than internal
affairs, and in the management of foreign affairs Jefferson displayed
great abilities, which Washington appreciated as much as he did the
financial genius of Hamilton. In one thing the President and his
Secretary of State were in full accord,--in keeping aloof from the
labyrinth of European politics, and maintaining friendly intercourse
with all nations. With a peace policy only would commerce thrive and
industries be developed, Both Washington and Jefferson were broad-minded
enough to see the future greatness of the country, and embraced the most
liberal views. Hence the foreign envoys were quietly given to understand
that the members of the American government were to be treated with the
respect due to the representatives of a free and constantly expanding
country, which in time would be as powerful as either England or France.

It was seen, moreover, that both France and England would take every
possible advantage of the new republic, and would seek to retain a