During Washington's second administration, and under that of John Adams, Federalist domestic policies were given a chance to prove themselves. The young nation's economy was established on a sound basis, while the governmental structure was expanded and an honest and efficient administrative system was developed. In foreign affairs, however, trouble with France led to virtual warfare in 1798. It led also to the Alien and Sedition Acts, passed by the Federalist-controlled Congress ostensibly in response to hostile actions of the French Revolutionary government but actually designed to destroy the Jeffersonians. John Adams, who was a moderate and honest man, followed the course he considered wise, and by rejecting Hamilton's extreme desires, he caused something of a division in the Federalist ranks.
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