While both Executive heads sought to remain out of the War of the First Coalition, the increase in piracy and lack of security for American merchant vessels causes King Henry I to reinstate the US Navy. The Maritime Security Institute, later the American Royal Naval Academy (ARNA) is first established as well.
The Jay Treaty is also negotiated, with more concessions being granted to Native tribes in order to garner their support against the British. British-American relations begin to ease, as well as Native relations. The British formally remove all troops from the Northwest Territory. Negations with Spain begin in order to open the port of New Orleans, needed to increase American trade in order to afford the growing military.
However, increased enforcement of tariffs targeting distilled spirits cause yet another insurrection. Resentment towards the tariffs had been unpopular since the signing in 1792, but hostilities turn violent. Washington and Henry both personally lead a federal force against the insurrection. After meeting with the rebel leaders, all are arrested without conflict to once again be pardoned several months later. This increases not only the popularity of the Federal Government as a whole, but also instills voting for Madison’s Democratic-Republican Party within the frontier as opposed to armed rebellion. Hamilton is able to direct this conflict towards the Republicans, a sentiment that becomes voiced by Washington as well. King Henry chooses to not comment on blame, only urges unification under a single national identity.
Congress is able to pass the Slave Trade Act, denying American vessels to participate in the International Slave Trade, and banning slave exports from States. King Henry sparks outrage when he publicly states that he views slaves as people first, property second.