When this unfortunate quarrel began (1793) Canada was in grave danger of being attacked by both the French and the American republics. The danger, however, had been greatly lessened by Jay's Treaty of 1794 and was to be still further lessened (1796) by the transfer of the Western Posts to the United States and by the presidential election which gave the Federal party a new lease of power, though no longer under Washington. Had Carleton remained in Canada these felicitous events would have offered him a unique opportunity of strengthening the friendly ties between the British and the Americans in a way which might have saved some trouble later on. But that was not to be. To understand the dangers which threatened Canada during the last three years of Carleton's rule we must go back to February 1793, when revolutionary France declared war on England and there then began that titanic struggle which only ended twenty-two years later on the field of Waterloo. The Americans were divided into two parties, one disposed to be friendly towards Great Britain, the other unfriendly. The names these parties then bore must not be confused with those borne by their political offspring at the present day. The Federals, progenitors of the present Republicans, formed the friendly party under Washington, Hamilton, and Jay. The Republicans, progenitors of the present Democrats, formed the unfriendly party under Jefferson, Madison, and Randolph. The Federals were in power, the Republicans in opposition. When the Republicans got into power in 1801 under Jefferson they pursued their anti-British policy till they finally brought on the War of 1812 under the presidency of Madison. The strength of the peace party lay in the North; that of the war party lay in the South. The peaceful Federals, now that Independence had been gained, were in favour of meeting the amicable British government half-way. When Pitt came into power in 1783 he at once held out the olive branch. Now, ten years later, the more far-seeing statesmen on both sides were preparing to confirm the new friendship in the practical form of Jay's Treaty, which put the United States into what is at present known as a most-favoured-nation position with regard to British trade and commerce. Moreover, Washington and his Northern Federals much preferred a British Canada to a French one, while Jefferson and the Southern Republicans thought any stick was good enough to beat the British dog with.