Many difficulties surrounded the first President and his advisers at the outset. The nation was deeply in debt, and its currency was a paper one. The people, oppressed for so many years by the burdens of an unequal war, were irritated by the necessarily heavy taxes. The Indians on the borders of the settled States were troublesome. And, to add to the embarrassments of our statesmen, the relations of the United States with the European powers were strained, and at times alarming. The two parties which had struggled to fashion the constitution continued to agitate the country in a more bitter rivalry than has been seen since, with the exception of the party excitement of the period just before the Rebellion. Their antagonism became more pronounced during Washington's presidency, by reason of the great European war then going on, which divided the sympathies of our people and politicians between France and England. [Sidenote: The Republicans.] On the one hand, the party which called itself "Republican," and at the head of which were Thomas Jefferson, Samuel Adams, James Madison, Edmund Randolph, and Patrick Henry, were zealous friends of the French Revolution. They regarded that great convulsion as a desperate attempt on the part of our recent allies to found a republic like that of the United States; and they were in favor of extending the French our aid and sympathy, while the more eager went so far as to advocate our active participation in the war on behalf of France. On the other hand, the "Federalists," chief among whom were Washington, John Adams, Hamilton, and Jay, deplored the excesses of the French Revolutionists; thought their example rather to be avoided than emulated; and, with a still lingering affection for England despite her tyrannies, leaned to her side in the conflict which was so fiercely raging. [Sidenote: State Rights and a Central Government.] The cabinet itself was divided between these two parties. Jefferson, the "Republican" leader, was Secretary of State; Hamilton, the "Federalist" leader, was at the head of the Treasury. On other than foreign subjects the antagonism of the two parties was distinctly defined. The Republicans were the stout defenders of what they called the rights of the States. The Federalists wished to make the central government as strong as possible. The Republicans favored strict economy, a democratic simplicity of manners and costumes, and opposed official ceremony and formality. The Federalists were the aristocratic party, elegant and patrician in their tastes, sticklers for etiquette and state. Hamilton and Washington were freely charged by the Republicans with being monarchists at heart. [Sidenote: Washington's State.]