John Jay’s summoning of a special session of the New York state legislature in July 1798 initiated his formal response to the deteriorating relations with France and the public furor over the French demands for bribes, loans, and United States assumption of liability for losses resulting from French seizures of American ships and cargoes that came to be known as the XYZ affair.

In 1797 the French government under the Directory, having interpreted the Jay Treaty as an American alliance with Great Britain, authorized the seizure of all ships carrying British goods. Over three hundred American ships were seized, primarily in the West Indies. John Adams appointed Charles Cotesworth Pinckney of South Carolina to replace James Monroe as minister to France, but when he arrived in November 1796 the French government refused to recognize or admit him. Pinckney retired to Amsterdam to await further instructions. Adams learned of this in March 1797 and called a special session of Congress to meet on 15 May 1797 to consider further negotiations and respond to the French ship seizures. In an address to Congress on 16 May, Adams called for “a fresh attempt” at negotiation “to adjust all our differences with France,” together with “effectual measures of defense”. Federalists were supportive, but Republicans were opposed to any defensive actions against France as a threat to peace. In July 1797 Adams added Elbridge Gerry of Massachusetts and John Marshall of Virginia to Pinckney as a commission to seek further negotiations, and Congress adjourned. Adams went home to Massachusetts and did not return to Philadelphia until November 1797 after the yellow fever epidemic abated.1

By the time the commissioners arrived in Paris in October 1797, Talleyrand had become foreign minister, and an anti-American faction had seized power in the Directory. Talleyrand sent to the commissioners private agents who demanded as the price for opening negotiations a douceur or bribe for Talleyrand of $250,000, a low-interest loan of $10 million in compensation for Adams’s alleged insult to France in his speech before Congress of 16 May 1797, and American assumption of compensation to American merchants for French seizures of ships and cargoes. While such demands were not uncommon in Europe, the American commissioners considered the proposals not merely corrupt but a demand for tribute and an insult to American dignity and independence. They refused to make any payments in advance of negotiations. Discussions were broken off on 1 November, and Pinckney and Marshall returned to the United States, while Gerry, in an effort to avoid immediate war, remained in France in the hope of reopening negotiations.

The commissioners’ dispatches explaining the situation, most of which were in code, arrived in Philadelphia on 4 March 1798. Adams sent the un-encoded dispatch dated 8 January to Congress on 5 March, and on 19 March sent a message reporting the failure of the mission to Congress and calling for defense measures. He revealed that the Directory had declared all French ports closed to neutral shipping and that any ship carrying English goods was subject to French capture.2 However, even after the more comprehensive reports on the French demands were deciphered, Adams decided not to reveal the details to Congress because of their inflammatory nature. Republicans in Congress, convinced that Adams sought war with France, assumed that he was withholding information favorable to France. On 2 April, they demanded that copies of Adams’s instructions to the commissioners and of all their dispatches be submitted to Congress. Adams complied on 3 April and forwarded additional material on 4 May.3

The news of the behavior of the French agents infuriated Congress, and once communicated to the public, aroused much of the nation, and prompted hundreds of addresses in support of Adams from state and local governments and other public bodies.4 Both Congress and various states began taking action to strengthen American defenses and thwart the influence of France and its supporters. Congress authorized the arming of American merchant ships and the acquisition of twelve frigates for a revived United States navy, created a provisional army of ten thousand men, and made other military appropriations for harbor fortifications and cannon foundries. On 7 July 1798 Congress annulled the Treaty of Alliance with France of 1778, and authorized attacks on French warships in American waters. Federalists questioned the loyalty of pro-French Republicans, resulting in the passage of the Alien and Sedition Acts, measures that Adams had not proposed but did sign when passed. The period of residence required for citizenship was raised from five to fourteen years, and Congress required the registration of aliens and authorized the president to expel any foreigner considered dangerous. False, scandalous, and malicious writings against the government were made punishable by fine and imprisonment.5 What became known as the Quasi-War with France was fought between American and French vessels, largely in the Caribbean. Some Republicans, particularly Albert Gallatin and Thomas Jefferson, continued to insist that the demands of the French agents, whose names were withheld in the dispatches sent to Congress, and referred to simply as X, Y and Z, did not represent official French government policy.6

Jay, like most Federalists, and indeed much of the nation, was indignant about the news of French actions. On 21 March 1798, he questioned the wisdom of adjourning the legislature until more was known about the seriousness of the situation and defense measures were taken. However, when no further news arrived quickly, the legislature adjourned on 6 April.7 Correspondence with Timothy Pickering and others kept Jay informed of the foreign affairs news as it arrived.8 Not until after Jay had secured reelection and received additional information from federal officials did he take official action on the threat. On 2 July he summoned the legislature to meet at Albany on 9 August to take action for the defense of New York.9

In the interim, however, he had privately expressed his reaction to the XYZ affair. In a letter to Pickering of 13 May 1798 discussing the proposed revisions to the naturalization act, Jay reiterated his customary fear of foreign influence and suggested barring all foreigners from holding state or national office, appointed or elective, although he would allow presidential appointment of foreigners to military positions with the consent of the Senate.10 His private correspondence informed him of the responses to the XYZ affair in New York, including the preparation of public addresses by various organizations, generally Federalist, supporting Adams and condemning French policy.

Once the legislature convened Jay referred the published records related to the XYZ affair to it, and addressed it on 9 August supporting Adams and recommending defense measures to supplement those of the federal government.11 On 10 August he submitted to the legislature a proposal from the Massachusetts legislature for a constitutional amendment barring foreigners from holding office as vice president, senator or representative.12 The legislature responded with an address in support of Adams similar to those already adopted by other states. Jay forwarded the address to the president with an effusive cover letter praising Adams, to which Adams replied in kind.13 The legislature also appropriated $150,000 for defense measures, including harbor fortifications and expansion of the state militia. The state senate approved the proposed amendment limiting officeholding by foreigners, but the assembly did not, and no action was taken. Jay then turned his effort to implementing the military preparations.14

In September Washington was appointed commander in chief and insisted on his right to choose the principal officers, including Alexander Hamilton as his second in command.15 However, Elbridge Gerry arrived on 1 October 1798 and met with Adams on 4 October. Gerry indicated that Talleyrand was ready to negotiate. Adams hoped the new army might not be needed. He accepted the Federalist demand for appointment of a commission rather than a single envoy to conduct further negotiations. William Vans Murray, Oliver Ellsworth, and William Richardson Davie (later replaced by John Marshall) were selected as commissioners. Jay, like most Federalists, remained skeptical of French intentions, fearing French ambitions for conquest in the Americas as well as in Europe.16 However, war fever gradually died down.

The negotiators annulled the treaty of alliance with France of 1778 and negotiated a new agreement based on the 1776 Model Treaty. The resulting Convention of 1800, also known as the Treaty of Mortefontaine, was ratified by the Senate on 18 December 1801, after a delay caused by opposition to the treaty’s failure to obtain compensation for French ship seizures.