John Jay rescued the country the second time by using his great negotiating techniques

John Jay received a promotion from President George Washington to become the first Chief Justice of the Supreme Court in 1789. The British were causing problems once more because they were preventing American exports and holding onto territories that they had promised to release. Jay was appointed Chief of Justice by Washington in order to improve their tense relationship, leading to the establishment of The Treat of Jay.

The Jay Treaty was delivered to Philadelphia in March 1795. John Jay lost most of his authority when Hamilton, in an effort to maintain tenseless relations, told Britain that the United States would not support the Danish and Swedish governments in defending their neutrality. The treaty gave the United States "most favored nation" status and removed British sovereignty over its northwest forts. The British West Indies will now only have limited economic access thanks to the U.S.

The Americans disliked this arrangement because they thought it gave Britain what it sought. Democrats and Republicans felt that American interests had been betrayed, and they were furious about it. Between the two powers, a new war was ready to start, but Jay's deal effectively prevented it.