This document provides a summary of Chapter 3 from the textbook. It discusses the growing political divisions in the early 1790s between Alexander Hamilton and James Madison over financial policy, demonstrating Americans sharply disagreed over the powers of the new federal government. Events at home and abroad, like the French Revolution and Jay Treaty, further divided the population. Societies opposing Washington's administration organized across the country. Tensions escalated with the Whiskey Rebellion and repressive Alien and Sedition Acts, bringing the country close to civil war, but ultimately led to Thomas Jefferson's election in 1800.