The first major event in the Federalist Era occurred in 1789 when the Judiciary Act was passed. In this Act, the Congress formed the lower federal courts and the Supreme Court. It also helped Congress take the first steps in creating a strong and national government. In the 1790s, two political parties formed after Americans started disagreeing and taking side on problems. In 1791, two major events happened. First of all, the Bill of Rights was added to the Constitution. Second of all, a national bank, also known as the Bank of the United States, was built. During 1793, Washington proclaimed neutrality, meaning it prohibited the American citizens to fight in the war between France and Britain. Then in 1794, in the Whiskey Rebellion, the farmers protested against the tax collectors when a bill was approved that had special tax on alcoholic beverages. Also occurring in 1794 was the Battle of the Fallen Timbers. In the Battle of the Fallen Timbers, the Native Americans tried to make all settlers north of the Ohio river leave, but eventually agreed to give up most of the territory in Ohio. A third major event happened in 1794. After having major problems with Great Britain, Washington sent John Jay to negotiate with them as a last hope. Jay then created a treaty with the British stating they had to agree to evacuate their forts on American soil, to pay for their damages, and to allow British colonies and American ships to trade, therefore coming up with Jay's Treaty. In 1796, after eight years of serving as president, Washington retired with a "Farewell Address" stating that two four-year terms should be the maximum amount of years a president should serve and he also gave good advice to the young republic during his speech. Then in 1796, France got very angry at the United States because they thought America was helping the British. They sent three agents over demanding money which greatly angered our president John Adams. This accident became known as the XYZ Affair. In 1798, the Alien and Sedition Acts passed. This act was passed because the citizens of the United States were worried about illegal immigrants. It added laws to protect the nation's security. The last major event that happened in the Federalist Era was the Virginia and Kentucky Resolutions of 1798 and 1799. They claimed that the Alien and Sedition Acts couldn't proceed because they violated the Constitution. Soon after this occurred, peace with France was made and Thomas Jefferson was ready to become our third president.