Image Source: White House Historical Association. The XYZ Affair was a diplomatic scandal between France and the United States caused by French officials trying to bribe American diplomats in 1797. When the scandal was exposed, anti-French sentiment rose in America, and the slogan “Millions for defense but not one cent for tribute” became popular.

The XYZ Affair, a diplomatic scandal between the United States and its former ally France from 1797 to 1798, had significant impacts on American history. France was the United States’ first and longest-standing ally.

When word of the French demands reached the United States, it caused an uproar and prompted calls for war. After some members of Congress asked to see the diplomats’ reports regarding what had transpired in France, Adams handed them over with the names of the French agents replaced with the letters X, Y and Z; thus the name XYZ Affair.

Perhaps the most significant aspect of the XYZ affair was how it turned into a primary cause of the Alien and Sedition Acts. With war with France impending, the Federalists in Congress worried about potential dissent from citizens and foreigners living within the nation.