The Rise of Party Politics
A.P. U.S. History
Mr. Krueger
Differing Views
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Political Parties began to take shape at this
time.
Jeffersonians and Federalists
They differed on the transition from an
agricultural society to an industrial
society.
The Federalists encouraged rapid change.
They stated a modern economy must
have strong institutions directed by
social elite who understood the financial
challenge.
Public Opinion
Jeffersonians put their faith in the
common people who they felt could be
trusted to sustain the virtue of the
republic
 Sides – A. Hamilton vs. TJ – James Madison
 Both would have to live with public
opinion
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Establishing Government
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Washington enjoyed great popularity in
the nation.
◦ Washington was selected president, J. Adams
as VP.
Washington carried great responsibility
and was trusted with the nation’s stability.
 He carried himself with dignity and
reserve.
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Discussion
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French reference to the inauguration –
“Washington has the soul, look, and figure
of a hero united in him.”
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What does this say about Washington, is
he still viewed like this today?
Washington’s Presidency
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Washington created a strong independent
presidency – he made the decisions.
The 1st Congress established executive
departments, but Washington and J.
Madison led a successful fight against the
control of the president’s authority.
1789 Congress established:
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Department of War – Henry Knox
Department of State – TJ
Department of Treasury – A. Hamilton
All were nominated by Washington
Edmund Randolph served as a temporary
Attorney General
State and Judicial
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TJ and small staff –
◦ Maintain foreign contact, collect information on world
affairs, communicate with U.S. officials overseas,
organized the federal census.
Congress provided for a federal court system
 Judiciary Act of 1789 – authored by Oliver
Ellsworth (Conn.)
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◦ He created a Supreme Court staffed with a justice
and five associates.
◦ Established 13 district courts to oversee state courts.
◦ John Jay – Chief Justice
◦ Due to demands of time and travel distance few were
drawn with outstanding talents to be justices with Jay.
Discussion
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For financial purposes the Tariff of 1789
placed a 5% tax on imported goods.
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Do we have executive departments
today?
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Can you name any?
Jefferson and Hamilton
Served with distinction during the
Revolution
 Men of genius and ambition
 Vision of American greatness
 Decade of the 1790’s presented opposing
views when it came to republicanism
(prelude to political parties)
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Alexander Hamilton
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Hamilton sought reputation not wealth
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Favored a strong central government
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Would not be bound by the wording of
the Constitution (loose constructionist)
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Admired the British culture and sought
commercial and diplomatic ties
Thomas Jefferson
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Reflective and shined less brightly.
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Not motivated by wealth and power, but
promoted the democratic principles of the
Declaration of Independence.
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TJ had just returned from France where he
witnessed the start of the French
Revolution.
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TJ was more partial towards France than
Britain.
Hamilton’s Outlook
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They opposed each other, but shared fundamental
beliefs: a strong prosperous republic.
Both were different types of republicans who
attempted to cope with political challenges.
Hamilton sought bold commercial developments
(farms – factories)
Hope to reduce the need for foreign trade
His view of human nature led him to oppose pure
democracy
He felt the best hope for survival lay in the hands
of the wealthy
Jefferson’s Vision
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Challenged Hamilton on many issues
Felt the countries strength lies in agricultural
production not industrial potential.
Argued those in farming were more responsible
citizens than those who worked in the factories.
He encouraged the nation’s farmers to participate
in international markets.
TJ had faith in America to shape policy and make
decisions.
Feared uncontrolled government power might
destroy liberty.
The greatest threat was from pseudo aristocrats
who placed emphasis on property and power, not
liberty.
Hamilton and Jefferson
Financial Policy
A. Hamilton will take responsibility for shaping
financial policy
 Hamilton Grand Design –
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◦ August 1, 1789 the House of Reps stated, public debt will
become a matter of huge importance
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Hamilton devised a complicated plan on:
◦ Public Credit
◦ Banking
◦ Manufacturing
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Presentation to Congress – Report on the Public
Credit
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U.S. Debt $54 million
Foreign Loans
Government Banks
State debt to creditors ($40 Million)
Funding and Assumption
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In his reports he stated:
◦ U.S. would fund foreign and domestic obligations at
face value
◦ Federal government must pay state debts
He felt this would reduce the power of the
individual states in shaping economic policy
 Fully funded economic debt brought true
independence to the U.S.
 J. Madison (Hamilton’s Co-writer of “the
Federalist”) attacked his plan in the House of
Reps. He felt the wealthy were only benefiting in
Hamilton’s policies. (Keep in mind he was
Hamilton’s friend.)
 J. Madison was defeated in Congress
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Problems
Problem for Hamilton is some states paid
their war debts, and his policies rewarded
those states whose finances were in disarray
– Massachusetts and South Carolina
 Hamilton found support for his program by
moving the capital to the Potomac River
which would stimulate the economy in
northern VA
 G. Washington signed Hamilton’s assumption
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Bank of the United States
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Hamilton’s 2nd report to Congress included a
charter for a national bank
Privately owned, but federally funded
A growing financial nation needed a central bank
J. Madison opposed a financial institution that had
monetary control (it was modeled after British
institution)
The Constitution stated nothing about financial
corporations
This opposition, Hamilton stated, must be killed
or it will kill the Constitution
Washington gets involved
Washington was unsure on his support of
the bank
 Hamilton prepared an essay “Defense of
the Constitutionality of the Bank”
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◦ It stated Congress shall have power in
taxation, commerce, and war. Implied powers
also existed
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Washington – signed the bank bill Feb. 25,
1791
Hamilton Setback
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Planned to stimulate manufacturing
Protective Tariff
◦ Bounties
◦ J. Madison – T. Jefferson rallied against Hamilton on moral
and political grounds
◦ Fought against the consolidation of federal powers that
would control state governments
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Madison became a spokesman for the states
TJ attacked Hamilton at a different angle
◦ The government shouldn’t promote manufacturing; it
promotes cities that in turn promote vice
◦ Report of Manufacturing was defeated in the House
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Washington tried to bring Hamilton and Jefferson
together without success
◦ The two moved in the direction of political parties
The Sides
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Jeffersonians:
◦ State rights
◦ Strict interpretation of the Constitution
◦ Friendship with France
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Federalists
◦ Strong National Government
◦ Public order – use of troops
◦ Close ties with Britain
Discussion
Are you a federalist or a jeffersonian?
 Why? (YES, YOU NEED TO PICK ONE!)
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The U.S. does not want to pick a side
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Britain treated the U.S. with arrogance - 1794
◦ 1000 British soldiers occupied American land
◦ British Navy controlled the sea
◦ 75% of imports came from Britain – BUT
 Britain refused full commercial reciprocity
 Britain blocked trade with western tribes
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France presented a different challenge
◦ King Louis XVI faced revolution due to economic
problems
◦ It cost him his life and bloody revolution followed
◦ Reign of Terror cost many lives via the Guillotine
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Americans were confused
◦ Federalists opposed the French Revolution
◦ Republicans didn’t support the violence but felt the people
had the right to spread “republicanism”
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1793 – France declares war on Britain
◦ It’s a war of all peoples, against all kings
Reign of Terror