Formation of Political Parties
 Hamilton got “assumption,” his excise tax on
Whiskey (don’t forget about the rebellion!), and his
bank. These helped to stabilize the American
economy.
Formation of Political Parties
 These things also encroached on states’ rights.
 The feud between Hamilton and Jefferson led to the
formation of two political parties!
Federalists vs. Democratic-Republicans.
Neutrality Proclamation of 1793
 The French Revolution broke out in 1789, eventually drawing much of
Europe into war.
 Jeffersonians supported helping the French, but many Federalists
(including Hamilton) felt that war must be avoided at all costs.
 Despite popular public opinion, Washington chose to stay out of the
war.
Jay Treaty
 As war between France and Britain raged, tensions flared
along the Canadian border and in the Caribbean.
 To avoid war, Washington sent John Jay to England to
negotiate for peace.
Jay Treaty
 The British agreed to back off, but the U.S. had to pay off pre-
Revolutionary War debts.
 The American public was furious. Jeffersonian mobs burned Jay in
effigy.
John Adams becomes 2nd President
 Washington decided to step down at the end of his
second term.
John Adams becomes 2nd President
 John Adams (Federalist) defeated Thomas Jefferson
(Democratic-Republican)
 Narrow margin (71 to 68 Electoral College votes).
Jefferson became Vice President.
Hostilities with France
 The Jay Treaty had infuriated France
 French warships began seizing American merchant vessels (around 300
by 1797).
 The French refused to receive diplomats from the U.S.
XYZ Affair
Adams negotiated and France
agreed to receive three diplomats.

When they arrived in Paris,
they were met by three
go-betweens referred to as
‘X’, ‘Y’, and ‘Z’

They demanded a bribe
of $250,000 just to allow
the Americans to speak with
France’s foreign minister
(Talleyrand)

XYZ Affair leads to “Quasi-War”
 War fever gripped America. Adams expanded the Navy. From 1798-
1800, France and the United States fought an undeclared war at sea.
 Tallyrand finally changed his mind and agreed to talk. Peace was
negotiated in the Convention of 1800.
John Adams
2nd President
Federalist
• Alien Act
• Sedition Act
Our infant Republic is fragile!
Our enemies, blinded by jealousy, wish us only harm.
We must protect ourselves from the voice of those would
damage this seedling institution.
Alien and Sedition Acts
 Extremely unpopular and constantly criticized, Adams
and the Federalists pushed through a series of oppressive
laws aimed at minimizing Jeffersonian foes.
 Aristocratic Federalists looked down on immigrants, who
tended to support the Democratic-Republicans
 The Alien Acts raised residence requirements for
citizenship from 5 years to 14 years.
 Also gave power to the president to deport or imprison
“dangerous foreigners” in times of crisis.
Alien and Sedition Acts
 Sedition Act undermined the First Amendment
(specifically freedom of speech and freedom of the
press)
 Anyone impeding the policies of the government or
falsely defaming its officials were now subject to a
heavy fine and imprisonment.
 Ten Jeffersonian newspaper editors were tried and
convicted under the Sedition Act
Compacts & States Rights & Nullification…
Oh My!
James
“Freedom”
Madison
Bring it,
Adams!
Thomas
“Liberty”
Jefferson
The only good
Federalist is a
dethroned
Federalist!
The Virginia & Kentucky
Resolutions
Kentuck
y
Virginia
Virginia and Kentucky Resolutions

In response to the Alien and Sedition Acts, Jefferson and Madison penned resolutions that were
passed by Kentucky and Virginia in 1798.

“Compact Theory” – States had entered into a compact (i.e. contract) with Federal Government.
Federal Government was thus the creation of the States.

Because water can rise no higher than its source, the states were the final judge of whether the Federal
Government oversteps its authority.

States have the right of “nullification” – i.e. refusal to accept unjustified Federal laws. States could
nullify laws within their borders.

No other states endorsed the Virginia and Kentucky Resolutions, but they provided a strong argument
for States’ Rights (an issue that would continue to be debated until the Civil War)
A New President
 John Adams ran for a second term in 1800 against
Jefferson
 Adams was the champion of a strong central
government, while Jefferson was the champion of
agrarian purity, liberty, and states’ rights.
 Jefferson won 73 to 65.
 The Federalist party faded away following Adams’ defeat
QUIZ!
TIME TO ROLL THE DICE!!!
Letters to the Editor
 Federalists: write a letter to the editor of your local
newspaper arguing in support of the Alien and
Sedition Acts
 Democratic-Republicans: write a letter to the editor
of your local newspaper arguing against the Alien
and Sedition Acts
Be sure to explain your position! (i.e. why are the laws
good or bad for the country, based on your point of
view)