The Federalist Era, 1789-1801
APUSH – Mr. Hesen
The United States @ 1790
• Population nearly 4
million people
• Doubling every 25 years
– 90% of Americans lived on
farms
– Few large towns existed
– 5% lived west of
Allegheny Mountains
• Finances of new nation were precarious
– Public debt was enormous
– Worthless paper money
– Foreign challenges by Britain and Spain
President Washington
– Elected unanimously by Electoral
College in 1789
– Only president to be honored by
unanimous vote
– Washington was highly respected
– Took oath of office on April 30,
1789 in New York City
– John Adams sworn in as vice
president
Washington’s Cabinet
– Sets precedent for executive today
– Part of the “unwritten constitution”
– Three full-fledged department heads:
• Secretary of State – Thomas Jefferson
• Secretary of the Treasury – Alexander Hamilton
• Secretary of War – Henry Knox
Bill of Rights
Priority #1
– Antifederalists criticized Constitution for not having BoR
– Many states ratified Constitution with the thought that
BoR would be included
– Amendments to Constitution
• 2/3 vote in Congress; 3/4 of states ratify
• Madison drafted first ten; based on George Mason’s
Judiciary Act of 1789
Organized the Supreme Court
– Chief Justice – John Jay
– Included five other justices
– Organized federal and district
courts
– Fatal provision: law stated that
SCUS could force presidential
appointments of judges
Hamilton’s Financial Plans
• Economic Goals (2):
– Report of Public Credit (1790)
• Plan to shape fiscal policy to favor
wealthiest groups
• Wealthy would then pay off debt
• “Trickle Down” to masses
– Report on Manufacturers (1791)
• Advocated a factory system in U.S.
• Exploit natural resources
• Basis for tariffs – protects domestic
industry
Five Components to Hamilton’s Plans
– Funding at Par
– Assumption of State Debts
– Tariffs
– Excise Taxes
– National Bank
Hamilton’s Financial Plans
• Funding at Par
– Purpose: Bolstering national credit
– Borrowed from bonds from Amer. Rev.
– Debt would be paid off at face value
– Farmers sold their bonds at far cheaper price b/c
they needed cash
– Totally unfair
• Assumption of State Debts
– Hamilton urged Congress to assume debts
– Further obligate states to federal govt.
– Heavily indebted states loved it – Massachusetts
– Compromise reached in 1790 – govt. assumed
state debts
– South got new federal district – Washington, DC
• Tariffs (custom duties)
– Revenues on foreign imports to U.S.
– Revenue Act of 1789 – imposed 8% tariff on
imports
• First law of its kind – protected young industry
• Excise Taxes
– 1791 – Congress passed excise tax on whiskey
– Backcountry distillers were the most affected by
tax
– Whiskey was so popular in this area it was used as
currency
– Most distillers were anti-federalist so Hamilton
didn’t care
Whiskey Rebellion (1794)
– Southwestern PA – hit hard by tax
– “Whiskey Boys” – posed challenge to federal govt.
– Torched buildings, tarred and feathered revenue officers,
possible secession from U.S.
– Washington sent 13,000 militia to stop revolt
– No casualties – showed that govt. could ensure domestic
tranquility
Hamilton’s Financial Plans
• National Bank
–
–
–
–
Foundation of Hamilton’s plan
Govt. would be a major stockholder
Treasury would deposit its surplus revenue in bank
Government would print paper money – more if
needed
– Madison and Jefferson strongly against National Bank
Hamilton v. Jefferson
• The Feuding Begins
– Began over National Bank
– Jefferson feared liberties would be jeopardized by National Bank
– “Strict construction” of USCON – didn’t stipulate a National
Bank (Jefferson)
– “Loose construction” of Constitution – broad interpretation of
USCON (Hamilton)
– Elastic clause provided for passing necessary and proper laws
– Washington signed bank measure into law (February 1791)
Hamilton’s Legacy
• Hamilton’s plan became the cornerstone of
America’s financial system
–
–
–
–
–
Strengthened govt. politically and financially
Established public credit
“Loose construction” paved the way for increase of federal power
Foreshadowed the first industrial revolution
Jeffersonian opposition – birth of the class system
Birth of the Party System
• Founding Fathers never
dreamed of political parties
– Opposition seemed disloyal; No
political parties ever existed
before
– By 1793 – two groups existed:
• Hamiltonian Federalists
• Jeffersonian Republicans
Birth of the Party System
• VERY IMPORTANT!!!
• Federalists in the 1780s were a faction who
supported the Constitution
• Federalists in 1790s were a political party
that embodied Hamilton’s plans
Birth of the Party System
• Federalists (Hamilton)
– Emerged from Federalists in Constitutional
era
– Believed in govt. by upper class
– Distrusted the common people
– Supported strong central govt.
– Encouraged businesses
– Pro-British foreign policy
Birth of the Party System
• Republicans (Jefferson)
– Advocated the rule of the people
– Appealed to middle classes
– Best government governed the
least
– National debt was curse to future
Americans
– Primarily agrarian (farmer class)
– Believed in freedom of speech to
expose tyranny
– Basically pro-French
Defeat of Amerindians in West
• Iroquois nation forced onto
reservations in NY and PA after
American Revolution
– Many fled to Canada
– No longer a major threat to U.S.
– Western Amerindians were
hostile towards frontiersmen
– Supported by British
Defeat of Amerindians in West
• Battle of Fallen Timbers (August 1794)
– Amerindians finally forced to abandon British allies
– Treaty of Greenville (1795) – cleared out 2/3 of Ohio
and Indiana of hostile tribes
– Britain abandoned forts along frontier
Federalist Foreign Policy
• French Revolution
– Major event that separated Federalists
and Republicans
– Republicans demanded to come to
France’s aid
– Washington’s Neutrality Proclamation
(1793)
• Announced neutrality in foreign conflicts
• Warned citizens to be impartial to Britain
AND France
Federalist Foreign Policy
• American Reaction to Proclamation
–
–
–
–
Jeffersonians outraged!
Washington did not consult Congress
Federalists supported it
Citizen Genet (French ambassador to U.S.)
• Recruited Americans to aid French cause in war
• Believed that neutrality did not work
• Washington demanded his withdrawal from U.S.
Federalist Foreign Policy
• America and France Benefited
– American exports were still delivered to W. Indies
– France did not ask U.S. to honor the FrancoAmerican alliance
– British navy would blockade U.S. coastline if
neutrality was broken
Federalist Foreign Policy
• Jay Treaty (1794)
– British navy seized U.S. ships in the Atlantic
– Impressment – Hundreds of American
sailors forced into service on British ships
– Federalists refused to go back to war
• U.S. depended on Britain for 75% of tariff
revenue
• Jefferson argued to embargo (stop trading)
with Britain
Federalist Foreign Policy
• Jay Treaty (cont.)
– Washington sent John Jay (Chief Justice of SCUS)
to London
– Jeffersonians thought that Jay would sell out the
U.S.
– Hamilton secretively alerted the British of Jay’s
strategy
• War with Britain would be disasterous
Federalist Foreign Policy
• Jay Treaty (cont.)
– Provisions
• British had to remove posts along the western frontier
• Promised to pay damages
• Refused to guarantee against future seizures of U.S.
ships
• U.S. forced to pay for pre-Revolution debts to British
merchants
Federalist Foreign Policy
• Jay Treaty (cont.)
– Jefferson was outraged (again…)
– South thought that North was working out
bargains with Britain
– Southerners were taxed to pay off debts
Federalist Foreign Policy
Pinckney Treaty (1795)
– Normalized relations with Spain
– Spain sought to appease the U.S.
– Fearful of the Franco-American
alliance
– Treaty provisions
• Spain granted free navigation of the
Mississippi River
• Yielded control of portions of Florida
Washington’s Farewell
• Washington reluctantly accepted a second
term
• Refused third term as president – set
precedent for two terms
Washington’s Farewell
• Review of Washington’s Precedents
– President relied on and consulted his cabinet
– Gained the right to choose his cabinet
– Two terms as president
– Did not overly abuse powers
Election of 1796
• John Adams (Federalist)
– Massachusetts politician
– Less controversial than Hamilton
• Thomas Jefferson (Democratic-Republican)
– Spoke out against Washington’s Federalist stances
with Jay Treaty and France
– Adams defeated Jefferson (71-68) – Jefferson
became vice president
“Quasi War” with France
• French provisional government
condemned Jay Treaty
• Began attacking U.S. ships
• Saw Jay Treaty:
– As an initial step towards
U.S./British alliance
– As a violation of Franco-American
alliance
XYZ Affair
• President Adams sent envoy to France
• U.S. delegates secretly approached by three agents (X, Y,
and Z)
– France demanded large loan and a bribe of $250,000 to speak to
prime minister Talleyrand
– Delegates (John Marshall) refused and left France
– Returned home as heroes
– War hysteria swept the U.S.
Undeclared Naval War (Quasi War)
• U.S. prepared for a naval war
• Navy Department was created – Marine Corps
too
• Adams suspended all trade with France
• Undeclared hostilities for two years (1798-1800)
• Adams sought to keep U.S. out of war
Convention of 1800
• France agreed to end the Franco-American
alliance
• U.S. agreed to pay reparations to French
• Major war with France is avoided
• Improved relations with France
• Adams felt this was his greatest achievement
Alien and Sedition Acts (1798)
• Federalists passed a series of laws
to silence anti-war sentiments
– Alien Acts
• Attack on Jeffersonians and immigrants
• Raised residency requirements from 5
to 14 years
• President could deport “dangerous”
foreigners
Alien and Seditions Acts (1798)
• Sedition Acts
– Anyone who impeded govt. policies or criticized
govt. officials would pay heavy fine or jailed
– Direct violation of the 1st Amendment
– Jeffersonian newspapers came under attack
– Laws expired in 1801
Alien and Sedition Acts (1798)
• Virginia & Kentucky Resolutions
– Republicans thought Acts were unconstitutional
– Jefferson and Madison secretively made series of
resolutions
– States had the right to nullify unconstitutional laws passed
by Congress
– Compact Theory
• Nullification – individual states were the judges of federal laws
• Later used at the onset of the Civil War
Revolution of 1800
• Election of 1800
– Federalist were split over Quasi War
– “High Federalists” split from Adams
– Alien and Sedition Acts were unpopular
– Adams was an unpopular incumbent
– Jefferson saw an opening and took it
Revolution of 1800
• Election (cont.)
–
–
–
–
–
Jefferson got a lot of support from South and West
NY was the key (held by Aaron Burr)
House of Representatives had to break deadlock
Federalists wanted Burr, but some hated Burr (Hamilton)
Swayed by Hamilton; HoR picked Jefferson as
president/Burr as VP
– Peaceful change of power was revolutionary
The Federalist Legacy
• Hamilton’s financial plan
• Washington established important legacies for
presidency
• Federalists kept U.S. out of war
• Preserved democratic gains of the Revolution
• Opposition party (Jeffersonian) created twoparty system
• Westward expansion (Treaty of Grenville)