Securing
the
Republic
The Federalist Administrations
1788 - 1800
Hamilton’s Plan
(Funding & Assumption)
1. Establish nation’s credit-worthiness
 Pay off, at full face value, debt inherited from Am.Rev.
 Pay off state debts from war
2. Creation of a new national debt
3. Create Bank of the United States
4. Raise revenue by taxing whiskey
5. Establish protective tariff to protect fledgling
industries
The Famous “Dinner Deal”
Participants:
 Alexander Hamilton
 James Madison
 Thomas Jefferson
Key Points:
 Madison pledged to get enough votes to pass “funding &
assumption”
 Hamilton agreed to move national capital south to the
Potomac River
 States that had already retired war debt would receive
federal grants as compensation
American Reactions to the
French Revolution
French supporters (Jefferson)
 Despite its excesses, saw the Fr. Rev as a triumph for
popular self- government
 Argued it had to be defended & supported at all costs
 Treaty of Alliance (1788)
French detractors (Washington, Hamilton)
 Saw anarchy, not self-government
 Felt US had to draw closer to Britain
 Declared neutrality
Jay’s Treaty
(1794)
No British concessions on:
 Impressments
 Rights of American shipping
Britain agreed to abandon western outposts
 As previously agreed to in 1783
US granted favored treatment to British imported
goods
In effect, cancelled 1788 Treaty of Alliance w/
France
Recognized British economic and naval supremacy
Emergence of the First Party
System
Federalists
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Supported Washington
Favored close ties with Britain
Favored Hamilton’s economic program
Merchants, farmers, lawyers, established political leaders
Elitist in outlook
Favored a liberal interpretation of the Constitution meant to “energize” the
federal government
Republicans (no relation to present Republican Party)
 Led by Madison & Jefferson
 Favored close ties with France
 Wealthy southern planters, yeoman farmers, urban artisans
 Critical of social and economic inequality
 Supported broad democratic participation
 Favored a strict interpretation of the Constitution meant to limit the federal
government
The Election of 1796
Federalists
John Adams for President
Thomas Pinckney for Vice-President
Republicans
Thomas Jefferson for President
Aaron Burr for Vice-President
The Election of
1796
John Adams
Thomas Jefferson
Crisis: Domestic and Foreign
Domestic
 Fries’ Rebellion
 Alien & Sedition Acts
Foreign
 British & French violations of US neutral rights
 XYZ Affair
 “Quasi-war” with France
First US Naval Ships
USS Constellation
USS President
USS Congress
USS United States
USS Constitution – Old Ironsides
USS Chesapeake
The Alien & Sedition Acts of
1798
Naturalization Act
 two previous bills passed in 1790 & 1795
 increased residency requirement for citizenship from 5 to 14 years
Alien Acts
 John Marshall’s letters from Paris
 Alien Enemies Act – did Congress have heightened powers in time of war
 Allowed deportation of persons from abroad deemed “dangerous” by
federal Authorities
 Republicans objected to the provisions for prosecuting citizens who
concealed aliens or inhibited the enforcement of the act
Sedition Act
 Authorized prosecution of any public assembly or publication critical of
government
Virginia & Kentucky
Resolutions
Kentucky Resolutions
• Introduced by John Breckinridge though authored
by Thomas Jefferson the sitting Vice-President
• Adopted on 10 November 1798 by the House and
13 November 1798 by the Senate
Virginia Resolutions
• Introduced by John Taylor of Caroline though
authored by James Madison
Kentucky and Virginia
Resolutions
Described the Constitution as a Compact
The Constitution Enumerated the Powers of the
general government
Powers not enumerated were reserved by the
states
The Alien and Sedition Acts has assumed
undelegated powers that should be left to the
states
Declared the Alien and Sedition Acts void
Kentucky and Virginia
Resolutions
None of the states responded positively to the
resolutions
Seven of nine states north of the Potomac put their
objections in writing and forwarded them to
Kentucky and Virginia
Most – controlled by Federalists and in the High
Federalist Tradition – rebuked Kentucky and
Virginia
Most state legislatures feared the resolutions, if
accepted and approved would tear the union apart