The Federalist Era 1789

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Bill of Rights
• The first amendments (add-ons)
to the Constitution
• 1st priority of the new Congress
• Anti-Federalists had demanded
these additions
• James Madison wrote &
proposed 12
• 10 ratified and added in 1791
•Amendment 10 was
that guarantee the basic rights of the most important to
the people
the Anti-Federalists
Judiciary Act of 1789
• Written to organize the
• Created the office of the
Judicial Branch of the United Attorney General
States
John Jay – 1st
Chief Justice
• Article III was left very short
on purpose
• Organized the Supreme
Court to have 6 Justices
• Also organized Federal
District & Circuit Courts
Revenue Act of 1789
• The U.S. had a lot of debt
• Congress decided to pay it off through the use of tariffs
• Set the 1st national tariff at 8% to earn a revenue for the
national government
The State Department
• Congress also needed to deal with problems with
foreign nations
– Britain, Spain, & France
• Established the State Department to deal with them
• 1st Federal Agency established
• Thomas Jefferson was the 1st
Secretary of State
Mr. President
• Elected Unanimously
• President from 1789 – 1797
– 3 new States will enter the Union
– VT (1791), KY (1792), & TN
(1796)
• Took oath of office on April
30, 1789 in NYC
• John Adams would be the
VP
Establishment of the Cabinet
• Washington knew he was not the most brilliant man
• Appointed men with expertise in areas to become part
of the cabinet
• Would advise Washington
• Set precedent that each President would have a cabinet,
but is not part of the Constitution
Secretary of State -- Thomas Jefferson
Secretary of the Treasury -- Alexander Hamilton
Secretary of War -- Henry Knox
Attorney General --Edmund Randolph
Political Parties
• No political parties existed within the U.S. until
Washington’s Presidency
• Disagreements over the interpretation of the
Constitution & the power of the national government
would lead to political parties
• Since then, the U.S. has been dominated by two party
system
• But the two parties have not been the same two parties
since Washington’s administration
Federalists
• Led by Alexander Hamilton
• Wanted a fiscally sound and
strong nationalistic
government
• Had a strong following in the
North
Democratic-Republicans
• Led by Thomas Jefferson
• Sometimes referred to as the
Jeffersonian-Republicans
• Opposed a strong national
government & Hamilton’s
financial plans
Interpretation of the Constitution
• Loose v. Strict
– Federalists wanted a loose interpretation of the
Constitution – you can read between the lines
– D-R wanted a strict interpretation – what it says is what it
mean – it is not open to interpretation
• The Elastic Clause – Article 1, Section8, Clause 18
– Gave Congress the “Necessary & Proper” power to pass
laws
– Federalists would use this to support their loose
interpretation of the Constitution
Dealing with the DEBT
• Report on the Public Credit
(1790) plan given to Congress to
fix the debt
• National government would
assume all state debts
• Opposed by the D-Rs
• Created a huge debate throughout
the nation
• Eventually led to a compromise:
– Government would assume debt
– South would get Washington D.C. as
the capital
Battle for a National Bank (1790-1791)
• Hamilton also wanted to create a national bank to handle
the monetary needs of the country
• Problem: Government not given this authority in the
Constitution
• Hamilton used the Elastic Clause to support his views
• Jefferson strongly opposed
• Washington approved and the Bank was created in 1791
with a 20 year charter
Excise Taxes
• Hamilton’s main way to raise revenue was through
tariffs but also wanted excise taxes
• Excise Tax: taxes placed on specific goods produced
within a country
• In 1791 several excise taxes created
– Most notably on Whiskey
The Whiskey Rebellion
(Pennsylvania 1794)
• Backcountry PA distillers hit hard
by 7¢/gallon tax
• Whiskey was used as money
• “Whiskey Boys” began to harass tax
collectors
• By 1794 talks of secession had
begun
• Aug 1794, Washington led the army
to put the Rebellion down
• Domestic tranquility was ensured
The French Revolution
• Country split on how to feel
about this Revolution
• D-Rs: pleased
– Saw it as an extension of the
American Revolution
• Federalists: worried
– Saw mass hysteria and mob
violence as a threat to
themselves
The Problem for the U.S.
• In 1793, it became a world war being fought
between ALL of the major European powers
– most importantly Britain who was the main trading
partner of the U.S.
• U.S. still obligated to France because of the FrancoAmerican Alliance of 1778
• D-Rs favored honoring the alliance
• Federalists supported Britain
Washington’s Neutrality
Proclamation (1793)
• Washington believed the country is not militarily
prepared to fight another war
• Issued the Neutrality Proclamation saying the U.S.
would not choose sides, but would stay out of it
• U.S. still traded with both sides
Jay’s Treaty (1794)
• Britain still occupies forts in Northwest Territory
& menacing U.S. in the Caribbean
• John Jay sent to London to create a treaty to ease
tensions
• Terms:
1. Britain agrees to leave the forts
2. Britain agrees to pay damages to American
ships in the Caribbean
3. Britain refuses to agree to stop harassing the
U.S.
4. The U.S. must pay all debts still owed to Britain
Pinckney’s Treaty (1795)
• Dealt with Spain
• Terms:
1. Established a boundary between
the U.S. & Spanish Florida
2. Allowed the U.S. free navigation
rights of the Mississippi River
3. Allowed the U.S. the use of the
port of New Orleans
His Farewell Address (1796)
• After 2 terms Washington refused a
third term
• Wrote a letter to the American
public to say goodbye
• 2 important ideas included:
1. End Partisanship – there should be
NO political parties
2. Warned against permanent foreign
alliances
Washington’s Precedents
1. Have Advisors & form a Cabinet
2. Executive can choose his own Cabinet
3. Two-term Limit for Presidents
- not broken until FDR in 1940
4. No permanent alliances
- 1949 NATO
Adams v. Jefferson
• D-R Candidate was
Thomas Jefferson
• Federalist Candidate was
John Adams
The Decision
• Adams won 71-68 in the
Electoral College
• Because only one ballot
was cast, whoever was in
2nd place became VP
• Jefferson ended up as VP
Mr. Adams as President
• Served only 1 term from 1797-1801
• Followed precedents set by Washington
Relations with France
• France very upset about Jay’s Treaty
– Saw it as a precursor to an alliance with Britain
• France wanted the U.S. to honor the FrancoAmerican Alliance of 1778
• France began to attack U.S. ships and seizing
American cargo
• 300 ships and $20 million of cargo was lost
XYZ Affair (1797)
• Delegation sent to France to meet
with French Foreign Minister Charles
Talleyrand
• Three French delegates X,Y, & Z
demanded $12 million loan & a cash
bribe just for a meeting
• Americans insulted & came home
• Report published & started AntiFrench sentiment at home
Quasi-War (1798-1800)
• U.S. began an undeclared
war against France
• Was purely navel – fought
mainly in the Caribbean
• Adams had to quickly
expand the 3 ship navy &
an army of 10,000 men
was authorized
Convention of 1800
• France did not want another enemy
• Napoleon now in charge
– Forced Talleyrand to try to create a treaty
with the U.S.
• Adams sent a delegation and a treaty was
signed
• Terms:
– Ended Franco-American Alliance
– All ships seized by both sides would be
returned
Alien and Sedition Acts (1798)
• Purpose: Silence & reduce opposition from the D-Rs
about the Quasi War with France
• Alien Acts: raised residence requirements for citizenship
from 5 to 14 years
– Most immigrants were D-Rs
• Sedition Act: it was a crime to publish “false, scandalous,
and malicious writing” about the government or its
officials
– Direct violation of the 1st Amendment
• Laws expired in 1801
Virginia and Kentucky
Resolutions (1798)
• D-Rs convinced the Acts were unconstitutional
• Problem: Who decides the Constitutionality of laws?
• Jefferson & Madison anonymously write the VA & KY
Resolutions
• Premise: States had the right to nullify unconstitutional
laws passed by Congress
• Importance: Southerners later used this argument to
support secession from the Union
Adams v. Jefferson
• D-R Candidate was
Thomas Jefferson
• Federalist Candidate was
John Adams
The Decision
• Adams lost
– Federalists angry about
Convention of 1800
– Unpopular Alien & Sedition
Acts
– Debt increased
• Problem: Jefferson tied with
Aaron Burr
• House of Reps had to break
the tie
• Hamilton persuaded
Federalists to back Jefferson
The Revolution of 1800
• Peaceful transition of
power between two
political parties
The Federalists Legacy
1. Built enduring political and financial foundations
for the new government
2. Diplomats kept the U.S. out of war and signed
advantageous treaties with Br, Fr, & Sp.
3. Preserved democratic gains of the Revolution
4. Opposition resulted in creation of two-party
system
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