• This is the only time I will require
you to read all the chapter.
• Please read
• Chapters
• 8 and 9
• (especially the bold and marginalia
information)
Federalist Era
• The government began on compromise;
• To gain support for the Constitution, it had to
be bought with promises:
• 1) it had to promise to Freedom of Religion,
Freedom of Speech, and had to essentially not
meddle in state affairs.
• These proved impractical from the get go.
• The biggest issue facing the United States was establishing
credibility and diplomatic legitimacy.
• To do this, Hamilton used his influence and Washington’s
influence to establish a strong centralized government; he
penned:
• The Report on the Public Credit—wanted the gov’t to assume
the public debts—gave ultimate authority to the gov’t over the
states. The Report on Creating the National Bank—established
a way to fund the war debt and public debt, but it also established
a national republican economy.
• Also penned a treatise on the state of Manufactures in the
United States.—Recommended gov’t support and subsidies for
industry---seemingly at the expense of agriculture.
• Bank issue was unique to the
era; Many people feared that
so much capital in the hands
of a very few would create
tyranny and wildcat
speculation;
• Also, Parliament, though
they had the Bank of
England, did not want to
establish a bank in the
colonies;
• It would compete with the
bank of England
• Jefferson also saw this tyranny as real
especially with the advent of the Tariff Act of
1789: Though it was essentially designed to
raise revenue not exactly protect
manufacturers—though Jefferson saw this as
the real objective.
• Still, as far; as the Bank, Hamilton wanted a
combination of government and private sector
investors: Gov’t would provide 1/5th the capital
from tax and Tariff revenues; Private investors
would sit on the Board—the Bank would
control all infrastructure and appropriations
initiatives.
• Most obvious question: Whose best interest
was this new National Bank.
• Hamilton minced no words—it will help
American Industry; agriculture is nothing
more than landed aristocrats funded off the
slavery of others—a pretentious life at best.
• Diversification not agriculture was the key to
American success—according to Hamilton.
• Perpetuating the lifestyle of a few select
planters was absurd.
• Hamilton also juggled the new tariff to increase the
need and use of American industry;
• It also upped the foreign tariff costing more to import
and buy foreign goods;
• British were flooding the American market and
Hamilton wanted to shut them out—and increase the
confidence of the American consumer;
• Then, he wanted to lower restrictions on
immigration—so that America would have cheap
abundant labor for manufacturing needs.
Jefferson at once saw the danger to his precious
Agrarian society of Genteel manners and true
Republican society.
Hamilton’s scheme was dangerous to the
virtuous Farmer (Jefferson is speaking of the
Southern farmer with his plantations not the
northern subsistence farmer)
Jefferson saw Hamilton’s America as
immoral,artificial and phony. He saw the
exploitation of the wage laborer—as decadent
of true American values.
• Jefferson would further assert that banks
enriched swindlers at the expense of honest
hard working people.
• Nathaniel Macon of North Carolina, suggested
banks lived off the labor of others.
• John Randolph asserted that it was agriculture
and farming that made America what it had
become—he further asserted that agriculture
and the small farmer always bears the brunt of
taxation.
• Jefferson and his Democrat-Republicans asserted that
true virtuous Americans lived on Farms and
maintained solid assets as land and managed the
prosperity of the nation;
• Manufacturers lived in opulence off the labor and toil
of others!!!! (hypocritical, wouldn’t you say)
• But, Hamilton possessed two assets stronger than
Jefferson’s bane—He had a large following in
congress, who stood to gain money by Hamiltonian
economics and he had George Washington.
• Jefferson and Randolph stated that the Constitution
gave neither congress nor the executive the power to
establish a corporation, which also meant a national
chartered bank;
• In essence it would violate the Bill of Rights!
• Hamilton argued that just because the Constitution
does not explicitly allow or disallow a certain implied
power does not suggest that it does not exist—
Constitution indirectly allowed for Congress and the
Executive to manage commerce—the Bank was
under Commerce.
• To drive the point home,
Hamilton suggested that the
Constitution does not
necessarily specify that
Congress should establish a
Coast Guard and Build
Lighthouses; yet, congress
had enacted legislation to do
so. Why?
• Because these services and
entities are reasonable and
aid in defense, security and
protection of commerce.
• Washington politely listened to both sides, then Feb 25
1791 he signed the bank bill chartering the B.U.S. to
be renewed every twenty years.
• Jefferson resigned in protest. In 1793, Hamilton also
resigned from the Cabinet as Sec. Of Treasury. But,
he saw his work as done—
• 40 new corporations had been chartered, 9 of them
for state banks and the rest as infrastructure projects
such as canals, roads, and turnpikes—all financed
and supported by BUS capital loans.
• By 1815, American bonds and securities were
rated higher than any other financial security
or bond on the international market—seems
Hamilton was more correct than Jefferson.
• Foreign gold and silver began flowing into
B.U.S vaults; that is nice but it is essentially a
mirage and artificial claimed Jefferson.
• If the Bank is so good, explain why Hamilton
and Washington had to head up a federal
Army to put down the whiskey Rebellion in
Western Pennsylvania? Good question.
Republicans v. Federalists
• The Constitution, while designed to be
comprehensive, by nature could neither predict
nor anticipate every little detail of human
governments.
• Political parties was one of these unforeseen
events.
• In the 1790s politics was dominated by faction,
not party. Factions are usually temporary;
parties are usually designed around long-term
political goals (platforms today).
• Factions tend toward special interests; parties
organize around broad constituencies.
• Faction politics tend to be small scale; parties
tend to be large scale and perpetuating;
• Faction demographics change with tendencies
and emotions; parties tend to solidify into a
hard core political philosophy and principle.
• Today we see this in Liberal or Conservative
philosophies. Factions are personal; parties
survive even with the loss of a leader.
• The idea of political parties offended many of the
‘Founding Fathers.’ Most especially Jefferson and his
Democratic-Republicans.
• Parties adulterated virtue; appealed to ill-bred selfinterest; Jefferson, Randolph and John Taylor of
Caroline (Maryland); assumed that politics must
always be a linear, non-partisan mechanism designed
for the good of all—not some competing political
ideologues embracing partisan expectations.
• This revile of party politics keep Jefferson and his
minions fragile and less organized than the
Federalists.
•
•
•
•
•
•
•
•
•
So what are these differences?
Federalist
Strong Gov’t
Hamiltonian econ
Anti-French Rev.
Support of Jay’s Treaty
Alien-Sedition Act
Mostly New England
Support—loss of support
from
• In Middle Colonies
Republicans
Limited Gov’t
Anti-Hamilton
Pro-French Rev
Opposed Jay
Opposed Aliensedition acts
Strong support
South and West
• Jay’s Treaty was controversial—Napoleonic wars
going on—France opened trade with neutrals—
America stepped in and made a killing commercially.
• Britain began to seize American ships under the
pretense of Impressment of deserted sailors.
• Jay negotiated a treaty that more benefited England
then the U.S. Britain given “most favored nation”
status, keeps them commercially dominate—repay
Pre-Revolutionary war debts—Britain compensated
for seized ships, abandoned British held forts on
American soil.
• Then the Federalist (a southerner) also
negotiated the Treaty of San Lorenzo
(Pinckney’s Treaty)—given Spain a recognized
line of the boundary between Fla and the U.S.
• Allowed for free unmolested American
transportation through the Port of New
Orleans.
• All these actions led to the first real political
party elections of 1796—we have been partisan
and bickering ever since.
• John Adams barely eked
out the first partisan
election—he was
Federalist;
• Jefferson came in second
and by virtue of that
became the VEEP;
• Then Adams had to
suffer through the XYZ
Affair and the crisis of
the French Revolution
• By and large Adams to an adequate job as President;
He was irascible, but very bright and an extreme
Patriot;
• Because of the issue between Britain and France,
Adams became embroiled in a “Quasi-War.”
• French ships were seizing American ships because of
the “Favored Nation Status” offered to Britain—The
French believed that the Jay treaty had sold them out
to the British– after all France had spent enormous
sums of men and capital assisting the American War
for Independence—they expected reciprocation.
• Just as Washington had done when the British
were seizing Americans ships, Adams also
preferred to negotiate with the French—the
decidedly difference in the temperament of the
two Presidents was Washington wanted to
avoid a war with a much stronger Great
Britain—Adams wanted to avoid war, but was
prepared to fight France knowing he had the
assistance of the British Navy.
• Adams sent an envoy to negotiate with France:
Charles Cotesworth Pinckney, John Marshall,
and Elbridge Gerry.
• Where the English negotiated from a position
of strength and out negotiated Jay, the French
were more devious;
• It became known as the XYZ Affair; The
French Foreign Minister—Talleyrand tried to
bribe the Americans—he wanted 240,000$ just
to begin negotiating with the Americans …
• Pinckney stated flatly and out loud “no no, not
one sixpence …” This is where we get the
media hyped slogan “millions for defense, but
not one cent for tribute”
• It seemed as if the federalist would become the
dominating party for all time—ending the need for
competing party allegiances;
• Unfortunately, Adams was a Patriot, but he assumed
that all people were as patriotic as he—he defended
liberties, but he was willing to give some up to
maintain harmony;
• He enacted the Alien-Sedition Acts—anyone libelous
or slanderous to the policies of the administration
could be put in Jail and/or fined—especially the
Media—as with any censorship it got out of hand and
began to imprison fellow Federalist Newspapers.
• The backlash was enormous even within the
Federalist camp—Hamilton split with Adams—
Jefferson excoriated Adams daily in the press;
• To make matters worse. Adams opened peaceful
negotiations with Napoleon.
• Jefferson started a dump Adams movement that
reached dizzying heights—and Adams true to his
acerbic became more irascible than ever—even to
friends. This ensured that Jefferson and the
Republicans would win the Presidency in 1800.
• Jefferson won the election of 1800—many feared a
radical liberal form of government– all government
must rest in the hands of the people. He believed in
retrenchment, or a strict constructionist view of the
Constitution.
• He wanted to do away with all Federalist notions of
centralized government; the federalist were to ProBritish and Hamiltonian economics made America
slaves to British Finance and Commerce;
• Jefferson’s inauguration was the first held in
Washington; he also on the first day of office began a
dismantling of the federalist structure.
• He also shrank the size of the national Army
that Adams had expanded; he down graded the
Navy and stated flatly there would be no
“Favored Nations Status.” This ensured a
quarrel with Great Britain.
• However, Jefferson turned out to be less radical
and dangerous as anyone feared. He
abandoned his Republican principles quickly.
• He made no effort to make universal suffrage
mandatory—maintained the property rights
criteria.
• Jefferson suggested that everybody should
own land, therefore they could vote;
• In fact in Virginia and other states because of
the property clause—many people lost their
ability to vote;
• Though he espoused the Agrarian principles of
virtue and gentility, he was unsuccessful in
promoting the agrarian agenda—in fact,
Jefferson was a large plantation aristocrat—he
actually knew very little about agriculture—he
did not object to small scale industry.
• Though he despised Hamilton, he could not
undo much of Hamilton’s policies; mostly
because they were sound financial and
commercial policies;
• He did cancel military spending but then was
embarrassed by the Barbary pirates forcing
American Commercial shipping to pay
ransom—what little Navy he had not
destroyed did a good job of defending itself,
but it was clear to be a commercial power one
needed to be a Naval power.
• To object British and
French aggression against
American shipping he
enacted the Embargo Act of
1808;
• This was in response to the
British ship Leopard’s
attack on the American
Commerce vessel
Chesapeake—the idea was
to hurt both belligerent
nations by restricting
commerce—it however, hurt
the American economy
tremendously
• Jefferson’s biggest battle would be with
Federalist John Marshall; Adams appointed
Marshall as Chief Justice to the Supreme
Court.
• Until Marshall, the Court sort of lagged
behind the other political entities—and other
than a Constitutional stipulation of its need to
be formed sort of remained ambiguous in
structure, size, and authority.
• John Marshall would change all that--
• The federal Judiciary
Act of 1789 allowed for
one Supreme Court—
also there could be an
establishment of lower
federal courts;
• This is one victory for
the anti-federalist, but at
a cost; they wanted to
ensure that some
national judicial power
could not over step the
power or functions of the
states.
• The Judiciary act created 13 federal districts; appeals
could be heard from these courts by 3 established
Appellate Courts; if the decision was still unclear, the
Supreme Court would have the final say—the issue
then as now is when is it legitimate for the Supreme
Court to over turn a lower court decision after a lower
court has already decided—Stare Decisis—let it stand.
• The anti-federalist wanted only the supreme court to
hear cases dealing only with constitutional issues and
international treaties.
• John Marshall would have the answer in Marbury vs.
Madison
• Upon assuming the executive office, Jefferson
(imbibed with his distrust and fear of the
Judiciary—not to mention his intense dislike
for Chief Justice John Marshall) enacted a
repeal of the Judiciary Act of 1801 which made
the courts more authoritative;
• John Marshall was more cautious and wise, he
knew that the President and the Congress
contended that they all possessed coequal rights
assuming constitutionality questions.
• Marbury vs. Madison changed everything and
frustrated Jefferson even more.
• Thing to remember, Chief
Justice Marshall founded in
favor of Jefferson and
Madison and refused
Marbury his Judgeship;
• He, however, leveled a boom
to the legislative and
executive branches of
government—It would be
the responsibility of the
Supreme Court and
Supreme Court alone on
deciding Judicial Review—
decides the constitutionality
or unconstitutionality of any
and all laws.
• Marshall would go even further in establishing the
supremacy of the Court concerning Judicial
Review;
• Martin v. Hunter’s Lessee established the
authority of the Supreme Court over the authority
of state courts;
• Also McCulloch v. Maryland established the
existence of “implied” powers in the federal
government whether explicitly or not explicitly
stated in the Constitution.
• Though Jefferson disagreed with Marshall, he
accepted the “implied Powers” interpretation
when purchasing the Louisiana Purchase.
• He did this to distract American attentions and
fears of European entanglements.
• The Famous Lewis and Clarke Expedition opened
Americans eyes to the vastness of their newly
acquired continent—he also sent Zebulon Pike
toward the Southwest to explore—Pike’s Peak.
• This began a huge
westward expansion and
the rise of the “Mountain
Men.”
• It, however, opened the
door to intrigue and
deception; Aaron Burr
plotted to set up an
independent territory in
this new western
territories—Gen.
Wilkinson double-crossed
Burr and exposed his
scheme to the authorities.
• Jefferson’s presidency was not exactly a ringing
endorsement or success for the virtuous Republicanism
of agrarian aristocracy.
• Still, with the new era and the rise of Geo-Political
intrigue and exposure, America was unable to remain
neutral or disinterested in political soirees. What this
means is that as America feared of losing its
independence and the meddlesome British—
• They once again looked around and discovered that the
root of all their problems was the British—the
scoundrels were still undermining everything American
• When assessing all the issues, whether it was the
domestic Indian issues, or international Commerce, or
even domestic commerce—as before 1760, the
instigators remained British.
• The short term solution was to do as William Henry
Harrison and strike the Indians before they could strike
the western settlements, (Pan-Indian Resistance
Movement); political and cultural unification of all
Indian tribes against all white incursions into Indian
territory and culture;
• Or they could take the long term more dangerous course
of confronting the British head-on and ridding
themselves of these perpetual pests.