Two Party System
HAMILTON’S ECONOMIC PLANS,
TWO PARTY SYSTEM, ERA OF
FEDERALISTS, ELECTION OF
1800 & MARBURY V. MADISON
A New Nation under the US Constitution
 George
Washington was
unanimously
elected to be the 1st
President. John
Adams became
the Vice President.
A New Nation under the US Constitution
 Since the gov’t was NEW,
Washington didn’t have
many set rules on how to
be President.

He began to set many
precedents, or acts that
become traditions.
 One
of these was the
creation of a Cabinet
 Later he sets the precedent
of only serving 2
terms(Term Limits)
A New Nation under the US Constitution
 The courts were set up due to the Judiciary Act
of 1789

Supreme Court would have 6 judges: 1 chief justice & 5
associate justices
 Washington

appointed John Jay to be the chief justice
Congress created 13 district courts & 3 circuit courts
A New Nation under the US Constitution
 The nation had a lot of problems starting out…
Debt from the War
 Other countries didn’t take us seriously
 The Spanish
closed the
Mississippi
River to US
trade
 British still had
forts in the
Great Lakes
area

Alexander Hamilton’s Plans
 Secretary of Treasury, Alexander Hamilton, came
up with settling the debt.
*REMEMBER* Hamilton is a Federalist
 Plan 1: Deal with debt from the Revolution

 Hamilton
wanted to pay the $12 mil we owed to
other countries & pay back Americans ($40 mil)
for bonds and IOUs from the war
 He also wanted to take over or assume state debts
from the war ($25 mil)
 Northern states LOVE this
 Southern states had already paid off most of
their debt
Alexander Hamilton’s Plans

Plan 2: Pass high tariffs (tax
on imports) also called a
Protective Tariff as well as
an Tax on manufactured
goods
 This
would bring in money
 It would also protect
American businesses from
foreign competitors
 This idea was REJECTED by
Congress
Alexander Hamilton’s Plans

Plan 3: Create a National Bank
 Hamilton
proposed that a National bank would…
 Be a safe depository for federal money
 Make it easy for gov’t & people to borrow money
 Create a stable, uniform currency
Anti-Federalists react to Hamilton’s Plans
 Anti-Feds were worried that Hamilton’s plan
gave the National government too much power

Hamilton backed up his plans by saying his plan
helped “the general welfare.” He believed in a loose
interpretation or loose construction of the
Constitution.
Anti-Federalists react to Hamilton’s Plans
 Ex:
 “The
He said the National Bank was “Necessary & Proper”
Congress shall have Power ... To make all Laws
which shall be necessary and proper for carrying into
Execution the foregoing Powers, and all other Powers
vested by this Constitution in the Government of the
United States, or in any Department or Officer
thereof.” – Necessary & Proper or Elastic
Clause
 Anti-Federalists believed in a strict construction
of the Constitution.
Anti-Federalists react to Hamilton’s Plans
 In Western
Pennsylvania, farmers
were upset with the
Excise Tax.
In 1794, farmers resisted
the tax and began
attacking tax collectors.
This was called the
Whiskey Rebellion
 National gov’t was now
strong enough to deal with
the rebellion!

Hamilton appeals to the Southerners
 In order to get Southerners on his side,
Hamilton promised that in 10 years the
national capital farther south (from NYC to
Washington DC) in 1792
Political Parties Emerge
 https://www.youtube.com/watch?v=_KnPB37
YB7I
FEDERALISTS
HAMILTON
John Adams
The First Party System
Leaders
REPUBLICANS
JEFFERSON
James Madison
Strong CENTRAL Gov.
Federalism
States’ Rights
LOOSE Construction
Constitution
STRICT Construction
YES
Gov. Involvement
in Economy
NO
VERY YES
National Bank
NO
YES
Protective
Tariff
NO
YES
Federal Assumption
of State War Debts
NO
Urban (Commerce)
Supporters
Rural (Agrarian)
Washington’s Foreign Policy
 Washington decided early on that he would
stay out of foreign issues. He issued a
Proclamation of Neutrality.
Washington’s Foreign Policy
 The Citizen Genet
Incident

French sent Edmond Genet to
get US support in their fights
with the British. When he
arrived in America he…
 Tried
to rally Americans to fight
& sent ships out of American
ports to attack British ships
 Washington shut this down but
Genet never went back to France
& ended up becoming a US
citizen.
Washington’s Foreign Policy
 British Forts in the
Northwest Territory

British were supposed
to leave this area after
the Revolution.
 They
claimed they
stayed in the area
because Americans
never paid debts
owed to the British
 We solve this issue
with The Jay Treaty
Washington’s Foreign Policy
 The Jay Treaty
 To avoid a war John
Jay goes to England
to negotiate. The
treaty says:
 British
must leave the
territory
 We must pay back our
debts
 England must pay us
back for any ships &
goods they had taken
Washington’s Foreign Policy
 To settle issues with the Spanish
over the use of the Mississippi
River, Louisiana, & Florida,
Washington sent Thomas
Pinckney.

The Pinckney Treaty stated:
 US
can use the lower Mississippi
River & the Port of New Orleans
without being taxed
 Established the 31st Parallel as the
boundary between US & Spanish land
Washington’s Farewell Address
 Warned the nation
against…
Political parties
 Getting involved in
European affairs

 John Adams
becomes President
Adam’s Foreign Policy
 After we signed the Jay Treaty with England,
our relations with France became worse.

To avoid a war President Adams sent a group to
France to negotiate but 3 French officials known as X,
Y, & Z demanded lots of money before they would start
peace talks. This became known as The XYZ Affair
 Adams
stopped negotiations and built up the navy
Adam’s Foreign Policy
 While dealing with the
French, Congress
(mostly Federalists at
this time) passed a series
of laws known as The
Alien & Sedition Acts.


Gave Adams the power to
imprison or deport any alien
that he considered
dangerous to our peace
Made it a crime for anyone
to publically criticize the
gov’t
Adam’s Foreign Policy
 Kentucky & Virginia Resolutions
 Said that the Alien & Sedition Acts were
unconstitutional
 Each
state has the right to judge whether Congress has
abused its power
 IF a state considers a law unconstitutional, they do not
have to obey it.
End of a Federalist Era
 The Election of 1800
 Thomas Jefferson
Wins
 *REMEMBER*
he is a
democratic-republican
(republican)

Both houses of Congress
were mostly democraticrepublican at this time
too!
End of a Federalist Era
 Before Adams leaves
office, he realizes that the
gov’t will no longer be
dominated by Federalists.
 Adams finds a way to
input some Federalist
power into the gov’t
before he leaves.
Judiciary Act of 1801 “Midnight Judges Act”
 Federal judges serve until
they die or retire
 The act Creates 16 federal
judges

Adams appoints his
secretary of state, John
Marshall, as chief justice
Marbury vs. Madison
 Marshall didn’t have
the chance to deliver all
the paperwork for the 16
new judges.
When Madison enters
office he refuses to deliver
them
 Marbury (another
appointed judge) decides to
sue to make Madison
deliver the commissions.

Marbury vs. Madison
 The court case
determines that the
Judiciary Act of 1879 is
UNCONSTITUTIONAL
 This
establishes
Judicial Review