THE FEDERALIST ERA
Carol Jean Cox
FEDERALIST ERA 1790's - 1800
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Federalists Versus Anti-federalists
Issues Facing the New Government
Hamilton’s Financial Program
Debate on the Interpretation of the Constitution
Emergence of a Two Party System
Decline of the Federalists
FEDERALIST ERA 1790's - 1800
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Federalists - people who were in favor of a
strong central government
– Federalists in full power
 Congress & Supreme Court were Federalists
– George Washington - first President 1790
 no election- unanimous for Washington
 no elections for first few Presidents
 A majority of the founding fathers
became involved in the government
FEDERALIST ERA 1790's - 1800
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Federalists
– Federalists--> first election - caucus (group)
nominates a President
 Washington stepped down after 2 terms
 Adams served 4 years (1796-1800)
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Anti-Federalists
– Anti-Federalists --> those against a strong
federal government
– Republicans (Jeffersonians)
– later Democrat/Republicans
– historical beginnings of Democrat Party
FEDERALIST ERA 1790's - 1800
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Issues Facing the New Government
– U.S. weak
 no navy - little army - Indians to deal with
 problems on the international scene
– e.g. Britain, Spain
– Owed money
 $55 million
 $11 million owed to other countries
 Most owed to Americans from Revolutionary War
FEDERALIST ERA 1790's - 1800
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Issues Facing the New Government
– Not really a united country
 European - wait & see attitudes
 noted failure of Article Government
 wondered about the President for four years
FEDERALIST ERA 1790's - 1800
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Hamilton’s Financial Program
– Hamilton- Washington’s aide in the Revolutionary War
 now Secretary of Treasury
 an elitist- aristocrat - slave owner
 rich governor of Massachusetts
*** problem/issue - how to raise revenue
– tariff - tax on imports
 foreign company pays tax
FEDERALIST ERA 1790's - 1800
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Hamilton’s Financial Program
– Excise Tax - (luxury tax) Fed. Gov. Tax
 jewelry, cigarette, liquor,
 governments of states obligated to collect
 not a state tax
– Sale of Western Lands
 Northwest Territory
 all lands to Mississippi
FEDERALIST ERA 1790's - 1800
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Hamilton’s Financial Program
– Assuming State Debts (credibility)
 central government will take over state debts
 states owed money to their citizens and
from and Cont. Congress & Articles Gov.
 why assume debts?
– because citizenry will take stock in it
– creditors will look to central government
(congress) in future for financing
 solidifies Fed. Gov in eyes of citizens
FEDERALIST ERA 1790's - 1800
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Hamilton’s Financial Program
– Government coins money
 dollar came from Spanish
– Funding
 creating a new debt to pay off the old debt
 Government issues 3%, 4% notes like savings bonds
– whenever cashed in 3%
– collect at 3% - trade them for 6% with extension of time
– few of veterans from Rev War still had bonds
Buys time to raise funds
FEDERALIST ERA 1790's - 1800
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Hamilton’s Financial Program
– ** TROUBLE: Virginia said not vote for assuming
loans because they had paid off debts.
 Compromise - capital near Virginia
 VA & MA gave up land for Washington D.C.
 technically it was in the south
FEDERALIST ERA 1790's - 1800
FEDERALIST ERA 1790's - 1800
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Hamilton’s Financial Program
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NATIONAL BANK - Bank of the U.S.
What to do with money?
Depository for Federal government revenue
Bank chartered for 20 years (1791)
(battle for bank when it comes up for renewal)
Start with $10 million
1/5 Federal Government Funds
Remainder from Private Funds
FEDERALIST ERA 1790's - 1800
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Debate of the Interpretation of the Constitution
1791
– Anti/fed point of view  Jefferson/Madison (strict interpretation)
 (Jefferson in Paris during constitution)
– said Mr. Hamilton no provision for central bank
– concerned too powerful
– Federalist position
 Hamilton is a staunch federalist
 loose interpretation
*** Leads to the emergence of political powers
FEDERALIST ERA 1790's - 1800
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Emergence of a Two Party System
– Reasons for the division creation of 2 parties
– Financial Reasons
 funding, assuming, tariffs excise taxes
– Sectional Differences
 North- Maryland (north)
 South - Virginia (south)
 West - territories to be states
 different views of tariffs North/South
 west - statehood area improvements
FEDERALIST ERA 1790's - 1800
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Decline of the Federalists
(issues causing)
– Indians Causing Problems
 Federalists not dealing with effectively
 Republicans criticize
– French Revolution (Bloody)
 Federalists not decisive
 more criticism from Republicans
FEDERALIST ERA 1790's - 1800
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Decline of the Federalists
– Whiskey Rebellion
 Western Pennsylvania REGULATORS
 Lower class not happy w/ another tax
 used guns MOB ACTION
– set off by the excise tax on whiskey
– whiskey most lucrative product of area
– tax collectors shot at - intimidation
 Response - Washington on horse leads 15,000 troops
show of force to intimidate &
– to show strength of central gov. (not weak)
– *** set things in motion for decline of Federalists
FEDERALIST ERA 1790's - 1800
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Decline of the Federalists
– Alien & Sedition Acts (1798)
 Alien
act - increased time for citizenship
– affects lots of immigrants because of Europe rev.
– law to decrease the support of the immigrants
– for the anti-fed side to decrease opposing
– party's power
 Sedition Act - a crime punishable by fine &
Imprisonment to speak against the Fed. Gov.
– (George Wash. favored this though not in power)
– 5 journalists imprisoned for federalists
– 25 went to trial
FEDERALIST ERA 1790's - 1800
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Decline of the Federalists
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Democrat/Republicans respond
(Madison/Jefferson - fire up pens anonymously)
wrote Kentucky & Virginia Resolutions 1798
states can choose to make null and void any
law passed by the Federal Government
states prerogative - states rights
similar to the Summary of the Rights of
British America
denouncing Sedition Act
emphasizing states/rights
FEDERALIST ERA 1790's - 1800
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Decline of the Federalists
– Election Of 1800
 Federalists (Adams) vs. Republicans (Jefferson)
 Popular vote with electoral college
 Jefferson - President
 Hamilton/Burr conflict - duel kills Hamilton
– Epithet (Summary)
 Federalist Era 1790 -1800
 dominance of single political party
 application of constitution powers in
 favor of a strong central government
 favored the merchants/commerce
FEDERALIST ERA 1790's - 1800
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Decline of the Federalists
"Federalists served as a halfway house
between European past and American future.”
Henry Adams
(great grandson of John Adams & noted writer )
European Elite ---> American Democracy
SHIFT OF POWER CAME WITH JEFFERSON
FEDERALIST ERA 1790's - 1800






Federalists Versus Anti-federalists
Issues Facing the New Government
Hamilton’s Financial Program
Debate on the Interpretation of the Constitution
Emergence of a Two Party System
Decline of the Federalists
THE FEDERALIST ERA
Source: Carol Jean Cox
http://faculty.sierracollege.edu/ccox/history_17A/index.html
http://faculty.sierracollege.edu/ccox/history_17A/13%20Federalist%20Era.ppt.