The Federalist Era
Washington’s First Term
Problems facing G. Washington:
1. Economic:
Debts
Depression
2. Foreign
English - Indian alliance
French – British rivalry
3. Political division
Hamilton vs. Jefferson
Washington’s First Cabinet
Hamilton - Secretary of the Treasury
Jefferson –
Secretary of
State
John Adams
Vice-President
Henry Knox – Secretary
of War
The Political Division
The Federalists:
Pro-industry
Pro-England (due to
trade needs)
High tariffs and excise
taxes (i.e. whiskey)
Strong centralized
government
Favored the wealthy
The DemocraticRepublicans:
Pro-agriculture
Pro-France
Opposed to taxes
Strong State
governments
Favored the middle and
lower classes
Hamilton’s Financial System
“Trickle down” economics
favor the wealthy and economic growth will
“trickle down” to the masses
“Funding at par”
pay all bond debts at 100% of its value
“Assumption” of States’ debts
Federal government should pay all of State’s
bond debts; ensures loyalty of the wealthier
classes.
High tariffs and excise tax on whiskey
The Bank of the United States
(Hamilton’s view)
Would provide a safe place to keep tax
revenue for the US government
Would regulate banks
Would provide low-interest loans to
industrial classes
Alexander Hamilton
Alexander Hamilton- creator of the National Bank and Sec. of
Treasury. On the $10 bill.
The Bank of the United States
(Jefferson’s View)
Tax system hurt the farming classes
Money lent to industrialists came from
farming classes
Unconstitutional
Dictatorial
Reactions to the Bank
• Washington sides with Hamilton
• Jefferson and Madison form an opposition
party (the Democrat-Republicans)
The Whiskey Rebellion
Revolt caused by farmers/whiskey producers
angry about the tax on whiskey
Revolt put down by Washington
Shows the strength of the new Constitution
The French are Revolting!
• Split between the Feds and DRs
• Split within the government
Hamilton – opposes supporting the
revolutionaries
Jefferson – wants
support for the
revolutionaries
The Proclamation of Neutrality (1793)
• Authored by Hamilton
• Issued by Washington
• Led to the precedent of
non-involvement and
neutrality in foreign affairs
More Problems with the British
• Impressment of American sailors;
Seizure of American
ships
Indian Uprisings
• Battle of Fallen Timbers (August 20, 1794)
• Evidence of British aid
and involvement
• Violation of Treaty
of Paris (1783)
US defeat Nat. Ams.=Treaty of
Greenville…surrender most of land
Jay’s Treaty
• Washington’s dilemma:
War or Diplomacy
John Jay sent to negotiate with the British
UK agreed to withdraw from
Am. Soil
Am. Soil…no mention of
impressment= Jay’s Treaty
The Retirement of George Washington
• Precedents set by GW:
– Two term tradition
– Use of the Cabinet
– Neutrality in foreign matters
– Warned against political
Parties…said they would divide
nation
The Farewell Address
• December, 1796
• Authored by Hamilton
• Emphasized neutrality in foreign affairs
• “they (the US) should with sincerity
and good faith adopt and pursue a
conduct friendly and impartial toward
the belligerent Powers.”
The Election of 1796
• The Federalists
Strong central govt.
Pro-Britain
Pro-industry
Constitution gave
‘implied” powers
• The Dem. Republicans
Strong State governments
Pro-France
Pro-agriculture
Strict reading of Constitution
The Election of 1796
Issues:
Jay’s Treaty
Hamilton’s financial system
Foreign policy
Results:
Adams – Pres.
Jefferson – VP
The XYZ Affair
American diplomats went to France because they were
seizing US ships exporting goods to UK… extorted for a
bribe from 3 unknown French diplomats (XYZ)…US
refused. Thought Jay’s treaty was a sign US sided with
UK
Reaction to the XYZ Affair
•
Federalists pressure Adams to pursue war
Adams resists, but unofficial “war” breaks out in the Caribbean
The Alien and Sedition Acts
Passed by Federalist Congress
• The Alien Acts
Deports nonresidents
supportive of the
French
Aimed at newly arrived
immigrants, primarily
DR supporters
• The Sedition Acts
Made criticism of the
war, the President, or
the Congress illegal
Aimed at DRs, incl.
Jefferson and
Madison
Controversy over the Acts
The Virginia and Kentucky Resolutions
Proposed by Jefferson
and Madison to oppose
the A & S Acts
Doctrine of nullification:
States can void acts of
the national government
America in 1800
• Government divided by Federalists and
Democrat-Republicans
• “War” with France
• Divided country