The Federalist Era (1789-1800)
John Adams and Alexander Hamilton are the leading figures of the
Federalist party with George Washington (independent) but sympathetic to
the Federalist cause.
The Federalists are dominated by businessmen and merchants from large
cities who supported strong national government.
Key components of Federalist policy:
 Funding of the national debt (see Hamilton’s plan.)
 Assumption of state debts (see Hamilton’s plan.)
Question: Why would Hamilton want to assume the debts of the
states?
 Incorporation of a national Bank of the United States (see Hamilton’s
plan.)
 Support of manufactures and industrial development (see Hamilton’s
plan).
 A strong army and navy.
 National power over state power.
Hamiltonians vs. Jeffersonians
A key theme of this era is the ongoing political debate between Hamilton
and Jefferson on the nature of government and the future course of our
nation. Both believed in the republican form of government and that a
natural aristocracy (different from the European concept of aristocracy) was
essential to that end.
Hamilton
1. Common man is irrational, guided by passions and base instincts. He
(the common man) cannot be completely entrusted with the power of
government.
2. Sovereignty and power must rest with a strong central government.
3. Government's function is to maintain order. It needs to be remote and
secure from the (irrational) passions of the common people.
Jefferson
1. The common man is rational and capable self-improvement and selfgovernment.
2. The greatest threat to man's freedom is tyrannical government. It needs
to be limited in its powers and responsive to the needs and desires of
the people.
3. State governments should have greater power because they are less
likely to be despotic (being closer to the source of power - the people).
The Specifics of Hamilton's Financial Plan
1. Protective tariff to stimulate industry (the tariff which is ultimately agreed
upon is more of a revenue tariff than a protective tariff).
2. Funding “at par”. Repayment of all outstanding debt at face value. This
meant calling in all securities of debt and issuing new bonds of the same
value in their place.
3. National govt. to assume the debts of states (bind the states).
4. National govt. to assume the debts of the Confederation.
5. Establishment of a National Bank. Purposes of bank:
 Repository of national assets;
 Issue paper money based on assets;
 Source of investment capital.
6. Whiskey Excise Tax - Revenue source to help repay debts and fund
expanded national government. Hamilton believed this to be a “luxury
tax” that would create the least public outcry. The burden fell on
western farmers who sold their corn in the form of whiskey and who also
used whiskey as a form of currency.
The Whiskey Rebellion (1794)
1. The tax protest that had its origins in Western Pennsylvania (Mingo
Creek) and was a direct response to Hamilton’s excise tax.
2. On the western frontier protesters used violence (tar and feathering –
see below) and other forms of intimidation to prevent federal officials
from collecting the tax.
3. Resistance came to a climax in July 1794, when a U.S. marshal arrived
in western Pennsylvania to serve writs to distillers who had not paid the
excise. 500 armed men attacked the fortified home of tax inspector
General John Neville.
4. Washington heads up an army of 13,000 to put down the rebellion.
5. The insurrection collapsed before he arrived. About 20 men were
arrested, but all were later acquitted or pardoned.
6. The Whiskey Rebellion demonstrated that the new national government
had the willingness and ability to suppress violent resistance to its laws.
Question: What does NASCAR have to do with the Whiskey
Rebellion?
Jeffersonian Opposition to Hamilton's Plans
1. Jefferson opposes based upon the belief that Congress did not have the
Constitutional power to create a national bank.
2. 10th Amendment forbids the national government exercising powers not
delegated to it.
3. Commercial & manufacturing interests over farming interests.
4. Will begin the battle between Hamilton and Jefferson regarding
expressed and implied powers and the greater debate on interpretation
of the Constitution (loose constructionist vs. strict constructionist).
5. Key point in the development of the two-party system.
Question: Whose vision of government do you think we embody
today?
Indian Intercourse Act of 1794
1. An attempt to clarify the Sovereignty of the Western Indian tribes.
2. Legislation by which the government would regulate trade and
intercourse with the Indian tribes and hopefully eliminate the abuses of
unfair traders.
3. Declared that public treaties between U.S. and Indian tribes the only
way to obtain Indian land.
4. Treaties become the procedure for establishing and maintaining
relations with Indians.
Foreign Problems
1. French Revolution--Early sympathy fades with violent excesses,
bloodshed, the execution of Louis XVI, and France’s eventual war with
Britain.
 Democrat-Republicans were strongly pro-French and advocated war
with England and Spain.
 Pro-British Federalists viewed England as the defender of property
rights and established order against French anarchy.
2. Citizen Genet (1793) lands in pro-French South. Attempts to raise a
revolutionary army to attack Spanish Florida/Louisiana, outfits privateers
to attack British shipping.
 Washington responds with a proclamation of neutrality, April 22,
1793.
 Genet continues to agitate for U.S. involvement and tries to directly
appeal to the people and Congress.
 Jefferson resigns from Washington’s cabinet as the division grows
between Federalists and Democratic-Republican.
3. Jay’s Treaty (1794)
 Trouble with Great Britain arose over fur trading posts in the
Northwest and interference with American shipping.
 Jay negotiated with British who agreed to: Abandon posts, Limit
seizures of American cargoes.
 Angers DRs, seen as a sell-out to British.
4. Pinckney Treaty (1795) gave Americans the right to navigate freely on
the Mississippi River.
5. XYZ Affair (1798)--French demands for a bribe before negotiating with
Americans so angered citizens that they called for war.
 Naval war with France raged for two years … Quasi War (17981799).
 Convention of 1800 (Treaty of Mortefontaine) brings hostilities to an
end and formally ends our alliance with France.
Fall of the Federalist Party (dissolved in 1820)
1. Alien & Sedition Acts (1798) sought to lessen criticism of the Federalists,
see copy of acts for specific points.
2. Kentucky & Virginia Resolutions (Jefferson & Madison)--right of states to
nullify a law passed by Congress if that law exceeded the constitutional
authority of Congress.
 First statement of nullification.
 Sometimes referred to as interposition (the state govt. placing itself
between the federal govt. and the people).
3. Jefferson's election in 1800 and the end of the reign of the Federalists.
Factors leading to eventual death of party:
 Federalist split, J. Adams and Hamiltonians.
 Hartford Convention (1814), statement of nullification.
 Burr-Hamilton Duel, 1804 (1800 Presidential election, 1804 NY
Governor’s race).
 Backlash against Alien and Sedition Act.