The Federalist Era: Politics and Challenges

Federalist vs. Anti-Federalist (Constitutional Interpretation)

• Debate shifts from ratification to constitutional interpretation.
• Alexander Hamilton:
  • Secretary of the Treasury under Washington.
  • Believed in a strong national government.
  • Tasked with stabilizing the nation's finances after the Revolution.

Hamilton's Financial Plan

• First Report on Public Credit: Aims to stabilize national finances.
  • Federal government assumes state debts from the Revolution.
  • Rationale: State debts (e.g., Massachusetts) create national problems.
  • Controversy:
    • Benefits states with high debt more than those with little/no debt (e.g., Virginia, Pennsylvania).
    • Funding via federal treasury (taxes).
    • Objection: Why should Virginia pay Massachusetts' debt?
  • Madison opposes Hamilton's plan.

Compromise

• Jefferson hosts a dinner party to broker a deal.
  • Madison agrees to gather Southern votes for debt assumption.
  • Hamilton agrees to relocate the nation's capital to the Virginia border (Washington D.C.).
    • Southern states concerned about Northern interests dominating the government in New York City.
    • Smaller debt states (e.g., Virginia, Pennsylvania) receive federal grants.
  • Capital temporarily relocated to Philadelphia for ten years during D.C.'s construction.

National Bank

• Hamilton proposes a national bank to manage finances.
• Opposition:
  • Jefferson and Madison argue the Constitution doesn't explicitly allow a national bank.
• Hamilton's Defense:
  • Uses the Necessary and Proper Clause (Elastic Clause) to expand federal power.
  • Argues the bank is necessary for managing finances.
• Outcome:
  • Washington sides with Hamilton, signing the bank bill into law.
  • The First Bank of the United States is established; controversy to continue.

Political Parties Emerge

• Federalists:
  • Hamilton, Washington, John Adams.
  • Believe in a stronger federal government.
• Republicans (Democratic-Republicans):
  • Madison, Jefferson.
  • Believe in stronger state governments.
• Differences centered on national vs. state power.
• Jefferson's Vision:
  • Decentralized, agrarian republic with weaker federal government.
  • Fearful of a powerful federal government infringing on state rights.
  • Focus on agriculture, wary of commerce and manufacturing.
• Jefferson's Agrarian Myth:
  • Ideal: Citizens owning small plots of land, independent and not reliant on wage labor.
  • Believes manufacturing should stay in Europe to avoid creating a dependent working class.
• Hamilton:
  • Advocates for a mixed economy with emphasis on manufacturing.

Foreign and Domestic Crises

• America is a weak nation in a world of powerful monarchies.

French Revolution (1792)

• Initially an effort to reform the monarchy, evolves into a radical revolution.
  • King Louis XVI is beheaded, attacks on aristocracy and the Catholic Church.
  • Concerns arise outside France.
• European Conflict:
  • By 1793, revolutionary France is at war with a counter-revolutionary coalition led by Prussia and Great Britain.
• American Neutrality:
  • Question: Does the treaty of alliance from the American Revolution bind America to aid France?
  • Federalists tend to support England; Republicans support France initially.
  • Washington declares America's neutrality.
• Challenges to Neutrality:
  • British impressment of American sailors into the British Navy.
  • Both sides seize ships and cargo bound for the enemy, hurting American trade.

Jay's Treaty

• Washington sends John Jay to England to negotiate a resolution.
• Terms:
  • British promise to evacuate western posts by 1796.
  • Britain agrees to pay damages for seizures of American ships and cargo (1793-1794).
• Failures:
  • No compensation for slaves carried off during the Revolution.
  • No agreement on impressment (British continue).
  • No compromise on neutral shipping rights.
  • Britain refuses to reopen the West Indies to American trade.
• Outcome: Treaty is unpopular but ratified by the Senate.

Whiskey Rebellion

• Whiskey Tax:
  • Unpopular with western farmers in Pennsylvania. They denounced the tax and had vigilantes preventing its collection.
    • Tax on whiskey, a staple product (grain).
    • Cheaper to transport grain in liquid form.
    • Farmers felt they were losing political control to the East.
• Federal Response:
  • Hamilton believes the federal government needs the revenue.
  • Washington believes laws must be obeyed.
  • Militia called out; 13,000 men led by General Henry Lee.
  • Washington and Hamilton lead the army to show federal authority.
• Outcome:
  • Rebellion suppressed.
  • Political system allows for change through elections: Anti-tax voters elect Republicans, changing Congress.

Pinckney's Treaty (Treaty of San Lorenzo)

• Resolution of issues with Spain.
• Terms:
  • Establishes southern boundary of America.
  • Allows America to navigate the Mississippi River.
  • Spain agrees not to incite Indian attacks.

Washington's Farewell

• Washington steps down after two terms, setting a precedent.
• Avoids potential monarchy.

Election of 1796

• First truly contested election.
• Candidates:
  • Federalist: John Adams (leans toward Britain).
  • Republican: Thomas Jefferson (leans toward France).
• Outcome: Adams wins.
• Vice Presidency: The person with the second highest number of votes becomes Vice President, so Jefferson becomes Vice President.

Adams' Presidency

Quasi-War with France (1798-1800)

• France seizes American ships.
• XYZ Affair:
  • Adams sends commissioners to negotiate with France.
  • French commissioners (X, Y, Z) demand a loan and bribe for negotiations.
  • Negotiations fail.
• Unofficial naval war ensues; war is never declared.
• Second Attempt to Negotiate:
  • Commissioners sent to obtain money for seized ships and formal cancellation of the 1778 treaty of alliance.
• Outcome:
  • Treaty of alliance is formally canceled, but America receives no compensation for seized ships.

Alien and Sedition Acts (1798)

• Passed by Congress due to the Quasi-War.
• Attacked First Amendment rights (freedom of speech and press).
• Republicans arrested for speaking out against the government.

Kentucky and Virginia Resolutions

• Proposed by Jefferson and Madison in response to Alien and Sedition Acts.
• State Compact Theory:
  • The Constitution is a compact between states granting power to the federal government.
  • States can judge when Congress exceeds its power and nullify laws.
  • Doctrines of interposition (states interpose their judgment) and nullification (states nullify federal law).
• Resolutions do not lead to actual nullification at this time.

Election of 1800

• Federalist: John Adams and Charles Pinckney.
• Republican: Thomas Jefferson and Aaron Burr.
• Tie:
  • Jefferson and Burr tie in electoral votes.
  • Decision goes to the House of Representatives.
• Hamilton's Influence:
  • Hamilton, despite being a Federalist, despises Burr.
  • He works to ensure Jefferson wins, if a Republican must be president.
• Jefferson's Commitments:
  • Agrees to not remove all Federalists from government positions.
  • Agrees to uphold Hamilton's fiscal system.
• Outcome: Jefferson wins the election, Burr becomes Vice President.
• Federalist Decline:
  • Federalists lose the presidency and control of Congress.

Judiciary Act of 1801

• Federalist Attempt to Retain Power:
  • Passed to maintain control of the judicial branch.
  • Creates 16 new circuit courts and appoints Federalists to these positions; also stipulates the next Supreme Court vacancy will not be filled.

Jefferson's Inauguration

• First inauguration in Washington D.C.
• Simple ceremony reflecting Jefferson's opposition to Federalist pomp.
• Peaceful transition of power from one party to another.
• Jefferson places Republicans in policy-making positions but leaves Federalists in other positions as promised.
• Judiciary Act of 1801 is repealed.

Marbury v. Madison

• Background:
  • William Marbury appointed as Justice of the Peace by John Adams but the commission was not delivered.
  • Jefferson directs James Madison to withhold the appointment, so Marbury sues.
• Marbury sues for a writ of mandamus, compelling Madison to deliver the commission.
• Filed in the Supreme Court based on the Judiciary Act of 1789.

John Marshall's Decision

• Marshall, a strong Federalist, writes the Court's opinion.
• Ruling:
  • Marbury is entitled to his commission.
  • However, the Court lacks jurisdiction in this specific case.
  • Section 13 of the Judiciary Act of 1789, granting original jurisdiction to the Supreme Court in mandamus proceedings, is declared unconstitutional.
  • Constitution limits original jurisdiction of the Supreme Court to cases involving ambassadors or states.
• Judicial Review Established:
  • The Supreme Court declares a law unconstitutional for the first time, establishing judicial review.
  • The Constitution did not explicitly grant the Court this power.
  • Judicial review was considered and rejected during the drafting of the Constitution.
• Supreme Court assumes a power that was not initially intended.