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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.