Federalist Party

• Focused on promoting banking + commercial interests

• Head leaders included Alexander Hamilton, John Adams, James Madison

  • George Washington despised political party conflict

• Pro-British

• Promoted the Bank of the United States

• Loose construction + the Elastic Clause

• Wanted a stronger federal gov’t

Anti-Federalist Party

• Led by Thomas Jefferson

• Believed in the contributions of yeoman farmers

• Strict construction/interpretation of the Constitution

  • If the Constitution doesn’t say we can do it, then we can’t do it

• Pro-French

• Supported agrarian + rural peoples

George Washington

• 1789 - Elected as 1st president

• Dubbed the “Indispensable Man”

• Promoted careers of Alexander Hamilton + Thomas Jefferson + James Madison

• Didn’t like party politics BUT believed they were necessary evils

• Wanted isolationism (US should stay out of foreign conflict)

• Precedents (ex. 2 terms)

Alexander Hamilton

• 1790 - Becomes Secretary of the Treasury

• As an elitist, he had little faith in the common man

• Wanted a strong federal gov’t + high commercial and industrial power

• Died in duel w/ Aaron Burr

Federalist Papers

• 1787-1788 - Published in newspapers

• Anonymous editorials in New York encouraging the ratification of the Constitution

• Written by James Madison + Alexander Hamilton + John Jay

• Included Federalist No. 51 and Federalist No. 10

Bill of Rights

• 1791

• Insisted on by the Anti-Federalists

• Used to protect individual + states’ rights

• Amendments 1-9 prevent abuse of individual rights

• Amendment 10 reserves powers to states

National Debt

• The gov’t would use direct loans + war bonds to get out of deep debt

• If the US defaulted on debt, there would be no other loans in future

• Bearing the debt burden together unified the states

• Thomas Jefferson didn’t like passing debt to the next generation

Tariff

• Taxes on imported goods

• Source of income for federal gov’t

• Gave domestic manufacturers advantage over foreign competitors

Assumption

• The federal gov’t would take on debts of states

• Large extent for national unity

Funding at Par

• Taking in old bonds and issuing new ones at the face value of the old bonds

• War bonds sold to rich citizens

• Included in Hamilton’s Financial Program

Bank of the United States

• 1791

• Allowed by the “elastic clause” under implied powers

• Believed to be “necessary and proper”

• Started 2-party system

• VERY CONTROVERSIAL

Strict Versus Loose Construction

• 1789 - Debates begin

• Core of 2-party system

• Federalists wanted loose construction (elastic clause)

• Anti-Federalists wanted strict construction + limited gov’t

• The gov’t needed to find a balance between the 2 interpretations

Excise Tax

• Targeted domestic goods

• Was controversial because it was similar to Parliament’s mercantilist taxes under British rule

Whiskey Rebellion

• Excise tax on whiskey

• 1794 - Pennsylvanian farmers rebelling

• Militia put down rebellion

• Showed that moving forward the fed. gov’t will defend the Constitution + enforce laws

Treaty of Greenville

• 1795 - Battle of Fallen Timbers

• General Anthony Wayne defeated Native Americans in Great Lakes region

• A peace treaty forced Native Americans to cede huge tracts of land

• British supplied liquor + guns, creating a tense relationship between the US + Canada

Proclamation of Neutrality

• 1793

• The US would avoid being involved in war with Great Britain + France

• It was known that the new nation wouldn’t survive another war

Jay’s Treaty

• John Jay

• 1795 - Signed by US + Great Britain

• Since Britain was keeping soldiers in the US + continuing to trade w/ Native Americans, they were defying the Treaty of Paris

• Jay’s Treaty

  • British will leave forts + give US trade concessions

  • US will pay back pre-war debts

Pinckney’s Treaty

• Spain wouldn’t give US access to New Orleans

• 1795 - Thomas Pinckney got access to New Orleans + opened navigation in Mississippi River

• Asserted rights of new nation

Washington’s Farewell Address

• 1796

• Set down the last important precedents

  • 2 presidential terms

  • Warned against 2-party system

  • Supported stable financial policy + isolationism

• Warned that if the US doesn’t follow his advice, there would be bad consequences

John Adams

• 1796 - Elected president

• Decline of Federalist Party

• Alien and Sedition Acts were bad for his reputation

• Placed John Marshall in Supreme Court

XYZ Affair

• 1798

• Involved an American peace delegation in France, three agents of the French Foreign Minister (labeled as X, Y, and Z in President John Adams' initial communications with Congress), and the French Foreign Minister's demand for a bribe from the American delegation

Alien and Sedition Acts

• 1798 - Changing laws to favor Federalists

• Alien Act required that the requirements to be a US citizen had increased

• Sedition Act required a decrease in the power of the freedom of the press

• Maintain political advantage + very biased

Kentucky and Virginia Resolutions

• 1798-1799

• Written by Madison + Jefferson

• Declared unconstitutional + null and void

• Alien and Sedition Acts were declared unjustified + erroneous

• Foreshadowed Nullification Crisis (South Carolina)

BIG PICTURE

• Debated interpretation of Constitution + power of gov’t → 2-party system

• Federalist Party - Stability for new nation BUT unpopular

• Hamilton’s Financial Program - Loose construction

• Neutrality + territorial sovereignty + use of military → Security

• John Adams - Maintained peace BUT Anti-Federalists nullified A + S Acts