Study Notes on the Early Republic (1789-1800)

Opposing Leaders: Alexander Hamilton and Thomas Jefferson.
- Hamilton's Views:
- Advocated for the United States to model its government on that of Britain.
- Mistrusted the populace and believed that democracy was inherently limited.
- Aimed to develop a strong federal government to promote the growth of factories and ports.
- Noted that the decline in export trade had led to increased American manufacturing.
- Desired the establishment of a robust banking system.
- Jefferson's Views:
- Trusted in the virtue of the people and envisioned a nation of farmers.
- Uncomfortable with the emerging mercantile class and the rise of manufacturers, which he believed could lead to a form of pseudo-aristocracy based on wealth.
- Emphasized agriculture as foundational to American liberty, contrasting Hamilton's mercantile focus.
- Advocated for limited government and individualism, while promoting westward expansion.
Geographical Influence:
- Federalists were predominantly strong in New England due to a strong commercial ethos and social hierarchy.
- Southern Federalist power was weakest except in South Carolina.
Ideological Differences:
- Federalists viewed themselves as a natural aristocracy and supported a strong government to regulate for communal benefit.
- Anti-Federalists embraced agricultural values and skepticism of banks and commerce, advocating for equality and minimized government interference.

Background: George Washington granted Hamilton considerable authority to resolve national debts.
Debt Overview:
- National debt totaled $52 million, with states owing about $25 million.
- Approximately 20,000 individuals held debt, with only 20% being original creditors.
Hamilton's Recommendations:
- Fund national obligations at full face value, irrespective of the holders.
- Federal government should assume state debts, which sparked controversy due to poor accounting involving IOUs.
Madison’s Opposition:
- Argued that federal government was overstepping its bounds; suggested certificates be repaid at face value only if held by original holders—otherwise at 50% value.
- Despite his opposition, Congress approved Hamilton's national bank proposal in 1791, with federal capital and institutional risk largely under government purview.

Established in Philadelphia (1791) as a result of Hamilton's financial strategy.

Relevant historical context for American political considerations during the era.

Initial American Sentiment:
- Enthusiasm for French revolutionary ideals of 'Liberty, Fraternity, Equality.'
- Jefferson, as Secretary of State, expressed strong support, contrasting Hamilton's dismay at the chaos and royal abolition.
Political Consequences:
- Washington chose to run for re-election in 1792 due to the French upheaval and won with 132 electoral votes.
- By 1793, France faced the Jacobin Terror which alarmed many in the US.
Neutrality Stance:
- Washington declared a policy of American neutrality on April 22, 1793, to prevent involvement in European conflicts.
Issues from Neutrality:
- US ships faced seizures by both the British and French, despite neutrality rights.

Election Results:
- New Hampshire: 6, Vermont: 3, Massachusetts: 16, Rhode Island: 4, Connecticut: 9, New Jersey: 7, Delaware: 3, Maryland: 8 (in total electoral distribution).

Diplomatic Tensions:
- French hostility following the Jay Treaty led to seizing US vessels.
XYZ Affair:
- Adams’s envoy to France was met with demands for a bribe before negotiations, escalating tensions and leading to the Quasi-War.
Congressional Actions:
- Enslavement confirmed refusal to honor prior treaties with France, increased the army, and established the Navy in 1798.

Legislative Intent:
- Aimed at curtailing dissent and managing immigrant populations deemed sympathetic to France.
- Included measures allowing deportation of immigrants and heavy penalties for dissent against the government.
Constitutional Challenges:
- Jefferson and Madison expressed concerns over First Amendment violations, seeking to highlight the state governments' powers relative to federal overreach.

Shifting Political Landscape:
- John Adams (Federalist) faced off against Thomas Jefferson (Democratic-Republican).
- Mobilization strategies, party organization, and resentment towards Federalist policies (Alien and Sedition Acts) accentuated the political divide and influence transitional dynamics.
Election Outcomes:
- Jefferson won 73 electoral votes (53%) to Adams’s 65 (47%) amid constitutional controversies.
- Problematic tie led to House recalibration of vote and influence from Hamilton facilitated Jefferson’s electoral success.

Context of Victory:
- Accompanying complexities surrounding vice presidential candidate Aaron Burr’s influence and aspirations, marking future implications for governance.

Implications for Future Governance:
- Formation of political parties began with trends that would define the evolving nature of American democracy and federalism.
Cultural and Political Legacies:
- Established precedents set governmental principles, evolving party dynamics, and the principles of state vs. federal authority.