3.8 Two Party System

Describe the steps Washington's administration took to build the federal government.
Analyze Hamilton's plans for the economy and the opposition to them.
Explain how a two-party system emerged in the new nation.

Initially wished to return to his farm post-Revolutionary War.
Recognized that the Articles of Confederation were weak and insufficient to unify the nation.
Supported the need for a Constitutional Convention and served as the presiding officer.
Took the oath of office as the first President on April 30, 1789.

Focused on setting precedents for the new federal government; the Constitution was merely a framework at this stage.
Proceeded cautiously, maintaining existing departmental structures from the Articles of Confederation.
Appointed his own leaders for the government departments, reinforcing presidential authority over executive branches.
- Cabinet Members:
  - Thomas Jefferson - Secretary of State
  - Alexander Hamilton - Secretary of the Treasury
  - Henry Knox - Secretary of Defense
His leadership clarified executive boundaries and focused on finance, diplomacy, and military matters.
Engaged minimally with Congress and only vetoed two bills in eight years.

The U.S. faced significant debt:
- National Debt: $54,000,000
- State Debt: $30,000,000
The Continental Congress' paper money became worthless, and countries were hesitant to extend credit.
Alexander Hamilton was chosen to lead the economic recovery effort.
- Proposed federal assumption of state debt to manage national finances.
Resistance from states not in debt (Maryland, Pennsylvania, North Carolina, Virginia).
A compromise emerged:
- Southern states would support Hamilton's economic plans in exchange for the nation's capital being located on the Potomac.

There was significant opposition to the establishment of a National Bank, particularly from Jefferson and Madison, who argued it was unconstitutional.
Hamilton argued for implied powers stated in the Constitution, allowing for necessary actions such as creating a bank.
National Bank established in 1791 despite opposition; Washington signed the bill into law due to its economic importance.
Hamilton advocated for supporting small industries to foster economic growth post-war.

Hamilton's Vision: Focus on investment in manufacturing and commerce; favored the end of slavery.
Jefferson's Vision: Emphasized agrarianism; believed land ownership was key to prosperity.
Political Opposition: Jefferson attacked Hamilton as elitist and aligned with British economic principles.

Political parties were initially despised; framers hoped for compromise without factionalism.
Early 1790s saw emergence of two parties:
- Republican Party: Founded by Jefferson and Madison, advocating for strong state governments and fears of a monarchy.
- Represented rural farmers and Southern interests.
- Federalist Party: Led by Hamilton, promoting strong central government and industrial growth.
- Gained support primarily from Northeastern states.
The Whiskey Rebellion in 1794 heightened tensions between the two parties.
- Washington used federal authority decisively to manage the rebellion, reinforcing Federalist ideals.
- Jefferson framed the government's actions as oppressive, arguing it endangered citizen freedom.

By the end of his presidency, party factions were growing increasingly hostile.
In his farewell address on September 19, 1796, Washington condemned political parties as dangerous and divisive, warning of their potential to lead to foreign influence and corruption.

Which of the following was NOT selected by Washington for his cabinet?
- A. Thomas Jefferson
- B. Henry Knox
- C. James Madison
- D. Alexander Hamilton