3.8 Two Party System

Section Objectives
  • 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.
George Washington's Presidency
  • 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.
Washington's Approach
  • 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.
Economic Policy and Challenges
  • 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.
Creation of the National Bank
  • 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.
Diverging Visions: Hamilton vs. Jefferson
  • 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.
Emerging Two-Party System
  • 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.
Washington's Warning Against Political Parties
  • 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.
Key Questions
  • Which of the following was NOT selected by Washington for his cabinet?
    • A. Thomas Jefferson
    • B. Henry Knox
    • C. James Madison
    • D. Alexander Hamilton