The Federalist Area
Introduction to the Era of the American Republic
The year 1789 marks the beginning of a new governance era in the United States, with uncertainty about its success.
Franklin's remark is highlighted: "It's a republic if you can keep it."
Fundamental question for Washington and leaders: Can this republic be maintained?
George Washington's Presidency
Election and Legitimacy
Washington was elected as the first President largely due to his dignity and strong personality, which lent legitimacy to the new government.
He understood his role and maintained an image of a dignified Virginia gentleman.
Persona and Approachability
Washington was not perceived as a man of the people; he was criticized for being too aristocratic.
He traveled in a six-horse coach and attended events in tailored suits with a ceremonial sword, which felt royal to some.
Critics felt this demeanor contradicted the ideals of the republic the nation aimed to establish.
Stability Amidst Division
Washington's aloofness kept him above everyday political fray, promoting stability in fragile early governance.
His initial cabinet represented a broad cross-section of the country, featuring:
John Adams (Massachusetts) - Vice President
Alexander Hamilton - Secretary of Treasury
Thomas Jefferson - Secretary of State
Initial unity among predominantly Federalists led to smooth operations.
Legislative Accomplishments
Important achievements during Washington's presidency included:
Passage of the Bill of Rights.
Judicial system organization, leading to the establishment of the Supreme Court via the Judiciary Act.
The executive branch remained small, with the State Department having only five employees, and the War Department three.
Emergence of Political Controversy
National Debt Issue (1790)
A significant political controversy arose surrounding the national debt, a key factor in shaping future American politics.
The Confederation's credit was tarnished, complicating future borrowing.
Role of Alexander Hamilton
Hamilton emerged as a central figure, known for his controversial views differing from other Founding Fathers.
Born in the Caribbean to a Scottish father and French mother, Hamilton faced personal attacks based on his origins.
He joined the Patriot cause in New York and became a trusted adviser to Washington during the Revolutionary War.
Hamilton's interests in finance led him to become the first Secretary of the Treasury.
Hamilton's Economic Vision
Centralization and British Influence
Hamilton favored a strong centralized government, asserting the national government was the only entity that mattered, viewing state loyalty as secondary.
He advocated a close economic relationship with Britain, the era's leading power, while encouraging American manufacturing to foster independence.
Three-Part Economic Program
Restoring Public Credit: Addressing national and state debts by consolidating them under federal responsibility through a plan known as funding and assumption.
Economic Ties with Britain: Emphasizing that economic strength depended on collaboration and not isolation.
Encouraging Manufacturing: Promoting industrial growth through government subsidies and protective tariffs against foreign products to enhance domestic industries.
Controversial Policies and Opposition
Funding and Assumption Plan
Hamilton's plan involved consolidating national and state debts into one federal obligation:
A portion of the annual budget would be allocated to pay off this debt, creating a sense of fiscal responsibility.
Resistance emerged, particularly from the South, where states had already paid off their debts and feared being taxed to alleviate Northern debts.
Hamilton’s approach was seen as diminishing state power and increasing federal control, fostering regional tensions.
Southern Compromise
A compromise was forged between Hamilton, Jefferson, and Madison:
Jefferson and Madison agreed to accept the funding plan if the capital moved to a Southern location, ultimately leading to the establishment of Washington D.C.
This was perceived as reducing Northern influence, which had been predominant in earlier financial plans.
Establishing a National Bank
Following the compromise, Hamilton's agenda gained momentum with the creation of the Bank of the United States to manage debt and stabilize the currency.
His report on manufacturers sought legislation to support industrial growth through government-sponsored initiatives.
The Growing Divide: Federalists vs. Republicans
The Formation of Political Factions
Hamilton's policies and vision contrasted sharply with Jefferson's agrarian ideals, hence leading to the emergence of two political factions:
Federalists: Support Hamilton’s centralization and favorable relations with Britain.
Democratic-Republicans: Support Jefferson’s vision for a more agrarian, decentralized government emphasizing individual liberties.
Characteristics of Each Faction
Federalists:
Advocated for a strong national government and military, protective tariffs, and policies benefitting the urban elite.
Drawn primarily from New England and Middle States, the Federalists were often viewed as pro-British.
Democratic-Republicans:
Advocated for limited federal power, protection of agrarian interests, and free trade.
Their support base consisted of Southern farmers and anti-federalists.
Generally pro-French due to revolutionary sentiments in France.
Interpretation of the Constitution
The Federalists preferred a loose interpretation of the Constitution, allowing for expanded federal powers.
The Democratic-Republicans favored a strict interpretation, arguing that powers not explicitly granted should not be exercised by the government.
Impact of Foreign Policy and Diplomatic Relations
Outlook on the French Revolution
The outbreak of the French Revolution aligned with the factions' economic and diplomatic interests:
Republican supporters viewed it as an extension of values that underpinned American independence.
Federalists, however, feared the growing radicalism of the revolution and rejected its violent and anti-Christian aspects.
Internal Strains Within Washington's Administration
Washington sought to remain neutral but aligned more with Hamilton due to his respect for Hamilton's abilities.
This alliance ultimately led to a rift with Jefferson, who resigned as Secretary of State in 1793, establishing an opposition front.
Challenges of the 1790s
The Whiskey Rebellion
A tax on whiskey imposed by Hamilton as a revenue source sparked resistance from frontier farmers, crucially impacting their livelihood.
Resistance escalated into the Whiskey Rebellion, where rebels assaulted tax collectors but were dispersed by a federal army, leading to heavy governmental scrutiny over the actions taken.
Jay's Treaty and Its Fallout
Negotiations led by Jay with Britain resulted in concessions perceived as selling out U.S. autonomy:
The treaty restricted U.S. trade with nations at war with Britain, fostering Republican backlash and further alienating Hamilton.
The treaty narrowly passed in the Senate, showcasing deep divisions and extreme public outcry.
Washington’s Farewell Address
Final Reflections
Washington delivered his farewell address highlighting:
A call for national unity and the importance of upholding the rule of law.
Warned against foreign alliances, stressing independence in international affairs.
Stressed the necessity of morality and religious grounding in governance for preserving liberties.
Legacy
Upon retirement in 1797, Washington’s reputation remained intact, having successfully navigated the early republic's challenges.
His two-term precedent influenced future presidencies, including the eventual establishment of a two-term limit in 1951.