The Rise of Party Politics

1. The Rise of Party Politics A.P. U.S. History Mr. Krueger

2. Differing Views • Political Parties began to take shape at this time. • Jeffersonians and Federalists • They differed on the transition from an agricultural society to an industrial society. • The Federalists encouraged rapid change. • They stated a modern economy must have strong institutions directed by social elite who understood the financial challenge.

3. Public Opinion • Jeffersonians put their faith in the common people who they felt could be trusted to sustain the virtue of the republic • Sides – A. Hamilton vs. TJ – James Madison • Both would have to live with public opinion

4. Establishing Government • Washington enjoyed great popularity in the nation. • Washington was selected president, J. Adams as VP. • Washington carried great responsibility and was trusted with the nation’s stability. • He carried himself with dignity and reserve.

5. Discussion • French reference to the inauguration – “Washington has the soul, look, and figure of a hero united in him.” • What does this say about Washington, is he still viewed like this today?

6. Washington’s Presidency • Washington created a strong independent presidency – he made the decisions. • The 1st Congress established executive departments, but Washington and J. Madison led a successful fight against the control of the president’s authority. • 1789 Congress established: • Department of War – Henry Knox • Department of State – TJ • Department of Treasury – A. Hamilton • All were nominated by Washington • Edmund Randolph served as a temporary Attorney General

8. State and Judicial • TJ and small staff – • Maintain foreign contact, collect information on world affairs, communicate with U.S. officials overseas, organized the federal census. • Congress provided for a federal court system • Judiciary Act of 1789 – authored by Oliver Ellsworth (Conn.) • He created a Supreme Court staffed with a justice and five associates. • Established 13 district courts to oversee state courts. • John Jay – Chief Justice • Due to demands of time and travel distance few were drawn with outstanding talents to be justices with Jay.

9. Discussion • For financial purposes the Tariff of 1789 placed a 5% tax on imported goods. • Do we have executive departments today? • Can you name any?

10. Jefferson and Hamilton • Served with distinction during the Revolution • Men of genius and ambition • Vision of American greatness • Decade of the 1790’s presented opposing views when it came to republicanism (prelude to political parties)

11. Alexander Hamilton • Hamilton sought reputation not wealth • Favored a strong central government • Would not be bound by the wording of the Constitution (loose constructionist) • Admired the British culture and sought commercial and diplomatic ties

12. Thomas Jefferson • Reflective and shined less brightly. • Not motivated by wealth and power, but promoted the democratic principles of the Declaration of Independence. • TJ had just returned from France where he witnessed the start of the French Revolution. • TJ was more partial towards France than Britain.

13. Hamilton’s Outlook • They opposed each other, but shared fundamental beliefs: a strong prosperous republic. • Both were different types of republicans who attempted to cope with political challenges. • Hamilton sought bold commercial developments (farms – factories) • Hope to reduce the need for foreign trade • His view of human nature led him to oppose pure democracy • He felt the best hope for survival lay in the hands of the wealthy

14. Jefferson’s Vision • Challenged Hamilton on many issues • Felt the countries strength lies in agricultural production not industrial potential. • Argued those in farming were more responsible citizens than those who worked in the factories. • He encouraged the nation’s farmers to participate in international markets. • TJ had faith in America to shape policy and make decisions. • Feared uncontrolled government power might destroy liberty. • The greatest threat was from pseudo aristocrats who placed emphasis on property and power, not liberty.

15. Hamilton and Jefferson

16. Financial Policy • A. Hamilton will take responsibility for shaping financial policy • Hamilton Grand Design – • August 1, 1789 the House of Reps stated, public debt will become a matter of huge importance • Hamilton devised a complicated plan on: • Public Credit • Banking • Manufacturing • Presentation to Congress – Report on the Public Credit • U.S. Debt $54 million • Foreign Loans • Government Banks • State debt to creditors ($40 Million)

17. Funding and Assumption • In his reports he stated: • U.S. would fund foreign and domestic obligations at face value • Federal government must pay state debts • He felt this would reduce the power of the individual states in shaping economic policy • Fully funded economic debt brought true independence to the U.S. • J. Madison (Hamilton’s Co-writer of “the Federalist”) attacked his plan in the House of Reps. He felt the wealthy were only benefiting in Hamilton’s policies. (Keep in mind he was Hamilton’s friend.) • J. Madison was defeated in Congress

18. Problems • Problem for Hamilton is some states paid their war debts, and his policies rewarded those states whose finances were in disarray – Massachusetts and South Carolina • Hamilton found support for his program by moving the capital to the Potomac River which would stimulate the economy in northern VA • G. Washington signed Hamilton’s assumption

19. Bank of the United States • Hamilton’s 2nd report to Congress included a charter for a national bank • Privately owned, but federally funded • A growing financial nation needed a central bank • J. Madison opposed a financial institution that had monetary control (it was modeled after British institution) • The Constitution stated nothing about financial corporations • This opposition, Hamilton stated, must be killed or it will kill the Constitution

20. Washington gets involved • Washington was unsure on his support of the bank • Hamilton prepared an essay “Defense of the Constitutionality of the Bank” • It stated Congress shall have power in taxation, commerce, and war. Implied powers also existed • Washington – signed the bank bill Feb. 25, 1791

21. Hamilton Setback • Planned to stimulate manufacturing • Protective Tariff • Bounties • J. Madison – T. Jefferson rallied against Hamilton on moral and political grounds • Fought against the consolidation of federal powers that would control state governments • Madison became a spokesman for the states • TJ attacked Hamilton at a different angle • The government shouldn’t promote manufacturing; it promotes cities that in turn promote vice • Report of Manufacturing was defeated in the House • Washington tried to bring Hamilton and Jefferson together without success • The two moved in the direction of political parties

22. The Sides • Jeffersonians: • State rights • Strict interpretation of the Constitution • Friendship with France • Federalists • Strong National Government • Public order – use of troops • Close ties with Britain

23. Discussion • Are you a federalist or a jeffersonian? • Why? (YES, YOU NEED TO PICK ONE!)

24. The U.S. does not want to pick a side • Britain treated the U.S. with arrogance - 1794 • 1000 British soldiers occupied American land • British Navy controlled the sea • 75% of imports came from Britain – BUT • Britain refused full commercial reciprocity • Britain blocked trade with western tribes • France presented a different challenge • King Louis XVI faced revolution due to economic problems • It cost him his life and bloody revolution followed • Reign of Terror cost many lives via the Guillotine • Americans were confused • Federalists opposed the French Revolution • Republicans didn’t support the violence but felt the people had the right to spread “republicanism” • 1793 – France declares war on Britain • It’s a war of all peoples, against all kings

25. Reign of Terror