Federalists and Republicans

1. Federalists and Republicans Chapter 6

2. Uncertain Times • New country faced uncertain times • U.S. weak and had war debt • Needed a source of revenue to run the government • During the first 8 years of the new government, two political parties will form • Federalists: Alexander Hamilton, John Adams • Republicans: Thomas Jefferson, James Madison

3. First President: 1789-1797 • After Constitution ratified, Washington chosen by Congress to be the first president • He did not want the job, but took it anyway out of a sense of duty • Will set many precedents and establish how a president should act and what the job entails • Served two terms, eight years

4. Alexander Hamilton’s Plan • Alexander Hamilton: 1st Secretary of the Treasury • Part of Washington’s cabinet • Economic problems, Hamilton proposes a plan • Opposed by Thomas Jefferson

5. Economic Plan: War Bonds • To raise money for the war, Congress had sold bonds-paper notes promising to repay money with interest after a certain amount of time • Few believed bonds would be paid back, lost value • Many citizens sold their bonds to speculators, people willing to take a risk in hopes of future financial gain • Hamilton proposed U.S. govt. should repay these bonds • Madison opposed plan, said it was unfair to citizens who already sold their bonds to speculators • Madison and Southern delegates angry-most bonds were held by Northerners but taxes raised to pay them off came from the South

6. Economic Plan: States’ debts • As well as pay off old bonds, Hamilton proposed issuing new bonds • Hamilton next proposed that Congress assume the states’ debts • Northern states supported this-they owed money, most Southern states opposed-they paid off their debt already

7. Compromise: A New National Capital • After debates, Hamilton, Madison and Jefferson found a compromise • Southern states approved Hamilton’s plan if the new nation’s capital was moved from NYC to the South • New capital located along the Potomac River and named the District of Columbia Washington D.C. is located on the Chesapeake Bay between Virginia and Maryland

8. Economic Plan: Bank of the United States • Hamilton also proposed establishing the Bank of the United States • Argued needed to manage country’s debts and interest payments • Bank would issue national currency: which would promote trade, encourage investment, stimulate economic growth

9. Bank Opposition • Jefferson and Madison opposed bank • Argued that Congress did not have the power to create it • Not a part of the Fed. Govt.’s enumerated powers-powers specifically mentioned in the Constitution • Constitution states that Congress can “make all laws which shall be necessary and proper” to execute its responsibilities • Also called the “elastic clause”

10. Washington’s Decision • Washington signed the bill to create the bank-sets a precedent • Created implied powers-powers not explicitly listed in the Constitution but necessary for the govt. to do its job • Leads to continuing political disagreement about how the Constitution is interpreted

11. Taxing the People • Along with tariffs, tax on imports, and bank, Congress begins taxing citizens directly • Caused the Whiskey Rebellion-western farmers rebelling a tax on whiskey • Whiskey used as a form of currency • Washington sends troops to end rebellion • Citizens worried at use of govt.’s force against its own citizens

12. Rise of Political Parties • Federalists and the Republicans-two party system • Formed as Congress fought over economic issues • Federalists: Supported strong central government and interpreted the Constitution loosely (Hamilton, wealthy business owners, elite plantation owners) • Republicans: Supported strong state governments because they were closest to the will of the people and limited central government (Jefferson, Madison, rural citizens, farmers) • Republicans later become known as the Democrats

13. Washington’s Farewell Address • Famous speech and widely read, then and now • Warned against sectionalism-division of the U.S. into North and South or East and West • Against political parties • Dependency on foreign countries

14. French Revolution • Began in 1789, before Washington took office • Most Americans sympathized, French seemed to be fighting for the same rights they had • By 1793, French radicals seized control; executed thousands of people, including the king and queen • Federalists opposed the Revolution and supporting it: horrified by the violence and chaos • Republicans supported it: admired their fight for liberty

15. International Turmoil • French Revolution caused further disagreements between the two political parties • Relations between France, a former ally, and England, former mother country, almost brought the U.S. into war • Disagreement on international affairs divided Congress and the nation

16. John Adams Takes Office: 1797-1801 • John Adams becomes the 2nd president in 1797 • First prez elected by the people-Federalist • Dealt with issues with France and political parties • Only served one term • Defeated by Republican rival Thomas Jefferson

17. Adams’ Presidency • Troubled presidency, bitter fighting between two parties • U.S. caught in the middle of two warring nations: England and France • Both France and England were seizing American trade ships • Quasi-War, or undeclared war at sea, ensues with France

18. Alien and Sedition Acts • Public anger at France and fighting between political parties leads to the passing of the Alien and Sedition Acts • Alien Acts: Since many new immigrants were from Ireland and France, Federalists passed a law requiring immigrants to wait 14 years before becoming citizens • Sedition Act: prevented sedition, or incitement to rebellion, by making it a Federal crime to print or speak anything malicious about the government • Repressed freedom of speech, made Adams unpopular

19. Thomas Jefferson: 1801-1809 • 3rd president of the U.S. in 1801-Republican • Defeats John Adams • Jefferson claimed that Washington and Adams had acted like royalty • Favored state’s rights over federal power • Oversaw the Louisiana Purchase

20. Rise of the Supreme Court • Before Adams left office, signed several Federalist judges and others into government positions • Federalists controlled the courts, Republicans angry • Adams appoints John Marshall as Chief Justice of the Supreme Court • During his 34 years, made the Supreme Court into a powerful, independent branch of government

21. Marburyv. Madison: 1803 • First significant Supreme Court case • Controversy surrounding Adams’ Federalist appointments before leaving office • Established court’s right of judicial review-the power to decide whether laws passed by Congress were constitutional and to strike down those laws that were not

22. Louisiana Purchase: 1803 • France controlled New Orleans, land west of the Mississippi River • Napoleon needed money for his wars • Jefferson negotiated the Louisiana Purchase and bought Louisiana for $11.5 million, and take on French debts around $3.75 million: Total-$15 million • U.S. more than doubles its size • Gains control of the Mississippi River

23. Louisiana Purchase

24. International Troubles • Jefferson trying to keep U.S. out of war • France and G.B. fighting-Napoleonic Wars • Both countries restricting our Atlantic trade • G.B. captured and forced American sailors into military service-impressment • Leads to an embargo, govt. ban on trade with other countries • Hurt more than it helped

25. War of 1812 • James Madison becomes 4thprez. • Declares war on G.B. • Congress divided on issue of war • Washington D.C. burned • No land gained, Canada’s borders defined • Nationalism grows