The Federalist Era

1. The Federalist Era Chp 10 Students should understand the origins of the first political party system in the united States.

2. National Growth Rate • Doubled every 25 years • 1790 the population was 4 million • Cities were getting bigger • Philadelphia 42,000, NY 33,000, Boston 18,000 • 90% of Americans were still rural, farmers and 95% lived east of the Appalachian mountains

3. 1st Presidential Administration • Washington was elected unanimously by the electoral college • First thing he did was establish a cabinet • Jefferson was secretary of state • Hamilton was secretary of treasury • Knox was secretary of War • Randolph was the attorney General

4. 1st Congress • Bill of rights • Written by Madison • Religion, speech, press, arms, jury trials, etc • 9th amendment rights to people • 10th amendment rights to the states • Federal Judiciary Act of 1789 • Created the Supreme Court with a chief justice and 5 other justices • Set up the federal district courts and the circuit courts • John Jay was appointed as the first chief justice

5. Public Credit • Hamilton was the key figure in the gov’t • Rivalry with Jefferson • Fixed the economic problems • Favored the rich who in turn loaned money and supported the gov’t • Trickle down theory • Funding—pay the debt using bonds • Funding at par—pay the debt plus interest • Speculators bought bonds for almost nothing and made a fortune • Assumption—Federal government assumed the states debts • $21 million worth • States like Massachusetts with debt loved it but Virginia had no debt and traded their votes on the issue for the capital (DC)

6. Taxes • 75 million in total debt when Washington took office • Hamilton loved debt—unified the country • Everybody the country owed money to would support the gov’t • Customs duties • Tariffs the first one was set at 8% it was passed in 1789 • Designed for revenue but acted as a protective tariff • Whiskey Tax—Excise was seven cents a gallon

7. National Bank • Private bank with the US gov’t the major owner • Used as a place for extra money to be stored • It Kept funds in circulation which was a boom for business • Printed money • Jefferson fought it on constitutional grounds • Strict v. loose constructionist • Necessary and proper clause v. the 10th amendment • Showed the north-south split • North based on commerce and business while the south was based on agriculture

8. Rebellions Shays Rebellion Whiskey Rebellion Revolutionary War veterans losing farms Demanded paper money, lighten taxes and suspend foreclosures Mass raised an army and crushed the rebellion Shay got his reform laws Showed need for a reform/new government-fear of mobocracy Excise tax hurt Pennsylvania frontier farmers hard Easier to ship whiskey than corn They ran tax collectors out of the counties Washington sent in the army and the rebels simply gave up, Washington pardoned the few rebels that were convicted Showed the federal government’s power

9. Political Parties • Started over Hamilton’s economic issues • Federal vs. States rights • Were no political parties before in US • Parties were seen as disloyal • Jefferson vs. Hamilton and creation of the Democratic-Republican Party

10. French Revolution • Actually a Western world revolution because it affected everyone • Its ultimate goal was to take power away from the monarchs and give it to the people • They beheaded the king, the church was attacked, Reign of Terror • Federalists distrusted Jeffersonians as a result • Jefferson was in favor of the revolution while the federalists were skeptical of it—too violent • Britain became involved and hence America

11. Neutrality • Franco-American Alliance 1778 • Jeffersonians wanted to help—owed them • Neutrality Proclamation 1793 • Leads to the Isolationism of America • Edmond Genet- ambassador- overstepped his bounds • Alliances based on the needs of both sides

12. British Problems • Forts in Northwest • British Haven’t left yet • Involved in the fur trade • Arming Indians • Against Treaty of Pairs 1783 • Seizure of ships trading with France • Impressments • Forcing Americans to work in the British navy

13. Jay’s Treaty • British leave forts in Northwest • Pay damages for seized ships • Nothing about future seizure and impressments • US pay debts to British merchants from Revolutionary War • Opened trade routes between US and British colonies

14. Pinckney’s Treaty • Access to Mississippi River through New Orleans • Disputed land between New Orleans and Florida was given to the US

16. Washington Resigns • Farewell address • Stay away from parties • Permanent alliances

17. Adams • 1796 election • Adams (71) vs. Jefferson (68) • Democrat-republicans against Adams • “High Federalists” conspired against him

18. As a result of Jay’s Treaty, the French started seizing US ships (300 total) • XYZ Affair • Bribe to talk to Talleyrand • Millions for defense not one cent for tribute • Embarrassed Democratic-Republicans were French friends • Created Navy department • Undeclared naval wars France

19. Convention of 1800 • Agreed to end the “quasi war” • France Returned captured ships • Ended the Franco-American Alliance of 1778, ensuring US neutrality in upcoming war • Adams later said, "I desire no other inscription over my gravestone than: 'Here lies John Adams, who took upon himself the responsibility of peace with France in the year 1800.'"

20. Alien Act • Changed the Years it took to become a citizen from 5 to 14 • Slowed vote for Democratic-Republicans • Deport dangerous foreigners • Sedition Act • Fine and imprisonment for defaming the government • Law expired in 1801 Federalists Witch Hunt

21. Virginia and Kentucky Resolutions • Jefferson and Madison • Nullification • States could choose to disobey an unconstitutional law passed by the Federal Government • Compact Theory • Federal government was created by the states and the states had the final say • Used later with Jackson • Never intended to end the Union only a tool against the Federalists- Propaganda

22. Federalists vs. Democrat Republicans Demo-Repub • Hinterland- rural • Middle class, poor • Weak government • Farmers • Democracy, not for ignorant • Pro-French • Wealthier • Distrusted democracy • Strong central government • Cities • Pro-British Federalists