The Federalist Era, 1789-1801

1. The Federalist Era, 1789-1801 APUSH – Mr. Hesen

2. The United States @ 1790 • Population nearly 4 million people • Doubling every 25 years • 90% of Americans lived on farms • Few large towns existed • 5% lived west of Allegheny Mountains

4. Finances of new nation were precarious • Public debt was enormous • Worthless paper money • Foreign challenges by Britain and Spain

5. President Washington • Elected unanimously by Electoral College in 1789 • Only president to be honored by unanimous vote • Washington was highly respected • Took oath of office on April 30, 1789 in New York City • John Adams sworn in as vice president

6. Washington’s Cabinet • Sets precedent for executive today • Part of the “unwritten constitution” • Three full-fledged department heads: • Secretary of State – Thomas Jefferson • Secretary of the Treasury – Alexander Hamilton • Secretary of War – Henry Knox

7. Bill of Rights Priority #1 • Antifederalists criticized Constitution for not having BoR • Many states ratified Constitution with the thought that BoR would be included • Amendments to Constitution • 2/3 vote in Congress; 3/4 of states ratify • Madison drafted first ten; based on George Mason’s

8. Judiciary Act of 1789 Organized the Supreme Court • Chief Justice – John Jay • Included five other justices • Organized federal and district courts • Fatal provision: law stated that SCUS could force presidential appointments of judges

9. Hamilton’s Financial Plans • Economic Goals (2): • Report of Public Credit (1790) • Plan to shape fiscal policy to favor wealthiest groups • Wealthy would then pay off debt • “Trickle Down” to masses • Report on Manufacturers (1791) • Advocated a factory system in U.S. • Exploit natural resources • Basis for tariffs – protects domestic industry

10. Five Components to Hamilton’s Plans • Funding at Par • Assumption of State Debts • Tariffs • Excise Taxes • National Bank

11. Hamilton’s Financial Plans • Funding at Par • Purpose: Bolstering national credit • Borrowed from bonds from Amer. Rev. • Debt would be paid off at face value • Farmers sold their bonds at far cheaper price b/c they needed cash • Totally unfair

12. Assumption of State Debts • Hamilton urged Congress to assume debts • Further obligate states to federal govt. • Heavily indebted states loved it – Massachusetts • Compromise reached in 1790 – govt. assumed state debts • South got new federal district – Washington, DC

13. Tariffs (custom duties) • Revenues on foreign imports to U.S. • Revenue Act of 1789 – imposed 8% tariff on imports • First law of its kind – protected young industry

14. Excise Taxes • 1791 – Congress passed excise tax on whiskey • Backcountry distillers were the most affected by tax • Whiskey was so popular in this area it was used as currency • Most distillers were anti-federalist so Hamilton didn’t care

15. Whiskey Rebellion (1794) • Southwestern PA – hit hard by tax • “Whiskey Boys” – posed challenge to federal govt. • Torched buildings, tarred and feathered revenue officers, possible secession from U.S. • Washington sent 13,000 militia to stop revolt • No casualties – showed that govt. could ensure domestic tranquility

16. Hamilton’s Financial Plans • National Bank • Foundation of Hamilton’s plan • Govt. would be a major stockholder • Treasury would deposit its surplus revenue in bank • Government would print paper money – more if needed • Madison and Jefferson strongly against National Bank

17. Hamilton v. Jefferson • The Feuding Begins • Began over National Bank • Jefferson feared liberties would be jeopardized by National Bank • “Strict construction” of USCON – didn’t stipulate a National Bank (Jefferson) • “Loose construction” of Constitution – broad interpretation of USCON (Hamilton) • Elastic clause provided for passing necessary and proper laws • Washington signed bank measure into law (February 1791)

18. Hamilton’s Legacy • Hamilton’s plan became the cornerstone of America’s financial system • Strengthened govt. politically and financially • Established public credit • “Loose construction” paved the way for increase of federal power • Foreshadowed the first industrial revolution • Jeffersonian opposition – birth of the class system

19. Birth of the Party System • Founding Fathers never dreamed of political parties • Opposition seemed disloyal; No political parties ever existed before • By 1793 – two groups existed: • Hamiltonian Federalists • Jeffersonian Republicans

20. Birth of the Party System • VERY IMPORTANT!!! • Federalists in the 1780s were a faction who supported the Constitution • Federalists in 1790s were a politicalparty that embodied Hamilton’s plans

21. Birth of the Party System • Federalists (Hamilton) • Emerged from Federalists in Constitutional era • Believed in govt. by upper class • Distrusted the common people • Supported strong central govt. • Encouraged businesses • Pro-British foreign policy

22. Birth of the Party System • Republicans (Jefferson) • Advocated the rule of the people • Appealed to middle classes • Best government governed the least • National debt was curse to future Americans • Primarily agrarian (farmer class) • Believed in freedom of speech to expose tyranny • Basically pro-French

23. Defeat of Amerindians in West • Iroquois nation forced onto reservations in NY and PA after American Revolution • Many fled to Canada • No longer a major threat to U.S. • Western Amerindians were hostile towards frontiersmen • Supported by British

24. Defeat of Amerindians in West • Battle of Fallen Timbers (August 1794) • Amerindians finally forced to abandon British allies • Treaty of Greenville (1795) – cleared out 2/3 of Ohio and Indiana of hostile tribes • Britain abandoned forts along frontier

25. Federalist Foreign Policy • French Revolution • Major event that separated Federalists and Republicans • Republicans demanded to come to France’s aid • Washington’s Neutrality Proclamation (1793) • Announced neutrality in foreign conflicts • Warned citizens to be impartial to Britain AND France

26. Federalist Foreign Policy • American Reaction to Proclamation • Jeffersonians outraged! • Washington did not consult Congress • Federalists supported it • Citizen Genet (French ambassador to U.S.) • Recruited Americans to aid French cause in war • Believed that neutrality did not work • Washington demanded his withdrawal from U.S.

27. Federalist Foreign Policy • America and France Benefited • American exports were still delivered to W. Indies • France did not ask U.S. to honor the Franco-American alliance • British navy would blockade U.S. coastline if neutrality was broken

28. Federalist Foreign Policy • Jay Treaty (1794) • British navy seized U.S. ships in the Atlantic • Impressment – Hundreds of American sailors forced into service on British ships • Federalists refused to go back to war • U.S. depended on Britain for 75% of tariff revenue • Jefferson argued to embargo (stop trading) with Britain

29. Federalist Foreign Policy • Jay Treaty (cont.) • Washington sent John Jay (Chief Justice of SCUS) to London • Jeffersonians thought that Jay would sell out the U.S. • Hamilton secretively alerted the British of Jay’s strategy • War with Britain would be disasterous

30. Federalist Foreign Policy • Jay Treaty (cont.) • Provisions • British had to remove posts along the western frontier • Promised to pay damages • Refused to guarantee against future seizures of U.S. ships • U.S. forced to pay for pre-Revolution debts to British merchants

31. Federalist Foreign Policy • Jay Treaty (cont.) • Jefferson was outraged (again…) • South thought that North was working out bargains with Britain • Southerners were taxed to pay off debts

32. Federalist Foreign Policy Pinckney Treaty (1795) • Normalized relations with Spain • Spain sought to appease the U.S. • Fearful of the Franco-American alliance • Treaty provisions • Spain granted free navigation of the Mississippi River • Yielded control of portions of Florida

33. Washington’s Farewell • Washington reluctantly accepted a second term • Refused third term as president – set precedent for two terms

34. Washington’s Farewell • Review of Washington’s Precedents • President relied on and consulted his cabinet • Gained the right to choose his cabinet • Two terms as president • Did not overly abuse powers

35. Election of 1796 • John Adams (Federalist) • Massachusetts politician • Less controversial than Hamilton • Thomas Jefferson (Democratic-Republican) • Spoke out against Washington’s Federalist stances with Jay Treaty and France • Adams defeated Jefferson (71-68) – Jefferson became vice president

36. “Quasi War” with France • French provisional government condemned Jay Treaty • Began attacking U.S. ships • Saw Jay Treaty: • As an initial step towards U.S./British alliance • As a violation of Franco-American alliance

37. XYZ Affair • President Adams sent envoy to France • U.S. delegates secretly approached by three agents (X, Y, and Z) • France demanded large loan and a bribe of $250,000 to speak to prime minister Talleyrand • Delegates (John Marshall) refused and left France • Returned home as heroes • War hysteria swept the U.S.

38. Undeclared Naval War (Quasi War) • U.S. prepared for a naval war • Navy Department was created – Marine Corps too • Adams suspended all trade with France • Undeclared hostilities for two years (1798-1800) • Adams sought to keep U.S. out of war

39. Convention of 1800 • France agreed to end the Franco-American alliance • U.S. agreed to pay reparations to French • Major war with France is avoided • Improved relations with France • Adams felt this was his greatest achievement

40. Alien and Sedition Acts (1798) • Federalists passed a series of laws to silence anti-war sentiments • Alien Acts • Attack on Jeffersonians and immigrants • Raised residency requirements from 5 to 14 years • President could deport “dangerous” foreigners

41. Alien and Seditions Acts (1798) • Sedition Acts • Anyone who impeded govt. policies or criticized govt. officials would pay heavy fine or jailed • Direct violation of the 1st Amendment • Jeffersonian newspapers came under attack • Laws expired in 1801

42. Alien and Sedition Acts (1798) • Virginia & Kentucky Resolutions • Republicans thought Acts were unconstitutional • Jefferson and Madison secretively made series of resolutions • States had the right to nullify unconstitutional laws passed by Congress • Compact Theory • Nullification – individual states were the judges of federal laws • Later used at the onset of the Civil War

43. Revolution of 1800 • Election of 1800 • Federalist were split over Quasi War • “High Federalists” split from Adams • Alien and Sedition Acts were unpopular • Adams was an unpopular incumbent • Jefferson saw an opening and took it

44. Revolution of 1800 • Election (cont.) • Jefferson got a lot of support from South and West • NY was the key (held by Aaron Burr) • House of Representatives had to break deadlock • Federalists wanted Burr, but some hated Burr (Hamilton) • Swayed by Hamilton; HoR picked Jefferson as president/Burr as VP • Peaceful change of power was revolutionary

45. The Federalist Legacy • Hamilton’s financial plan • Washington established important legacies for presidency • Federalists kept U.S. out of war • Preserved democratic gains of the Revolution • Opposition party (Jeffersonian) created two-party system • Westward expansion (Treaty of Grenville)