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The Federalist Era

The Growing Pains of a New

Government, 1789-1801

Background:

Federalists vs. Anti-Federalists

• Beliefs?

• Federalists Papers

– #10 Madison

– “extend the sphere and you take in a greater

variety of parties and interests; you make it less

probable that a majority of the whole will have

a common motive to invade the rights of other

citizens”

Who won???

• Compromise by adding the …. ???

George Washington

– 1st President

1789 – 1797

Cabinet (not in the Constitution)

a. Alexander Hamilton = Sec. of

Treasury

b. Thomas Jefferson = Sec. of state

a. First Chief Justice of

the Supreme Court

= John Jay

Hamilton’s Economic Plan:

- Tariff of 1789 = nat’l income

-Second Report on Public Credit

-Excise tax on whiskey

-National debt

-National Bank

“if it is not excessive, will be to us a

national blessing; it will be a powerful

cement of our union. It will also create a

necessity for keeping up taxation to a

degree which without being oppressive,

will be spur to industry.” - Robert

Morris on national debt (p.287)

Whiskey Rebellion

Western Pennsylvania

farmers protest the excise tax on the whiskey

Washington uses the Pa. militia and the U.S. Army to put down the rebellion.

The Constitution is the supreme Law of the land!!

Only time a sitting US President

leads an army into battle!!

National Bank Plan:

-Bank notes (uniform currency)

-Chartered by Congress (with private

investors providing % of capital)

-Housekeeping:

-Safe place for funds

-Sudden emergencies

-Transfer funds in bookkeeping

instead of transport of metals

-Report on Manufacturing:

-More Protective duties (tariffs)

-Hamilton’s Achievements:

-US current economic system:

-People were naturally selfish and greedy.

The role of gov’t, therefore, was to channel

the public’s “ambition and avarice” into

activities that would strengthen the nation.

Like Adam Smith, [Wealth of Nations]

Hamilton believed that private vices could be

turned into public virtues through the natural

operations of the capitalist marketplace.”

Consequences of Hamilton’s Plan 1. Political Schism —origins of First Party System

Federalist v. Democrat-Republicans

Federalists

• Hamilton & Adams

• Loose construction of the

Constitution

• Strong national government

• Fear of mob rule

• Industrial economy -- support

manufactures

• Supported in the North & by

merchants

• National Bank constitutional

Democratic Republicans

• Jefferson & Madison

• Strict Construction of the

Constitution

• Limited power of nat’l gov.

• Fear of over-powerful gov.

• Agricultural economy - Paying

off national debt only

• Supported in the South & by

farmers

• National bank unconstitutional

Foreign Crisis: French Revolution:

-1778 Treaty of Alliance with France

-Want no part in Euro war

-Want to keep lucrative trade with both sides Washington–

neutrality

proclamation

“friendly and

impartial toward the

belligerent powers”

Foreign Crisis: Jay’s Treaty:

-Chief Justice John Jay envoy to

Britain

-Accept British definition of

neutral rights (products for

naval ships were contraband)

-Britain gained most-favored-

nation treatment/status

-Jay won:

-British evacuation of the

NW terr. Forts

-Reparations for the seizures

of Am. ships & cargo

Expansion: Northwest

Ordinance (1787)

• It established the precedent by which the U.S. would expand westward across North America by the admission of new states, rather than by the expansion of existing states.

A map of the Northwest

Territory

George Washington’s Farewell

Address has a lasting impact

• Cautioned against the dangers of

sectional jealousy and excess party

spirit

• Stressed the importance of a strong

central government and maintaining

a firm union

• Steer clear of permanent alliances

• America should avoid involvement

in European affairs

“our true policy to

steer clear of

permanent alliances

with any portion of

foreign world”

“we may safely trust

to temporary alliances

for extraordinary

emergencies”