Chapter 8: The Federalist Era

TIMELINE

1789	Washington inaugurated as the first president of the United States  •  French Revolution begins  •  Judiciary Act passed by Congress
1791	Bill of Rights added to the Constitution  •  Hamilton’s financial program approved by Congress
1793	Reign of Terror begins in France  •  France declares war on England
1794	Whiskey Rebellion occurs  •  “Citizen Genêt” tries to recruit Americans to invade Florida and Louisiana  •  Jay Treaty signed  •  Battle of Fallen Timbers takes place
1795	Treaty of Greenville signed
1796	John Adams elected president
1797	XYZ Affair occurs  •  Navy Department established
1798	Alien and Sedition Acts passed by Congress
1798–99	Virginia and Kentucky Resolutions published
1800	Thomas Jefferson elected president

IMPORTANT PEOPLE, PLACES, EVENTS, AND CONCEPTS

10th Amendment

Bill of Rights

election of 1800

Alexander Hamilton

Judiciary Act

Pinckney’s Treaty

Virginia and Kentucky Resolutions

John Adams

Napoleon Bonaparte

Federalists

Hamilton’s financial program

James Madison

Proclamation of Neutrality in 1793

George Washington

Alien and Sedition Acts

Democratic-Republicans

French Revolution

John Jay

Marbury v. Madison

Talleyrand

Washington’s Farewell Address

Bank of the United States

election of 1796

Citizen Genêt

John Marshall

Treaty of Greenville

Whiskey Rebellion

XYZ Affair

“I was summoned by my country, whose voice I can never hear but with veneration and love….”

—George Washington, First Inaugural Address, April 30, 1789

INTRODUCTION

With the humble words of his first inaugural address, George Washington became the first president of the United States of America. A hero of the Revolutionary War, Washington had been elected unanimously by the Electoral College. John Adams became the vice president. Much of the presidency had been designed with Washington in mind. Honest and forthright, Washington’s presence enabled a faltering republic to plant its feet more firmly in the world. By the end of his eight years in office, the republic had grown significantly, but the French Revolution and its aftermath placed the United States in a difficult position, one that threatened the very existence of the republic.

WASHINGTON’S ADMINISTRATION (1789–1797)

The new Constitution had met with a mixed reaction from the populace. The Federalists supported the idea of a strong central government. When George Washington took office in 1789, many issues had to be addressed. One of the greatest challenges faced by the first administration was building a true union of states. With the country still very sectional and states’ rights oriented, Washington and his secretary of the treasury, Alexander Hamilton, engineered the country toward greater unity. Washington was in the unique position of defining the role of the president in this new republic; he was confronted with the need to establish a judiciary and a viable economic system, organize a system of defense, and respond to the events of the French Revolution. The actions taken by Washington established precedents for future presidents.

Domestic Accomplishments of the Washington Administration

To assist him in the challenges that he faced, Washington established a cabinet; that is, a group of advisers. Although not included in the written Constitution, the cabinet, like political parties, became part of the unwritten Constitution. Presidents following Washington created new cabinet positions as the country expanded and the need for additional advisers was perceived as necessary. The members of Washington’s cabinet included the following:

•  Thomas Jefferson—Secretary of State

•  Alexander Hamilton—Secretary of the Treasury

•  Henry Knox—Secretary of War

•  Edmund Randolph—Attorney General

In 1789, the Judiciary Act was passed; this organized the federal court system. The first ten amendments were added to the Constitution in 1791 with the ratification of the Bill of Rights, establishing basic rights for the people of the United States. It also established the reserved powers of the states with the inclusion of the 10th Amendment.

Perhaps the most pressing issue was the debt the government owed to foreign nations and individual citizens. Alexander Hamilton devised a financial program, the aim of which was to re-establish the credit of the United States. It was based on the idea of funding and assumption, the development of trade and commerce, and the establishment of a national bank. According to the program, the U.S. government was to pay off foreign debt and domestic debt through an exchange of old bonds for new ones, which were to be redeemed at a future date (funding). The U.S. government also was to “assume” the debt that the states owed to foreign nations. Funding and assumptions gave bondholders, both domestic and foreign, a stake in the success of the United States so that their bonds would have value. Money was to be raised for the government through excise taxes (added taxes on goods and services) and tariffs (taxes on imports). The tariffs would encourage the growth of industry and commerce by discouraging the purchase of foreign goods.

The most controversial part of this financial program dealt with the establishment of the Bank of the United States (BUS), which was to be funded through a sale of stocks in the bank. BUS was to issue bank notes and serve the government as its bank. Because it was owned by private investors, it was presumed that they would want the Bank and the U.S. government to succeed to make a profit on their investment.

Thomas Jefferson reacted negatively to this plan. A champion of an agrarian society, Jefferson viewed BUS as an organ of the upper class in the United States. As an advocate of states’ rights, Jefferson viewed the financial program as a weakening of states’ power now that they were tied by this financial program to the central government. He argued that BUS favored the North and not the South, because most Southern states had already paid their debt and most investors in BUS would come from the North.

Perhaps Jefferson’s most compelling argument against the Bank was that it was unconstitutional. According to Jefferson, there was no provision in the Constitution for the establishment of the Bank. He was a strict constructionist; that is, he believed that the Constitution must be interpreted word by word. Hamilton, on the other hand, represented the loose constructionist, or a person who believed that there was flexibility within the Constitution. Hamilton argued that the implied powers clause (elastic clause) gave the government the right to establish the Bank because of the powers delegated to Congress that allowed them to regulate trade and collect taxes.

To convince Jefferson to accept the government’s assumption of state debts, Hamilton worked out a deal with him for the establishment of the nation’s capital on the Potomac River. Congress enacted Hamilton’s financial program in 1791.

The Supreme Court upheld the constitutionality of the Bank of the United States in the case of McCulloch v. Maryland in 1819. When the state of Maryland imposed a tax on BUS in an attempt to destroy it in that state, Chief Justice John Marshall declared that the Bank was constitutional and in keeping with the implied powers clause. He thus validated the Bank and strengthened the power of the federal government.

In 1794, the Whiskey Rebellion occurred when Pennsylvania farmers, unhappy with the excise tax placed on whiskey, refused to pay the tax. The ability of the government to levy and collect taxes was being tested. Washington, at the beckoning of Hamilton, sent out federal troops to crush the rebellion. The rebellious farmers dispersed, and the government under the Constitution had demonstrated its power to enforce the law.

The differences between Hamilton’s and Jefferson’s views of the role of the government in the lives of people gave rise to political parties. Hamilton, a Federalist, distrusted the masses and viewed the government as being at its best when it appeared strong. Hamilton believed that the president should hold the position for life. Jefferson, on the other hand, professed trust in the educated and informed masses and believed in rotation of political office. Those who followed Jefferson, including James Madison, became known as Anti-Federalists, Democratic-Republicans, or simply Republicans.

Foreign Affairs

The French Revolution, which began in 1789 with the storming of the Bastille, divided the people of the United States. The split between Hamilton and Jefferson became more evident as events unfolded.

There was great sympathy in the United States for the French when the revolution for democracy began, but that sympathy diminished as the revolution changed. In 1792, France declared war on Austria, and, in 1793, Louis XVI was beheaded and the Reign of Terror began.

The Democratic-Republicans were generally sympathetic to the French. They believed that the 1778 Franco-American treaty of alliance should be honored. The Federalists, supporters of Great Britain, believed that the United States had no business in supporting the French, especially after France declared war on Great Britain in 1793.

Washington, realizing the folly of U.S. involvement in this conflict, issued the Proclamation of Neutrality in 1793, which declared that the United States favored neither England nor France in this conflict. He also warned American citizens not to take sides in the conflict.

In the meantime, French nationalist Edmund Genêt, known as Citizen Genêt, tried to recruit Americans into the army for the purpose of invading Spanish Florida and Louisiana. This proved an embarrassment to the supporters of France.

The British presented another problem for the Americans. The British ignored U.S. neutrality through seizure of American vessels and impressment of U.S. seamen; they removed American sailors from American vessels and forced them into the service of the British navy. They also incited the Native Americans in the northwest, where the British had kept soldiers even after the Revolution. Sentiments were rising against the British, and the divide between British and French supporters widened.

In 1794, Washington sent John Jay, Chief Justice of the Supreme Court, to London to negotiate a peace with England. In Jay’s Treaty, the British promised to withdraw its forces from U.S. soil and to pay damages for the seizure of American ships. The United States promised to pay all debts still owed to British merchants from the Revolution. However, there was no agreement on the issues of impressment and freedom of the seas. The treaty was unpopular in the United States, but it served to keep the United States out of war, a crucial accomplishment.

When Jay’s Treaty was signed, the Spanish feared that the British and Americans were planning an alliance. They therefore negotiated Pinckney’s Treaty of 1795, whereby Spain gave up its land east of the Mississippi River and north of Florida, with the 31st parallel as the northern boundary of Florida. The Mississippi River was also opened up to American traders.

A conflict began between the United States and the Miami Confederacy, northern Native American warriors in Ohio, whom the British were inciting against the Americans. In the Battle of Fallen Timbers, fought in 1794, General “Mad” Anthony Wayne crushed these northwestern Indian tribes. Via the Treaty of Greenville, signed in 1795, the Miami Confederacy gave up their claims to the Ohio country, lands rich in furs.

As the situation between France and England grew in intensity, the presidential election of 1796 took place. Washington had decided to retire after serving two terms in office, thus setting the precedent for a two-term presidency, which remained unbroken until Franklin D. Roosevelt’s election to a third term in 1940. Following the victory for John Adams, Washington said farewell to the nation he had so valiantly served. In his “Farewell Address,” Washington urged the United States to remain neutral, to be friendly to all nations, and to take advantage of its geographical distance from Europe.

ADAMS’S ADMINISTRATION (1797–1801)

Foreign Affairs

The political differences that existed between Hamilton and Jefferson had a great impact on the election of 1796. Anti-Jefferson, Hamilton attempted to influence the election to ensure that Jefferson was not elected. When the votes were counted, John Adams was elected president and Jefferson was elected vice president, a Federalist and Democratic-Republican, respectively.

The Adams administration was plagued with continuing English and French problems. In 1797, in an attempt to negotiate a peace with France, Adams sent a delegation of Americans, headed by John Marshall, to France to meet with the French Minister Talleyrand. Upon the Americans’ arrival, the French demanded a payment of $250,000 for the right to speak with Talleyrand. The XYZ Affair, as it was known, infuriated the people of the United States, and they began to call for war with France. With that in mind, Congress established the Navy Department and expanded the tiny navy of the United States. The U.S. Marine Corps was established, and Congress authorized the raising of an army of 10,000 men.

The Jeffersonian Republicans opposed the idea of war with France. Adams, understanding the impact a war would have on the United States, decided to try again to negotiate with the French. His efforts were met with success in the signing of the Convention of 1800. With Napoleon Bonaparte now in power in France, the Franco-American alliance was dissolved, and the United States agreed to pay for the damages to U.S. shipping. Considered a sellout by the Federalists, this move cost Adams the presidency in theelection of 1800 but saved the country from a destructive war. It also paved the way for the Louisiana Purchase, which took place in 1803.

Domestic Affairs

To weaken the Democratic-Republicans and their vocal opposition to Adams and the Federalists, Congress passed a series of acts known as the Alien and Sedition Acts in 1798. These acts included the following:

•  Naturalization Act: Required that a person must be in the United States for 14 years before becoming a naturalized citizen. Because most immigrants were Democratic-Republicans, this act would considerably reduce their ranks.

•  Alien Act: Gave the president the power to deport foreigners deemed dangerous to the peace and safety of the United States.

•  Sedition Act: Provided for fines or imprisonment for anyone who used language that stirred discontent or rebellion in the government.

The response of the Democratic-Republicans to these acts came in the form of the Virginia and Kentucky Resolutions, written by James Madison and Thomas Jefferson, respectively. Published in 1798–1799, these resolutions stated that the Constitution was a compact (contract) between the states and the central government and that when the central government violates the contract, the states have the right to judge the constitutionality of the laws being passed. The Kentucky Resolution took it one step further by stating that the state was able to declare a law null and void and, therefore, unenforceable. This doctrine of nullification became a basic principle used by the Southern states in justifying their secession from the Union in 1860.

SUMMARY

The political lines had been drawn. The Alien and Sedition Acts and the Virginia and Kentucky Resolutions had demonstrated clearly the difference in the philosophy and thinking between the Federalists and the Democratic-Republicans. The doctrine of nullification became the cornerstone of the American Civil War, which was not the intended result of either Jefferson or Madison.

The efforts of Washington and Adams to keep the United States out of war with France and England bought valuable time for the country to grow and develop a better defensive position. The solidifying of the power of the central government through Hamilton’s financial program and the demonstration of governmental force in the Whiskey Rebellion allowed the Constitution to take hold and become the law of the land.

•  Cabinet: A body of advisers to a head of state; the U.S. president’s cabinet consists of the heads of the various departments plus other advisers.

•  Excise tax: A tax that is added onto the price of goods produced, sold, or distributed within a country; for example, sales tax

•  Loose constructionist: A person who believes in the broad interpretation of the U.S. Constitution; that is, that the Constitution does not have to be interpreted word by word. Alexander Hamilton supported this idea.

•  Protective tariff: A tax placed on imports; its purpose is to make domestic goods cheaper to keep out foreign goods. See tariff.

•  Strict constructionist: A term used to describe a person who believes that the Constitution must be interpreted word by word; Thomas Jefferson believed in strict construction of the Constitution.

•  Tariff: A tax on imports (goods coming into a country); tariffs were advocated by Alexander Hamilton in 1792 and favored by the supporters of the American System to pay for internal improvements and protect U.S. industry. Tariffs were often a main issue in Jacksonian and Gilded Age politics.

REVIEW QUESTIONS

1.   Washington’s administration was significant because it

(A)    dealt successfully with the problems between England and France.

(B)    dealt effectively with political parties.

(C)    was the first administration and, thus, set precedents for future administrations.

(D)    supported the British after the French declared war on Great Britain in 1793.

(E)    established a strong political base for the Democratic-Republicans.

2.   All of the following were part of Hamilton’s financial program EXCEPT

(A)    the establishment of the capital of the United States in Washington, D.C.

(B)    the funding of the domestic and foreign debt of the United States.

(C)    the assumption of state debt.

(D)    the levying of excise taxes and tariffs.

(E)    the establishment of the Bank of the United States.

3.   In his “Farewell Address,” delivered in 1796, George Washington counseled the United States to

(A)    choose sides carefully in the conflict between England and France.

(B)    build a strong Navy.

(C)    remain neutral when it came to conflict in Europe.

(D)    support England in the conflict with France.

(E)    support John Adams and his incoming administration.

4.   Thomas Jefferson’s objection to the Bank of the United States centered around his belief in

(A)    loose construction of the Constitution.

(B)    implied powers.

(C)    the idea that the Bank favored the wealthy Southern planters.

(D)    nullification of federal laws by the states.

(E)    strict construction of the Constitution.

ANSWERS AND EXPLANATIONS

1.    C

Washington defined not only the role of the president but also established other precedents to be followed by future generations, including the establishment of the cabinet. The problems between England and France continued to impact the United States until the War of 1812. Washington was distressed by the rise of political factions within his administration. The Federalists and Democratic-Republicans continued to fight over governmental issues, and these two political parties were well established by the election of 1800. Washington announced the Proclamation of Neutrality in 1793, which notified the world of the decision of the United States to remain out of the conflict in Europe. Washington was not a believer in any political parties.

2.    A

The placement of the U.S. capital on the Potomac was part of an agreement made between Hamilton and Jefferson to convince Jefferson to accept the assumption portion of Hamilton’s financial plan. Choices (B), (C), (D), and (E) were all parts of Hamilton’s financial program.

3.    C

Washington’s “Farewell Address” reiterated Washington’s belief that the United States should remain neutral and isolationist, particularly concerning the problems in Europe. Therefore, choices (A) and (D) are incorrect. John Adams established the Navy Department and increased the size of the navy. Washington did support John Adams, but his “Farewell Address” did not address this issue.

4.    E

Thomas Jefferson believed that the Constitution must be interpreted word for word. He objected to the Bank of the United States because no part of the Constitution allowed the government to establish a bank. Hamilton, on the other hand, believed in loose construction of the Constitution and cited the implied powers clause to support the establishment of the Bank of the United States. Jefferson felt that the Bank favored the more industrial North. The doctrine of nullification was written by Jefferson in the Kentucky Resolution, part of the Virginia and Kentucky Resolutions written by Madison and Jefferson in response to the Alien and Sedition Acts passed in 1798.