THE FEDERALIST ERA

Carol Jean Cox

FEDERALIST ERA 1790's - 1800

Federalists Versus Anti-federalists Issues Facing the New Government Hamilton’s Financial Program Debate on the Interpretation of the Constitution Emergence of a Two Party System Decline of the Federalists

FEDERALIST ERA 1790's - 1800

Federalists - people who were in favor of a strong central government– Federalists in full power

Congress & Supreme Court were Federalists– George Washington - first President 1790

no election- unanimous for Washington no elections for first few Presidents A majority of the founding fathers

became involved in the government

FEDERALIST ERA 1790's - 1800

Federalists– Federalists--> first election - caucus (group)

nominates a President Washington stepped down after 2 terms Adams served 4 years (1796-1800)

Anti-Federalists – Anti-Federalists --> those against a strong federal

government– Republicans (Jeffersonians)

– later Democrat/Republicans– historical beginnings of Democrat Party

FEDERALIST ERA 1790's - 1800

Issues Facing the New Government– U.S. weak

no navy - little army - Indians to deal with problems on the international scene

– e.g. Britain, Spain– Owed money

$55 million $11 million owed to other countries Most owed to Americans from Revolutionary War

FEDERALIST ERA 1790's - 1800

Issues Facing the New Government

– Not really a united country European - wait & see attitudes noted failure of Article Government wondered about the President for four years

FEDERALIST ERA 1790's - 1800

Hamilton’s Financial Program– Hamilton- Washington’s aide in the Revolutionary War

now Secretary of Treasury an elitist- aristocrat - slave owner rich governor of Massachusetts

*** problem/issue - how to raise revenue

– tariff - tax on imports foreign company pays tax

FEDERALIST ERA 1790's - 1800

Hamilton’s Financial Program– Excise Tax - (luxury tax) Fed. Gov. Tax

jewelry, cigarette, liquor, governments of states obligated to collect not a state tax

– Sale of Western Lands Northwest Territory all lands to Mississippi

FEDERALIST ERA 1790's - 1800

Hamilton’s Financial Program– Assuming State Debts (credibility)

central government will take over state debts states owed money to their citizens and

from and Cont. Congress & Articles Gov. why assume debts?

– because citizenry will take stock in it– creditors will look to central government

(congress) in future for financing solidifies Fed. Gov in eyes of citizens

FEDERALIST ERA 1790's - 1800

Hamilton’s Financial Program– Government coins money

dollar came from Spanish – Funding

creating a new debt to pay off the old debt Government issues 3%, 4% notes like savings bonds

– whenever cashed in 3%– collect at 3% - trade them for 6% with extension of time– few of veterans from Rev War still had bonds

Buys time to raise funds

FEDERALIST ERA 1790's - 1800

Hamilton’s Financial Program– ** TROUBLE: Virginia said not vote for assuming

loans because they had paid off debts. Compromise - capital near Virginia VA & MA gave up land for Washington D.C. technically it was in the south

FEDERALIST ERA 1790's - 1800

FEDERALIST ERA 1790's - 1800

Hamilton’s Financial Program– NATIONAL BANK - Bank of the U.S.– What to do with money?– Depository for Federal government revenue– Bank chartered for 20 years (1791)– (battle for bank when it comes up for renewal)– Start with $10 million– 1/5 Federal Government Funds– Remainder from Private Funds

FEDERALIST ERA 1790's - 1800

Debate of the Interpretation of the Constitution 1791– Anti/fed point of view -

Jefferson/Madison (strict interpretation) (Jefferson in Paris during constitution)

– said Mr. Hamilton no provision for central bank– concerned too powerful

– Federalist position Hamilton is a staunch federalist loose interpretation

*** Leads to the emergence of political powers

FEDERALIST ERA 1790's - 1800

Emergence of a Two Party System– Reasons for the division creation of 2 parties– Financial Reasons

funding, assuming, tariffs excise taxes– Sectional Differences

North- Maryland (north) South - Virginia (south) West - territories to be states different views of tariffs North/South west - statehood area improvements

FEDERALIST ERA 1790's - 1800

Decline of the Federalists(issues causing)

– Indians Causing Problems Federalists not dealing with effectively Republicans criticize

– French Revolution (Bloody) Federalists not decisive more criticism from Republicans

FEDERALIST ERA 1790's - 1800

Decline of the Federalists– Whiskey Rebellion

Western Pennsylvania REGULATORS Lower class not happy w/ another tax used guns MOB ACTION

– set off by the excise tax on whiskey– whiskey most lucrative product of area– tax collectors shot at - intimidation

Response - Washington on horse leads 15,000 troopsshow of force to intimidate &– to show strength of central gov. (not weak)– *** set things in motion for decline of Federalists

FEDERALIST ERA 1790's - 1800

Decline of the Federalists– Alien & Sedition Acts (1798)

Alien act - increased time for citizenship– affects lots of immigrants because of Europe rev.– law to decrease the support of the immigrants– for the anti-fed side to decrease opposing– party's power

Sedition Act - a crime punishable by fine & Imprisonment to speak against the Fed. Gov.

– (George Wash. favored this though not in power)– 5 journalists imprisoned for federalists– 25 went to trial

FEDERALIST ERA 1790's - 1800

Decline of the Federalists– Democrat/Republicans respond – (Madison/Jefferson - fire up pens anonymously)– wrote Kentucky & Virginia Resolutions 1798– states can choose to make null and void any

law passed by the Federal Government– states prerogative - states rights– similar to the Summary of the Rights of

British America– denouncing Sedition Act – emphasizing states/rights

FEDERALIST ERA 1790's - 1800

Decline of the Federalists– Election Of 1800

Federalists (Adams) vs. Republicans (Jefferson) Popular vote with electoral college Jefferson - President Hamilton/Burr conflict - duel kills Hamilton

– Epithet (Summary) Federalist Era 1790 -1800 dominance of single political party application of constitution powers in favor of a strong central government favored the merchants/commerce

FEDERALIST ERA 1790's - 1800

Decline of the Federalists

"Federalists served as a halfway housebetween European past and American future.”

Henry Adams (great grandson of John Adams & noted writer )

European Elite ---> American Democracy

SHIFT OF POWER CAME WITH JEFFERSON

FEDERALIST ERA 1790's - 1800

Federalists Versus Anti-federalists Issues Facing the New Government Hamilton’s Financial Program Debate on the Interpretation of the Constitution Emergence of a Two Party System Decline of the Federalists

THE FEDERALIST ERA

Source: Carol Jean Coxhttp://faculty.sierracollege.edu/ccox/history_17A/index.html http://faculty.sierracollege.edu/ccox/history_17A/13%20Federalist%20Era.ppt.