Federalists vs.

Democratic Republicans

Early Formation of Parties• Parties first formed to deal with the

ratification of the Constitution 1787-1789• Federalists supported the new Constitution

and felt its increased powers would be good for the country

• Anti-Federalists were against the new Constitution and worked against ratification– Anti-federalists eventually agreed to support

ratification if a Bill of Rights was added to protect the peoples’ rights

Federalists• After ratification, the Federalists stayed organized

and became the first political party• Strong Central Govt• Loose Constructionists – Article I, sect 8• Elastic or Necessary and Proper Clause

• Support comes mainly from the NE• Pro-business/manufacturing/Large Farmers• High taxes• Large Army (and want to create a navy)• Support Hamilton’s Plan and the Alien and Sedition

Acts• Hamilton, Adams… Washington???

Democratic Republicans• Developed mainly from the Anti-Federalists• Weak or Limited Govt.• Strict Constructionists (10th Amendment)• Support the French and want to help them in their

revolution as pay back for their help in ours• Support comes from the South and West• Low taxes• Small army• Support small farmers• Against Hamilton’s Plan and the Alien and Sedition

Acts• Jefferson, Burr, Madison

Hamilton’s Plan• Hamilton had been Washington’s assistant during the Rev

War and became the first Secretary of the Treasury under Washington

• 4 part plan to deal with huge debt from Rev War and to improve the economy

• #1 Assume and pay in full the Rev War Debt (both federal and state) at full value plus interest owed– Controversial many wanted to claim that the debt was owed by

the old govt. under the Articles and therefore shouldn’t be paid by the new govt. Also, many who had owned the debt (soldiers) had sold it for pennies on the dollar and so you really were only protecting the interest of speculators and gamblers

– Many states had worked hard to pay off their debt– Makes powerful and rich people want the govt. to succeed so

that they will get paid back money they are owed.

Hamilton’s Plan (cont.)• #2 – Excise Tax on Whiskey– Raise $ to pay off all the debt assumed from the

Rev War in part 1– Prove the government can pass internal taxes

• #3 – Boost manufacturing– Protective tariffs (benefit NE and manufacturers)• Hurts farmers and the South

– Subsidies to some industries (iron, steel, shoemakers)

• #4 National Bank

National Bank• Hamilton uses the Elastic Clause to justify its

creation. Nowhere in the Constitution does it say the Federal Govt. has the power to create a bank.

• DR’s claim this is unconstitutional (10th Amend)• Semi Private– 80% privately owned • Foreign ownership of such an important and powerful

institution created fear that English investors would control the govt.

• Ensure Credit is Available (for manufacturing or large businesses or even the Govt. to borrow)

• Stable Currency – paper $

Jay’s Treaty - 1794• Preview to the War of 1812• Shows how weak the U.S. was• British get:– WE give up the right to Neutral shipping– MFN status for British imports into USA– Guarantee repayment of the Rev War debts we owe

England• USA gets– Payment for ships and cargo seized by British– British promise to give up fort in West that they still

occupied– Limited trading rights with India and Caribbean

Citizen Genet - 1793• Sent to US by France to support French in wars

against British• Arrived in SC and began to raise a private

militia to help fight British and Spanish interests. 4 ships and a militia!

• US had declared its neutrality, but this was threatened by Genet.

• Govt. was overthrown in France and the new Govt. recalled him. He knew he would be executed by the new govt. and begged for asylum in the US. Granted.

XYZ Affair - 1797• US sends secret ambassadors to France to

stop French seizure of our trade ships. Defend our right to trade as a neutral country not involved in the European wars of the time.

• French refuse to see our ambassadors (X, Y & Z)

• Demand bribes to even entertain the idea of listening to our complaints

• Show us no respect as a country• Leads to a huge rise in Anti-french sentiment

Alien And Sedition Acts - 1798• Federalists respond to increasing support for the DR’s and anti-

French sentiment• Seek to stop DR criticism and stop immigration of DR supporters• Alien Enemies Act – deports immigrants from countries at war

with USA• Alien Friends Act – Immigrants must be in USA for 14 years (an

increase from the existing 5) before they can apply for citizenship

• Sedition Act – Limits Anti-government speech– But the only people in power were the Federalists, so it only punished

speech against Federalists– All the judges in the USA had been appointed by Federalists so it was

only enforced against DR’s– UNCONSTITUTIONAL – 1st Amendment ?? Free Speech??– Leads to landslide victory in election of 1800 for DR’s