The Rise of Party PoliticsA.P. U.S. HistoryMr. Krueger

Differing ViewsPolitical Parties began to take shape at

this time.Jeffersonians and FederalistsThey differed on the transition from an

agricultural society to an industrial society.

The Federalists encouraged rapid change.

They stated a modern economy must have strong institutions directed by social elite who understood the financial challenge.

Public OpinionJeffersonians put their faith in

the common people who they felt could be trusted to sustain the virtue of the republic

Sides – A. Hamilton vs. TJ – James Madison

Both would have to live with public opinion

Establishing GovernmentWashington enjoyed great

popularity in the nation.◦Washington was selected president,

J. Adams as VP.Washington carried great

responsibility and was trusted with the nation’s stability.

He carried himself with dignity and reserve.

DiscussionFrench reference to the

inauguration – “Washington has the soul, look, and figure of a hero united in him.”

What does this say about Washington, is he still viewed like this today?

Washington’s PresidencyWashington created a strong independent

presidency – he made the decisions.The 1st Congress established executive

departments, but Washington and J. Madison led a successful fight against the control of the president’s authority.

1789 Congress established:◦Department of War – Henry Knox◦Department of State – TJ◦Department of Treasury – A. Hamilton◦All were nominated by Washington◦Edmund Randolph served as a temporary

Attorney General

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=E-yYAlilpcl3gM&tbnid=F77pPeDWPeIitM:&ved=0CAUQjRw&url=http://www.gwu.edu/~ffcp/exhibit/p5/p5_9.html&ei=NtqEUo3sM-m6yAG4z4CgAg&bvm=bv.56343320,d.aWc&psig=AFQjCNFkTRnNN4qCX1ZU3UzLRSK3__wjyg&ust=1384524711865963

State and Judicial TJ and small staff –

◦ Maintain foreign contact, collect information on world affairs, communicate with U.S. officials overseas, organized the federal census.

Congress provided for a federal court systemJudiciary Act of 1789 – authored by Oliver

Ellsworth (Conn.)◦ He created a Supreme Court staffed with a justice

and five associates.◦ Established 13 district courts to oversee state

courts.◦ John Jay – Chief Justice◦ Due to demands of time and travel distance few

were drawn with outstanding talents to be justices with Jay.

DiscussionFor financial purposes the Tariff

of 1789 placed a 5% tax on imported goods.

Do we have executive departments today?

Can you name any?

Jefferson and HamiltonServed with distinction during the

RevolutionMen of genius and ambitionVision of American greatnessDecade of the 1790’s presented

opposing views when it came to republicanism (prelude to political parties)

Alexander HamiltonHamilton sought reputation not wealth

Favored a strong central government

Would not be bound by the wording of the Constitution (loose constructionist)

Admired the British culture and sought commercial and diplomatic ties

Thomas JeffersonReflective and shined less brightly.

Not motivated by wealth and power, but promoted the democratic principles of the Declaration of Independence.

TJ had just returned from France where he witnessed the start of the French Revolution.

TJ was more partial towards France than Britain.

Hamilton’s OutlookThey opposed each other, but shared

fundamental beliefs: a strong prosperous republic.

Both were different types of republicans who attempted to cope with political challenges.

Hamilton sought bold commercial developments (farms – factories)

Hope to reduce the need for foreign tradeHis view of human nature led him to oppose

pure democracyHe felt the best hope for survival lay in the

hands of the wealthy

Jefferson’s VisionChallenged Hamilton on many issuesFelt the countries strength lies in agricultural

production not industrial potential.Argued those in farming were more responsible

citizens than those who worked in the factories.He encouraged the nation’s farmers to

participate in international markets.TJ had faith in America to shape policy and

make decisions. Feared uncontrolled government power might

destroy liberty.The greatest threat was from pseudo aristocrats

who placed emphasis on property and power, not liberty.

Hamilton and Jefferson

Financial PolicyA. Hamilton will take responsibility for shaping

financial policyHamilton Grand Design –

◦ August 1, 1789 the House of Reps stated, public debt will become a matter of huge importance

Hamilton devised a complicated plan on:◦ Public Credit◦ Banking◦ Manufacturing

Presentation to Congress – Report on the Public Credit◦ U.S. Debt $54 million◦ Foreign Loans◦ Government Banks◦ State debt to creditors ($40 Million)

Funding and AssumptionIn his reports he stated:

◦ U.S. would fund foreign and domestic obligations at face value

◦ Federal government must pay state debtsHe felt this would reduce the power of the

individual states in shaping economic policyFully funded economic debt brought true

independence to the U.S.J. Madison (Hamilton’s Co-writer of “the

Federalist”) attacked his plan in the House of Reps. He felt the wealthy were only benefiting in Hamilton’s policies. (Keep in mind he was Hamilton’s friend.)

J. Madison was defeated in Congress

ProblemsProblem for Hamilton is some states

paid their war debts, and his policies rewarded those states whose finances were in disarray – Massachusetts and South Carolina

Hamilton found support for his program by moving the capital to the Potomac River which would stimulate the economy in northern VA

G. Washington signed Hamilton’s assumption

Bank of the United StatesHamilton’s 2nd report to Congress included a

charter for a national bankPrivately owned, but federally fundedA growing financial nation needed a central

bankJ. Madison opposed a financial institution that

had monetary control (it was modeled after British institution)

The Constitution stated nothing about financial corporations

This opposition, Hamilton stated, must be killed or it will kill the Constitution

Washington gets involvedWashington was unsure on his

support of the bankHamilton prepared an essay

“Defense of the Constitutionality of the Bank”◦It stated Congress shall have power in

taxation, commerce, and war. Implied powers also existed

Washington – signed the bank bill Feb. 25, 1791

Hamilton SetbackPlanned to stimulate manufacturingProtective Tariff

◦ Bounties◦ J. Madison – T. Jefferson rallied against Hamilton on

moral and political grounds◦ Fought against the consolidation of federal powers that

would control state governmentsMadison became a spokesman for the statesTJ attacked Hamilton at a different angle

◦ The government shouldn’t promote manufacturing; it promotes cities that in turn promote vice

◦ Report of Manufacturing was defeated in the HouseWashington tried to bring Hamilton and Jefferson

together without success◦ The two moved in the direction of political parties

The SidesJeffersonians:

◦State rights◦Strict interpretation of the

Constitution◦Friendship with France

Federalists◦Strong National Government◦Public order – use of troops◦Close ties with Britain

DiscussionAre you a federalist or a

jeffersonian?Why? (YES, YOU NEED TO PICK

ONE!)

The U.S. does not want to pick a side Britain treated the U.S. with arrogance - 1794

◦ 1000 British soldiers occupied American land◦ British Navy controlled the sea◦ 75% of imports came from Britain – BUT

Britain refused full commercial reciprocity Britain blocked trade with western tribes

France presented a different challenge◦ King Louis XVI faced revolution due to economic

problems◦ It cost him his life and bloody revolution followed◦ Reign of Terror cost many lives via the Guillotine

Americans were confused◦ Federalists opposed the French Revolution◦ Republicans didn’t support the violence but felt the

people had the right to spread “republicanism”1793 – France declares war on Britain

◦ It’s a war of all peoples, against all kings

Reign of Terror