Federalist Era 1789-1800

George Washington 1st President of the U.S. Elected unanimously by electoral college Vice President John Adams Congress followed Washington’s lead a majority of the time.

Money Problems U.S. was in debt 65 million dollars. Alexander Hamilton, Secretary of Treasury Supported full payment of bonds, increased tariffs, and a new national bank to stabilize the U.S. economy.

Money Problems Con’t Thomas Jefferson, Secretary of State Supported farming, low tariffs, and state run banking to stabilize the U.S. economy.

Results Hamilton wins on every issue: 1.Bonds are paid in full 2.Tariffs increase to protect manufacturing 3.National Bank established for 20 years

U.S. Neutrality Washington kept the U.S. neutral when war broke out between France and Britain during the middle of the French Revolution.

Why Neutrality? The U.S. was in debt Weak navy Reliance on foreign made goods Troubles at home (western frontier, whiskey rebellion etc)

Whiskey Rebellion First rebellion against the new constitution. Refusal to pay a tax on whiskey by small traders. Rebellion ended without a battle.

1st Two Political Parties Federalists Led by John Adams & Alexander Hamilton Believed in a strong central government Popular in the north Seen as the party for the “upper class”

1st Two Political Parties Democratic-Republicans Led by Thomas Jefferson and James Madison Believed in strong state governments Popular in the south and west Seen as the “common man” party

Election of 1796 Federalist: John Adams elected as president Democratic-Republican Thomas Jefferson elected as vice president.

Events During Adams’ Administration XYZ Affair: French agents tried to force America to pay 12 million for a peace treaty. Made many Americans call for war. Adams was not willing to take the U.S. into war. Alien & Sedition Act: Gave the president the power to throw out aliens, and made it illegal to publish/speak false things about the government.