NAMEPOSITIONSTATE Thomas JeffersonSec. of StateVirginia Alexander HamiltonSec. of TreasuryNew York Henry KnoxSec. of WarMassachusetts Edmund RandolphAttorney GeneralVirginia

FEDERALISTS DEMOCRATICREPUBLICANS Leaders Federalism Constitution Gov’t Involvement In Economic National Bank Protective Tariffs Federal Assumption Of State War Debts Supporters Hamilton John Adams Jefferson James Madison Strong Central Gov’t States’ Rights Loose Constructionist Strict Constructionist Yes No Absolutely Yes! Yes Absolutely No! No Yes No Urban (Commerce)Rural (Agrarian)

“Those who labor in the earth are the chosen people of God, if ever he had a chosen people, whose breasts he has made his peculiar deposit for substantial and genuine virtue. It is the focus in which he keeps alive that sacred fire, which otherwise might escape from the face of the earth.” Manufacturing Agriculture RAW MATERIALS FINISHED GOODS Jefferson’s economic model depended on a laissez- faire policy of free trade between the U.S. and Europe. No tariffs would help American farmers.

The Four Main Goals For Hamilton: (1)Establish Public Credit (2)Create a National Bank (3)Establish Domestic Manufacturing (4)An Excise Tax on Whiskey The national government would assume the debts of the state governments from the Revolutionary War. New bond notes would be issued. This would create legitimacy for the new government. A private/publicly owned Bank of the United States would offer loans in order to help promote economic development. It would also issue currency in order to stabilize the economy. By allowing Britain’s industries to manufacture, the U.S. could never achieve full potential. By placing tariffs (import tax) on foreign goods, American manufacturers would be able to compete. A tax on whiskey would bring in revenue for the nation. It would take whiskey, which was made from the excess of corn supply, and tax the farmers in the West that would make it.

In 1796, after two terms in office, George Washington decided not to run for a third term for President. Constitutionally, there was nothing that limited Washington from serving a third term, but Washington wondered of the precedent he would set. Washington left advice for the American people. The advice was to avoid: (1)Political Parties (2)Entangling Foreign Alliances

Election between John Adams (Federalist) and Thomas Jefferson (Democratic Republican). Sectional divide led to an Adams victory in first election featuring the two political parties.

National Gazette Democratic-Republican Paper Gazette of the United States Federalist Paper

EVENTWHAT WAS IT?FEDERALIST POVDEMOCRATIC-REPUBLICAN POV French RevolutionDeclaration of the Rights of Man & the Citizen triggered bloody revolution to overthrow monarchy in France; eventually led to a war by French against monarchies in Europe Supported British because of historical ties & trade relations Reminded of American Revolution; wanted to support war against monarchies of Europe Jay’s Treaty 1794 Stopped a war w/Britain; settled western land claims; British had favorable trade status Promoted trade with natural partner for Americans = Good! Opposed –thought it would strengthen Federalists and hurt republican gov’t Citizen Genet Came to America to try to promote support of French against Britain & Spain; hurt American neutrality XYZ Affair To stop war with France, Adams sent diplomats to France; French demanded bribes to even talk peace D-R supported French government; questioned loyalty to American gov’t Federalists were war hungry; didn’t care about the republic, only their interests Alien & Sedition Acts One of the few issues Hamilton & Jefferson agreed upon – Genet was bad for the United States

What Was It? Naturalization Act – increased citizenship requirement from 5 to 14 years Alien Friends Act – President could deport or arrest immigrants considered dangerous Sedition Act – restricted speech that was critical of the government Federalist Reasoning Seen as a way to promote national security in response to French Revolution and the threat of war with France Democratic-Republicans saw it as a way of restricting their power and influence and creating Federalist stronghold of government

An event that highlighted the sectional differences of the country and the divisions between political parties. Griswold (Federalist) supported Adams’s policies against France at the time. Lyon (Democratic-Republican) supported the French and opposed an American military buildup against the French. Lyon was arrested in 1798 for violation of the Sedition Act.

The Kentucky & Virginia Resolutions Written secretly by Madison & Jefferson in response to Alien & Sedition Acts The states created the Union (Compact Theory) and therefore the states could nullify laws they felt were unconstitutional “In questions of power, then, let no more be heard of confidence in man, but bind him down…by the chains of the Constitution.” Thomas Jefferson, Kentucky Resolutions “A little patience, and we shall see the reign of the witches pass over, their spells dissolve, and the people, recovering their true sight, restore their government to its true principles.” Thomas Jefferson Letter to John Taylor

Often times called a Revolution. Jefferson’s victory over Adams means the first transfer of power, but… Democratic-Republicans also win control of Congress too, however… Jefferson’s inaugural speech signals a spirit of cooperation and moving forward