1. Washington Administration and the Two-Party System USHC 1.6 : Analyze the development of the two-party system during the presidency of George Washington, including controversies over domestic and foreign policies and the regional interests of the Democratic-Republicans and the Federalists.

2. Washington’s Administration Washington unanimously selected by the Second Continental Congress to be president. “Cabinet” included Thomas Jefferson, Secretary of State Alexander Hamilton, Secretary of the Treasury Both supported Constitution Very different in approach to government Interpreting the Constitution Strict v. Loose interpretation Jefferson argued 10 th Amendment Hamilton argued “necessary and proper” clause Thomas Jefferson Alexander Hamilton

3. Political Parties Two-party system develops around the arguments between Jefferson and Hamilton. No mention of parties in the Constitution Not required for elections Party system simply emerges Jefferson – Democratic-Republicans Hamilton – Federalists

4. Jefferson’s Vision for US Power of US in its agriculture/farmers States sharing power with federal government Reserved powers for the states “Plain people” were smart enough to make decisions in elections

5. Hamilton’s Economic Plan Debate between Democratic Republicans (D-R) and Federalists center around Hamilton’s economic plan 1.Repayment of War Debt Bonds would serve to improve the already wealthy Hamilton argued the need for people with stake in government 2.Assumption of State Debt Northern states still owed debts Southern states opposed, because they already paid their debts COMPROMISE: capital of country to be located in the South 3.Establishment of a National Bank Deposit revenue and provide loans Jefferson and Madison oppose – not in Constitution - “strict” Hamilton argues that bank is “necessary and proper” – elastic clause George Washington sides with Hamilton and bank passes

6. Hamilton’s Economic Plan (cont) 4.Use of protective tariff Artificially inflates prices of goods coming into US Encourages people to buy American goods because of price Hamilton wants to protect American industry Jefferson wants farmers, not industry, to be backbone of US economy 5.Excise tax – tax on goods within a country Hamilton wants to tax whiskey to make $$ for new government Jefferson against tax since it targets farmers Whiskey Rebellion – Pennsylvania farmers Farmers attack and beat up federal marshalls Washington and Hamilton organize 15,000 militia to squash rebellion Demonstrate power of government No deaths

7. The First Political Parties Federalists - Hamilton STRONG central gov’t Wealthy merchants, some plantation owners Loose interpretation of Constitution “elastic” clause – necessary and proper Democratic Republicans - Jefferson LIMITED central gov’t State power close to Farmers, common people Strict interpretation of Constitution 10 th Amendment – reserved powers

8. Diplomatic Differences Federalists – Hamilton Supported alliance with Britain Common traditions, language Dem-Rep’s - Jefferson Supported alliance with France Assistance during Revolution Events demonstrating these clashes Citizen Genet Jay’s Treaty XYZ Affair Alien and Sedition Acts Virginia and Kentucky Resolutions