1. The Early Jefferson Republic

2. The Federalists
During Alexander Hamilton’s tenure as Secretary of Treasury, the Federalists enacted many laws that were contrary to Jefferson’s beliefs.

3. Federalist Actions Under Washington/Hamilton
Nationalized Banking System
Tariffs: Hamilton was dependant on heavy trade with other countries, and by taxing imported goods, hoped to make a significant amount of money for the government.
Excise Tax: taxing “extra”, unnecessary goods, in particular whiskey.
This would in turn make whiskey more expensive, lowering its demand as cheaper alternatives on the frontier were often used.
This also decreased the demand for the grain used to make whiskey, hurting farmers.

4. Jefferson’s First years as President
Jefferson was determined to undo the damage caused by his counterparts, the Federalists
Alien and Sedition Acts had expired
Jefferson quickly pardoned those imprisoned by the laws, referring to them as “martyrs”
With these exceptions, due mostly to bi-partisan controversy, Jefferson left most of the Federalist/Hamiltonian framework in tact.

5. Jefferson and Foreign Policy
Jefferson had hoped, as did many Republicans, that the United States would become a nation independent of the constant fighting of Europe
Reduced the military to the status of a police force made up of 2,500 officers and men
Jefferson cut costs through less military spending, buying less guns and building less ships.

6. Jefferson and Foreign Policy (continued)
These policies are tested often through his administration
Tripoli: The Hamilton Administration had been buying protection for ships coming from Europe/Africa to the U.S.
Tripoli, a North African country, was dissatisfied with its payment, and unofficially declared war on the U.S.
After 4 years of fighting, the American Marine Corp forced Tripoli to accept a small payment of $60,000, which was really in exchange for American POW’s.

7. Assignment
Describe the scenario that leads to the Louisiana Purchase and list the benefits and costs of the decision.