1. DEMOCRACY IN DISTRESS: THE VIOLENCE OF PARTY POLITICS, 1788-1800
America: Past and Present
Chapter 7

2. Power of Public Opinion
Root cause of political parties: ambiguity of republican ideology
Federalists (Hamiltonians) stress national economy to preserve U.S. independence
Republicans (Jeffersonians) prefer government small, local, responsive
Parties agree on ends, differ about means 2 2

3. Principle and Pragmatism: Establishing a New Government
George Washington unanimously elected president, 1789
Washington’s reputation helps legitimize new government
Dominant assumptions
All will work together for the common good
Voters will defer to "betters" in political affairs 3 3

4. Alexander Hamilton Secretary of the Treasury
Believed strong central government preserves national independence
Envisioned U.S. as an industrial power
Feared democracy would lead to anarchy 4 4

5. Thomas Jefferson Secretary of State under Washington
Believed limited government preserves liberty
Envisioned U.S. as an agrarian nation
Trusted the common people 5 5

6. Hamilton's Plan for Prosperity and Security
A plan to pay off a federal debt of $54 million, additional state debt of $25 million
Proposed "funding," "assumption" of debt
Proposed national bank
Proposed government aid to manufacturing 6 6

7. Funding and Assumption
Funding: Congress redeems federal certificates of debt at face value
Unsuccessfully opposed because most certificates currently held by speculators
Assumption: federal government purchases states' debts
Initially defeated, salvaged through payments to Virginia, location of new capital on Potomac 7 7

8. Interpreting the Constitution: The Bank Controversy
National bank privately owned, Federally chartered to regulate finance
Madison opposes as benefit to the rich
Jefferson opposes as unconstitutional
Hamilton defends constitutionality through doctrine of “implied powers”
Congress charters Bank, 1791 8 8

9. Setback for Hamilton
Report on Manufacturing (1791) seeks Federal encouragement for manufacturing
Madison warns program will strengthen federal government at state expense
Jefferson warns that the rise of cities will destroy agriculture and agrarian civic virtue
Hamilton's recommendations defeated 9 9

10. Charges of Treason: The Battle over Foreign Affairs
European context
French Revolution
War in Europe
Division over foreign policy divides nation
Jeffersonian Republicans favor France
Hamiltonian Federalists favor England 10 10

11. The Peril of Neutrality
Franco-British War breaks out 1793
French diplomat Edmond Genet challenges American neutrality repeatedly in public
England violates American sovereignty, neutrality on high seas
Jefferson: punish England by cutting off trade
Hamilton: appease England because too strong 11 11

12. Jay's Treaty Sparks Domestic Unrest
John Jay to England to demand:
removal of the English from American soil
payment for ships illegally seized
better commercial relations
acceptance of United States’ neutrality
Hamilton informs English U.S. not firm
Jay’s Treaty wins no concessions
Washington dislikes, but accepts, treaty 12 12

13. Response to Jay’s Treaty
Senate ratified by smallest possible margin
Newspapers viciously attack Treaty
Republicans, press criticize Washington
Nation rallies behind Washington
Federalists brand Republicans as traitors 13 13

14. Pushing the Native Americans Aside: The Ohio Country
Battle of Fallen Timbers (1794)--U.S. Army defeats alliance of Indian nations in Ohio
Treaty of Greenville (1794)--forces Indian removal from Ohio Country
English withdraw support from Indians, pull back into Canada 14 14

15. Pushing the Native Americans Aside: New Orleans & Florida
Spain interprets Jay's Treaty as Anglo-American alliance against Spain
Treaty of San Lorenzo (Pinckney’s Treaty)
Spanish open the Mississippi to U.S. West
Settle disputed border between Florida, U.S.
Spanish cease supplying the Indians 15 15

16. Popular Political Culture
Political “parties” condemned as faction
Widespread concern over loss of common Revolutionary purpose
Federalists and Republicans suspect each others’ loyalty
Party members thought it a patriotic duty to destroy opposing party 16 16

17. Partisan Newspapers and Political Clubs
Common people highly literate
Newspapers widely read, highly influential
Newspapers shrill, totally partisan
Political clubs promote political ideas
Clubs associated with Republican Party
Newspapers and clubs the main sources of political information

18. Whiskey Rebellion Linked to Republican Conspiracy
Excise tax on whiskey imposed 1791
1794--Pennsylvania farmers protest
Republican governor refuses to act
Federalist interpret as Republican conspiracy
Jefferson sees crisis as Federalist invention 17 17

19. Washington's Farewell Washington not limited to two terms
1796--announces decision to retire
Warns against political parties
Announcement timed to prevent Republican organization of presidential campaign 18 18

20. The Adams Presidency 1796-1800--Federalists control government
Attempt to suppress Republicans
Federalist division thwarts suppression 19 19

21. The XYZ Affair and Domestic Politics
Jay Treaty prompts France to treat U.S. as unfriendly nation
Quasi-War: French fire on U.S. ships
Diplomatic mission fails when three French officials (X, Y, and Z) demand bribe
Provokes anti-French outrage in U.S.
Federalists attempt to crush Republicans by branding as pro-French 20 20

22. Crushing Political Dissent
Federalists begin building up the army
ostensible purpose: repel French invasion
actual intention: stifle internal opposition
Hamilton commands army, controls officers
Hamilton seeks declaration of war against France to begin operations against dissent
Adams refuses to ask Congress for war 21 21

23. Silencing Political Opposition: The Alien and Sedition Acts
Alien Enemies Act, Alien Act gives the president power to expel any foreigner
The Naturalization Act requires U.S. residency of fourteen years for citizenship
Sedition Act criminalizes criticism of the government
Federalist appointees in federal courts enforce Sedition Act in absurd ways 22 22

24. Kentucky and Virginia Resolutions
Republicans see Alien and Sedition Acts as dire threat to liberty
Jefferson’s Kentucky Resolutions--states may nullify unconstitutional federal law
Madison's Virginia Resolutions--urge states to protect their citizens
Purpose of resolutions: clarify differences between Republicans and Federalists 23 23

25. Adams‘s Finest Hour 1799--Adams breaks with Hamilton
Negotiates settlement with France
War hysteria against France vanishes
Hamilton's army seen as a useless expense
Adams’ action costs him election in 1800 24 24

26. The Peaceful Revolution: the Election of 1800
Hamilton’s High Federalists lead campaign to replace Adams with Pinckney
Federalists unpopular
Republican Thomas Jefferson wins
Attempts to unite nation by stressing values shared by each party 25 25

27. Danger of Political Extremism
Election of 1800 one of the most important
Transfer of power from Federalists to Republicans achieved peacefully
Nation averted ideological civil war 26 26