1. The Federalists in Charge

2. Washington Retires
During second term, George Washington receives some criticism
Washington warns that political divisions can weaken the nation
Relations with governments of other countries— foreign policy
Washington urges U.S. not to form permanent alliances with nations

3. Growth of Political Parties
Alexander Hamilton’s views:
Thomas Jefferson’s and James Madison’s views:
opposes French Revolution
for strong central government
promotes trade, manufacturing, cities
for French Revolution
strong government could lead to tyranny
promote farming

4. Growth of Political Parties
Differences lead to the nation’s first political parties
Political party: group that promotes its ideas, influences government
Thomas Jefferson, James Madison start Democratic-Republican Party
Alexander Hamilton and friends start the Federalist Party

5. John Adams Takes Office
John Adams is presidential candidate for Federalists
Thomas Jefferson is candidate for Democratic-Republicans
Adams wins election; runner-up, Jefferson, is vice-president (1797)

6. Problems with France In 1797, Britain and France still at war
French seize U.S. ships, prevent trade with British
Federalists want war with France
President Adams wants to restore calm
President Adams sends diplomats to France, they are ignored
3 French agents (known as X,Y, Z) ask for loan, bribe from diplomats
Americans are outraged by XYZ Affair
Congress cancels treaties, allows U.S. to seize French ships

7. The Alien and Sedition Acts
Democratic-Republicans, Federalists criticize each other
To stop criticism of Federalists, President Adams targets immigrants
Many immigrants are Democratic-Republicans
Federalist Congress passes the Alien and Sedition Acts (1798):
power to arrest disloyal aliens during wartime
outlaws saying, writing anything false, harmful against government

8. The Alien and Sedition Acts
Alien and Sedition Acts clamp down on freedom of speech
Democratic-Republicans use states’ rights to fight acts
State can refuse to pass a federal law if it sees law as unconstitutional
Kentucky, Virginia find Alien and Sedition Acts unconstitutional
Democratic-Republicans gain control of Congress
Repeal acts or let them expire between 1800 and 1802

9. Peace with France U.S. and France make peace, sign Convention of 1800:
stops naval attacks between France and U.S.
allows U.S., French ships to sail the ocean in peace