The Early Republic

1. The Early Republic Issues at home and abroad

2. Economic Issue: The National Debt • Alexander Hamilton devises program for getting country’s finances in order • Debts are transferred from state government to national government • Gives national government more importance and makes creditors feel invested in the success of the nation • Funds raised through taxes and tariffs

3. Hamilton’s Opponents • Led by Thomas Jefferson • They feel that Hamilton’s idea of a strong national government is a betrayal of the American Revolution • Jefferson’s opposition is the beginning of the idea of a two-party system in our democracy

4. Federalists Loose interpretation of Constitution Strong National government Believed a national bank was necessary Pro-business Pro-British Jeffersonian Republicans Strict Interpretation of Constitution Weaker National Government Pro-agriculture- against national bank Pro- French Opposing Views

5. International Issue: Britain vs France • George Washington issues proclamation of neutrality (US would not become involved) • Great Britain angers US citizens by seizing US ships and supporting Indians in Northwest territory • Jay’s Treaty is negotiated to keep peace- many feel US was not assertive enough in protecting their interests

6. Election of 1796 • Washington decides to retire- setting precedent for two-term maximum term of office (which lasts until 1940) • John Adams (Washington’s VP) defeats Jefferson in close election • Jefferson becomes Vice President

7. Washington’s Farewell • Washington advises nation on the best course for its future- based on two main ideas • He was against political parties, thought they would weaken the nation by dividing it • He said we should avoid foreign entanglements and preserve friendly relations with all European countries

8. The Adams Administration • Major conflict- power of national government • Alien and Sedition Act forbids “false, scandalous, malicious” attacks on government • Republicans feel this violates 1st Amendment Freedoms • They respond by Virginia, Kentucky resolutions which say that states can ignore federal laws within their own borders if laws are unconstitutional

9. Conflict with France • American sentiment turns against France • French begin to seize American ships at sea • French officials demand bribe before negotiating with Americans on the issue • Adams, against the feelings of many in his country (especially Federalists) makes peace with France

10. Election of 1800 • Former friends and colleagues Adams and Jefferson engage in bitter personal campaign with attacks on both side • Election results in a tie between Jefferson and Aaron Burr (his vice-presidential candidate) • Eventually election is decided in House of Representatives • 12th Amendment establishing separate election of President and VP makes sure this does not happen again

11. Transfer of Power • Key moment in US History as power is peacefully transferred from Federalists to Republicans • Jefferson, in his inauguration, recognizes the importance, saying that “… We are all Republicans, we are all federalists”