Overview
This lecture covers the competing visions of the Federalists and Democratic Republicans during the early years of the United States, focusing on key political debates, economic policies, and the establishment of foundational government systems from 1790 to 1820.
Background: The New Republic
- The United States' first government was under the Articles of Confederation, which was too weak to address national issues.
- The Constitution created a stronger national government with three branches: executive, legislative, and judicial, effective in 1789.
- George Washington became the first President; the first Congress and Supreme Court were established.
The First Party System: Federalists vs. Democratic Republicans
- The Federalists and Democratic Republicans were the first two political parties in the United States; this era is called the "First Party System."
- Federalists, led by Alexander Hamilton, supported a strong central government and the new Constitution.
- Democratic Republicans, led by Thomas Jefferson, favored states' rights and a rural, agrarian nation.
- Many Anti-Federalists joined the Democratic Republican Party but were not a formal political party.
Key Policies and Legislation
- The first Congress passed the Judiciary Act (establishing the Supreme Court), a Tariff Act (tax on imports), and the Bill of Rights (first ten amendments).
- Economic problems included significant national and state debt, unpaid veterans, and disrupted trade due to the Revolutionary War.
Hamilton's Economic Plan
- Hamilton's "Report on Public Credit" prioritized repaying foreign creditors to legitimize the new nation.
- The government issued bonds to raise funds and combined state and national debts, leading to controversy.
- Speculators often bought war debt from veterans at low prices, causing debate over fairness in repayment.
- The location of the national capital moved to the South (Washington, D.C.) as a compromise in economic policy debates.
- "Report on the National Bank" proposed a central bank to manage finances and support economic growth; Jefferson opposed it as too powerful.
- Hamilton introduced taxes on whiskey and protective tariffs to raise revenue and promote U.S. industry.
- Subsidies (economic aid) were provided to American businesses to promote growth.
Opposition to Federalist Policies
- Jefferson and Madison opposed Hamilton’s plans as too centered on elites and central power, preferring an agrarian, rural republic.
- Newspapers became a battleground for Federalist and Democratic Republican ideas.
- Federalists were typically supported by elites and urban interests, while Democratic Republicans drew support from farmers and artisans.
Defining Citizenship and Voting Rights
- The 1790 Naturalization Act restricted U.S. citizenship to “free white persons,” establishing a white republic.
- Most states required property ownership or tax payments for voting rights; New Jersey uniquely allowed unmarried women to vote from 1776–1807.
Key Terms & Definitions
- Federalists — Supported a strong central government and the new Constitution.
- Democratic Republicans — Favored states’ rights and an agrarian economy.
- First Party System — Period when two dominant political parties competed in the U.S.
- Tariff — Tax on imports to raise revenue and protect domestic industry.
- Bond — Government-issued debt instrument to raise immediate funds.
- Speculator — Person who bought war debt at a discounted price to profit from repayment.
- Yeoman Farmer — Independent land-owning farmer, idealized by Jefferson.
- Artisan — Skilled worker or craftsperson, often urban.
- Bill of Rights — First ten amendments to the Constitution guaranteeing individual freedoms.
- Naturalization Act of 1790 — Law defining citizenship as limited to free white persons.
Action Items / Next Steps
- Review the list of the first ten amendments in your textbook.
- Prepare to discuss Hamilton’s and Jefferson’s competing visions in class.
- Read the next section on the challenges faced by the new republic.