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3 The Federalists TERMS & NAMES

foreign policy
political party

in Charge XYZ Affair

Alien and Sedition
Acts
states’ rights
MAIN IDEA WHY IT MATTERS NOW
The split between Hamilton and The two-party system is still a
Jefferson led to the growth of major feature of politics in the
political parties. United States.

ONE AMERICAN’S STORY

In 1796, President George Washington decided
that two terms in office was enough. The
president was fed up with political
quarreling. He wanted to return to Mount
Vernon, his estate in Virginia. But as he
left office, he feared the development of
political parties would split the nation
into enemy camps. With Hamilton’s
help, in 1796 he wrote a final address
to the nation. This painting portrays Mount
Vernon in 1792.
A V O I C E F R O M T H E PA S T
Let me now . . . warn you . . . against the [harmful] effects of the spirit
of party. . . . This spirit, unfortunately . . . exists in different shapes in all
governments . . . but in those of the popular form, it is seen in its greatest
rankness and is truly their worst enemy.
George Washington, Farewell Address

In his address, Washington warned of the dangers of political

division, or what he termed “the spirit of party.” As you will see in
this section, few people took his advice.

Washington Retires
Washington had come to the presidency greatly admired by the
American people. Throughout his eight years in office (1789–1797), he
had tried to serve as a symbol of national unity. In large part, he suc-
ceeded. During his second term, however, opponents of Jay’s Treaty led
attacks on the president. Thomas Paine called Washington “treacherous
in private friendship . . . and a hypocrite in public life” because he failed
to support the French Revolution.
Washington saw such attacks as the outcome of political disagree-
ments. In his farewell address, he warned that such differences could
weaken the nation. Despite his advice, political parties became a part of
American politics.
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Americans listened more closely to Washington’s parting advice on

foreign policy—relations with the governments of other countries. He
urged the nation’s leaders to remain neutral and “steer clear of permanent
alliances with any portion of the foreign world.” He warned that agree-
ments with foreign nations might work against U.S. interests. His advice
served to guide U.S. foreign policy into the twentieth century.

Growth of Political Parties

Despite Washington’s warning against political parties, Americans were
deeply divided over how the nation should be run. During Washington’s
first term (1789–1792), Hamilton and Jefferson had hotly debated the
direction the new nation should take. Then Jefferson returned to
Virginia in 1793. During Washington’s second term, Madison took A. Answer The
Jefferson’s place in the debates with Hamilton. Federalists
Both sides disagreed on how to interpret the Constitution and on believed in a
strong national
economic policy. Hamilton favored the British government and opposed government, a
the French Revolution. Jefferson and Madison were the opposite. national bank,
Hamilton fought for a strong central government. Jefferson and and a loose inter-
pretation of the
Madison feared such a government might lead to tyranny. They had dif- Constitution.
ferent visions of what the nation should become. Hamilton wanted a Democratic-
United States in which trade, manufacturing, and cities grew. Jefferson Republicans
believed in a lim-
and Madison pictured a rural nation of planters and farmers. ited government,
These differences on foreign and domestic policy led to the nation’s an economy
first political parties. A political party is a group of people that tries to based on farming,
and a strict inter-
promote its ideas and influence government. It also backs candidates for pretation of the
office. Together, Jefferson and Madison founded the Democratic- Constitution.
Republican Party. The party name reflected their strong belief in democ-
A. Summarizing
racy and the republican system. Their ideas drew farmers and workers to
What were the
the new party. Hamilton and his friends formed the Federalist Party. major beliefs of
Many Northern merchants and manufacturers became Federalists. each party?

The First Political Parties

FEDERALISTS D E M O C R AT I C - R E P U B L I C A N S
Strong national government Limited national government

Fear of mob rule Fear of rule by one person or a

Skillbuilder
powerful few
Answers Loose construction (interpretation) Strict construction (interpretation)
1. Federalists of the Constitution of the Constitution
served the eco-
nomic interests of Favored national bank Opposed national bank
business and man-
Economy based on manufacturing Economy based on farming
ufacturing; the
and shipping
propertied classes.
2. Federalists Supporters: lawyers, merchants, Supporters: farmers, tradespeople
favored a ruling manufacturers, clergy
elite; Democratic-
Republicans put SKILLBUILDER Interpreting Charts
more trust in the 1. Which economic interests were served by the Federalists?
common people. 2. Which party favored a ruling elite? Which put more trust in the common people?

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WASHINGTON, D.C., AND

BENJAMIN BANNEKER
Benjamin Banneker was a
free African-American farmer.
He was a self-taught
mathematician and astron-
omer. He also wrote an
almanac (see below). He
was named to the survey
commission appointed to lay
out the boundaries of the
nation’s new capital. Working
with chief planner Pierre
L’Enfant, Banneker helped to
decide where the White
House and Capitol would be
located. Their final design is
shown at the left.

John Adams Takes Office

In 1796, the United States held its first elections in
which political parties competed. The Federalists
picked Washington’s vice-president, John Adams, as
their candidate for president. An experienced public
servant, Adams had been a leader during the
Revolution and at the Continental Congress. He had
also been a diplomat in France, the Netherlands, and
Britain before serving with Washington. The
Democratic-Republicans chose Jefferson.
In the electoral college, Adams received 71 votes
and Jefferson 68. The Constitution stated that the
runner-up should become vice-president. Therefore,
the country had a Federalist president and a
Democratic-Republican vice-president. Adams
became president in 1797. His chief rival,
Jefferson, entered office as his vice-president. In
1800, Adams became the first president to govern
from the nation’s new capital city, Washington, D.C.

Problems with France

When Washington left office in 1797, relations between France and
the United States were tense. With Britain and France still at war, the
French began seizing U.S. ships to prevent them from trading with
the British. Within the year, the French had looted more than 300
U.S. ships.
Although some Federalists called for war with France, Adams hoped
talks would restore calm. To this end, he sent Charles Pinckney, Elbridge
Gerry, and John Marshall to Paris. Arriving there, they requested a meet-
ing with the French minister of foreign affairs. For weeks, they were

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American newspapers fueled

public anger over the XYZ
Affair by publishing editorials
and cartoons like this one.
Here the five-man group ruling
France demands money at
dagger point from the three
Americans. The American
diplomats respond, “Cease
bawling, monster! We will not
give you sixpence!”
What attitude does the
cartoonist have toward
France’s role in this affair?
How can you tell?

ignored. Then three French agents—later referred to as X, Y, and Z—

took the Americans aside to tell them the minister would hold talks.
However, the talks would occur only if the Americans agreed to loan
France $10 million and to pay the minister a bribe of $250,000. The
Americans refused. “No, no, not a sixpence,” Pinckney shot back.
Adams received a full report of what became known as the XYZ
B. Drawing
Affair. After Congress and an outraged public learned of it, the press Conclusions How
turned Pinckney’s words into a popular slogan: “Millions for defense, did the XYZ
not one cent for tribute!” In 1798, Congress canceled its treaties with Affair show the
young nation’s
France and allowed U.S. ships to seize French vessels. Congress also set growing
aside money to expand the navy and the army. confidence?
B. Answer The
The Alien and Sedition Acts nation was willing
to defy French
The conflict with France made Adams and the Federalists popular with power and to
the public. Many Democratic-Republicans, however, were sympathetic build up its
strength.
to France. One Democratic-Republican newspaper called Adams “the
blasted tyrant of America.” In turn, Federalists labeled Democratic-
Republicans “democrats, mobcrats, and other kinds of rats.”
Angered by criticism in a time of crisis, Adams blamed the Democratic-
Republican newspapers and new immigrants. Many of the immigrants
were Democratic-Republicans. To silence their critics, the Federalist
Congress passed the Alien and Sedition Acts in 1798. These acts targeted
aliens—immigrants who were not yet citizens. One act increased the wait-
ing period for becoming a U.S. citizen from 5 to 14 years. Other acts gave
the president the power to arrest disloyal aliens or order them out of the
country during wartime. A fourth act outlawed sedition, saying or writing
anything false or harmful about the government.
With these acts, the Federalists clamped down on freedom of speech
and the press. About 25 Democratic-Republican newspaper editors were

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charged under this act, and 10 were convicted of expressing opinions dam-
aging to the government. A Vermont congressman, Matthew Lyon, was
also locked up for saying that the president should be sent “to a mad house.”
The voters re-elected Lyon while he was in jail.
C. Making
Inferences How The Democratic-Republicans, led by Jefferson and Madison, searched
might the theory for a way to fight the Alien and Sedition Acts. They found it in a theory
of states’ rights called states’ rights. According to this theory, states had rights that the
undermine the
federal federal government could not violate. Jefferson and Madison wrote resolu-
government? tions (or statements) passed by the Kentucky and Virginia legislatures in 1798
C. Answer It and 1799. In the Kentucky Resolutions, Jefferson proposed nullification, the
might encourage
states to try to
idea that a state could nullify a federal law within the state. In the Virginia
nullify or ignore Resolutions, Madison said a state could interpose, or place, itself between the
federal laws. federal government and its citizens.These resolutions declared that the Alien
and Sedition Acts violated the Constitution. No other states supported
Kentucky and Virginia. However, within two years the Democratic-
Republicans won control of Congress, and they either repealed the Alien and
Sedition Acts or let them expire between 1800 and 1802.

Peace with France

While Federalists and Democratic-Republicans battled at home, the
United States made peace with France. Although war fever was high,
Adams reopened talks with France. This time the two sides quickly signed
the Convention of 1800, an agreement to stop all naval attacks. This treaty
cleared the way for U.S. and French ships to sail the ocean in peace.
Adams’s actions made him enemies among the Federalists. Despite this, he
spoke proudly of having saved the nation from bloodshed. “I desire no other
inscription over my gravestone than: ‘Here lies John Adams, who took upon
himself the responsibility of the peace with France in the year 1800.’ ” Adams
lost the presidential election of 1800 to Thomas Jefferson. You will read
more about Jefferson in the next chapter.

Section 3 Assessment
1. Terms & Names 2. Taking Notes 3. Main Ideas 4. Critical Thinking
Explain the Use a cluster diagram to a. What two pieces of advice Evaluating Do you think
significance of: review details about the did Washington give in his Washington’s warning
• foreign policy Alien and Sedition Acts. Farewell Address? about political parties was
b. What led to the rise of good advice? Explain.
• political party
Alien and political parties? THINK ABOUT
• XYZ Affair Sedition Acts
• Alien and c. Why did Congress pass • roles of political parties
Sedition Acts the Alien and Sedition Acts? • advantages of parties
• states’ rights What was the worst effect of How did Kentucky and
• disadvantages of parties
the Alien and Sedition Acts? Virginia respond?
Why?

ACTIVITY OPTIONS
TECHNOLOGY Read more about Benjamin Banneker. Plan part of a video presentation on him
or present dramatic readings of excerpts from the almanac he wrote.
SPEECH

Launching a New Republic 307