The early years of the United States were critical in establishing precedents, institutions, and policies that would shape the nation's future. Under the leadership of the first two presidents, George Washington and John Adams, the young republic faced significant challenges both domestically and internationally.

The year 1800 brought about a host of changes in government, in particular the first successful and peaceful transfer of power from one political party to another. But the year was important for another reason: the U.S. Capitol in Washington, D.C. (pictured here in 1800) was finally opened to be occupied by Congress, the Supreme Court, the Library of Congress, and the courts of the District of Columbia. William Russell Birch, A view of the Capitol of Washington before it was burnt down by the British, c. 1800. Wikimedia.

Domestic Policies Under Washington

George Washington was elected unanimously as the first President of the United States in 1789 and again in 1792. His administration established many important precedents for the executive branch:

Created the cabinet system, appointing Thomas Jefferson as Secretary of State and Alexander Hamilton as Secretary of Treasury
Supervised the drafting and adoption of the Bill of Rights (1791), fulfilling promises made during ratification
Signed the Judiciary Act of 1789, establishing the Supreme Court, district courts, and appellate courts

🎥Watch: AP US History - Washington's Presidency

Hamilton's Financial Plan

As Secretary of the Treasury, Alexander Hamilton developed a comprehensive financial plan to address the nation's economic problems:

The United States had accumulated approximately $54 million in debt from the Revolutionary War
Hamilton proposed three major initiatives:
- Federal assumption of state debts and funding all obligations at full face value
- High tariffs on imported goods to protect American industries and generate revenue
- Creation of a national bank to handle government funds and establish a stable currency

Congress accepted the debt assumption proposal but initially rejected the other parts of Hamilton's plan. Eventually, the First Bank of the United States was chartered in 1791 after a compromise with Jefferson and Madison, who agreed to support the bank in exchange for placing the nation's capital in the South.

Tariffs and Taxation

The federal government relied heavily on tariffs (taxes on imports) for revenue since there was no income tax until the early 1900s. Tariffs served dual purposes:

Generated revenue for the federal government
Protected American industries from foreign competition by making imported goods more expensive

In addition to tariffs, Congress imposed excise taxes on certain domestic products, including whiskey.

The Whiskey Rebellion

In 1794, farmers in western Pennsylvania rebelled against an excise tax on whiskey:

The tax disproportionately affected frontier farmers who converted their grain to whiskey for easier transport to markets
Protestors attacked tax collectors and refused to pay the tax
Washington responded by sending a militia of 13,000 men to suppress the rebellion
The rebellion collapsed with little violence, but it demonstrated the federal government's willingness and ability to enforce its laws

This incident highlighted growing political divisions:

Federalists supported Washington's show of strength
Anti-Federalists (increasingly known as Democratic-Republicans or Jeffersonians) criticized the use of force against citizens

Foreign Affairs Under Washington

Washington's administration faced complex international challenges as European powers engaged in ongoing conflicts.

Neutrality in European Conflicts

When revolutionary France declared war on Great Britain, Spain, and other European nations in 1793:

Jefferson's Democratic-Republicans favored supporting France based on the 1778 alliance and ideological sympathy with the French Revolution
Hamilton's Federalists preferred closer ties with Britain for economic reasons and feared the radical nature of the French Revolution
Washington issued the Proclamation of Neutrality (1793), declaring America neutral in the conflict
This established the important precedent that the president has primary control over foreign policy

Relations with Great Britain

Tensions with Britain remained high after the Revolutionary War:

Britain maintained forts on American territory along the Great Lakes despite treaty obligations to withdraw
British forces supported Native American resistance to American expansion
British navy seized American ships and impressed American sailors in the West Indies
Washington sent John Jay to negotiate with Britain, resulting in Jay's Treaty (1794)

Jay's Treaty

This controversial agreement with Britain:

Secured British withdrawal from western forts
Established limited American trading rights with British colonies
Did not address impressment of American sailors
Required America to pay pre-Revolutionary debts to British merchants

The treaty avoided war but was highly unpopular with Democratic-Republicans who saw it as favoring British interests and abandoning France. It further deepened political divisions in the United States.

Washington's Farewell Address

When Washington left office in 1796, he issued a Farewell Address with important advice for the nation:

Warned against "permanent alliances" with foreign powers
Cautioned against partisan divisions and the formation of political parties
Emphasized the importance of national unity
Advocated for religion and morality as pillars of prosperity

The Adams Administration

John Adams narrowly defeated Thomas Jefferson in the 1796 election, becoming the nation's second president. Under the original constitutional system, Jefferson, as runner-up, became vice president.

The XYZ Affair and Quasi-War with France

Relations with France deteriorated after Jay's Treaty:

France began seizing American ships, viewing Jay's Treaty as pro-British
Adams sent three diplomats to France to negotiate in 1797
French officials (later identified as "X," "Y," and "Z") demanded bribes before negotiations could begin
Americans were outraged when the XYZ Affair became public
Unofficial naval fighting (the "Quasi-War") broke out between American and French ships from 1798-1800

Adams eventually sent new representatives to France, negotiating an end to the Quasi-War through the Convention of 1800. Though criticized by some Federalists who wanted a full-scale war, Adams considered this peaceful resolution one of his greatest accomplishments.

Alien and Sedition Acts

As tensions with France increased, the Federalist-controlled Congress passed the Alien and Sedition Acts in 1798:

The Alien Act extended the residency requirement for citizenship from 5 to 14 years and allowed the president to deport "dangerous" aliens
The Sedition Act made it illegal to publish "false, scandalous, and malicious" statements against the government or its officials
These laws were primarily used against Democratic-Republican newspaper editors and politicians

Kentucky and Virginia Resolutions

Jefferson and Madison secretly drafted responses to the Alien and Sedition Acts:

The Kentucky Resolutions (Jefferson) and Virginia Resolutions (Madison) argued that states could judge the constitutionality of federal laws
They introduced the concept of "nullification" - that states could declare federal laws void within their borders
While these resolutions had little immediate impact, they established principles that would resurface in later debates over states' rights

The Rise of Political Parties

Despite Washington's warnings against factions, the 1790s saw the emergence of the first American political party system:

Federalists (led by Hamilton and Adams):
- Supported a strong federal government
- Favored commercial and manufacturing interests
- Maintained closer ties with Britain
- Drew support from merchants, manufacturers, and creditors
Democratic-Republicans (led by Jefferson and Madison):
- Advocated limited federal power and states' rights
- Championed agricultural interests
- Sympathized with France
- Drew support from farmers, artisans, and frontiersmen

These partisan divisions would culminate in the election of 1800, which resulted in the first peaceful transfer of power between opposing political parties when Jefferson defeated Adams - a crucial moment in establishing democratic traditions.

Legacy of the Early Republic

The Washington and Adams administrations established critical precedents that would influence the future development of the United States:

✅ Created a functioning federal government under the new Constitution

✅ Established the principle of civilian control of the military

✅ Demonstrated the federal government's authority to enforce its laws

✅ Developed a financial system to address national debt

✅ Pursued a foreign policy based on American interests rather than permanent alliances

✅ Created a framework for the peaceful transfer of power between opposing parties

These early years shaped how the United States would function as a republic and helped transform the Constitution from a document into a working system of government.

🎥Watch: AP US History - The Constitution and the New Republic

Key Terms to Review (22)

Alien and Sedition Acts of 1798: The Alien and Sedition Acts of 1798 were a set of four laws passed by the Federalist-controlled Congress aimed at restricting the activities of foreign residents and limiting dissent against the government. These acts reflected the political tensions of the time, particularly in the context of growing fears of war with France and concerns over the stability of the young republic.

Alexander Hamilton: Alexander Hamilton was a Founding Father and the first Secretary of the Treasury of the United States, who played a crucial role in shaping the financial system and political landscape of the new republic. His vision for a strong central government, economic development, and a national bank laid the groundwork for modern American fiscal policy and the emergence of political factions.

Bill of Rights: The Bill of Rights is the first ten amendments to the United States Constitution, ratified in 1791, which outline and guarantee fundamental rights and freedoms for individuals. It was created to address the concerns of Anti-Federalists who feared that a strong central government would infringe upon personal liberties, thus playing a crucial role in shaping the new republic's identity and the relationship between citizens and their government.

Democratic-Republican Party: The Democratic-Republican Party was a political party founded in the early 1790s that advocated for agrarian interests, limited federal government, and states' rights. It emerged in opposition to the Federalist Party and played a crucial role in shaping the political landscape of the early United States, influencing governance and expanding democratic principles during its prominence.

Electoral College: The Electoral College is a body of representatives established by the Constitution, which formally elects the President and Vice President of the United States. Each state has a certain number of electors based on its population and congressional representation, and the candidate who receives a majority of electoral votes—270 out of 538—wins the presidency. This system reflects the compromises made during the founding of the nation, balancing the influence of populous states with smaller states and ensuring that all regions have a voice in presidential elections.

Farewell Address: The Farewell Address was a letter written by George Washington in 1796, where he announced his decision to step down from the presidency and shared his thoughts on the future of the United States. It served as a guiding document for the young republic, emphasizing the importance of national unity, the dangers of political parties, and the need for a strong foreign policy.

French Revolution: The French Revolution was a period of social and political upheaval in France from 1789 to 1799 that fundamentally changed the structure of French society and government. It was inspired by Enlightenment ideas and the American Revolution, leading to the rise of radical factions, the overthrow of the monarchy, and the establishment of a republic. The revolution sparked widespread change in Europe and influenced revolutionary movements worldwide.

George Washington: George Washington was the first President of the United States and a central figure in the founding of the nation. He played a pivotal role in leading the American colonies to victory during the American Revolution and set key precedents for the presidency and the new government.

Hamilton's Financial Plan: Hamilton's Financial Plan was a series of measures proposed by Alexander Hamilton in the late 18th century aimed at stabilizing and improving the financial system of the newly formed United States. It included the federal assumption of state debts, the establishment of a national bank, and the imposition of tariffs to generate revenue. This plan played a crucial role in shaping the economic policies of the new republic and influenced the development of American capitalism.

James Madison: James Madison was the fourth President of the United States and a key founding father, known as the 'Father of the Constitution' for his pivotal role in drafting and promoting the U.S. Constitution and the Bill of Rights. His contributions were essential in shaping the new republic, advocating for a strong central government while balancing the rights of states and individuals.

Jay’s Treaty: Jay's Treaty was an agreement between the United States and Great Britain, signed in 1794, aimed at resolving lingering issues from the American Revolutionary War and stabilizing relations between the two nations. The treaty addressed matters such as British military presence in the Northwest Territory, trade disputes, and compensation for American shipowners whose vessels had been seized by the British. It played a critical role in shaping U.S.-British relations during a formative period in the nation's early history.

John Adams: John Adams was the second President of the United States, serving from 1797 to 1801, and a key figure in the founding of the nation. He played a significant role in shaping the new government, advocating for independence, and establishing the principles that would guide the Republic. His influence extended to his opposition to British tyranny and his commitment to revolutionary ideals, which shaped the American political landscape.

Judiciary Act of 1789: The Judiciary Act of 1789 was a landmark legislation that established the federal judiciary system of the United States, setting up the Supreme Court and lower federal courts. This act was crucial in defining the structure and jurisdiction of the judicial branch, creating a framework for the administration of justice and the interpretation of federal laws in the newly formed republic.

Kentucky Resolutions: The Kentucky Resolutions were a series of political statements drafted in 1798 and 1799 by Thomas Jefferson and James Madison, asserting the right of states to nullify federal laws they deemed unconstitutional. This concept of state sovereignty and resistance to federal authority was rooted in the belief that the federal government had overstepped its bounds, reflecting early tensions in the new republic over the balance of power.

Proclamation of Neutrality of 1793: The Proclamation of Neutrality of 1793 was a declaration by President George Washington that the United States would remain neutral in the conflict between France and Great Britain. This decision reflected Washington's desire to keep the young nation out of foreign wars and to focus on its domestic affairs, setting a precedent for future U.S. foreign policy and helping shape the new republic's identity.

Quasi War: The Quasi War was an undeclared naval conflict between the United States and France that lasted from 1798 to 1800. It stemmed from growing tensions over trade and diplomacy following the French Revolution and was characterized by a series of naval engagements in the Caribbean and the Atlantic. This conflict played a crucial role in shaping early American foreign policy and military strategy, reflecting the complexities of the new republic's international relationships.

Tariff: A tariff is a tax imposed by a government on imported or exported goods, primarily used to generate revenue and protect domestic industries from foreign competition. In the context of shaping a new republic, tariffs played a significant role in the economic policies of early America, influencing trade relationships and debates about federal power and states' rights.

Thomas Jefferson: Thomas Jefferson was the third President of the United States and a principal author of the Declaration of Independence, known for his strong advocacy of individual liberties and democratic principles. His beliefs shaped the foundation of American democracy and influenced the nation’s early development through his presidency and political philosophies.

U.S. Capitol in Washington, D.C.: The U.S. Capitol is the home of the United States Congress and a symbol of the American people and their government. Located atop Capitol Hill, it plays a central role in the legislative process and represents the enduring nature of democracy as the country was shaping its new republic after independence.

Virginia Resolutions: The Virginia Resolutions were a series of political statements drafted in 1798 by the Virginia legislature, responding to the Alien and Sedition Acts. These resolutions asserted that states have the right to judge the constitutionality of federal laws and could refuse to enforce them if deemed unconstitutional. This was a significant early expression of states' rights that influenced the relationship between state and federal power during the formation of the new republic.

Whiskey Rebellion: The Whiskey Rebellion was a violent tax protest in the United States from 1791 to 1794, primarily in Western Pennsylvania, against the federal excise tax on whiskey. This event highlighted the tensions between federal authority and local resistance, showcasing the challenges of governing a diverse and expanding nation during its formative years.

XYZ Affair: The XYZ Affair was a diplomatic incident between the United States and France in the late 18th century, where American diplomats were approached by French agents demanding bribes for negotiations. This event significantly heightened tensions between the two nations, leading to an undeclared naval conflict known as the Quasi-War and influencing the shaping of a new republic's foreign policy. The incident highlighted issues of national sovereignty and the challenges faced by the fledgling United States in establishing its position on the global stage.

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3.10 Shaping a New Republic