3.10 Shaping a New Republic

The early years of the United States established precedents, institutions, and policies that shaped the nation's future. Under George Washington and John Adams, the young republic faced challenges over political parties, federal authority, foreign policy, and national identity.

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.

What to Know About Shaping a New Republic

• Washington created a cabinet, oversaw the Bill of Rights, and signed the Judiciary Act, which established federal courts.
• Hamilton proposed federal debt assumption, tariffs, and a national bank; Washington's response to the Whiskey Rebellion showed that the federal government could enforce its laws.
• Washington declared neutrality in Europe's war, and Jay's Treaty avoided war with Britain but deepened divisions at home.
• The XYZ Affair outraged Americans, and unofficial naval fighting with France continued until Adams negotiated the Convention of 1800.
• The Alien and Sedition Acts targeted Democratic-Republicans, while the Kentucky and Virginia Resolutions argued that states could judge whether federal laws were constitutional.
• Federalists and Democratic-Republicans became opposing parties, and Jefferson's victory over Adams in 1800 brought the first peaceful transfer of power between them.

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

Washington's government also had to define its relationship with American Indian tribes, and that relationship stayed ambiguous. Tribes negotiated treaties with the federal government as if they were separate nations, yet the United States also claimed authority over them, and settlers moving west past the Appalachians kept pressing onto lands the tribes said had been taken from them. The result was ongoing disputes over what treaties meant and over American Indian legal claims to their lands. Washington's government also had to deal with the Spanish and British, who still held territory in North America. Western settlers who had crossed the Appalachians wanted unrestricted navigation of the Mississippi River, so the United States pursued diplomacy to secure it.

🎥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
  • Tariffs on imported goods to raise revenue and encourage American manufacturing
  • Creation of a national bank to handle government funds and establish a stable currency

Assumption of state debts passed in 1790 after the Compromise of 1790, in which Madison and Jefferson agreed not to block it in exchange for locating the national capital on the Potomac River in the South. Congress chartered the First Bank of the United States in 1791 over Jefferson's and Madison's objections, and it passed revenue tariffs, though it did not adopt the higher protective tariffs Hamilton proposed in his Report on Manufactures.

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
• Democratic-Republicans (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

Spanish Missions in California

While the new nation took shape in the East, Spain extended its missions into California, beginning in 1769. The missions relied on the forced labor of local American Indians, and disease, harsh conditions, and the loss of land devastated Native communities there. The missions also gave Spanish soldiers chances to rise socially, since service in the colony could improve their standing. They also brought new mixing of cultures, as Spanish, Mexican, and Native peoples lived and worked side by side and blended their customs.

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 Naturalization Act extended the residency requirement for citizenship from 5 to 14 years, and the Alien Acts 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 major 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