Federalist Party


The Federalist Party was a conservative and nationalist American political party and the first known political party in the United States. It dominated the national government under Alexander Hamilton from 1789 to 1801. The party was defeated by the Democratic-Republican Party in 1800, and it became a minority party while keeping its stronghold in New England. It made a brief resurgence by opposing the War of 1812, then collapsed with its last presidential candidate in 1816. Remnants lasted for a few years afterwards.
The party appealed to businesses who favored banks, national over state government, and maintaining an army and navy. In world affairs, the party preferred Great Britain and strongly opposed involvement in the French Revolutionary and Napoleonic Wars. The party favored centralization, federalism, modernization, industrialization, and protectionism.
The Federalists called for a strong national government that promoted economic growth and fostered friendly relationships with Great Britain in opposition to Revolutionary France. The Federalist Party came into being between 1789 and 1790 as a national coalition of bankers and businessmen in support of Hamilton's fiscal policies. These supporters worked in every state to build an organized party committed to a fiscally sound and nationalistic government. The only Federalist president was John Adams. George Washington was broadly sympathetic to the Federalist program, but he remained officially non-partisan during his entire presidency. The Federalist Party controlled the national government until 1801, when it was overwhelmed by the Democratic-Republican opposition led by President Thomas Jefferson.
Federalist policies called for a national bank, tariffs, and good relations with Great Britain as expressed in the Jay Treaty negotiated in 1794. Hamilton developed the concept of implied powers and successfully argued the adoption of that interpretation of the Constitution. The Democratic-Republicans led by Jefferson denounced most of the Federalist policies, especially the bank and implied powers, and vehemently attacked the Jay Treaty as a sell-out of American interests to Britain. The Jay Treaty passed and the Federalists won most of the major legislative battles in the 1790s. They held a strong base in the nation's cities and in New England. They factionalized when President Adams secured peace with France, to the anger of Hamilton's larger faction. The Jeffersonians won the presidential election of 1800, and the Federalists never returned to power. They recovered some strength through their intense opposition to the War of 1812, but they practically vanished during the Era of Good Feelings that followed the end of the war in 1815.
The Federalists left a lasting legacy in the form of a strong federal government. After losing executive power, they decisively shaped Supreme Court policy for another three decades through Chief Justice John Marshall.

Background

The term "Federalist" was previously used to refer to a somewhat different coalition of nationalists led by Washington, which advocated replacing the weaker national government under the Articles of Confederation with a new Constitution in 1789. This early coalition included Hamilton and James Madison.
The Federalists of this time were rivaled by the Anti-Federalists, who opposed the ratification of the Constitution and objected to creating a stronger central government. The critiques of the Constitution raised by the Anti-Federalists influenced the creation of the Bill of Rights. Federalists responded to these objections by promising to add a bill of rights as amendments to the Constitution to satisfy these concerns, which aided in securing acceptance and ratification of the Constitution by the states. The new United States Congress, initially with a Federalist majority, submitted to the states a series of amendments to guarantee specific freedoms and rights; once ratified, these would become the first ten amendments to the Constitution.

History

Origins (1789–1792)

Upon taking office in 1789, President Washington nominated his wartime chief of staff Alexander Hamilton to the new office of Secretary of the Treasury. Hamilton wanted a strong national government with financial credibility, and he proposed the ambitious Hamiltonian economic program that involved the assumption of the state debts incurred during the American Revolution. This created a national debt and the means to pay it off, and it set up a national bank along with tariffs, with James Madison playing major roles in the program. Parties were considered to be divisive and harmful to republicanism, and no similar parties existed anywhere in the world.
By 1789, Hamilton started building a nationwide coalition, realizing the need for vocal political support in the states. He formed connections with like-minded nationalists and used his network of treasury agents to link together friends of the government, especially merchants and bankers, in the new nation's dozen major cities. His attempts to manage politics in the national capital to get his plans through Congress brought strong responses across the country. In the process, what began as a capital faction soon assumed status as a national faction and then as the new Federalist Party. The Federalist Party supported Hamilton's vision of a strong centralized government and agreed with his proposals for a national bank and heavy government subsidies. In foreign affairs, they supported neutrality in the war between France and Great Britain.
File:Alexander Hamilton portrait by John Trumbull 1806.jpg|thumb|A portrait of Alexander Hamilton by John Trumbull, 1806
Hamilton proposed to fund the national and state debts, and Madison and John J. Beckley began organizing a party to oppose it. This "Anti-Administration" faction became what is now called the Democratic-Republican Party, led by Madison and Thomas Jefferson. This party attracted many Anti-Federalists who were wary of a centralized government.

Rise (1793–1796)

By the early 1790s, newspapers started calling Hamilton supporters "Federalists" and their opponents "Republicans", "Jeffersonians", or "Democratic-Republicans". Jefferson's supporters usually called themselves "Republicans" and their party the "Republican Party". The Federalist Party became popular with businessmen and New Englanders, and Republicans were mostly farmers who opposed a strong central government. Cities were usually Federalist strongholds, whereas frontier regions were heavily Republican. The Congregationalists of New England and the Episcopalians in the larger cities supported the Federalists, while other minority denominations tended toward the Republican camp. Urban Catholics were generally Federalists.
The state networks of both parties began to operate in 1794 or 1795, and patronage became a factor. The winner-takes-all election system opened a wide gap between winners, who got all the patronage, and losers who got none. Hamilton had many lucrative Treasury jobs to dispense—there were 1,700 of them by 1801. Jefferson had one part-time job in the State Department, which he gave to journalist Philip Freneau to attack the Federalists. In New York, George Clinton won the election for governor and used the vast state patronage fund to help the Republican cause.
Washington tried and failed to moderate the feud between his two top cabinet members. He was re-elected without opposition in 1792. The Democratic-Republicans nominated New York's Governor Clinton to replace Federalist John Adams as vice president, but Adams won. The balance of power in Congress was close, with some members still undecided between the parties. In early 1793, Jefferson secretly prepared resolutions introduced by Virginia Congressman William Branch Giles designed to repudiate Hamilton and weaken the Washington Administration. Hamilton defended his administration of the nation's complicated financial affairs, which none of his critics could decipher until the arrival in Congress of Republican Albert Gallatin in 1793.
Federalists counterattacked by claiming that the Hamiltonian program had restored national prosperity, as shown in one 1792 anonymous newspaper essay:
Jefferson wrote on 12 February 1798:

French Revolution

The French Revolution and the subsequent war between royalist Britain and republican France decisively shaped American politics in 1793–1800 and threatened to entangle the country in wars that "mortally threatened its very existence". The French revolutionaries guillotined King Louis XVI in January 1793, and subsequently declared war on Britain. The French king had been decisive in helping the United States achieve independence, but now he was dead and many of the pro-American aristocrats in France were exiled or executed. Federalists warned that American republicans threatened to replicate the horrors of the French Revolution and successfully mobilized most conservatives and many clergymen. The Republicans, some of whom had been strong Francophiles, responded with support even through the Reign of Terror, when thousands were guillotined, though it was at this point that many began backing away from their pro-France leanings. Many of those executed had been friends of the United States, such as the Comte D'Estaing, whose fleet had fought alongside the Americans in the Revolution. The republicans denounced Hamilton, Adams and even Washington as friends of Britain, as secret monarchists, aristocrats and as enemies of the republican values. The level of rhetoric reached a fever pitch.
In 1793, Paris sent a new minister, Edmond-Charles Genêt, who systematically mobilized pro-French sentiment and encouraged Americans to support France's war against Britain and Spain. Genêt funded local Democratic-Republican Societies that attacked Federalists. He hoped for a favorable new treaty and for repayment of the debts owed to France. Acting aggressively, Genêt outfitted privateers that sailed with American crews under a French flag and attacked British shipping. He tried to organize expeditions of Americans to invade Spanish Louisiana and Spanish Florida. When Secretary of State Jefferson told Genêt he was pushing American friendship past the limit, Genêt threatened to go over the government's head and rouse public opinion on behalf of France. Even Jefferson agreed this was blatant foreign interference in domestic politics. Genêt's extremism seriously embarrassed the Jeffersonians and cooled popular support for promoting the French Revolution and getting involved in its wars. Recalled to Paris for execution, Genêt kept his head and instead went to New York, where he became a citizen and married the daughter of Governor Clinton. Jefferson left office, ending the coalition cabinet and allowing the Federalists to dominate.
The Jay Treaty battle in 1794–1795 was the effort by Washington, Hamilton and John Jay to resolve numerous difficulties with Britain. Some of these issues dated to the Revolution, such as boundaries, debts owed in each direction and the continued presence of British forts in the Northwest Territory. In addition, the United States hoped to open markets in the British Caribbean and end disputes stemming from the naval war between Britain and France. Most of all the goal was to avert a war with Britain—a war opposed by the Federalists, that some historians claim the Jeffersonians wanted.
As a neutral party, the United States argued it had the right to carry goods anywhere it wanted. The British nevertheless seized American ships carrying goods from the French West Indies. The Federalists favored Britain in the war and by far most of America's foreign trade was with Britain; hence a new treaty was called for. The British agreed to evacuate the western forts, open their West Indies ports to American ships, allow small vessels to trade with the French West Indies and set up a commission that would adjudicate American claims against Britain for seized ships and British claims against Americans for debts incurred before 1775. One possible alternative was war with Britain, a war that the United States was ill-prepared to fight.
The Republicans wanted to pressure Britain to the brink of war. Therefore, they denounced the Jay Treaty as an insult to American prestige, a repudiation of the American-French alliance of 1777 and a severe shock to Southern planters who owed those old debts and who would now be never compensated for their escaped slaves who fled to British lines for their freedom. Republicans protested against the treaty and organized their supporters. The Federalists realized they had to mobilize their popular vote, so they mobilized their newspapers, held rallies, counted votes and especially relied on the prestige of President Washington. The contest over the Jay Treaty marked the first flowering of grassroots political activism in the United States, directed and coordinated by two national parties. Politics was no longer the domain of politicians as every voter was called on to participate. The new strategy of appealing directly to the public worked for the Federalists as public opinion shifted to support the Jay Treaty. The Federalists controlled the Senate and they ratified it by exactly the necessary two-thirds vote vote in 1795. However, the Republicans did not give up and public opinion swung toward the Republicans after the Treaty fight and in the South the Federalists lost most of the support they had among planters.