The Federalist Party


Test #3


The period from 1789 to early 1801 was called the Federalist Era because the Federalist Party controlled it. The Federalist Party was one of two political parties that were formed in the late 1700’s.


The Federalist Party was lead by Alexander Hamilton. The Federalists were strong Nationalists and supported the Constitution. The Federalist Party believed that the government should rule the states. They also believed that the government should be established through the rich citizens of the United States. They also wanted to establish good relations with England instead of France. Hamilton believed that a strong government would promote the growth of the United States. Hamilton along with the rest of his party did not trust the ability of the average man. He believed that the rich should be tied to the success of the government. To do this he wanted to create a government bank. This bank was called the Bank of the United States. The United States Bank was owned by the Government (20%) and private investors, which is the rich (80%). Another belief of Hamilton was to tax imported goods. His reason behind this was to promote the production of American goods. Hamilton had his own ideas on how to reduce the debt of the United States after the war. He called for the federal Government to assume the states debt so the federal government has some power over the states. He also passed a 25 percent excise tax on whiskey that was to be paid by the farmers.


The Federalist Party had some success and failures in there reign of command. The Federalist was able to avoid a full war with France after a two year undeclared naval war called the Quasi War. Adams decided to avoid the war at his own cost. He could have waged a war to stimulate the economy but decided to negotiate instead. The failures of the Federalist were the tax on whiskey. The tax leads to a rebellion by the American farmers and left a bad taste in there mouth.


The Federalist Party lost power in 1801 when Adams didn’t wage war with France and then lost the election of 1800 to Thomas Jefferson. When Adams did not wage war on France it made several members of the Federalist Party made and this caused Adams to loose some of his supporters. With the passing of the Alien and Sedition Acts caused a big controversy with the Republicans. They argued that these acts conflicted with the Bill of Rights and infringed on the liberties of the people.


The Federalist Party played an important role in American history. They established the first United States Bank. The bank got the government up and running and established it firmly. The Federalist successfully negotiated with France to avoid a war that would have prevented the purchase of the Louisiana Territory. The Federalist continued to influence the court systems. They also had a government strong enough to put down the Whiskey Rebellion without force. And finally presented a strong government force that encouraged and promoted the growth of the economy.