Politics in the New Nation (College Board AP® US History)
Study Guide
Written by: Kristin Marciniak
Reviewed by: Bridgette Barrett
Timeline
Summary
As the first president of the United States, many of George Washington’s early actions set precedents for the leaders who followed him.
Together, Washington and Congress set up executive branch departments and the federal court system.
Congress also created a national bank on the recommendation of Alexander Hamilton.
Hamilton led the Federalist Party, which believed in a strong central government and implied Constitutional powers. He often disagreed with Thomas Jefferson and James Madison, the leaders of the Democratic-Republican Party. They believed in a less powerful central government and a strict interpretation of the Constitution.
George Washington thought political parties would divide the new nation. When he retired after two terms as president, he cautioned Americans to be wary of party politics and to remain neutral in global affairs.
New Institutions & Precedents
George Washington and Congress worked together to create departments within the executive branch
The Department of War, the Department of Treasury, and the State Department were set up in the summer of 1789
The office of postmaster general was also established in 1789
The attorney general, secretary of state, secretary of the treasury, and secretary of war formed the president’s cabinet
The president had the power to appoint and dismiss cabinet officers
Washington and Congress also set up the court system
The Judiciary Act of 1789, allowed states to keep their own laws and courts
Federal courts have the power to reverse state court decisions
As established by the Constitution, the Supreme Court has the final say on almost all issues
Secretary of the Treasury Alexander Hamilton convinced Congress to establish a national bank
The national bank:
held government funds and made debt payments
issued a single form of currency for the whole country
Before this, each state had its own currency
Some people, including Thomas Jefferson and James Madison, did not like the idea of a national bank. They thought it would only help rich people
Hamilton argued that the Constitution indirectly gave Congress the power to create a bank under the Elastic Clause
Hamilton also wanted the federal government to pay all the states’ debts
This would help build the nation’s credit, which would make it easier for the federal government to borrow money
It would also make the states dependent on the federal government
Leaders in Southern states did not like this
They did not have as much debt as Northern states
They agreed to go along with Hamilton’s plan when he promised to support placing the nation’s capital in the South
Washington’s decision to serve for two terms (eight years) in office set the standard for other presidents
Formation of Political Parties
The first political parties grew out of the Federalist and Anti-Federalist movements surrounding the ratification of the Constitution
The Federalist Party
The Federalist Party was led by Alexander Hamilton
Federalists wanted a strong national government
They believed the Constitution implied that the government could do things that were not explicitly written in the Constitution as long as those things were being done to carry out an enumerated power
Federalists also believed:
Elected officials should rule in the public’s name
Educated and wealthy men should hold public office
The country should be industrial and have many large cities
The Democratic-Republican Party
The Democratic-Republicans (aka Republicans) were led by Thomas Jefferson and James Madison
Democratic-Republicans believed in a strict interpretation of the Constitution
They did not think the Constitution included any implied powers for the federal government
Democratic-Republicans also believed:
A smaller central government was better than a large one
Ordinary people should participate in government
The country should be mostly rural and agrarian
Washington’s Farewell Address
George Washington chose to serve two terms (eight years) in office
This set a precedent for future presidents, none of whom served more than two terms until Franklin Roosevelt. He served from 1932 until he died in 1945
The 22nd Amendment, which limits presidents to two terms in office, was ratified in 1951
During his farewell address, Washington cautioned the nation to “steer clear of permanent alliances”
He meant that the United States should take a position of neutrality in foreign affairs
Washington also warned Americans about political parties
He thought they would divide Americans
Examiner Tips and Tricks
The political parties that developed in the late 1780s are not the same ones we have today. Instead of trying to equate the Federalists with modern Democrats or Republicans, look to geography to understand political views in the post-Revolution era.
Federalists embodied the ideals of the pre-Civil War North. They embraced industrialism and urbanization, as well as the government infrastructure and oversight that made both successful. Democratic-Republicans were mostly Southerners. They valued farming and independent, rural lifestyles that did not necessitate much government intervention. These two parties were not just about political beliefs; they were also about people’s preferred way of life.
Worked Example
Multiple Choice
Why did Southern leaders oppose Alexander Hamilton’s plan for paying off states’ debts?
A. Many Southern states had little to no debt that needed repayment.
B. Congress did not have the enumerated right to create a national bank.
C. They thought it would give the states too much power over the federal government.
D. The states had already proven that they could not be forced to repay the national government.
Answer:
A, Many Southern states had little to no debt that needed repayment. Southern leaders thought it was unfair that Northern states had large amounts of debt suddenly erased while Southern states either had very little or had already spent money to pay it off. They wanted to benefit from the federal government’s funds, too.
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