Discover what defined the Federalist Party and who its leader was. Explore facts about the members of the Federalist Party, what it was, and what happened to it.
Updated: 11/21/2023
Federalist Party | Definition, History & Leaders
Table of Contents
- Federalist Party Definition
- Members of the Federalist Party
- Key Moments for the Federalist Party
- What Happened to the Federalist Party
- Lesson Summary
Frequently Asked Questions
What did the Federalist Party believe in?
Members of the Federalist Party supported the Constitution, a strong federal government, especially a powerful Executive Branch, and national taxes.
What was the main political goal of the Federalist Party?
The main political goal of the Federalist Party was to establish a central bank to provide financial support to the new nation.
Who founded the Federalist party?
Alexander Hamilton is recognized as the founder of the Federalist Party. Hamilton co-authored the Federalist Papers in 1787 and formally established the party in 1795.
Table of Contents
- Federalist Party Definition
- Members of the Federalist Party
- Key Moments for the Federalist Party
- What Happened to the Federalist Party
- Lesson Summary
The key message of the Federalist Party at its founding was support for a strong federal government and the United States Constitution. In 1787, Alexander Hamilton led James Madison and John Jay in writing the Federalist Papers, a series of essays that argued for a powerful centralized government to support and manage the newly formed states. Hamilton, Madison, and Jay hoped a strong central government would create a lasting union between the states while preventing future conflicts between them. As the first political party of the fledgling United States, Federalists believed it was vital to support a central bank, national taxes, and a strong Executive Branch.
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The Federalist Papers laid the foundation for the Federalist Party and established Hamilton, Madison, and Jay as the party's leaders. Founding Father John Adams and Chief Justice John Marshall were also integral members of the party after it was officially organized in 1795. Below are brief profiles of the best known members of the Federalist Party.
- At just 30, Alexander Hamilton embarked on his journey as the de facto leader of the Federalist Party when he wrote the majority of the Federalist Papers. Although he did not contribute to writing the Constitution, Hamilton was vital in convincing states to ratify it. Additionally, Hamilton's advocacy for a central bank became arguably the most important accomplishment for the party.
Alexander Hamilton
- James Madison is remembered as the Father of the Constitution and a forceful advocate for a strong federal government as such. However, Madison disagreed with Hamilton's idea of a central bank; Madison did not believe the federal government had the authority to establish one under the Constitution. This disagreement ultimately led Madison to break with the Federalists and join Thomas Jefferson's Republican Party.
James Madison
- John Jay, although a lesser-known Founding Father, was one of the first to seek a stronger central government following the unsuccessful Articles of Confederation. A strong advocate for the new Constitution, Jay later presided over the Continental Congress and served as the nation's first chief justice of the Supreme Court.
John Jay
- The second president of the United States, John Adams, is remembered as the only president elected from the Federalist Party. Adams served a single term, which was characterized by an emphasis on federal authority over individual or states' rights. The most historically significant accomplishment of Adams's tenure was his signing the Sedition Act of 1798 into law, which allowed the federal government to charge, fine, or deport any individual who slandered the federal government. The controversy surrounding this legislation proved to be the death knell of the Federalist Party in the Executive Branch.
John Adams
- Chief Justice John Marshall is remembered historically as a moderate Federalist, but he was heavily favored by then-president John Adams. Adams appointed Marshall as Secretary of State in 1800, then Marshall became chief justice of the Supreme Court just a year later. As chief justice, Marshall strengthened the Judicial Branch and better defined the role of the Executive Branch. In the landmark case McCulloch v. Maryland, Marshall also established the legitimacy of the National Bank.
John Marshall
Who Was the Leader of the Federalist Party?
Alexander Hamilton is remembered as the leader of the Federalist Party. Hamilton was instrumental in the creation of the Federalist Papers, which established the party's platform. Although he was killed in a duel in 1804, Hamilton's work toward a strong central bank likely saved the federal government from bankruptcy in its infancy.
Despite his contributions to the Federalist Papers, Madison's break with the party itself means he is not often associated with being a party leader. Jay, the first chief justice of the Supreme Court of the United States, is most often remembered as leading the party alongside Hamilton. Adams, the only Federalist president ever elected, is often regarded as a party leader; his Sedition Act of 1798 is emblematic of the government excess many believe characterized the Federalist platform.
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James Madison, concerned with the weak Articles of Confederation, advocated for a stronger governing document. In 1787, when Madison teamed up with Hamilton and Jay to write the Federalist Papers, he unknowingly helped found the first American political party. Madison first successfully advocated for ratifying the Constitution, then helped add the Bill of Rights two years later. However, by the early 1790s, Madison had formally split with the Federalists to help co-found the Jeffersonian-Republican Party. Despite this high-profile departure, the Federalist Party was formally organized in 1795 and John Adams was elected as a Federalist in 1796.
Bank of the United States and Jay Treaty
One major factor that led to Madison breaking with the Federalists was the establishment of a central bank. In 1791, the First National Bank was established under President George Washington in order to provide a stable national currency. While Hamilton was able to convince Washington of the need for a central bank, Madison did not believe the Constitution allowed for its establishment. Many Anti-Federalists and, later, Jeffersonian-Republicans feared this consolidation of power.
Another point of contention for the Federalists and Jeffersonian-Republicans was America's relationship with Great Britain. Federalists believed America should repair its relationship with Great Britain, instead of supporting post-revolutionary France. However, Adams broke with more militant Federalists when he refused to declare outright war on France. Tensions between America and Great Britain were coming to a head in 1794 when another war seemed inevitable. Chief Justice John Jay was sent on a diplomatic mission to negotiate terms of peace with Great Britain. Jay negotiated American access to British ports in the Caribbean and established a system of trade between the two nations. The treaty, heralded as a success, became known as the Jay Treaty. However, Jeffersonian-Republicans were deeply disappointed by a renewed friendship between America and Great Britain, especially at the expense of post-revolutionary France who they felt was following in America's footsteps.
Whiskey Rebellion
When Hamilton was Secretary of the Treasury, he proposed several taxes that would provide a constant stream of revenue for the federal government; one such tax was levied against whiskey production. Most Americans of the time did not support any taxes; working-class Americans especially tended to oppose the Federalist agenda of supporting the federal government through taxation. In 1794, opponents of the whiskey tax destroyed the home of a tax collector, at which point the federal government was finally compelled to intervene. Hamilton pressured President Washington to use the military to put down the rebellion, which he eventually did. The Whiskey Rebellion proved the new nation was capable of enforcing its laws. However, Thomas Jefferson and other Republicans of the time felt the Federalists had used force unnecessarily against their own constituents.
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Although the Federalist Party boasted a president elected on its platform, the party was divided when Adams left office in 1801. Moderate Federalists felt Adams's approach to governing was heavy-handed. The Jeffersonian-Republicans came into power with Thomas Jefferson's election as president, then James Madison's. While Madison was president, the War of 1812 began, which was burdensome for the American economy.
In the winter of 1814, Federalists from all over the country gathered for the Hartford Convention in Connecticut, where they discussed opposition to the war and their party's future. A number of recent political developments, including territorial growth, made it more likely that the Jeffersonian-Republicans would retain power for years to come. Hard-line Federalists argued the only option was to secede from the union, however moderate Federalists won out. Delegates to the convention agreed on a list of grievances against the current administration and proposed constitutional amendments.
Although no immediate action was taken as a result of the convention, the moderate approach made way for what is known as the Era of Good Feelings. Jeffersonian-Republican James Monroe won the presidency in 1816, trouncing the Federalists; in 1820, he ran for reelection unopposed. This peaceful election cycle brought an end to tense contests between Federalists and Anti-Federalists and signaled the beginning of a more cooperative era in American politics.
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Alexander Hamilton, James Madison, and John Jay inadvertently created the Federalist party's platform in 1787 when they published the Federalist Papers. Hamilton, Madison, and Jay advocated for a strong federal government that would maintain a common national currency and tax code. The Federalist party was officially organized around the principles of the Federalist Papers in the early 1790s. However, opponents feared Federalist principles would inspire tyrannical rule, similar to what they had experienced under Great Britain's King George III.
Hamilton, the de facto leader of the Federalists, advocated for the creation of a national bank, which the Constitution did not explicitly allow. Madison ultimately broke with Hamilton over his interpretation of implicit powers of the Executive Branch. Madison, Thomas Jefferson, and other so-called Anti-Federalists ultimately organized the first American opposition political party officially known as the Jeffersonian-Republicans. Federalist John Adams won the presidential election in 1796 but would ultimately prove to be the party's undoing. Many Americans felt President Adams had little regard for their personal rights and was instead concerned with expanding governmental powers. Adams lost reelection to Jefferson, whose Republican party would hold the presidency for the next 25 years. After Adams left office in 1801, the Federalists never rose to national power again.
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Video Transcript
Historical Background
The Federalist Party, along with the Democratic-Republican Party, was part of the first two-party system in United States history. The Federalist Party formed during the 1790s as the country's leaders disagreed over key provisions of the Constitution and major foreign policy issues. The party advocated a strong national government at the expense of the states, favored an economy based upon strong banking, commercial, and manufacturing development, and tended to support Britain over France in its foreign policy.
As George Washington prepared to leave office after the end of his second term as president, he wanted to leave the nation with parting words of advice. In 1796, he published his famous Farewell Address where he urged the nation to stay clear from 'combinations or associations,' that tend, 'to become potent engines by which cunning, ambitious, and unprincipled men will be enabled to subvert the power of the people.' Despite Washington's warnings against forming distinct political parties, his administration witnessed the rise of two competing political entities, the Federalist Party and the Democratic-Republican Party.
Key Leaders
The Federalist Party was mainly organized by Alexander Hamilton, who served as Washington's aide during the Revolutionary War and then as the first Secretary of the Treasury in Washington's cabinet.
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As Secretary of the Treasury, Hamilton was given the important responsibility to secure the new nation's financial future. Following the Revolutionary War, the nation was burdened by debt and had no established credit with other nations. In 1790, Hamilton published a series of reports that outlined the steps necessary to relieve the nation's debt and promote economic development. Some of the key provisions of this plan included the establishment of a national bank, the creation of a tariff (tax on imported goods), and the assumption of state debt to add more strength to the national government. Washington supported Hamilton's plans and they were put into action. However, other key government leaders like Thomas Jefferson (Secretary of State) and James Madison (Speaker of the House) felt that Hamilton's plans favored the wealthy classes at the expense of the common people, weakened the states, and put the country on a path that would model the British economic system.
These disagreements led to the formation of defined political parties. In order to secure his plans and vision for the country's development, Hamilton went to great lengths to organize the Federalist Party in opposition to Jefferson and Madison's Democratic-Republicans. Hamilton used his influence in the Treasury Department to make connections with those who shared his vision, especially on economic matters, within the states. Soon, the Federalists had established party bases throughout the country, with their greatest strength in New England.
New England helped elect their own John Adams as the first Federalist President of the United States. Adams served as Washington's first vice president and attempted to continue the policies of the first president.
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While Adams would deny that he had any connections to an organized political party, Federalist members of Congress voted to make him their candidate for president in 1796 and 1800. Adams relied on their support for his candidacy, which helped him defeat Jefferson in 1796. Adams continued to support Hamilton's financial programs and supported a closer relationship with Britain over France, which was important to Federalist foreign policy. However, Adams broke from Hamilton in his insistence on remaining neutral in the war between Britain and France at the time. Hamilton urged Adams to openly support Britain which would further cement the commercial ties between the two nations and weaken the power of the Democratic-Republicans, who tended to support France.
However, Adams agreed with Washington's earlier policy of neutrality and felt that the young country was not ready for war. This neutral stance weakened Adams' support among Federalists. Even though he still received their nomination as the party's presidential candidate in 1800, this weakened relationship between Adams and Hamilton led to Adams' defeat and Jefferson's victory.
Before leaving office, Adams appointed John Marshall as the Chief Justice of the Supreme Court. Marshall was a strong supporter of the Federalist Party and served on the court from 1801 to 1835.
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Adams' appointment of Marshall was the most significant act in continuing Federalist policy. While the Federalist Party would disappear from the political map following the War of 1812, Marshall's long career on the bench insured that Federalist policy would continue long after the party's demise.
Marshall continued to support a stronger national government and a strong economic policy that favored the business and commercial interests in the nation. Key court decisions like McCulloch v. Maryland (1819), where Marshall upheld the constitutionality of the Bank of the United States and defeated Maryland's attempt to destroy the bank through taxation, and Cohens v. Virginia (1821), where Marshall asserted that the Supreme Court had the right to review state supreme court decisions, advancing national power over the states.
Other key decisions like Gibbons v. Ogden (1824), where Marshal ruled that New York State could not monopolize an interstate waterway and impede business transactions, and Dartmouth College v. Woodward (1818), where Marshall upheld that contracts had to be fulfilled, helped further commercial and business development within the nation.
Membership Base
The decisions of the Supreme Court furthered Federalist ideals, which promoted the commercial and business interests of the nation. As such, the party had great support among merchants and businessmen in urban areas. These individuals favored a strong national government that would facilitate the transaction of business and support the commercial development of the nation.
Part of Hamilton's original financial plans presented to Congress and adopted in 1790 created new bonds sold by the treasury department to finance the country's debt. The trading of these bonds led to the formation of the New York Stock Exchange on Wall Street. Therefore, speculators and investors also flocked to the Federalist Party. Finally, manufacturing was starting to become a major part of the United States economy during the early 1800s. Industrialists who sought economic support from banks and investors to begin a manufacturing endeavor also found a home in the Federalist Party.
Decline & Legacy
The Federalist Party began to lose strength with the onset of the War of 1812, which pitted the country against Britain. The Federalist stronghold of New England openly protested against the war by continuing to trade with Britain through Canada and failing to send the required soldiers requested by Congress. Furthermore, important Federalists met in Hartford, Connecticut toward the end of the war to formally complain about the war's damaging effect on the New England economy. This meeting, called the Hartford Convention, drafted a series of proposals which limited the power of the President and Congress during war. The war ended before these proposals were formally presented. However, the details of the proposals were leaked in the press, which painted the Federalists as unpatriotic among a population that was rejoicing over the end of the war. Although the Federalist Party eventually ceased to exist, Federalist economic ideals would prevail with the Whig Party in the 1830s and the modern Republican Party, which began in the 1850s.
Lesson Summary
The Federalist Party formed during the 1790s as the country's leaders disagreed over key provisions of the Constitution and foreign policy issues. The party advocated a strong national government at the expense of the states, favored an economy based upon strong banking, commercial, and manufacturing development, and tended to support Britain over France in its foreign policy. As such, bonds traders, speculators and investors, and industrialists all found a home in the Federalist Party.
The Federal Party was mainly organized by Alexander Hamilton, who served as Washington's aide during the Revolutionary War and then as the first Secretary of the Treasury in Washington's Cabinet. In 1790, Hamilton published a series of reports that outlined the steps necessary to relieve the nation's debt and promote economic development. Some of the key provisions of this plan included the establishment of a national bank, the creation of a tariff (tax on imported goods), and the assumption of state debt to add more strength to the national government. In order to secure his plans for the country's development, Hamilton went to great lengths to organize the Federalist Party in opposition to Jefferson and Madison's Democratic-Republicans.
As a result, New England helped elect their own John Adams as the first Federalist president of the United States. Adams had served as Washington's first vice president and continued to support Hamilton's financial programs and a closer relationship with Britain. Before leaving office, Adams appointed John Marshall, a strong supporter of the Federalist Party, as the Chief Justice of the Supreme Court who served on the court from 1801 to 1835. Adams' appointment of Marshall was the most significant act in continuing Federalist policy. Marshall's long career on the bench ensured that Federalist policy would continue long after the party's demise. The decisions of the Supreme Court furthered Federalist ideals, which promoted the commercial and business interests of the nation.
The Federalist Party began to lose strength with the onset of the War of 1812. New England Federalists openly protested against the war and eventually got together to formally complain about the war's damaging effect on the economy. This meeting, called the Hartford Convention, drafted a series of proposals which limited the power of the president and Congress during war. The details of the proposals were leaked in the press, which painted the Federalists as unpatriotic among a population that was rejoicing over the war's end. Although the Federalist Party eventually ceased to exist, Federalist economic ideals would prevail with the Whig Party in the 1830s and the modern Republican Party, which began in the 1850s.
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Federalist Party | Definition, History & Leaders
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