The early years of the United States were critical in establishing precedents, institutions, and policies that would shape the nation's future. Under the leadership of the first two presidents, George Washington and John Adams, the young republic faced significant challenges both domestically and internationally.
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.
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
🎥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
- High tariffs on imported goods to protect American industries and generate revenue
- Creation of a national bank to handle government funds and establish a stable currency
Congress accepted the debt assumption proposal but initially rejected the other parts of Hamilton's plan. Eventually, the First Bank of the United States was chartered in 1791 after a compromise with Jefferson and Madison, who agreed to support the bank in exchange for placing the nation's capital in the South.
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
- Anti-Federalists (increasingly known as Democratic-Republicans or 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
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 Alien Act extended the residency requirement for citizenship from 5 to 14 years and 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 crucial 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
Frequently Asked Questions
What is the new republic and when was it formed?
The “new republic” means the United States after independence—a nation trying to turn republican ideas into working government. You can mark two key moments: 1776 (the Declaration of Independence) begins the break from Britain, but the new republic’s constitutional government was formed when the Constitution was ratified and went into effect in 1789 (George Washington’s first presidency). During the 1780s–1790s leaders (Washington, Adams, Hamilton, Jefferson) built institutions and precedents—Bank of the United States, Proclamation of Neutrality, Whiskey Rebellion responses—and the 1790s saw the Federalist vs. Democratic-Republican split described in the CED (KC-3.2.III.A/B). For Topic 3.10 review, see the Fiveable study guide (https://library.fiveable.me/ap-us-history/unit-3/shaping-new-republic/study-guide/jDcJK92nIldkFTb5QJpZ). Want practice? Try AP U.S. History problems at (https://library.fiveable.me/practice/ap-us-history).
What happened during George Washington's presidency that was so important?
During Washington’s presidency (1789–1797) the new federal government was actually built in practice—he and his team created key institutions and precedents the AP CED highlights. Hamilton set economic policy: the Bank of the United States, assumption of state debts, and a federal tax system (including the whiskey tax) that reinforced national fiscal power. Washington’s enforcement of the Whiskey Rebellion showed the government could enforce law. Foreign policy choices—Proclamation of Neutrality, Jay Treaty, Pinckney’s Treaty—defined neutrality and diplomacy, while the Farewell Address warned against permanent foreign alliances and political factions. Those controversies helped produce the first parties (Federalists vs. Democratic-Republicans). These developments matter on AP prompts because they show how ideas in the Constitution were put into practice and how conflicts over economy and foreign policy intensified political competition. For a focused review, see the Topic 3.10 study guide (https://library.fiveable.me/ap-us-history/unit-3/shaping-new-republic/study-guide/jDcJK92nIldkFTb5QJpZ) and practice questions (https://library.fiveable.me/practice/ap-us-history).
Why did political parties form if Washington warned against them?
Washington warned against “factions” in his Farewell Address, but parties formed because leaders had deep, practical disagreements about how the new republic should work. In the 1790s Alexander Hamilton favored a strong national government, a Bank of the United States, and closer economic ties with Britain; Jefferson and Madison wanted limited federal power, stronger states’ rights, and support for the French Revolution. Those conflicts over economic policy, constitutional interpretation (loose vs. strict construction), and foreign policy (Neutrality, Jay Treaty, France vs. Britain) pushed politicians and voters into organized coalitions—the Federalists and the Democratic-Republicans. Parties helped structure debate, mobilize voters, and build institutions (Congress, the presidency) that put the Constitution into practice (KC-3.2.III.A/B). For AP study, focus on these causes and key examples (Bank, Jay Treaty, Whiskey Rebellion) for short answers and essays (see Topic 3.10 study guide: https://library.fiveable.me/ap-us-history/unit-3/shaping-new-republic/study-guide/jDcJK92nIldkFTb5QJpZ). For more practice, try the 1,000+ AP questions at (https://library.fiveable.me/practice/ap-us-history).
How did the French Revolution affect America and why should I care?
The French Revolution mattered to the U.S. because it forced the new republic to pick foreign-policy and political sides—and those choices shaped parties and precedents you’ll be tested on. War between France and Britain (KC-3.3.II.B) pressured Washington to issue the Proclamation of Neutrality (and later his Farewell Address warning against permanent alliances), while disputes over free trade, the Jay Treaty, and the XYZ Affair split leaders into Federalists (Hamilton) who favored order and closer Britain ties and Democratic-Republicans (Jefferson/Madison) who sympathized with revolutionary France (KC-3.2.III.B). Those fights produced crises like the Alien and Sedition Acts and shaped early institutions (KC-3.2.III.A). Why care? You’ll need these links for multiple-choice and FRQ/LEQ/DBQ prompts about foreign policy, party formation, and the balance of liberty vs. order. Review Topic 3.10 on Fiveable for a focused study guide (https://library.fiveable.me/ap-us-history/unit-3/shaping-new-republic/study-guide/jDcJK92nIldkFTb5QJpZ) and practice questions (https://library.fiveable.me/practice/ap-us-history).
What's the difference between Federalists and Democratic-Republicans?
Federalists (Hamilton, Adams) vs. Democratic-Republicans (Jefferson, Madison): - Federalists: wanted a strong national government, a commercial/industrial economy, a national bank (Bank of the United States), and loose/elastic interpretation of the Constitution. Favored good relations with Britain, supported measures to strengthen order (e.g., Alien and Sedition Acts, response to Whiskey Rebellion) and policies promoting credit and manufacturing. - Democratic-Republicans: wanted limited federal power, stronger state rights, an agrarian republic, strict construction of the Constitution, and sympathy for revolutionary France. They opposed the national bank and many Federalist economic policies and pushed back on what they saw as threats to liberty and states’ authority. These party differences shaped early U.S. diplomacy, economic policy, and precedents under Washington and Adams (Topic 3.10). For a focused review, see the Topic 3.10 study guide (https://library.fiveable.me/ap-us-history/unit-3/shaping-new-republic/study-guide/jDcJK92nIldkFTb5QJpZ) and try practice questions (https://library.fiveable.me/practice/ap-us-history).
Can someone explain Hamilton vs Jefferson conflict in simple terms?
Hamilton and Jefferson disagreed about how to build the new nation. Hamilton (Federalist) wanted a strong national government, a commercial economy powered by banks and industry, and close ties with Britain. He backed the Bank of the United States, federal assumption of state debts, and policies to encourage business (think: Whiskey Rebellion response showing federal power). Jefferson (Democratic-Republican) favored limited federal power, stronger state and local control, an agrarian society of independent farmers, and sympathy for revolutionary France. He opposed the national bank as unconstitutional and worried federal economic power would concentrate wealth. Their fights shaped early party politics, debates over the Constitution’s implied powers, and U.S. foreign policy in the 1790s (Proclamation of Neutrality, Jay Treaty). For APUSH, link these disagreements to Topic 3.10 (formation of Federalists vs Democratic-Republicans) and use the Fiveable study guide for this topic (https://library.fiveable.me/ap-us-history/unit-3/shaping-new-republic/study-guide/jDcJK92nIldkFTb5QJpZ). Practice questions there can help you spot exam-style prompts (https://library.fiveable.me/practice/ap-us-history).
I'm confused about why Britain and Spain were still problems after we won independence?
Even after independence, Britain and Spain stayed problems because U.S. power was limited and borders were unsettled. Britain kept frontier forts and restricted U.S. trade with the Caribbean and West Indies, seized ships during European wars, and supported some American Indian resistance—issues the Washington administration tried to fix with Jay’s Treaty (which eased Anglo-American tensions but angered Republicans). Spain controlled Florida and much of the Mississippi River’s mouth, blocking western settlers’ access to New Orleans and supporting Indian claims; Pinckney’s Treaty (1795) finally guaranteed U.S. navigation rights and eased that conflict. These disputes tied into bigger CED themes: free navigation, westward migration, Indian treaty problems, and early diplomatic precedents under Washington and Adams. For AP prep, know Jay Treaty, Pinckney’s Treaty, Treaty of Greenville, and how foreign pressures helped create party divides (Federalists vs. Democratic-Republicans). Review Topic 3.10 on Fiveable (study guide: https://library.fiveable.me/ap-us-history/unit-3/shaping-new-republic/study-guide/jDcJK92nIldkFTb5QJpZ) and practice questions (https://library.fiveable.me/practice/ap-us-history).
What were Washington's precedents and why do they matter for the DBQ?
Washington set several key precedents: creating a presidential cabinet, asserting federal authority (Whiskey Rebellion), establishing neutrality in foreign wars (1793 Proclamation of Neutrality), supporting a strong fiscal policy through Hamilton’s programs (Bank, debt assumption), and stepping down after two terms (Farewell Address warning against factions and permanent alliances). For the DBQ, these matter two ways: context and evidence. Use Washington’s precedents in your contextualization to show how 1789–1800 leaders turned Constitutional ideas into practice (KC-3.2.III.A, KC-3.3.II.B/C). As outside evidence, cite the Whiskey Rebellion or the Farewell Address to support claims about federal power, party formation, or foreign policy choices. When sourcing documents, compare their POVs to Washington’s actions (e.g., Federalist vs. Republican reactions). That helps you meet DBQ tasks: contextualization, use of outside evidence, and sourcing for at least two documents. For quick review, see the Topic 3.10 study guide (https://library.fiveable.me/ap-us-history/unit-3/shaping-new-republic/study-guide/jDcJK92nIldkFTb5QJpZ) and grab practice DBQs at (https://library.fiveable.me/practice/ap-us-history).
How did American settlers moving west cause conflicts with other countries?
As settlers pushed past the Appalachians they bumped into other countries’ interests, creating diplomatic crises. British forts and trade ties with Native tribes remained in the Old Northwest, so U.S. expansion led to tensions that the Jay Treaty and the Treaty of Greenville tried to manage (CED KC-3.3.II.A; KC-3.3.I.D). In the South and West, Spanish control of Florida, Louisiana, and the Mississippi’s mouth blocked U.S. farmers’ access to markets, so Washington negotiated Pinckney’s Treaty to secure navigation rights. Expansion also provoked international competition: foreign powers (especially Britain and Spain) continued to claim influence on the continent, and unsettled land claims raised treaty disputes with American Indian nations. These conflicts show why early U.S. diplomacy focused on territory, trade, and balancing relations with European powers—stuff you should connect to the AP exam’s emphasis on foreign policy precedents (e.g., Farewell Address, Proclamation of Neutrality). For a focused review see the Topic 3.10 study guide (https://library.fiveable.me/ap-us-history/unit-3/shaping-new-republic/study-guide/jDcJK92nIldkFTb5QJpZ) and practice questions (https://library.fiveable.me/practice/ap-us-history).
Why couldn't the US government handle Native American treaties properly?
Short answer: The federal government couldn’t handle Native American treaties properly because its relationship with tribes was legally and practically ambiguous. The Constitution didn’t clearly define tribal sovereignty, so treaties signed under the Confederation or early republic (like the Treaty of Greenville) competed with state laws and settlers’ land grabs. Federal weakness (limited troops, money) and local/state pressure to open land meant treaties were often under-enforced or ignored. Foreign powers (British, Spanish) and rival Native nations added diplomatic complexity (KC-3.3.II.A, KC-3.3.I.D). Finally, rapid westward migration and violent frontier conflicts made negotiated boundaries unstable—settlers moved in faster than the government could protect treaty terms. For a quick review of these causes, see the Topic 3.10 study guide (https://library.fiveable.me/ap-us-history/unit-3/shaping-new-republic/study-guide/jDcJK92nIldkFTb5QJpZ) and practice questions (https://library.fiveable.me/practice/ap-us-history).
What were the consequences of political parties forming in the 1790s?
When parties formed in the 1790s the consequences were big and durable. They turned loose-floating disagreements into organized competition: Federalists (Hamilton) favored a strong national government, Bank of the United States, and pro-British trade policies (e.g., Jay Treaty); Democratic-Republicans (Jefferson/Madison) pushed states’ rights, agrarianism, and pro-French sympathy (Proclamation of Neutrality and the XYZ Affair intensified these splits). Parties created a partisan press, sharper regional and class divides, and new means of mobilizing voters—which showed up in the elections of 1796 and 1800. They also produced real policy effects and crises: the Whiskey Rebellion tested federal power, and the Alien and Sedition Acts revealed how parties could use government to limit opposition. For the AP exam, this topic ties to causation and continuity/change (LEQ/SAQ prompts) and to how early institutions and precedents were set. Review the Topic 3.10 study guide for targeted notes (https://library.fiveable.me/ap-us-history/unit-3/shaping-new-republic/study-guide/jDcJK92nIldkFTb5QJpZ) and try practice problems (https://library.fiveable.me/practice/ap-us-history).
How do I write an SAQ about Washington's foreign policy challenges?
For an SAQ about Washington’s foreign-policy challenges, do this in ~3–5 sentences per part: 1) Directly answer the prompt (thesis): e.g., “Washington faced British impressment and frontier British/Spanish presence while the French Revolution forced a neutrality choice that split domestic politics.” 2) Support with 2–3 specific pieces of evidence from the CED: Proclamation of Neutrality (1793), Jay Treaty (1794) to ease British tensions, Pinckney’s Treaty (1795) with Spain for Mississippi navigation, and Washington’s Farewell Address warning against permanent alliances. 3) Explain briefly how the evidence connects to the claim: show cause/effect (neutrality preserved trade but fueled partisan divisions—Federalists/Hamilton vs. Jeffersonian Republicans). Mention the broader context: westward migration and competing European interests intensified conflicts (KC-3.3.II.A/B; KC-3.2.III.A/B). For phrasing and practice, use the Topic 3.10 study guide (https://library.fiveable.me/ap-us-history/unit-3/shaping-new-republic/study-guide/jDcJK92nIldkFTb5QJpZ) and drill SAQs at (https://library.fiveable.me/practice/ap-us-history).
Was the new republic actually successful at solving problems or did it just create more?
Short answer: both. The new republic solved some urgent problems but created new ones. Successes: the Constitution and Washington’s precedents created workable national institutions (executive departments, a federal judiciary, the Bank of the United States) that stabilized finances and gave the federal government authority to act (Hamilton’s fiscal plan, suppression of the Whiskey Rebellion). Diplomatically the Jay and Pinckney treaties helped keep peace and secured navigation/commerce. Westward settlement continued under treaties like Greenville (see Topic 3.10 study guide) (https://library.fiveable.me/ap-us-history/unit-3/shaping-new-republic/study-guide/jDcJK92nIldkFTb5QJpZ). Problems created: intense partisan conflict (Federalists v. Democratic-Republicans), crises over neutrality in the French Revolution, controversial measures like the Alien and Sedition Acts that raised questions about free speech and federal power, and ambiguous federal–Native American relations that led to dispossession. Those tensions shaped LEQ/DBQ arguments you’ll see on the exam. If you want a focused review for essays and practice questions, check the unit study guide (above) and Fiveable’s practice problems (https://library.fiveable.me/practice/ap-us-history).
What caused all the disagreements between Hamilton and Jefferson over economic policy?
Hamilton and Jefferson clashed because they had fundamentally different visions for the new nation’s economy and the role of the federal government. Hamilton (Federalist) wanted a strong national government that could stabilize finances—assume state debts, create a Bank of the United States, support tariffs and subsidies to build manufacturing, and back close commercial ties with Britain. Jefferson (Democratic-Republican) favored an agrarian republic of independent farmers, strict construction of the Constitution (no federal power unless explicitly granted), low taxes, and closer sympathy with revolutionary France. Those policy choices reflected deeper disagreements about how to balance liberty and order, who should hold political power (commercial elites vs. yeoman farmers), and how foreign ties shaped policy. On the AP exam, expect this under Topic 3.10/party development (Bank, Whiskey Rebellion, Jay Treaty). Review the Topic 3.10 study guide (https://library.fiveable.me/ap-us-history/unit-3/shaping-new-republic/study-guide/jDcJK92nIldkFTb5QJpZ) and practice questions (https://library.fiveable.me/practice/ap-us-history).
I don't understand how the French Revolution connected to American politics - can someone explain?
The French Revolution mattered to U.S. politics because it forced Americans to pick sides and turned foreign events into domestic arguments. When France and Britain went to war, Washington’s Proclamation of Neutrality (1793) and Hamilton’s pro-British economic views opposed Jefferson and the Democratic-Republicans’ pro-French sympathies. That split helped create the Federalist and Democratic-Republican parties and shaped debates over trade, the Bank of the United States, and how strong the national government should be (KC-3.2.III.B). Crises like the XYZ Affair under John Adams led to the Alien and Sedition Acts and intense arguments about liberty vs. order. Washington’s Farewell warning against permanent alliances reflects how risky foreign entanglements looked (KC-3.3.II.C). For AP prep, practice explaining these cause-and-effect links in short answers and DBQs—see the Topic 3.10 study guide (https://library.fiveable.me/ap-us-history/unit-3/shaping-new-republic/study-guide/jDcJK92nIldkFTb5QJpZ) and try practice questions (https://library.fiveable.me/practice/ap-us-history).