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first national parties in American history. The Federalists, led by Hamilton and Washington, took
shape first. In general, Federalists believed in order and hierarchy and supported a loose
construction of the Constitution (in order to allow the federal government to actively encourage
commerce and manufacturing). Eventually the Republican Party, organized by Madison and
stimulated the creation of rival parties. In 1796, Washington announced that he would not seek
another term. In the first contested presidential election in American history, John Adams, the
Federalist candidate, defeated Jefferson, who in an odd turn of events was elected vice president.
The Presidency of John Adams
Differences over America’s role in European affairs continued during the administration of
Federalist John Adams. The major events of these years—the XYZ Affair, an unofficial naval
war with France, the Federalist-sponsored Alien and Sedition Acts, and the Republican response
Adams (although the House had to break the tie between him and his vice-presidential running
mate, Aaron Burr). Despite the threat of violent tumult and even civil war, power passed
peacefully from one administration and party to another. Under Washington’s firm leadership,
the Federalists had made the Constitution a workable instrument of government and established
economic policies and principles of foreign affairs (particularly of neutrality) that even
The Political Culture of the Early Republic
Today many see political polarization, but it is far from the poisonous political atmosphere of the
early republic as the two-party system emerged. The political culture of those times was marked
by verbal and, at times, physical violence. Oddly the deepening divisions among national leaders
also encouraged ordinary Americans to take an interest in politics. Political festivals allowed