The Federalist Party's defeat in the 1800 presidential election marked the beginning of the party's decline. America's first president, George Washington (1732–1799; served 1789–97), and second president, John Adams (1735–1826; served 1797–1801), both thought like Federalists. Alexander Hamilton (1755–1804), leader of the Federalists, was Washington's treasury secretary, and President Adams ran for reelection in 1800 under the Federalist Party's banner. Federalists favored a strong national government, promoted industry and manufacturing over agricultural interests, favored taxes to support the national government, and created the nation's first national bank. Most Federalists lived in the Northeast around urban areas and were the best-educated and wealthiest Americans.

Although the Federalists had played the key role in shaping the U.S. government over the previous twelve years, Americans in 1800 were ready for a change. The Democratic-Republicans, led by Thomas Jefferson (1743–1826), gained widespread popularity. Jefferson won the presidential election of 1800 and brought the Democratic-Republicans into power for...