The Federalist party, in U.S. history, is a name that was originally applied
to the advocates of ratification of the Constitution of the United States of 1787. Later, however, it came to designate supporters of the presidential administrations of George Washington and John Adams and especially supporters of the fiscal policies of Treasury Secretary Alexander Hamilton.
Until 1795 the Federalists were not a political organization in any modern
sense. Rather, Federalism was a frame of mind, a set of attitudes that
included belief in a strong and activist central government, public credit,
the promotion of commerce and industry, and strict neutrality in the
French Revolutionary Wars--all of which were generally reflected in
government policy. Opposition arose on all these points, however, and
became increasingly organized around James Madison and Thomas
Jefferson. Federalists began to adopt the tactics of the opposition
Democratic-Republicans in response to attacks on Jay's Treaty with
Britain (1794), which Federalists believed preserved neutrality and
Democratic-Republicans charged was anti-French. Although parties were
widely regarded as inimical to free government, and although Washington,
Hamilton, and Adams deplored their rise (together with the tendency
toward a North versus South and pro-British versus pro-French
polarization of political opinion), parties were an established fact by the
presidential election of 1796.
During Adams's presidency the Federalists attempted to stifle dissent by
the Alien and Sedition Act (1798). These, however, had the effect of
stiffening the opposition at the time when the Federalists themselves were
splitting into "High" and "Low" wings over the issue of the XYZ Affair
and the ensuing Quasi-War with France. By the election of 1800,
therefore, the Democratic-Republicans gained control of the federal
government. The death of Washington in 1799 and of Hamilton in 1804
left the Federalists without a powerful leader, and they proved inept at the
highly organized popular politics of the Democratic-Republicans.
Although the party continued to have strength in New England, expressing
the opposition of commercial interests to the Embargo Act of 1807 and
the War of 1812 , it never made a comeback on the national level. After
the Hartford Convention of 1815, the Federalists were a dying
anachronism.