Early efforts to commercialize waterways materialized in 1790. One of the earliest commercial canals built in either Virginia or in the United States as a whole was the James River Canal. It was constructed by the James River Company, and, although it was only seven miles in length, it connected Richmond with Westham and was parallel to the James River. This marked the beginning of the canal-building era in the United States.
An event which affected the United States and the State of Virginia occurred in 1792 when Kentucky was admitted into the Union as the fifteenth state (Vermont had entered as the fourteenth one in 1791). This action deprived the State of Virginia of approximately 75,000 inhabitants, of 40,395 square miles of territory and of nine counties. Kentucky was originally part of Fincastle County, Virginia and later had gained status as an independent county in Virginia, called Kentucky County. Virginia gave the necessary consent for the independence of Kentucky, required before statehood could be granted. The boundaries of the State of Virginia thereafter remained fixed from 1792 until 1861 when West Virginia became a separate state.
Washington, during his Presidency, showed his ability to lead in civilian affairs as well as in military affairs. His diplomatic ability predominated in the torn loyalty toward England and toward France when these nations fought each other in 1793: he issued the Neutrality Proclamation whereby the United States would take neither side in this conflict. Throughout his two terms, he created precedents and made decisions of lasting value for the United States. Such a precedent was his refusal to run for a third time as President of the United States, a precedent which was not broken until 1940 when Franklin D. Roosevelt accepted the nomination for the Presidency.
While Washington was President, the population of Virginia continued to grow. Six new counties were created during this period: Wythe (formed from Montgomery County with later additions from Montgomery and Grayson Counties and named in honor of George Wythe, a Virginia signer of the Declaration of Independence, a famous lawyer and the first Professor of Law in the United States), Mathews (formed from Gloucester County and named for Major Thomas Mathews of the Revolutionary War), Bath (formed from Augusta, Botetourt and Greenbrier Counties and named because of the medicinal springs located in the area), Grayson (formed from Wythe County and, later, additions from Patrick County and named for Colonel William Grayson, a United States Senator from Virginia), Lee (formed from Russell County and, later, additions from Scott County and named for General Henry Lee, Governor of Virginia, as well as an outstanding military leader), and Madison (formed from Culpeper County and named for James Madison, a state legislator and member of the United States House of Representatives during this period).
After John Adams had been elected to the Presidency in 1796, the Democratic-Republican Party began to use the typical political method of attacking the party in power, namely the Federalists, through newspaper articles and through written pamphlets. Since many of the foreigners who had come to America at this time were Democratic-Republican in their political beliefs, numerous articles criticizing President John Adams and his administration were written by them. In order to combat these political attacks, the Federalist leaders were responsible for getting two most unusual laws passed: the Alien and Sedition Laws. The Alien Act provided that the residence time required of foreigners for naturalization (the process whereby a foreigner becomes a citizen) was to be fourteen years instead of five years and that the President was henceforth authorized to imprison or deport without trial foreigners whom he considered dangerous to the peace and safety of the United States or to allow others to remain. The Sedition Act stated that any person convicted of defaming, either by spoken or by written word, the government of the United States or the President of the United States or the Congress of the United States was subject to a fine of not more than $2,000 and to imprisonment for not more than two years.
Several Federalists considered the passage of these laws unjust. Thomas Jefferson, the Vice-President of the United States at the time of their passage, decided to attract the attention of voters to the passage of such laws. He drew up resolutions in 1789 which stated that: (1) the Alien and Sedition Laws were unconstitutional because the President of the United States had no power to imprison or deport any person without a judicial trial and because Congress did not have the right to limit the freedom of speech and of press and (2) since the Union was a compact of states and since the federal government had only the particular powers granted to it by the states, each state had the right to decide the constitutionality of Congressional laws. Because these resolutions were first introduced into the Kentucky legislature, they were later called the Kentucky Resolutions. At the same time, James Madison drew up similar resolutions which were introduced into the Virginia Assembly. The Virginia Resolutions are significant since they explain the theory of "strict construction" (that the federal government has only those powers specifically delegated to it) and they illustrate the strong "states' rights" feeling which existed in the State of Virginia. Virginia and Kentucky were the only two states to openly protest the Alien and Sedition Acts. Many of the northern states denied on this occasion the right of a state to judge a federal law. They affirmed, on the contrary, the belief that only the federal courts can decide the constitutionality of a federal law.
On December 14, 1799, George Washington died at Mount Vernon where he had retired after his Presidency. His military genius and brilliant statesmanship are probably best summarized in the "Funeral Oration upon President Washington" by Henry Lee in his now-famous phrase: "First in War, First in Peace and First in the Hearts of His Countrymen."
In 1800, Virginia was considered first among the sixteen states of the Union (Vermont, Kentucky and Tennessee having been admitted into the Union before 1800) in wealth and in population: 447,800 whites and 359,777 Negroes. The influence of Virginia in the political, economic and social life of the country was a profound one. The majority of residents now consisted of "average" individuals who regarded the democratic ideas of Thomas Jefferson as a basic philosophy for everyday living. The polite courtesy and hospitality of the olden days still remained, but many of the traditional, dignified ceremonies had become outmoded. The descendants of the aristocratic planters of the early nineteenth century were usually people of limited means and limited acreage because the war and its aftermath had decreased much of their wealth. However, the typical Virginian who could afford it still preferred to live in the country, own horses, dogs and fine cattle, enjoy fox hunting and the social gatherings of friends, celebrate traditional activities and understand and cherish the rich heritage which was theirs.
In 1800, Thomas Jefferson, a native of Shadwell, Virginia, was elected third President of the United States. He was the first President to be inaugurated at Washington, D. C. His ideas concerning government were so numerous and thought-provoking that his political philosophy has been termed "Jeffersonian Democracy." He had strong faith in the ability of the common man, believed in government economy and practiced this belief throughout his administration. He exhibited his broadmindedness by allowing many government officials of opposite political party beliefs to retain their same positions after he became President and he was a strong advocate of States' Rights. After Jefferson became President, he appointed John Marshall of Germantown and Richmond as Chief Justice of the Supreme Court of the United States. Marshall had been a member of the state legislature, an outstanding lawyer, a Congressman and had served as Secretary of State under President John Adams. John Marshall remained Chief Justice for thirty-four years and holds the record for length of service on the Supreme Court of the United States. He was personally responsible for creating a strong foundation for the Supreme Court. Although he was the second Chief Justice of the Supreme Court, it was during his judgeship that for the first time, a Congressional law was declared unconstitutional in the case of Marbury versus Madison. This decision greatly strengthened the theory of judicial review of national legislation. It is interesting to note that John Marshall was as strong a Federalist as his cousin, Thomas Jefferson, was a strong "States' Rights" man.