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Jefferson's opinion of good judges was much higher than of his predecessor's. One of his arguments for a Bill of Rights would be the power they would give the judiciary. At his urging, Congress repealed the Judiciary Act of 1801, abolishing the numerous district courts created at the end of the Adams presidency. The battle to abolish the Judiciary Act was not an easy one. Federalists argued that once the courts were created and judges were appointed, the Constitution directs that they serve for life unless impeached for "high crimes and misdemeanors". The Republican leadership, prompted by Jefferson chose to attack them based on the cost to the nation. Since many of the courts were created to pack the judiciary with lifetime Federalist judges, there were many circumstances in which there was no need for a court at all. The Republicans argued that the unwarranted nature of the courts combined with their excessive cost justified repeal for the Judiciary Act. Despite the fact that this argument required a "loose" interpretation of the Constitution, which Jefferson rallied against when he fought the creation of Hamilton's First Bank of the United States, the Congress was successful in reversing the law.

This also left numerous Federalist "midnight judges" without positions. Since the creation of these "midnight judge" positions was done to protect the courts from Republican appointees, Jefferson felt justified in not awarding the commissions creating the new federal judges. One commission that he was unable to prevent was the appointment of former Secretary of State John Marshall to the position of Chief Justice of the United States Supreme Court. Although Marshall was a cousin of Jefferson, he was a strong Federalist in the tradition of John Adams. Marshall's influence on the Court would help to firmly entrench the supremacy of the federal government. One of the first cases Marshall was asked to decide was that of William Marbury, one of the "midnight judges" who was requesting that the Court issue a "writ of mandamus" to Secretary of State James Madison ordering the delivery of the judicial commissions. The resulting case, Marbury v. Madison, set the landmark precedent of judicial review for the Supreme Court. Not content with simply overturning the Judiciary Act of 1801 and removing the "midnight judges," the Republican next planned to impeach existing federal judges to remove them from office. The first case was John Pickering, a Federalist judge who exhibited signs of insanity and public drunkenness. At Jefferson's instigation, the House of Representatives impeached Pickering in 1804 and the Senate removed him from the bench later that year. Jefferson next set his sights on the Supreme Court. Reading that Federalist Justice Samuel Chase told a grand jury that the Republicans threatened "peace and order, freedom and property", Jefferson urged Congressional leaders to begin impeachment hearings. Many Republicans felt that this accusation of sedition was too reminiscent of the Federalist Sedition Act that had been repealed early in Jefferson's presidency. Unwilling to remove a Supreme Court justice on purely political accusations, the Senate acquitted Chase of all charges in 1804. The case of Samuel Chase has been the only impeachment trial of a Supreme Court justice in United States history. By rebelling against Jefferson's wishes, the Senators of his own party sent a message that the independence of the judiciary was not open to political manipulation.

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