I agree with you. In fact, I would make the case that this nation as envisioned in the U.S. Constitution pretty much came to an end with the events that culminated with the Whiskey Rebellion in the early 1790s. It's pretty weird when you think about it -- this novel idea called "the United States of America" really only lasted about five years.
That's one way of looking at it, if you agree with Jefferson's interpretation of the Constitution. Of course, Washington and Hamilton (and a lot of other folks) didn't agree.
It's interesting, though, how many people think that this liberal view of Federal power under our Constitution all began with Lyndon Johnson, or FDR, or Wilson, or Teddy Roosevelt, or Lincoln when, in fact, it was President Washington and Alexander Hamilton who consciously (particularly in view of Jefferson's comments) decided in favor of the broad implied Federal powers that now concern many conservatives.