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When Washington first took office in 1789, there were no formal political parties however there were
political divisions. At this time, most Americans distrusted political parties, as they remembered how they
worked in Britain; party members were more interested in their own personal gain than the interests of the
public. Many saw political parties as George Washington did; a threat to unity that would cause “jealousies and
false alarms”.
Parties grew around two of Washington’s advisors, Alexander Hamilton and Thomas Jefferson. These
two men had two very different views about how the new government should operate in relation to the powers
of state and local governments. At first Hamilton and Jefferson clashed in private but when Congress began to
pass Hamilton’s programs, Jefferson and James Madison decided to organize public support for their views
from important leaders. Soon leaders all over the United States were beginning to side with either Hamilton or
Jefferson.
Hamilton and his supporters were called Federalists because they wanted a strong federal government.
They believed the government could assume certain powers even if those powers were not specifically
expressed in the Constitution. Federalist support was generated from merchants and manufacturers in big cities
such as New York and Boston. Jefferson’s supporters were called Democratic-Republicans, Republicans for
short. They included small farmers, craft/skilled workers and some plantation owners and the believed if the
Constitution did not specifically grant a power to the federal government and did not deny it to the states, the
power should be granted to the states or the people.
Newspapers began to back different political parties. The number of American newspapers more than
doubled in the late 1700s—from about 100 to more than 230. They grew to meet the demand for information.
Newspapers had great influence on public opinion. In stinging language, newspapers would attack opponents
and often rumors were mixed with fact and opinion. Political parties launched attacks and counter attacks at
each other, keeping the people of the United States entertained yet informed. These newspapers helped to shape
public opinion and played a large role in determining who would be Washington’s successor.
The disagreements these men clashed about over the years are outlined below:
Manufacturing vs. Farming and Protective Tariff - Hamilton thought the US should model itself on
Britain. He wanted the government to encourage trade and manufacturing and he wanted cities to grow.
Hamilton favored a protective tariff which would protect American industry from foreign competition. Jefferson
was against a protective tariff because it only aided US manufacturers and hurt farmers who usually bought
foreign made goods. He believed that farmers were the backbone of the new nation. Jefferson feared a
manufacturing economy would corrupt the United States.
Federal vs. State Government- Hamilton wanted the federal government to have more power than the
state government. Jefferson believed the opposite; he feared that the federal government might take over powers
that the Constitution gave t the states.
Strict or Loose Interpretation of the Constitution- Hamilton interpreted the Constitution loosely.
Since the Constitution gave Congress the power to make all laws that are “necessary and proper” to carry out
the government’s duties, Hamilton had Congress create the Bank of the United States. Hamilton argued the
Bank was necessary for the government to collect taxes and pay its bills.
Jefferson vehemently opposed the bank because he said it gave too much power to the federal
government and the wealthy investors who helped run it. Jefferson said that the law creating the Bank was
unconstitutional, that is, not permitted by the Constitution. Jefferson objected to the Bank because he interpreted
the Constitution very strictly. Nowhere did the Constitution give Congress the power to create a Bank. He
argued that any power not specifically given to the federal government belonged to the states.
Britain or France- Hamilton wanted to form a close foreign relationship with Britain who was an
important trading partner. Jefferson favored France who was the first ally to the United States and a nation
which was struggling for its own liberty.
Federalist
Leader
Party Supporters
Manufacturing vs.
Farming
Protective Tariff
Federal Power vs.
State Power
Loose or Strict
Interpretation
(BANK)
Britain or France
Democratic Republicans
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