Development of Political Parties in the U.S. during the 1790s

What factors contributed to the development of political parties in the U.S. during the 1790s?

The development of political parties in the U.S. was due to the argument between Hamilton and Jefferson on the issue of commerce. Hamilton proposed for a national treasury, to be a private institution modeled after the Bank of England, to have the federal government as a major stockholder, to circulate cash to stimulate businesses, to store excess money, and to print money that was worth something. This was opposed by Jefferson, who thought that banks should be a state controlled aspect. Hamilton won, and Washington reluctantly signed the bank measure into law; the Bank of the Untied States was created by Congress in 1791, and was chartered for 20 years. Hamilton’s policies (national bank, suppression of Whiskey Rebellion, excise tax) had seemed to encroach on states’ rights. As resentment grew, what was once a personal rivalry between Hamilton and Jefferson gradually evolved into two political parties.