A conflict between individuals as well as ideals lead to the formation of two seperate political parties in the 1790's. Alexander Hamilton, Tresury Secretary under George Washington was the cause for many of the divides within congress which latter lead to the formation of two political parties. Hamiltons contriversal economic polocies such as his increase of taxes on wiskey and his creation of a Bank of America disaggreed with other members of congress and pocibly with the constitution. Hamiltons most notable foe was Secretary of state Thomas Jefferson. Jefferson belived that Hamiltons polocies were unconstitutional and went against the basic principles of republicanism. It was due to these differences that Jefferson and his supporters eventually created their own party known as the Democrat- Republicans in comparicson to Hamiltons traditional Federalists.