Development of Political Parties During the 1790s

The factors that contributed to the development of political parties in the United States during the 1790’s were largely due to Treasury Secretary Alexander Hamilton’s financial successes, such as The Bank of the United States and public credit, that Thomas Jefferson disputed against, building oppositional organizations that eventually evolved into two distinct parties. Hamilton first intended to shape the policies of administration so that they would favor the wealthy, who would consequently lend support to the government. To bolster national credit, he suggested that the federal government pay off its debts. Furthermore, when Hamilton proposed for a national treasury, Jefferson argued against the charter for a central bank, insisting that such power should be granted to the state government rather than the federal, conforming to the idea strictly mentioned in the Bill of Rights. The building of oppositional organizations was a result from the two aforementioned financial feats of Hamilton; though the government had a sound credit rating, Hamilton’s centralizing successes created political liabilities and encroached upon states’ rights. The factions were confined to activities in Congress and were expected to be short-lived, since a formal party against ideals would destroy unity and loyalty found after the Revolution and pitted Jefferson and James Madison’s ideas against Hamilton’s. Thus, the development of political parties in the United States during the 1790’s was a result of Hamilton’s financial successes that emphasized the central government, rousing organization of opposition by Jefferson that the same successes created political liabilities.