Factors that Contriubted to the creation of Political Parties

A conflict between archrivals Alexander Hamilton and Thomas Jefferson led to the creation of the first true American politcal parties. Hamilton, a "financial wizard" first action that made Jefferson "reluctant" was to pressure federal government into "assuming" debts for the war including state debts. Next he proposed a bank, much similar to the Bank of England. This would solve the problem of printing money and would make the American dollar worth something. But Jefferson ruled it unconstitutional, maintaining a "strict construction" viewpoint, that the constitution should be taken literally. He argued that Hamilton's proposition was not mentioned in the constitution. Whats more he argued that it should be left up to the states to decide on such matters (Amendment X). Hamilton counterargued that what the constution did not forbid it permitted. He held to the viewpoint of loose construction; he drew from the clause that "stipulated" that Congress was permitted to pass any law that made common sense and carried out the purposes of the nation. In other words, the constitution allowed this national bank because it made sense.
Although the national bank was installed this disagreement led to the creation of two political parties, and two opposing ideas.