Jefferson and Hamilton: Fight for Heavy Rep

Crucial factors that contributed to the gradual development of political parties in the U.S. during the 1790's relied on the violent heads under the president: Secretary of State Thomas Jefferson, and Secretary of the Treasury Alexander Hamilton. In 1791, the Bill of Rights, known as the Ten Amendments, were formed. Hamilton set out immediately to correct the economic vexations that had crippled the Articles of Confederation, which was to shape the policies of the administration to favor wealthier groups. In exchange, they would lend the government money and moral support. This new federal regime would thrive, and propertied classes would fatten, and prosperity would trickle down to the masses. The first tariff law, imposing a low tariff of about 8% on the value of dutiable imports, was passed by the first Congress of 1789. Hamilton argued strongly in favor of more protection for the well-to-do manufacturing groups. As the first step of his financial system, Hamilton proposed a Bank of the United States. He specifically posed a powerful private institution, of which the government would be the major stockholder and in which the federal Treasury would deposit its surplus monies. Jefferson argued against the bank; he insisted that no specific authorization in the Constitution for such a financial holder. He was convinced that all powers not grants to the central government were reserved to the states, as provided in the about-to-be-ratified Bill of Rights. He therefore concluded that the states, not Congress, had power to charter banks. This marked the beginning of political parties; also further known as National Republicans and Democratic-Republicans. These groups continued to fight, and were widely remembered by two men: Alexander Hamilton and Thomas Jefferson.