Political Parties

The development of U.S. political parties in the 1790’s was an effect of debate between Jefferson and Hamilton on the subject of commerce. Hamilton suggested a national treasury, modeled around the Bank of England, to have the federal government as a major stockholder, create cash flow to businesses, store money, and create a worthy currency. He wanted to use the economic debt to unify society, produce customs duties, and remove taxes, largely affecting whiskey trade. He hoped to not only shape the developing economy, but politics as well by veering from the constitution. Jefferson mainly believed banks should be controlled by the state, opposing Hamilton. Jefferson disagreed with Hamilton, saying his policies encroached on the Constitution and state's rights. Both Jefferson’s and Hamilton’s views became very well known and understood. The personal conflict between the two men evolved into a full political competition. Since the dispute was so thoroughly embedded in the basic understanding and operation of the state, formal committed political groups began to appear in Congress consequently creating political parties.