The Democratic-Republicans sought to limit federal control and preferred local power as the dominant force. Chiefly, the emergence of the American two-party system arose from strongly opposed political views, but also developed out of experience and a struggle for power. As previously stated, the main reason for the development of the party system in the United States, or any political party for that matter, is a difference in beliefs on how a government should be operated. The Federalists, formed by Alexander Hamilton – Washington’s Treasury Secretary – in 1794, favored federalism with government having the power to control commerce, tax, declare war, and make treaties among other powers.
Deep divisions in politics combined with distrust in foreign nations and growing domestic turmoil paved the way for the passing of the Alien and Sedition Acts by the Federalists. The two major parties of early America were the Anti-federalists and the Federalists. The schisms in politics resulted from the fierce rivalry between Hamilton and Jefferson. Both had different notions of how government should be run, especially when it came to the foreign policy. As France and England battled for European supremacy against the backdrop of the French Revolution, the American parties sought opposite alliances with the European rivals.
They preferred a pretty strict construction of the constitution and look down on Hamilton’s ideas for a national bank and saw them as unconstitutional. The party promoted states' rights and they were threatened by the supposed, the far too powerful tendencies of the Federalist Party which they had seen before with Great Britain. These Democratic Republicans favored Agriculture and opposed the tariffs that Hamilton had proposed; for these supporters mostly included skilled workers, small scale farmers, and plantation owners. So it is safe to say the majority of these types of supporters were vast in the southern frontier states as opposed to their rivals in the northeastern states who were more on the business side of things. Democratic Republicans all in all wanted things to remain the same in the U.S government because they felt that giving more power to the national government by way of national bank or tax would slowly get rid of the people’s voice in politics creating a rerun of the previous outcome with Great Britain.
Hamilton created his Federalist party to help promote his goals for the United States. Jefferson’s opposition party, the Republicans, “opposed Hamilton's urban, financial, industrial goals for the United States, and his promotion of extensive trade and friendly relations with Britain.” Their interpretation of the Constitution also was very different. Hamilton interpreted it very loosely and used the elastic clause to get what he wanted out of it, while Jefferson read and followed if very strictly. This is a reason Jefferson was against Hamilton’s plans. Thomas Jefferson didn’t like the idea of building a National Bank in the United States.
The debates in America during the late 1700s and early 1800s revealed bitter controversies on a number of issues, especially the Alien and Sedition Acts. To start with, the different viewpoints over foreign relations in America became a controversy when it was believed that the wrong decision could lead to a loss of independence. Also during the early years of America, many people had different views about governmental issues, which lead to the formation of factions, which made many people believe that the nation was coming close to a civil war. Another controversy was caused by differences between the federalist and anti-federalist and the hungers for power; the power craving factions presented the problem that one faction might take over and rule the newly found nation. During the late 1700s and early 1800s, the different viewpoints over foreign relations in America became a controversy when it was believed that the wrong decision could lead to a loss of independence.
Hamilton argued that since congress has been given so many monetary and fiscal powers it would be practical to create a central bank to carry them out (3). Johnson also recognizes the fact that people feared the power the central bank would have. He states in the book that farmers, businessmen, politicians and state-chartered banks viewed the bank as a giant monster standing in their way. Johnson looks at another important figure in the controversy of the central bank. He looks at Henry Clay, who was Jackson’s opponent in the 1832 election.
Even though the names and roles of the political parties were changed throughout time, they still divided and created turmoil because of the competition between them. This issue was foreseen by the first president George Washington. He even warned about it by writing it in his Farewell Address to America (cite) yet despite of his warning they instead continue with the political parties. Those parties became the Republican Party in the North and the Democratic Party in the South. There were many differences between the two and each difference created more and more tension until they reached the breaking point of war.
Confederation and Constitution period ( 1783-1789) Introduction After American Revolution the states were in the situation where they couldn’t pay off the war debts, or negotiate and regulate commerce with foreign nations. In fact the relationship between the states were shaken as they had to compete for trade opportunities which was taken advantage of by Britain- still the world’s strongest trading nation. State governments tended to be dominated by their legislatures and thus provided little effective check on violent and dominant factions. The need for a strong national government became obvious. Once the British system of government was rejected, the states, operating under the “Articles of Confederation,” saw
The controversy of the argument was on the basis that, “there was an inherent connection between the states and the preservation of individual liberty, which is the end of any legitimate government.” Their own argument have invariably created a national government instead of a federal government. This is because “the federal form, which regards the Union as a confederacy of sovereign states, instead of which, they have framed a national government, which regards the Union as a consolidation of the states.” Anti-federalists were against constructing a new constitution and they agreed that without valid amendments the constitution would give the government too much power. This power would then lead to confusion according to the (Centinel 1787) “ The new constitution instead of being panacea or cure of every grievance so delusively represented by its advocated will be found upon examination like Pandora’s box replete with every
Banks It is well known that Hamilton and Jefferson disagreed strongly about the national bank. Hamilton was the architect of the First Bank of the United States, believing it essential to the financing of the federal government and to the establishment of a robust domestic banking system. As such, Hamilton is considered a pioneer of central banking and a forebearer of the modern Federal Reserve. Jefferson believed the bank would put too much power over the government in the hands of the bank's owners. But the issue went deeper than that.