What factors led to the creation of the two party system in the 1790s?

Answer 1

When George Washington was elected, he chose for his cabinet several of the most respected political leaders of the newly founded nation. These were John Adams as vice president, Thomas Jefferson as secretary of state and Alexander Hamilton as head of the Treasury Department, (Eric Foner, Give Me Liberty Vol. Ip 242). While they were some of the most prominent political leaders in the nation, their views on which way to guide the nation varied. The nation was to take either of two paths, Jefferson's or Hamilton's. Hamilton envisioned the country to be a great industrial nation with a large military. His program consisted of five parts (Foner p 243). The first step was to assume the debts of the states created by the War of Independence. Second, he called for the creation of a new national debt, with men of 'economic substance' holding interest-bearing bonds that would provide them with a 'stake' in the nation's stability. (Foner p 243) The third step was to create a national Bank modeled after the Bank of England, a private corporation rather than a branch of the government. Fourth, he proposed a tax on whiskey and fifth, a tariff on imports to encourage manufacture development. He promoted commercial development and won the favor of merchants, manufacturers and financers. In his view, agriculture was subordinate to capitalism. Jefferson on the other hand, promoted agriculture and westward expansion, not connections with Europe. He had little desire to see the country's economic policy shaped by the interests of bankers and business leaders. He rathered the nation become a small country of yeoman farmers with similar amounts of property and interests. His goal was to promote a republic of independent farmers that would market goods freely to the entire world. He believed 'that free trade and not a system of government favoritism' would bring prosperity and social equality. Liberalism, the ideology of individual rights and equality of opportunity being the most important political goals, drove him, to the extent where he violated his own belief in limited government when he issued the Louisiana Purchase during his term as President, which doubled the nation's size. This division of ideas led to the creation of the two-party system. The main issue between the two parties was how they believed the Constitution should be read and interpreted. The federalists, such as Hamilton, Adams and Jay, believed that more power and jurisdiction that was not specified in the Constitution should be placed in the hands of the Federal government. They had the idea of a strong central government that had the power to regulate domestic and foreign affairs, while having ultimate authority over the states. They supported Hamilton's economic program. They were mainly elites who viewed society as a hierarchical system and public office as a place for men of substance. In addition, they feared that the spirit of liberty unleashed by the revolution was dangerous and would lead to anarchy. The Democratic Republicans were followers of James Madison and Jefferson. The party insisted on strictly following the Constitution and promoted states' rights and the predominance of the yeoman farmer over bankers, industrialists, merchants, and other financial interests. It opposed a standing army or navy and favored low tariffs.