The 1790's were an important time for the fledgling new government of The United States of America. The new federal Constitution was ratified in 1788 and the Bill of Rights was in effect in 1791. This beginning was shaped by many influential leaders including George Washington, Alexander Hamilton, Thomas Jefferson, and James Madison. The domestic and foreign affairs of this time had a tremendous impact on the development of the political partisan system. The early domestic and foreign concerns of a young nation would result in enormous differences of opinion and these differences strongly split the population into a two-party system. The strident visions of Alexander Hamilton, Secretary of State, the foreign crisis created by the French Revolution, and the Federalist attempt to reduce Republican influence with the Alien and Sedition Acts of 1798 instituted a two-party system in American politics.
Alexander Hamilton was an ambitious and brilliant man. His programs and plans laid a strong foundation for the new federal government. He realized that the federal and state debt that resulted from the revolutionary war had to be paid. He insisted that the state debt be consolidated into the federal debt. Hamilton recognized that the United States government would need to establish sound credit in order to demonstrate honor. Next Hamilton proposed the establishment of a national bank to manage the money collected by the newly imposed tariffs. His vision was strongly opposed by Thomson Jefferson and James Madison, setting the stage for the differences of opinion that are found in the two-party system. Hamilton, Madison and Jefferson reached a compromise that would relocate the national capitol to the Virginia border of the Potomac, and allow the debt assumption bill to be passed. This illustrates the great strength of the two- party system in that all opinions can be heard and compromises can be reached.
