9781422275610

In his efforts to create a plan to erase the national debt, Alexander Hamilton introduced national banks. In addition, he assembled a group of bankers and businessmen—friends of the government—that transformed into the Federalist Party.

These two powerful men soon persuaded other political leaders to take sides on the issues of the day. Those who, like Jefferson, believed that any powers not specifically granted in the Constitution to the national government should remain under the control of the individual states, were labeled “Republicans.” Those who supported Hamilton in his belief that the national government should take whatever steps were necessary for the common good were known as “Federalists.”

14

THE democratic party