The First Party System that emerged between 1789 and 1808 is a model of existing American political parties. Throughout the late 1700s, American political leaders and their supporters began grouping themselves under the labels “Federalist” and “Democratic Republican.” The Federalist Party was formed by Alexander Hamilton, while the Democratic Republican Party was formed by Thomas Jefferson and James Madison. Undoubtedly, domestic issues, foreign affairs, and economic factors were a relative importance to the development of the First Party System.
Domestic issues profoundly shaped the Federalist Party and Democratic Republican Party. Hamilton’s Federalist Party encouraged industrialization in the United States. Alternatively, Jefferson and Madison desired a democratic agrarian order society based on
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Hamilton’s Federalist Party desired a close relationship with Britain because of Britain's political stability and participation in American trade. Federalist Hamilton believed, “One may be erected in relation to the trade with foreign countries.” The Democratic Republican Party’s view on the foreign affair was contradictory to Hamilton's views. Instead, the Jeffersonians admired the French and the French Revolution, opposing relations with Britain. Therefore, Jefferson advocated The Embargo Act of 1807. This act prohibited vessels from leaving American ports for British exports. The elimination of exporting and importing goods brought America into an economic depression. In a letter to Colonel Edward Carrington, Alexander Hamilton, said: “In respect to foreign politics, the views of these gentlemen are, in my judgment unsound and dangerous. They have a womanish attachment to France and a womanish resentment against Great Britain.” Hamilton’s letter clearly illustrates the contradictions between the parties. Effectively, the First Party System was shaped around foreign policy