How Did Hamilton Contribute To The Formation Of Political Parties

In 1767, the Townsend Acts were passed. These acts started the first stirrings of political parties. By the time of the Boston Massacre, the Sons of Liberty were formed. Almost immediately after the ratification of the Constitution and the first election, two parties with opposite views formed: the Federalists and the Republicans. Hamilton, a federalist, came up with a financial plan that would help the United States rise out of National debt. 1790, Hamilton presented his plan to Congress. He proposed three steps to improve the nation’s finances. This included paying off all war debts, raising government revenues, and creating a national bank. The government put a excise tax on a luxury item, whisky. Settlers west of the Appalachian Mountains

These men showed the government that the way that they were trying to raise money was improper. In any debate over an important issue, especially a political one, there will always be different opinions and beliefs, which causes political parties to form and campaign. Another major part in contributing to political parties, is the creation of a national bank. The debate over Hamilton's idea of a national bank exposed differences in how to interpret the Constitution. Those who favored a loose-construction of the Constitution and the national bank became Federalists. While those who favored a strict-construction of the Constitution and opposed the national bank became Democratic-Republicans. During the 1796 election, both the Republicans and Federalists tried very hard to publicize the ideas of their parties through conventions, meanwhile doing their best to influence the elections on what they believe. The debate between both parties prevents a only one party to have complete control. In 1796, the United States had a Federalist president and a Democratic-Republican