Federalist Challenges in the 1790's

803 WordsOct 24, 20084 Pages
From the years 1789 through 1800, Federalist went through many harsh conditions. There were many disputes between the Federalist Party, led by Hamilton, and the Republicans, led by Jefferson. The events that created the most trouble for the Federalists and were most significant in the development of the Federalist Party were creating a national bank, how to pay the national debt, and establishing the public credit. Overall, the Federalists faced more of an economic challenge than anything else. Since raising revenue in the United States was one of the first economic issues the Federalists were up against, a solution to national debt had to be found and agreed upon. During the Federalist’s struggle, James Madison was a federalist who was…show more content…
Madison sided with the public in believing that very few would benefit from this plan. The national bank caused congress to think hard about the results of how the national bank would affect the economy for better or worse, and for farmers and speculators. Out of all the obstacles that the federalists had faced, the economy was, by far, the most problematic and the most difficult to find a solution for all parties. The country was not in a very stable position because of the recent crises like the whisky rebellion, or money-producing ideas such as bonds. Hamilton, Madison, and Jefferson played major roles in establishing the economy of the United States at the time, and also had a large role in the development of today’s government and economy. Without the ideas of these men, the United States economy may have the same problems today that the federalists faced then. And in the end, even though the idea of a national bank was redundant, that is what removed the United States from
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