The new national government established by the Constitution in 1789
was first led by the politics of the Federalist Party. Policies implemented
under President George Washington (1732–1799; served 1789–97) reflected that party’s belief in a strong central government. Led by
Secretary of the Treasury Alexander Hamilton (1755–1804), the
Federalists used the government to cultivate a national economy dominated by commerce.
By 1792, opposition to the policies of the Federalist Party was growing. Led by Secretary of State Thomas Jefferson (1743–1826), critics of
the Federalists banded together to form the Republican Party. They
were also called Democratic-Republicans or Jeffersonian Republicans.
The Democratic-Republican Party stood for states’ rights in opposition to the powerful central government the Federalists were building. As
such, its members believed in strict interpretation of the Constitution,
limited central government, and a small national military. DemocraticRepublican Party policies represented the interests of common free men,
particularly U.S. farmers, craftsmen, and laborers. Its economic policies
reflected the needs of small businesses and individuals rather than of
wealthy merchants and large commercial ventures. It also was the party
of the plantation economy in the South.
The Democratic-Republican Party grew quickly through the use of
pamphlets, newspaper articles, and organized political clubs. The party’s
leader, Thomas Jefferson, was elected president in 1800. The
Democratic-Republican Party dominated national politics for the next
twenty-five years.
When the Federalist Party declined after the War of 1812, no opposition party arose in its place. Instead, political differences of opinion
started to cause internal divisions within the Democratic-Republican
Party. The divisions concerned issues such as tariffs (taxes on imports),
powers of the second Bank of the United States (the first Bank of the United States, the first federally chartered bank in the country, lapsed in
1811), and internal improvements.
The election of War of 1812 general and former U.S. senator
Andrew Jackson (1767–1845; served 1829–37) of Tennessee in 1828
caused the party to split into two parties, the National Republicans and
the Democratic-Republicans. Within a few years, the National
Republicans became known as the Whig Party, and the DemocraticRepublicans were simply called Democrats. The Whigs eventually dissolved, and the Democratic Party survives today.