In Washington's presidency two members of his own Cabinet, Hamilton and Jefferson, disagreed about almost everything. Their supporters in Congress and the newspapers formed the first party system. Nobody had planned it: the Constitution says nothing about parties.
Key idea
The Federalists (Hamilton, John Adams) wanted an energetic national government, a broad reading of its powers, support for commerce, banking and manufacturing, and friendly ties with Britain. The Democratic-Republicans (Jefferson, Madison) wanted a strict reading of the Constitution, power closer to the states, an economy of independent farmers, and sympathy for revolutionary France.
Why it works
Two real questions divided them. First, how to read the Constitution: Hamilton said its "necessary and proper" clause allowed a bank as a reasonable means to carry out the taxing and borrowing powers; Jefferson said "necessary" meant truly needed, or the government would have no limits. Second, foreign war: when Britain and revolutionary France went to war in 1793, each side feared the other would drag the country into it on the wrong side.
Worked example: One question, two answers
In 1791 Washington asked his Cabinet whether Congress could charter a bank. How did Hamilton and Jefferson answer?
- Jefferson: the Constitution lists Congress's powers, and chartering a bank is not one of them. The Necessary and Proper Clause covers only means that are truly necessary.
- Hamilton: a bank is a useful means of carrying out powers that are listed (taxing, borrowing, paying debts), and "necessary" often means useful or convenient.
- Washington agreed with Hamilton and signed the bank bill.
- The Supreme Court took Hamilton's side in McCulloch v. Maryland (1819), but the argument over how broadly to read federal power never ended.
Answer: Jefferson read the clause strictly (no bank); Hamilton read it broadly (bank allowed).
Common mistake
It is a mistake to think the founders planned on parties, or that today's parties go straight back to these two. Washington warned against "the spirit of party." The Federalist Party faded after 1815. Today's Democratic Party traces its roots to coalitions built by Jefferson and later Andrew Jackson; today's Republican Party began in 1854. The names and the issues have changed many times since.