Question

How did the creation of the national bank mark the beginning of the formation of political parties in America?

Answer 1

1. The beginning of national bank saw the division of political views in the formation of the two parties.

2. The end of Independence war saw the emergence of two political parties namely the Federalists and the anti- Federalists.

3. The concept of a nationalized bank was supported by Alexander Hamilton who belonged to the Federalists party. This idea was not welcomed by Thomas Jefferson, the anti- Federalist. He feared that this would establish financial monopoly.

4. The Federalists supported the national government. On the contrary, the Anti-Federalists advocated the rights of the state.