Hamilton, the Federalist, tried to repay the debt the U.S. had owed. This caused tension between the North and South creating the two parties: Federalist and Republican. A domestic affair , the Whiskey Tax was promoted by Hamilton which the tax money was used to pay off debts the U.S. had owed. The establishment of the First Bank of the United States was what helped create the thoughts of Federalists of creating a financially stable nation. Though opposed by Jefferson saying that it would only benefit merchants and investors and hurt the rest of the country, it was established anyway. The Alien and Sedition Acts were used by Federalists to get rid of whatever Republican enemies they had from France. The Acts made it harder for one to become a citizen, creating a stronger Federalist Party. It also allowed the President to deport anyone of suspicion of making false writings about the government. This was later ruled as unconstitutional by Jefferson and repealed. The Federalist Party was shaped by domestic affairs into becoming a party that cared a lot about the country’s financial position.
The foreign affairs for example the XYZ Affair, almost led