The next important measure of Hamilton was the recommendation of a National Bank, in order to facilitate the collection of the revenue.  Here he encountered great opposition.  Many politicians of the school of Jefferson were jealous of moneyed institutions, but Hamilton succeeded in having a hank established though not with so large a capital as he desired.

It need not he told that the various debates in Congress on the funding of the national debt, on tariffs, on the bank, and other financial measures, led to the formation of two great political parties, which divided the nation for more than twenty years,—­parties of which Hamilton and Jefferson were the respective leaders.  Madison now left the support of Hamilton, and joined hands with the party of Jefferson, which took the name of Republican, or Democratic-Republican.  The Federal party, which Hamilton headed, had the support of Washington, Adams, Jay, Pinckney, and Morris.  It was composed of the most memorable names of the Revolution and, it may be added, of the more wealthy, learned, and conservative classes:  some would stigmatize it as being the most aristocratic.  The colleges, the courts of law, and the fashionable churches were generally presided over by Federalists.  Old gentlemen of social position and stable religious opinions belonged to this party.  But ambitious young men, chafing under the restraints of consecrated respectability, popular politicians, or as we might almost say the demagogues, the progressive and restless people and liberal thinkers enamored of French philosophy and theories and abstractions, were inclined to be Republicans.  There were exceptions, of course.  I only speak in a general way; nor would I give the impression that there were not many distinguished, able, and patriotic men enlisted in the party of Jefferson, especially in the Southern States, in Pennsylvania, and New York.  Jefferson himself was, next to Hamilton, the ablest statesman of the country,—­upright, sincere, patriotic, contemplative; simple in taste, yet aristocratic in habits; a writer rather than an orator, ignorant of finance, but versed in history and general knowledge, devoted to State rights, and bitterly opposed to a strong central power.  He hated titles, trappings of rank and of distinction, ostentatious dress, shoe-buckles, hair-powder, pig-tails, and everything English, while he loved France and the philosophy of liberal thinkers; not a religious man, but an honest and true man.  And when he became President, on the breaking up of the Federal party, partly from the indiscretions of Adams and the intrigues of Burr, and hostility to the intellectual supremacy of Hamilton,—­who was never truly popular, any more than Webster and Burke were, since intellectual arrogance and superiority are offensive to fortunate or ambitious nobodies,—­Jefferson’s prudence and modesty kept him from meddling with the funded debt and from entangling alliances with the nation he admired.  Jefferson was not sweeping