Thomas Jefferson and Alexander Hamilton were adversaries competing for their beliefs in the government. Their rivalry was not only political, but also personal. The bitter competition between the two founding fathers led to the development of two political parties, the Federalists and the Democratic-Republicans. These two political parties exemplary of the beliefs of Jefferson and Hamilton and in most cases, the beliefs were nothing alike.

Major ideals of both parties were displayed in Hamilton and Jefferson's battle for the financial plan. Alexander Hamilton's financial plan consisted of four major components, all of which obtained much criticism from both Jefferson and his faithful Democratic-Republicans. The first component of this plan was "Funding at Par." This economic plan disregarded the Democratic-Republican idea that National debt was a bane and that the United States should have a rigid economy. The "Funding at Par" plan paid off debts plus interest.

"Assumption" was another part of Hamilton's plan. "Assumption" takes over the states debt to link wealthy creditors to the new central government and bind the states together with something in common. This would have given more power to the central government which may have been ideal to the federalists but it was strictly against the democratic-republican code. the DR believed that the central government should be weak to conserve the states' rights.

A protective tariff to shield infant industries was also part of Hamilton's Plan. However the DR believed that their should not be any special favors given to manufacturers. And lastly, The battle for the Bank of England ......