The paper highlights that the term federalist is used to refer “to those individuals who favored the ratification of the US Constitution” (Vile 268). The newly formed Federalist party was led by Alexander Hamilton and was formed around the idea of supporting a strong national government such as would be competent to exercise its powers under the necessary and proper clauses established a national bank. The Democratic - Republican Party was largely founded by Thomas Jefferson and James Madison. This party was founded by the Virginia and Kentucky resolutions, which were against the Alien and Sedition Acts.
The Democratic-Republicans had worries about the attempts to stifle the dissenting voices in the United States. Jefferson responded to these concerns by allowing the Alien and Sedition Acts to expire without renewal and issued the pardon to those who had been arrested during the time (Sabato and Ernst 301). This move not only solidified the ability for an opposition political party to be established in the United States without fear of prosecution, but Jefferson refused to grant the newly formed Federalist interest to the national charter of the Bank of the United State and opened another branch in New Orleans. He also cut the spending of the national debt and eliminated the internal revenue taxes; this move strengthened his standing among his opponents. This made the newly formed Federalist have a disorganized party.
In conclusion, there have been philosophical differences between the newly formed Federalist and the Democratic - Republican Party.