<P> By 1790 Hamilton started building a nationwide coalition . Realizing the need for vocal political support in the states , he formed connections with like - minded nationalists and used his network of treasury agents to link together friends of the government , especially merchants and bankers , in the new nation 's dozen major cities . His attempts to manage politics in the national capital to get his plans through Congress , then , `` brought strong '' responses across the country . In the process , what began as a capital faction soon assumed status as a national faction and then , finally , as the new Federalist party . '' The Federalist Party supported Hamilton 's vision of a strong centralized government , and agreed with his proposals for a national bank and heavy government subsidies . In foreign affairs , they supported neutrality in the war between France and Great Britain . </P>
which issue led to the development of the first political parties in the united states
need for vocal political support in the states