Comparing and contrasting review the notes you took throughout the lesson. then write a paragraph that analyzes the ways madison and hamilton differed in their approaches to building national revenue and how this contributed to the rise of political parties.

Alexander Hamilton belonged to the Federalist Party, which supported the idea of a strong central government. He thought that the federal government should be able to keep a strong army and navy, to raise taxes, and to have good relations with Great Britain.

James Madison was on the opposite side. He was a member of the Democratic-Republican Party. This party favored a weak central government, and favored state and local power.

The biggest rift between Hamilton and Madison came when the issue of a federal bank came up in Congress. Hamilton wanted to create a Central Bank to take on the debts of the states, and to fund future programs and armies, Madison, as anti-federalist, naturally opposed this idea.

This rift was solved with the Compromise of 1790. The southerners, including James Madison, agreed to the creation of a national bank in exchange for having the new capital in southern territory (Washington D.C.).

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