As the American republic coalesced under the new Constitution, the Federalists put the country on a sound financial footing and gave the nation a decade of peace. Federalist policies, contrasting economic interests and differing views of the power and scope of the government highlighted the rift between two factions that became the nation’s first two political parties. The peaceful transition of power from the Federalists to the Republicans in the 1800 election marked a milestone in modern political history.
