Although national political parties were considered “divisive and disloyal,” the United States' first two-party system, Hamiltonian Federalists and Jeffersonian Republicans, emerged during the administration of George Washington. The political divide was later exacerbated with the Jay Treaty. They differ from each other in various aspects. However, political turmoil during the 1790s greatly expanded the public sphere. The Federalists, led by Alexander Hamilton, believed in the supremacy of the national government, the broad and free interpretation of the Constitution, and commercial and industrial development. They were pro-British. They were in favor of national banks and protective tariffs. Therefore, they gained support primarily from American financiers, manufacturers, merchants, and political leaders, especially outside the South. In contrast, the Republicans, led by Thomas Jefferson and Thomas Madison, were suspicious of the national government. They believed in strong state governments led by the “common man” and a strict interpretation of the Constitution. They were pro-French and against the national bank and protective tariffs. Because they emphasized agriculture, they gained support from wealthy Southern planters and common farmers throughout the country. Political divisions between Federalists and Republicans first emerged when Hamilton proposed his financial plan. There is no doubt that George Washington strengthened the new government, but at that time the United States was suffering from serious fiscal problems. The government owed a huge debt to foreign power and individual bond and stock holders. With the goal of establishing short-term financial stability and establishing the United States as a “great trader… middle of paper… in the company of the British, hoping that the matter could be resolved peacefully. Under the Jay Treaty of 1794, the British agreed to abandon outposts on the western frontier and, in exchange, the United States granted preferential treatment to imported British goods. In the eyes of the Federalists, the treaty was almost perfect, as they could avoid another war and expand westward, as well as stop British harassment. However, from the point of view of the Republicans, the Jay Treaty was ridiculous: they believed that not only would the English benefit more from the agreement, but it also posed a threat to their friendship with the French. Supporters of the French Revolution and critics of the Washington administration in 1793 and 1794 formed nearly fifty democratic-republican societies, which offered ordinary citizens the opportunity to be constantly involved in public affairs..