=267. Hamilton and the Federalists.=—The financial legislation mentioned in the last paragraph had been outlined in the main by Alexander Hamilton of New York, the first Secretary of the Treasury. This remarkable man had distinguished himself as a soldier and as a contributor to _The Federalist_ in defense of the Constitution (§ 254), before Washington chose him as his chief counselor. As a financier and an administrator working under a chief, he has probably had no equal in America. In his theories of government, however, he favored a strong central administration more than a simple people suspicious of tyranny thought proper. Hence, while he easily dominated all the supporters of the new government, he failed to secure the confidence of the masses and probably would not have been given the Presidency, even if he had not fallen in a duel with Aaron Burr in 1804. He did, however, during his life direct the policy of the Federalists, as the party supporting the Union under the Constitution was called. Washington would have liked to govern without parties, but the unsettled question whether the new central government should be strong or weak necessitated a twofold division of voters. And in the end even Washington was forced more or less to take sides with Hamilton and the Federalists. =268. Jefferson and the Democratic-Republicans.=—Hamilton’s rival in the Cabinet was Thomas Jefferson of Virginia, who gave up his post as minister to France to accept the Secretaryship of State. Jefferson had already acquired great fame as the writer of the Declaration of Independence and other state papers. He had been governor of Virginia, and was a good legislator and administrative officer, although plainly Hamilton’s inferior in the latter respect. But he was especially strong in his thorough comprehension of the desires of the people and in his ability to criticise political institutions and measures. He believed in democracy and wished government to be simple in every respect. Being suspicious by nature, he thought that Hamilton and the Federalists were aiming to establish a strong republic that might develop into a monarchy. In order to oppose them, he drew together all the dissatisfied elements in the country, as well as all the advocates of a simple, popular government, into a party soon known as the Democratic-Republicans. Under one name or another, the two parties formed under Hamilton and Jefferson have existed to our own day. The two Secretaries naturally opposed each other in the Cabinet,[108] and Washington had a hard task in forcing them to work together. Finally Jefferson, who had indiscreetly used the newspapers against the administration, desired to resign and return to his home at Monticello,[109] and Washington let him go. After this, as we have just seen, the President allowed Hamilton more and more power, and the administration became practically a Federalist one, although its head was still superior to mere party considerations.