Funding the Continental Debt. /------------\ / Money borrowed in \ Shall it be \ Foreign debt. | France, Holland, | funded at | Yes ------+ \ and Spain. / face value? / | | / Bills of credit. \ | | Loan-office | | | certificates. | Shall it be \ | | Lottery | funded at | Yes ----+ | Domestic debt. | certificates. | face value / | | | Interest indents. | or market \ | | | New tenor. | value? / Yes --+ | | | Certificates of | | | | | officials. | | | | \ Final settlements. / | | | \ | | | | Assumption of / Yes ---------------------------------------+-+ |[1] state debts. \ No ----------------------------------+ | | | | | | / Establishment / Yes -----------------------------------------+ of a national | | | bank. \ No ------------------------------------+ | | | | Internal revenue / Too heavy ----------------------- \ | | | taxes. \ | | | | | | | | / / President too | | | | | | exclusive. | | | | \ | Aristocratic | Secret sessions | | | | | Administration | customs. | of the Senate. |--+-+-+ |[2] not democratic. | | Gowns of the | | | \ justices. | / | Monarchial / Great debt. | | institutions. | National bank. | \ \ Heavy taxes. / \ / Leaders. [1]---| Federalists | Washington. / | Adams. \ Hamilton. \ / Leaders. | | Jefferson. [2]---| Republicans | Madison. | | Monroe. | | Randolph. / \ Gallatin. CHAPTER XVI THE STRUGGLE FOR NEUTRALITY %227. Trouble with Great Britain and France.%--From the congressional election in 1792 we may date the beginning of organized political parties in the United States. They sprang from differences of opinion as to domestic matters. But on a sudden in 1793 Federalists and Republicans became divided on questions of foreign affairs.