The new republic had hardly been started in 1783 before its troubles began. The government could not raise money to pay its debts or running expenses; it could not protect American commerce and manufactures against European competition; it could not stop the continual issues of paper money by the states; it could not intervene to put down domestic uprisings that threatened the existence of the state governments. Without money, without an army, without courts of law, the union under the Articles of Confederation was drifting into dissolution. Patriots, who had risked their lives for independence, began to talk of monarchy again. Washington, Hamilton, and Madison insisted that a new constitution alone could save America from disaster. By dint of much labor the friends of a new form of government induced the Congress to call a national convention to take into account the state of America. In May, 1787, it assembled at Philadelphia and for months it debated and wrangled over plans for a constitution. The small states clamored for equal rights in the union. The large states vowed that they would never grant it. A spirit of conciliation, fair play, and compromise saved the convention from breaking up. In addition, there were jealousies between the planting states and the commercial states. Here, too, compromises had to be worked out. Some of the delegates feared the growth of democracy and others cherished it. These factions also had to be placated. At last a plan of government was drafted--the Constitution of the United States--and submitted to the states for approval. Only after a long and acrimonious debate did enough states ratify the instrument to put it into effect. On April 30, 1789, George Washington was inaugurated first President. The new government proceeded to fund the old debt of the nation, assume the debts of the states, found a national bank, lay heavy taxes to pay the bills, and enact laws protecting American industry and commerce. Hamilton led the way, but he had not gone far before he encountered opposition. He found a formidable antagonist in Jefferson. In time two political parties appeared full armed upon the scene: the Federalists and the Republicans. For ten years they filled the country with political debate. In 1800 the Federalists were utterly vanquished by the Republicans with Jefferson in the lead. By their proclamations of faith the Republicans favored the states rather than the new national government, but in practice they added immensely to the prestige and power of the nation. They purchased Louisiana from France, they waged a war for commercial independence against England, they created a second United States Bank, they enacted the protective tariff of 1816, they declared that Congress had power to abolish slavery north of the Missouri Compromise line, and they spread the shield of the Monroe Doctrine between the Western Hemisphere and Europe.