Jefferson and Hamilton were polar opposites: Hamilton championed a strong federal state, banking, and national debt, while Jefferson saw centralized finance as a threat to individual liberty and championed the farmer over the banker.

10:09>> Banks. Yeah, >> he loves a bank. He loves a banker. Um, he loves the national debt. He loves Britain. He hates anarchy. Um, these are his principles. Jefferson is almost the polar opposite. So he um he sees a strong federal state as an enemy of the liberty of the individual states. Um he loves a farmer not a banker. He sees bankers as vampires sucking out the

10:35blood of hardworking noble American farmers. Um he doesn't approve of national debts. He loves France as we heard. Um and his great guiding principle is his hatred of tyranny. And so both men, Hamilton and Jefferson, see the other one, you know, not just as a political opponent, but pretty much as a kind of threat to the the liberty of the infant American republic. >> Yeah. >> And Jefferson's own take on their

11:00relationship in Washington's cabinet is that they were daily pitted in the cabinet like two Listeners can make of that one what they will. Um, and there is so much fighting going on between them that in the end Jefferson resigns. He resigns in 1793 because he recognizes that the disagreements between them can't be reconciled within the one government. >> So by now we have, as we were talking

11:23about last time, the beginnings of the first party system. So Jefferson is effectively the standard bearer, isn't he? Of the America's first opposition party. Yes. >> So the Democratic Republicans, as they're called, in opposition to Hamilton's Federalists. >> Yeah. And throughout this period, Washington, as you said in the previous episode, um tries to stay above the fray in a kind of Olympian manner. But it is obvious that throughout his presidency a

11:46two-party system is kind of evolving and that isn't something that the constitution had ever envisaged. Um that that was never kind of part of the plan. And on one side we have the Federalists. So Hamilton but also um John Adams an [snorts] old friend of Jefferson's Jefferson had hung out in France with John Adams and his remarkable wife Abigail. Um, so John Adams, Boston lawyer, >> this fantastically smart wife, and he