The Politial Parties of America's History In the beginning, there were two major political parties. The Federalists supported Hamilton and there was the Democrats led by Jefferson. Hamilton wanted to set down a Federal Bank for US. The Democrats on the other hand were very strict readers of the Constitution and sayed that there was nothing in the Constitution that allowed a Federal Bank to be built. The Federalists wanted a bustling US economy powered by industrial equipment while the Democrats wanted the US economy based on farms. In other words, the Democrats wanted a simple form of government. Hamilton later died