The conflict that divided the nation and would eventually lead to the development of two political parties was that between Federalists and Anti-federalists in the 1790s. The main debate between the two groups concerned the power of the central government versus that of the states.
The Federalists were led by Alexander Hamilton, who represented the interests of the urban, mercantile class. Hamilton desired a strong central government that fostered commerce and industry. He also insisted upon full payment of the national debt and also upon the federal government taking over the unpaid debts of the states. He devised a Bank of the United States and a national mint.
The Anti-federalists were led by Thomas Jefferson, who spoke for rural and Southern interests. Jefferson advocated a decentralized agrarian plan. He wanted a strong federal government in terms of foreign affairs, but weak in every other matter. Jefferson's main concern was freedom, not efficiency.