Alexander Hamilton introduced some very disturbing reports that lead to a financial revolution in the United States; among them were the first reports on public credit and the report on the manufactures. These reports attracted massive criticism from the secretary of state Thomas Jefferson and the speaker, James Madison.
While Hamilton was in favor of federalism, Jefferson and Madison were staunch anti-federalists. Their continuing conflicts between them in United States politics helped to start the first party system in America.Hamilton founded the Federalist Party while Madison and Jefferson helped form the democratic Republican Party. In addition,Hamilton in retaliation helped to form the bill of rights through the ten amendments that were made to the United States constitution. The United States executive branches of government as well as the entire judiciary (through the judiciary act of 1789) were drafted against the criticisms of Madison, Jefferson and others. In retaliation, Jefferson and James Madison sponsored the Kentucky and Virginia resolutions, which allowed states to interpose and in practice nullify federal actions.