Originally, there existed only one party in America which was called the Federalists. This party was the only governing body in America. In 1793, another party emerged. The Republicans were also known as the Democratic-Republican Party. This party was formed as a result of Thomas Jefferson's resignation from the cabinet (Murrin and et al 56). His resignation was due to his opposition to the federalists’ policies which he insisted were based on corruption and oppression of the poor.The two parties had huge differences as far as domestic and foreign policies were concerned. The Federalists aimed at enriching the wealthy class in the community whereas, The Republicans fought against the oppression of the poor and the middle class. In foreign policies, the core difference between the Federalists and the Republicans was the relationship America had with Britain and France. The Federalists wanted to strengthen the bond between America and Britain. On the other hand, the Republicans wanted to strengthen the relationship between America and France. The main reason why Jefferson resigned to form the Republicans was mainly because he claimed the Federalists' aim was to enrich the wealthy people in the community and neglect the poor. In Massachusetts, the wealthy people wanted the poor to pay for the ongoing war and not them. Due to this, they raised the taxes (Murrin and et al 67).