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America Gains Independence: Now What? Declaring independence from one nation raises lots of issues of concern for the newly formed nation. Many issues of commerce, the establishment of political parties, the local industry, respect from other countries, and protection and expansion of borders. These issues led to many other events some small feuds or treaties and some even led to military force within the domestically and internationally. One of the most important issues that America needed to address was the establishment of political parties. During this time two parties were formed the Federalists and the Democratic-Republicans. The Federalists were the party of Alexander Hamilton, John Adams, and John Marshall. They were led by merchants, bankers, and lawyers living primarily in New England. They also favored a strong central government, interpreted the Constitution loosely, were pro- England, and believed in a government by the elite. This party passed the Alien and Sedition Act in 1798. The contrasting party, Democratic- Republicans, was the party of Tho