This financial crisis resulted in political differences over the issues of debt relief, banking, and tariffs.

During the Missouri Compromise, the debate over slavery caused people to be divided by political parties and sectionalist attitudes. Southerners began to make alliances with the Republicans of the North since they opposed both high tariffs and a national bank.

Traditionally, one political group, the Republicans, formed a committee to select a candidate for the presidency. This selection was usually done in secrecy and produced more educated and elite candidates, such as the "Virginia Dynasty" of Jefferson, Madison, and Monroe. Many Republicans were beginning to refuse to participate in this method of selection.