[101]
When Hamilton submitted his Report on Manufactures, which called for federal action to stimulate the development of a diversified economy, Madison once again challenged Hamilton's proposal.[102] Along with Jefferson, Madison helped Philip Freneau establish the National Gazette, a Philadelphia newspaper that attacked Hamilton's proposals.[103] In an essay published in the newspaper in September 1792, Madison wrote that the country had divided into two factions: his faction, which believed "that mankind are capable of governing themselves", and Hamilton's faction, which allegedly sought the establishment of an aristocratic monarchy and was biased in favor of the wealthy.[104] Those opposed to Hamilton's economic policies, including many former Anti-Federalists, continued to strengthen the ranks of the Democratic–Republican Party,[f] while those who supported the administration's policies supported Hamilton's Federalist Party.[106] In the 1792 presidential election, both major parties supported Washington for re-election, but the Democratic–Republicans sought to unseat Vice President John Adams. Because the Constitution's rules essentially precluded Jefferson from challenging Adams,[g] the party backed New York Governor George Clinton for the vice presidency, but Adams won nonetheless.[108]
With Jefferson out of office after 1793, Madison became the de facto leader of the Democratic–Republican Party.