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The Democratic Party was originally founded as the Democratic-Republican Party in the early 1790s by Thomas Jefferson and James Madison, to oppose the Federalist Party which had been founded a few years earlier by Alexander Hamilton.
Origins and Early Years. The name was first used by Thomas Jefferson's party, later called the Democratic Republican party or, simply, the Democratic party. The name reappeared in the 1850s, when the present-day Republican party was founded.At that time the crucial issue of the extension of slavery into the territories split the Democratic party and the Whig party, and opponents of the Kansas-Nebraska Act of 1854 organized the new Republican party.he name reappeared in the 1850s, when the present-day Republican party was founded. At that time the crucial issue of the extension of slavery into the territories split the Democratic party and the Whig party, and opponents of the Kansas-Nebraska Act of 1854 organized the new Republican party.