Alexander Hamilton wrote the majority of the Federalist Papers.
Key basic industries, such as railroads, textiles, and steel had barely made a profit. Railroads lost business to new forms of transportation (trucks, buses, and private automobiles, for instance). Coal mining was especially hard-hit, in part due to stiff competition from new forms of energy, including hydroelectric power, fuel oil, and natural gas.
The purpose of dividing the government into 3 different branches was that so one entity did not have all the power. So they basically did it to divide the power.