The Know Nothing Party, also known as the American Party, was formed in the 1850s in response to a variety of social and political issues, primarily focused on opposition to immigration and the influence of Catholic immigrants. While it is true that the expansion of the factory system influenced social dynamics and issues, the party itself was more directly a reaction to the influx of immigrants, particularly from Ireland and Germany, and concerns over their impact on American society, culture, and politics.
In summary, while the expansion of the factory system was a part of the broader industrial changes in the United States during that time, the Know Nothing Party primarily emerged in response to the challenges and fears related to immigration rather than directly from the expansion of the factory system.