USA HISTORY

Detailed explanation-1: -The Compromise of 1790 was a compromise between Alexander Hamilton, Thomas Jefferson, and James Madison, where Hamilton won the decision for the national government to take over and pay the state debts, and Jefferson and Madison obtained the national capital, the called the District of Columbia, for the South.

Detailed explanation-2: -In the “Dinner Table Bargain, ” Madison agreed that when the issue of assumption was brought before Congress again, he would remain passive rather than actively opposing it, and would convince some of his fellow southern congressmen to support it.

Detailed explanation-3: -Their plan was to build a new national capital along the Potomac River, close to Washington’s plantation at Mount Vernon and to land that Madison had invested in. The president, Madison, and Jefferson all imagined turning the Potomac into a major artery of American commerce.

Detailed explanation-4: -Hamilton believed this was necessary to establish the United States’ credit and promote investment. Furthermore, the debt rested in the hands of a small number of wealthy citizens. Hamilton knew these men would take a keen interest in the success of a country that owed them money.

Detailed explanation-5: -A deal had been reached between Hamilton, James Madison, and Jefferson a month earlier, where Hamilton agreed with the idea that the capital would be moved to the South.