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 exchange for southern votes, Hamilton promised to support locating the national capital on the banks of the Potomac River, the border between two southern states, Virginia and Maryland.

Detailed explanation-3: -Second, many southerners objected that they had already paid their outstanding state debts, so federal assumption would mean forcing them to pay again for the debts of New Englanders.

Detailed explanation-4: -The site of the new capital was the product of political compromise. As part of the struggle over Hamilton’s financial policy, Congress supported the Bank of the United States which would be headquartered in Philadelphia.

Detailed explanation-5: -nation’s capital to be located in the South. Hamilton offered to support that goal if southerners agreed to his plan to repay state debts. Madison and others accepted the compromise. In July 1790, Congress voted to pay state debts and to build the new capitol city in the South.