093 The Dinner Table Bargain - One Minute History

The United States faced a deadlock over relocating the government seat and creating a national bank. Southern states, led by James Madison, wanted the capital moved to the Potomac River, while Northern states, led by Alexander Hamilton, pushed for a national bank and debt assumption. Thomas Jefferson mediated a compromise: Southerners agreed not to block debt legislation if Northerners supported moving the capital. This led to the Residence and Funding Acts of 1790, establishing US credit and enabling the Louisiana Purchase in 1803.

What was the main reason the Southern states wanted to move the seat of government?

• To establish a stronger presence in the North

• To avoid the influence of New York City

• To reduce travel time for Southern politicians

• To have the government closer to the Potomac River

Who was the leading figure advocating for the creation of a national bank?

• Alexander Hamilton

• George Washington

• James Madison

• Thomas Jefferson

What was the Southern states' main concern about the national bank?

• It would devalue Southern currency

• It would strengthen the centralized government

• It would favor Northern businesses

• It would lead to higher taxes

What was the outcome of the compromise brokered by Thomas Jefferson?

• The Residence and Funding Acts of 1790 were passed

• The Southern states gained more political power

• The national bank was abolished

• The government seat remained in New York City

How did the passage of the Residence and Funding Acts of 1790 benefit the United States?

• It led to the abolition of state debts

• It established US credit and enabled the Louisiana Purchase

• It increased trade with European nations

• It allowed for the construction of the White House