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 were the two critical issues that the established United States was deadlocked on?

Who were the key figures involved in the dinner that brokered a compromise regarding the seat of government?

What was the compromise reached between the Southerners and Northerners regarding the assumption of state debts?

What legislation was passed as a result of the compromise that established U.S. credit?

How did the compromise affect Thomas Jefferson's ability to finance the Louisiana Purchase?