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The Compromise of 1790 was a compromise between Alexander Hamilton and Thomas Jefferson with 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 (District of Columbia) for the South. The compromise resolved the deadlock in Congress. Southerners were blocking the assumption of state debts by the treasury, thereby destroying the Hamiltonian program for building a fiscally strong federal government. Northerners rejected the proposal, much desired by Virginians, to locate the permanent national capital on the Virginia–Maryland border.
The meeting was organized by Thomas Jefferson, and only he, James Madison, and Alexander Hamilton were present at the meeting. This led to many assumptions about what was discussed at the meeting. The mystery of what happened at the meeting was recently popularized due to the musical Hamilton with the song "The Room Where It Happens".
The compromise made possible the passage of the Residence and Funding (Assumption) Acts in July and August 1790. According to historian Jacob Cooke, it is "generally regarded as one of the most important bargains in American history, ranking just below the better known Missouri Compromise and the Compromise of 1850."[1]
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