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[Music] one minute history the first Congress of the newly established United States is hopelessly deadlocked on two critical issues James Madison in the southern states are pushing to move the seat of government from New York City to a location on the Potomac River outside of Virginia an idea rejected by northerners Alexander Hamilton leads the northern states who want to create a National Bank and pay off the state's debts from the American Revolution southerners oppose the assumption of debt bearing the idea of a strong centralized national government Thomas Jefferson invites Hamilton and Madison to dinner at his estate and helps broker a compromise southerners will not block legislation on the assumption of state debts if northerners support the relocation of the seat of government passage of the residents and funding acts of 1790 establishes us credit at home and abroad which allows Thomas Jefferson as president in 1803 to finance the Louisiana Purchase
