A further part of Hamilton's original scheme aroused even greater opposition. During the Revolutionary War the states, too, had become heavily in debt. They had furnished soldiers and supplies to Congress. Some of them had undertaken expeditions at their own expense. Virginia, for example, had borne all the cost of Clark's conquest of the Northwest. She had later ceded nearly all her rights in the conquered territory to the United States. These debts had been incurred for the benefit of the people as a whole. Would it not then be fair for the people of the United States as a whole to pay them? Hamilton thought that it would. It chanced, however, that the Northern states had much larger debts than had the Southern states. One result of Hamilton's scheme would be to relieve the Northern states of a part of their burdens and to increase the burdens of the Southern states. The Southerners, therefore, were strongly opposed to the plan. The North Carolina representatives reached New York just in time to vote against it, and that part of Hamilton's plan was defeated. AN OLD STAGECOACH The house was built in Lincoln County, Kentucky, in 1783.

In these days of fast express trains it makes little difference whether one is going to Philadelphia or to Baltimore-only a few hours more or less in a comfortable railroad car. But in 1791 it made a great deal of difference whether one were going to Philadelphia or to Baltimore. Traveling was especially hard in the South. There were few roads or taverns in that part of the country, and those few were bad. The Southerners were anxious to have the national capital as far south as possible. They were also opposed to the assumption of the state debts by the national government. Now it happened that the Northerners were in favor of the assumption of the debts and did not care very much where the national capital might be. In the end Jefferson and Hamilton made "a deal," the first of its kind in our history. Enough Southerners voted for the assumption bill to pass it. The Northerners, on their part, agreed that the temporary seat of government should be at Philadelphia, and the permanent seat of government on thePotomac. Virginia and Maryland at once ceded enough land to form a "federal district."This was called the District of Columbia. Soon preparations were begun to build a capital city there-the city of Washington.