The Dinner Table Bargain was a pivotal political agreement reached on the evening of June 20, 1790, between Alexander Hamilton and James Madison, facilitated by Thomas Jefferson, that resolved two major stalemates in early American politics: the location of the nation's capital and the federal assumption of state debts.
The Historic Compromise
This informal agreement, often referred to as the Compromise of 1790, was a crucial moment that allowed the nascent United States government to move forward on critical financial and political issues. It addressed deep divisions that threatened to derail the stability and unity of the new republic.
Key Issues at Stake
Before the bargain, Congress was gridlocked over two contentious matters:
- Assumption of State Debts: Alexander Hamilton, then Secretary of the Treasury, proposed that the federal government assume the Revolutionary War debts incurred by individual states. This was a central part of his plan to stabilize the national economy and establish federal credit. States like Massachusetts, with large debts, supported this, while southern states like Virginia, which had largely paid off their debts, opposed it, viewing it as unfair and an overreach of federal power.
- Location of the Capital: There was intense debate over where to locate the permanent capital of the United United States. Northern states favored a more central location, while southern states advocated for a site further south.
The Terms of the Bargain
The agreement reached between Hamilton and Madison, with Jefferson's mediation, was a direct exchange of political support:
| Party Gaining | Concession Made |
|---|---|
| Alexander Hamilton (Federalists) | Gained crucial support for the federal government's assumption of state debts. |
| James Madison (Republicans/Southern States) | Secured the national capital's permanent location on the Potomac River. |
Specifically, in exchange for Hamilton's support for placing the national capital on the Potomac River, James Madison agreed to cease blocking the assumption plan in Congress. Furthermore, Madison committed to delivering critical Virginia votes to ensure the measure's passage. This accord effectively broke the legislative logjam.
Significance and Impact
The Dinner Table Bargain had profound implications for the young nation:
- Economic Stability: The assumption of state debts by the federal government strengthened national credit and laid the groundwork for a stable financial system, a cornerstone of Hamilton's economic vision.
- National Unity: It averted a potential crisis that could have fractured the fragile union, demonstrating the ability of leaders to compromise for the greater good of the nation.
- Capital Location: It established the future site of Washington, D.C., on the Potomac River, a geographically central location between the northern and southern states of the original thirteen colonies. This decision, while a victory for the South, also symbolized a commitment to a unified national identity.
This compromise highlights the art of political negotiation in the early days of the American republic, shaping its geographical and financial foundations. You can learn more about this period of American history by exploring resources like the National Archives.
