A major reason for establishing the nation's new capital on the Potomac River was to create a compromise between the northern and southern states. This location was geographically central and symbolically significant, fostering unity and cooperation between the two regions. Additionally, it was strategically positioned for trade and transportation, benefiting the burgeoning nation economically. The decision was part of a broader negotiation involving federal assumption of state debts, which helped secure support from southern states.
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