What compromise did Hamilton and Southern leaders reach over his plan to pay off state debts?

Hamilton and Southern leaders reached a compromise in which Southern states would support Hamilton's plan to assume state debts in exchange for the nation's capital being moved to the South, specifically along the Potomac River. This agreement allowed Hamilton to secure the necessary votes for his financial plan, while also addressing Southern concerns about the federal government's power and the location of the capital. Ultimately, this compromise helped lay the foundation for the establishment of Washington, D.C. as the nation's capital.