Assumption Compromise
The definition of reinvestment assumption is an assumption made concerning the rate of return that can be earned on the cash flows generated by capital budgeting projects. The cash flow can be interest, earnings, dividends, or rent.
The "Capital Compromise" refers to an agreement reached in 1790 between Thomas Jefferson, Alexander Hamilton, and James Madison regarding the location of the new United States capital. In exchange for securing enough votes to pass Hamilton's financial plan, which included federal assumption of state debts, Jefferson and Madison agreed to support moving the capital from Philadelphia to a new site along the Potomac River, which eventually became Washington, D.C. This compromise was pivotal in shaping the political landscape of the early United States.
In return for support of Hamilton's Assumption plan the new US capital would be on the Potomac River.
The Compromise of 1790, brokered by James Madison, led to the South's agreement to accept Alexander Hamilton's financial plan. As part of the compromise, the capital was moved to Washington D.C., and in return, Hamilton's plan for assumption of state debts was approved. This helped to establish financial stability and unity within the new nation.
The compromise plan that established Washington D.C. as the U.S. capital was reached in 1790 between Alexander Hamilton and Thomas Jefferson, facilitated by James Madison. Hamilton sought federal assumption of state debts incurred during the Revolutionary War, while Jefferson and Madison wanted the capital to be located in the South. The agreement involved locating the capital along the Potomac River, which satisfied Southern interests and allowed Hamilton to secure the financial plan, thus leading to the establishment of the capital in Washington D.C.
Virginia eventually agreed to the assumption of state debts by the federal government as part of a compromise with Northern states during the debates over the location of the nation's capital. The Southern states, including Virginia, were burdened by significant war debts, and by accepting assumption, they aimed to secure the capital's location along the Potomac River, which was advantageous for Virginia. This deal helped unify the nation’s financial system and fostered cooperation between the North and South in the early years of the republic.
The Compromise of 1790 resulted in an agreement between Federalists and Anti-Federalists regarding the assumption of state debts and the location of the nation's capital. The federal government agreed to assume the debts incurred by the states during the Revolutionary War, while the capital would be relocated to a new site along the Potomac River, which eventually became Washington, D.C. This compromise helped to solidify the federal government's financial stability and fostered cooperation between the two political factions.
yes the compromise ended slavery in the capitol
no
no
Interest on capital is added on the capital account in balance sheet as interest incurred from capital is based on business entity assumption.
The nation's capital was moved south from New York City to Washington, D.C. to appease southern states and resolve a political conflict between the North and the South. The decision was made as part of the Compromise of 1790, which aimed to address the issue of federal assumption of states' debts. Moving the capital south was seen as a way to establish a neutral location away from the major urban centers of the North.