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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.

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3w ago

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