Not only did the location of the capital lead to greater integration and national unity, but the circumstances of its selection did quite a bit too. The Reside

Not only did the location of the capital lead to greater integration and national unity, but the circumstances of its selection did quite a bit too. The Residence Act, which set D.C. as the nation's capital, was passed by the first Congress to gain Southern support for Alexander Hamilton's economic plan, which involved the assumption of state debts by the federal government. As Southern states tended to have less debt (and fewer resources to pay debts than Northern states), their support was bought with the Residence Act. This Funding Act laid the groundwork for much of our financial system today, and it was the first major expansion of federal power beyond the enumerated Constitutional powers, paving the way for events like the founding of the First Bank.