Federal District ten miles square (Art. 1, Sec. 8, Par.
17)."

"On September 11, 1789, while yet the idea of locating a Capital City
was still unsettled, L'Enfant wrote to President Washington asking to be
employed to design the Capital of 'this vast empire.'"

"It might be inferred from this letter that L'Enfant knew more about the
controversy in the Halls of Congress on the subject of location of the
Seat of Government than we know today. It was at its height, that we
know. The question of size of the Federal District had been settled by
the Constitution--it was to be ten miles square. Now the question of
location predominated--the question of 'exclusive jurisdiction' to be
exercised by Congress had been generally conceded.

The discussion was finally limited to two sites: first, a location on
the banks of the Potomac at least as far South as Georgetown, Maryland,
which was favored particularly by the Southern members of Congress as
being the geographical center of the United States; second, a site on
the Delaware River near the falls above Trenton, which Pennsylvania,
Delaware, and the other States nearby favored. But on the whole it was
deemed very important during the First Congress to give the National
Capital a central location along the Atlantic coast. Southern members
led by Richard Bland Lee and James Madison, of Virginia, argued for
consideration for the question by Congress before adjournment, and
recommended the Potomac River site near Georgetown."

"The burning question before Congress at the time was a bill for funding
of the public debt and the assumption of debts incurred by the States
during the Revolutionary War, amounting to about $20,000,000. Alexander
Hamilton as the first Secretary of the Treasury had recommended the
funding of both forms of indebtedness in obligations of the United
States. His aim was to restore the value of the worthless continental
dollar (a pound of tea sold for $90; a pair of shoes for $100; a barrel
of flour for $1,500 in paper money) but it was pointed out that the
assumption of State debts by the Government would result in most
benefits to the Northern States where there was most of the trade, while
mostly agriculture was in the South.... Thus we come to the famous
compromise proposed by Hamilton about the middle of June, 1790, when in
consideration of locating the capital on the banks of the Potomac he
hoped to secure enough votes to secure the enactment of the funding