I'm currently reading "Empire of Liberty" by Gordon Wood. In the Compromise of 1790 he says that basically the location of the nation's capital was moved in exchange of debts being turned over to the federal government. My question is, how important was it to move the capital at that time? Was it a psychology victory for the south or was there more to it then that?
Moving the Nation's capital to the South was an important strategic victory. IN the late 18th century news traveled slow, having the capital in the South meant that the Virginia heard news quickly, and allowed the political elite more time to respond. Another concern, one which we take for granted today, is that in the event of any civil war Virginia would be in a far better position to respond than the Northern states. For a time when it seemed that the Federalists might steal the election of 1800 from Thomas Jefferson, Pennsylvania and Virginia's governor ensured plans were in place to (arguably) ensure Jefferson won the election.