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The capital is moved from New York to a new place on the border between the North and South. The Northern States agree to move the capital from New York if the Southern States help pay off the Revolutionary War debt. The Southern States help the Northern States pay their debt and the new capital is created on land on the border between the North and the South. This deal puts the Nation's capital in a Neutral area and not in any one state. This place is known as Washington DC.
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