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The Louisiana Purchase and rapid western expansion were crucial developments during the early republic. But attention there can misleadingly suggest that the United States rapidly assumed the shape we know today. Focusing on how the capital city of the federal government changed in the early years of the nation reminds us of the limited nature of the early central government. Like so many other elements of the new nation, even the most basic features of the capital city were unsettled. President Washington first took office in NEW YORK CITY, but, when reelected in 1792, the capital had already moved to Philadelphia where it would remain for a decade. Fittingly, Jefferson was the first president to be inaugurated in the new and lasting capital of Washington, D.C. in March 1801.
The site of the new capital was the product of political compromise. As part of the struggle over Hamilton's financial policy, Congress supported the Bank of the United States which would be headquartered in Philadelphia. In exchange the special DISTRICT OF COLUMBIA, to be under Congressional control, would be built on the POTOMAC RIVER. The compromise represented a symbolic politics of the very highest order. While Hamilton's policies encouraged the consolidation of economic power in the hands of bankers, financiers, and merchants who predominated in the urban northeast, the political capital was to be in a more southerly and agricultural region apart from those economic elites.