Final answer:
Hamilton compromised with the South by agreeing to move the nation's capital closer to the South in exchange for support for his state debt and national bank plans.
Step-by-step explanation:
To help pass his state debt and national bank plans, Alexander Hamilton compromised with the South by agreeing to give up New York City as the nation's capital and select a more southern location along the Potomac River. This compromise was reached with the support of Virginians Madison and Jefferson. In return for their support, Hamilton agreed to move the capital closer to the South and separate the nation's political and financial interests, which was a desire of many southern legislators.