Final answer:
Hamilton suggested relocating the capital to gain southern support for his economic plan, leading to the establishment of the District of Columbia.
Step-by-step explanation:
To get southern members of Congress to vote for his economic plan, Alexander Hamilton suggested the relocation of the capital from New York City to a more southern location along the Potomac River, which appeased Virginians James Madison and Thomas Jefferson. This compromise was crucial in gaining their support for his financial systems, which included the assumption of debts and the creation of the Bank of the United States.
While Hamilton also proposed the creation of a national bank and the assumption of state debts, these measures alone were not enough to secure the necessary votes from southern members of Congress. The political maneuvering and compromise resulted in the selection of the District of Columbia as the new federal city in July 1790.