WI: US government didn't take state debts after Revolution

After the American Revolution and the Constitution's ratification, the next issue faced was the debt of the states and the location of the nations capital. Hamilton wanted the capital in the North, and Jefferosn wanted it in the south. Hamilton also wanted the national government to take on the debt of the 13 states in order to establish a national line of credit. Jefferson was fully against this. IOTL a deal was made to put the capital in the south, if the federal govt. could take on all the debt(most of which was from the north).

Well, what if the Federal Government never took on the debt of the states? Where would the capital be? What would America's economic situation look like in the 1800s? How would this effect future fiscal and monetary policy?
 
Western Land Claims

This could do a lot of harm to the nation. Some states gave up their western land claims in return for the federal government assuming their debts. If they don't give up their claims, then there's a lot more rension--some claims overlapped, and states without western lands would be nervous avout being overshadowed in the future.

Wikipedia has a brief summary of the claims. http://en.wikipedia.org/wiki/State_cessions
 
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