The visitors formed a circle about the room. At a quarter past three the door was closed, and Washington went around the circle, speaking to each person. Then he returned to his first position by the fireplace, where each visitor approached him, bowed, and retired. One of his first public duties was the choosing of strong men to form his cabinet and help him in his new tasks as President. Thomas Jefferson was made Secretary of State; Alexander Hamilton, Secretary of the Treasury; Henry Knox, Secretary of War; and Edmund Randolph, Attorney-General. John Jay was appointed Chief Justice of the Supreme Court. The new government had to settle more than one important question. One of these related to the method of paying the State debts which had been the outcome of the Revolutionary War. The northern States were in favor of having the National Government take care of these debts. Washington himself wished in this way to unite the interests of all the States as well as have them feel that they had a share in the new government. The southern States, however, were bitterly opposed to this plan, but they, in their turn, were eager to have the national capital located on the Potomac River. Alexander Hamilton, by a clever arrangement, persuaded the opposing interests to adopt a compromise, or an agreement by which each side got a part of what it wished. The northern States were to vote for a southern capital if the southern States would vote that the National Government should look after the State debts. This plan was carried out; and so it was decided that the capital of the United States should be located in the District of Columbia, on the Potomac River, and should be called Washington, after George Washington. In 1789, the seat of government was in New York; from 1790 to 1800, it was in Philadelphia; and in 1800 it was transferred to Washington, where it has ever since remained. THE COTTON-GIN AND SLAVERY One of the most noteworthy events which occurred during Washington's administration was the invention of the cotton-gin by Eli Whitney. Whitney was born in Massachusetts. While yet a boy he was employed in making nails by hand, for there was no machine for making them in those days. Later, when he entered Yale College, his skilful use of tools helped him to pay his college expenses. [Illustration: Eli Whitney.] After being graduated from Yale he went south, where he became a tutor in the family of General Greene's widow, then living on the Savannah River, in the home which, you remember, Georgia gave her husband. While he was in Mrs. Greene's home he invented for her an embroidery-frame which she greatly valued. One day, while she was entertaining some planters, they began to talk about the raising of cotton. One of her guests said that it did not pay well because so much time was needed to separate the seeds from the fibre. He added that if a way could be found to do this more quickly the profits would be far greater.