The Grand Banks Accord (New York and Massachusetts)

[Galveston Bay]

Winter 1784
Massachusetts sends Eldridge Gerry, a signer of the Declaration of Independence (and wily politician later famous for Gerrymandering) to New York to discuss areas of mutual concern and interest between Massachusetts and New York.

Proposed are the following:
1. Customs union between New York and Massachusetts (no tariffs on goods traded between the two states).
2.  Elimination of tolls for shared waterways (specifically Long Island Sound)
3.  Access by fishermen from New York to the Grand Banks
4.  Massachusetts will forfeit is claims to territory in the Northwest Territory
5.  Mutual defense from outside aggression.
6.  Representing each others interests abroad
7.  Vermont is allowed to go its own way. 
8.  Clarification that slaves are free if they enter Massachusetts
9.  Urging New York to free its slaves.
10.  Creation of a regional Bank, which would coin currency for both and be backed by both (a smaller scale 1st Bank of the United States)

an agreement would be called the Long Island Sound Compact

In New York,
The arrival of Gerry causes much buzz and sensation and talk among the political class of New York, although not all of his proposals are widely known. Much of his agenda is seen in a relatively positive light, especially considering that Governor Clinton was broadly supportive of a more unified government (although not to the same extent that Hamilton was) and the idea of a customs union is not without supporters. Hamilton, for his part, is extremely enthusiastic about a regional bank (having just helped found the Bank of New York and believing strongly that unified credit system will help the states recover and grow economically).

Slavery is a relatively small part of the New York economy and population, although not completely non-existent. The state legislature has already voted into law (passed in 1781) an act freeing those slaves who fought for the Revolutionary cause. New York is also home to John Jay (who, while still in Europe, has influence in the state government) and Aaron Burr, both of whom are strongly abolitionist. The sticking point is what to do with them after being freed; the furthest that New York is prepared to go at this date is gradual emancipation and there is talk of banning slave imports both from within the Americas and from the Caribbean and Africa itself, prodded along by a recently-founded abolitionist group calling itself the New York Manumission Society.

Governor Clinton is, however, strongly opposed to allowing the Vermonters to break way from New York and he has the backing of much of the legislature, who view Vermont as rightfully belonging to New York.

Mutual defense is relatively popular, although there is a worry that they might be dragged into a "foreign entanglement". Still, Hamilton, Clinton, and other prominent members of New York's political class see this as potentially a way around the disastrous collapse of the idea of a unified nation.

[TLS]

When news of Gerry's offer leaks out into the wider New York press, it inevitably makes its way to the other relevant states affected by Massachusetts' gambit. The Connecticut General Assembly is quick to note that the Long Island Sound is not an issue of discussion for New York to unilaterally cede tax rates over, nor does Massachusetts have one iota of claim to the sound. The Vermonters, meanwhile, are greatly thrilled by the news that the Bay State is now openly supporting their claim to independence and legitimacy--something that the New Hampshire government receives with the almost polar-opposite icy dread. New Hampshire quickly sends its own representatives to New York to note that, while New Hampshire and New York certainly have their disagreements over the New Hampshire Grants, it is not by fiat of some puritan fishermen that the green mountains will be wrested from their rightful owners.

[Kilani]

The matter of Vermont is quite firmly and publicly stated by Clinton to be a matter of concern for the New Hampshire and New York governments, as the so-called Republic of Vermont is denying the rightful rule of law and are, in essence, squatters (or so the official line goes). While the government of Massachusetts is thanked for their offer to act as.some form of mediator, the possibility of recognizing the Vermont state is quite firmly put to rest.

[Galveston Bay]

During the summer and fall of 1784, New York and Massachusetts reach and sign an agreement
1.  Customs Union between the two, so that there are no tariffs on trade between the two states.
2.  New York fishermen are granted full access to the Grand Banks
3.   An agreement to mutual defense from outside aggression
4.  New York recognizes that slaves that enter Massachusetts become free and New York promises to end slavery in time in its territory.
5.  Creation of a regional bank (name pending) (on the example of the First National Bank of the US, see here
https://en.wikipedia.org/wiki/First_Bank_of_the_United_States

New York firmness regarding Vermont results in a failure to settle the issue.  For now talks continue.  Massachusetts continues to use its western land claims as a carrot in hopes of persuading New York to change its mind

[Kilani]

Alexander Hamilton and other prominent business leaders begin correspondence with their counterparts in Boston to begin drawing up the plans for establishment of the Massachusetts-New York Bank (proper name currently pending). Hamilton also discusses further close relations and the possibility of future cooperation, potentially along governmental lines.

However, representatives from Clinton's office express their displeasure with New York's interference in what is seen as a purely internal New York matter with regards to Vermont. Despite this grumbling, the legislature does ratify the treaty, as the idea of having assistance against outside powers (should Britain come knocking again) is seen as vital, along with the continued push for abolitionism among prominent members of New York upper society.

The New York fishing industry is also quite pleased with the treaty.

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