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i think because for ideal administration. Minimal travel for the most state legislators. And, especially in the case of New York, but also in many other states - a very important factor: a location that would not suggest bias towards the state's largest city, and yet a location in a substantial enough town to hold its own.Explanation:

During the war years (1775-1783) because of its central location on the Hudson River, Albany was a useful supply center as well as a focal point for military planning. Albany native Philip Livingston was one of the signers of the Declaration of Independence.
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