This song exhibits the climactic dispute between Washington and Hamilton after the duel between Charles Lee and Laurens. While most of the song is self explanatory, there is an important line hiding in plain sight: "You solve nothing, you aggravate our allies to the South", says Washington as he scolds Hamilton. It should be noted that throughout all of American history (until recent years), the North and South are completely different places and have long tensions (a Southern state would be any state below Virginia, including Virginia itself).
Map of colonies in 1775
The North's industry runs on trade, fishing, small agriculture, and livestock. The South's industry is heavily based on tobacco and cotton plantations. It should also be noted that the North doesn't use many slaves (and would soon abolish slavery) while the South uses hoards of African American slaves. With such different industries in a single nation, there will undoubtedly be tension between these 2 regions as they both try to promote their region's interests in the federal government (this is called sectionalism).
This relates to the song because Charles Lee is from Virginia (which is in the South), and him being shot would make a bad impression on the Southern states and their troops, which may lead to worse cooperation and unity.
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