2,080.67| - | - |
1808 | 65,196,317.97| 8,173,125.88| - | - |
1809 | 57,023,192.09| 3,850,889.77| - | - |
1810 | 53,172,302.32| - | - | - |
------+--------------+--------------+---------------+-------------+
-----------------
Annual
Decrease.
-----------------
$3,657,948.95
-
4,114,970.38
6,588,879.84
6,504,872.02
4,022,080.67
8,173,125.88
3,850,889.77
-
-----------------
* Louisiana purchase.

1802 $80,712,632.25 Decrease $36,912,764.51
1810 53,172,302.32 Increase 9,372,434.58
-------------- --------------
$27,540,329.93 Decrease in 8 yrs. $27,540,329.93

From this it appears that, notwithstanding the extraordinary increase of
the principal by the amount of the Louisiana purchase, Mr. Gallatin
contrived a reduction of $27,540,329. But if to this be added the true
reduction for the year 1803, namely, the difference between the
Louisiana debt, $15,000,000, and the increase for that year, by reason
of that purchase, $9,372,434, say $6,627,565, the reduction is found to
be, and but for that disturbing cause would have reached, $34,167,895,
a sum exceeding by $1,878,895 that estimated by Mr. Gallatin in his
report of 1801 as the amount of eight years' reduction, namely,
$32,289,000.

The ways and means of this remarkable example of financial management
appear in the following extracts from Elliott's synoptical statement
(table given on page 194).

The purchase of Louisiana was the extraordinary financial measure of
Jefferson's first presidential term. Though the new obligation for the
consideration money, fifteen millions of dollars, was a large sum in
proportion to the total existing debt of the United States, it did not
in the least derange Gallatin's plan of funding and reduction, but was
brought without friction within his general scheme. With the terms of
the contract Gallatin had nothing to do. They were arranged by
Livingston and Monroe, the American commissioners; the intervention of
the houses of Hope and the Barings being a part of the understanding
between the commissioners and the French government. These bankers
engaged to make the money payments and take six per cent. stock of the
United States at seventy-eight and one half cents on the dollar. Wit