19,281,446.57
--------------
$49,665,507.56

The Louisiana purchase and the admirable manner of its financial
arrangement were important factors in Jefferson's reelection. Mr.
Gallatin was now sure of four years, at least, for the prosecution of
his plan of redemption of the public debt. Estimating that with the
increase of population at the rate of thirty-five per cent. in ten
years, and the corresponding growth of the revenue, he could count upon
a net annual surplus of $5,500,000, he now proposed to convert the
several outstanding obligations into a six per cent. stock amounting,
January 1, 1809, to less than _forty millions of dollars_, which the
continued annual appropriation of $8,000,000 would, besides paying the
interest on the Louisiana debt, reimburse within a period of less than
seven years, or before the end of the year 1815. After that year no
other incumbrance would remain on the revenue than the interest and
reimbursement of the Louisiana stock, the last payment of which in the
year 1821 would complete the final extinguishment of the public debt.
The conversion act was passed February 1, 1807, and books were opened on
July 1 following. On February 27, 1807, Mr. Gallatin made a special
report on the state of the debt from 1801 to 1807, showing a diminution,
notwithstanding the Louisiana purchase, of $14,260,000.

In the summer of 1807 war with England seemed inevitable. Gallatin had
the satisfaction to report a full treasury,--the amount of specie
October 7, 1807, reaching over eight and one half millions,--and an
annual unappropriated surplus, which could be confidently relied upon,
of at least three millions of dollars. On this subject his remarks in
the light of subsequent history are of extreme interest. While
refraining from any recommendations as to the application of this
surplus, either to "measures of security and defense," or to "internal
improvements which, while increasing and diffusing the national wealth,
will strengthen the bonds of union," as "subjects which do not fall
within the province of the Treasury Department," he proceeds to consider
the advantage of an accumulation in the Treasury. In this report he
rises with easy flight far above the purely financial atmosphere into
the higher plane of political economy.

"A previous accumulation of treasure in time of peace might