Considered to be the best land-grab bargain in U.S. history, the Louisiana Purchase, dated April 30, 1803, was signed this week on May 2 with France.

Costing around 3 cents an acre, the 828,000 sq. miles of land (531 million acres) was contracted for, without military force, by French Finance Minister Barbé-Marbois and President Thomas Jefferson’s emissaries - Robert Livingston and James Monroe – helped along by France’s impending war with Britain and recent military failures in the New World. The territory gained effectively doubled the size of the young nation.

The payment for the territory’s purchase and to offset France’s debt to American citizens’ claims dating back to the 1790’s- was multi-faceted in structure. $3 million in gold was used as a down payment with the $12 million balance in the form of American bonds. In turn, the French treasuries’ liquidity needs were immediately fulfilled via negotiated transactions with the ironically English Alexander Baring of Hope & Baring Company - where France would receive the cash needed to wage war against Britain from Napoleon’s sale of the now discounted American bonds to the firm.

The original sales document of the Louisiana Purchase was proudly displayed in the entrance hall of Barings head office in London until its collapse from “rogue” trading - 233 years later.

news@doubledownmedia.com

4/28/08