The Louisiana Purchase of 1803

The Louisiana Purchase of 1803 was between the United States and France. The signing took place on April 30, 1803 by Robert Livingston, James Monroe and Barbe Marbois in Paris, France. Originally, Robert Livingston and James Monroe had gone into negotiations to purchase the port and the environs. The United States of America purchased 828,000 miles of land that France owned, at the time called Louisiana. The United States paid $11,250,000 plus they canceled debts that France owed to the United States, totaling $3,750,000. The total price paid was 15 million dollars.

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The United States came up with the money for the purchase, which consisted of $3 million in gold for the down payment and they also issued bonds for the balance to France. However, at the time France was in an impeding war with Britain and would not buy or market American bonds. But, Monroe and Livingston recommended Baring and Company of London and Hope and Company of Amsterdam to handle the transaction. The bonds were immediately turned into cash for the French government.

This was an extremely important purchase that the United States made. First, Thomas Jefferson was president at the time and there was opposition to the purchase, because it was thought to be unconstitutional. But, Jefferson felt there was nothing in the constitution that said that a territory could not be purchased. Jefferson did not like Spain and France having the ability to block American trade into New Orleans. This was an important port because New Orleans controlled the Mississippi River at the time. Other ports had been unsuccessful to use. Exports such as flour, tobacco, bacon, pork, feathers, cider, lard, cheese and butter were shipped from here to other parts of the United States. The United States did have a treaty that stated they could and store goods at this port. However, in 1798, Spain revoked these rights, but by 1801 they were fully restored, but Americans had been very upset by this action.

Also, the Louisiana Purchase also expanded the size of the United States greatly, actually doubled the size of the United States. The territory was comprised of what is now 14 current states and 2 Canadian provinces. The states were Arkansas, Missouri, Iowa, Oklahoma, Kansas, Nebraska, part of Minnesota that was west of the Mississippi River, almost all of North Dakota and South Dakota, the north eastern area of New Mexico, part of Montana, Wyoming, Colorado that was east of the Continental Divide and Louisiana that was west of the Mississippi River, which included New Orleans. The 2 Canadian provinces were Alberta and Saskatchewan.

Jefferson officially announced the treaty to the United States on July 4, 1803. New Orleans was not turned over to the United States until December 20, 1803. Although the treaty had been announced on July 4th, a formal ceremony did not take place until March 10, 1804 and was performed in St. Louis. By October 1, 1804 the territory was turned into the Territory of Orleans, which is now known at the state of Louisiana, and the District of Louisiana.