Financing
How much was the USA's down payment on the Louisiana Purchase
Louisiana Purchase
The American government used $3 million in gold as a down payment, and issued bonds for the balance to pay France for the purchase. Earlier that year, Francis Baring and Company of London had become the U.S. government's official banking agent in London. Because of this favored position, the US asked the Baring firm to handle the transaction. Francis Baring's son Alexander was in Paris at the time and helped in the negotiations. Another Baring advantage was a close relationship with Hope and Company of Amsterdam. The two banking houses worked together to facilitate and underwrite the Purchase. Because Napoleon wanted to receive his money as quickly as possible, the two firms received the American bonds and paid cash to France.