2. What Spain Sold for 10 Million Dollars

At the time of Jefferson’s inauguration Spain was facing serious financial troubles. British attacks on its colonies and a blockade on its major ports only worsened the situation. After the first rebellions broke out in Spain’s American colonies, United States’ officials had been sent to Madrid with the purpose of negotiating the purchase of New Orleans to financially assist Spain. Jefferson’s predecessor, John Adams, had already considered the idea of purchasing the port but negotiations did not begin until Jefferson became President. Immediately after his inauguration, Jefferson sent Robert R. Livingston and James Monroe to negotiate the purchase of New Orleans for up to 10 million dollars. France was also interested in acquiring the territory; Napoleon had openly expressed his plans to start a colonial Empire for France. A small bidding war began between France and the United States but France backed down at the possibility of loosing Spain’s alliance against the British if the negotiations happened to fall apart, or getting in a quarrel with the United States. 

In November 1801, less than a year into the presidency of Thomas Jefferson the United States purchased New Orleans form Spain. Napoleon’s France readily recognized the purchase. But in the haste of finishing the transaction and transferring New Orleans over to the Americans several details of the treaty had been overlooked! For starters, there was no direct land connection between the port and the rest of the United States. For the Americans it seemed easiest to assume that the purchase included the land between the Mississippi River and the Pearl River. This territory was later organized into the Mississippi Territory, but the American claim would become a source of contention between the US, Spain and Britain over the next few years.