"He inherited great wealth from his father-in-law, John
Wayles, and a manageable debt, which he mismanaged"

The Wayles inheritance of land and slaves did advance Jefferson's balance
sheet. But these assets were paper and the problem was the liabilities that
came along with the estate, which were immediate and required cash to the
British creditors. Rather than keep the estate in probate until the debts
were paid, the executors, of which Jefferson was one, decided to convey the
estate in thirds (Martha Jefferson and her two sisters were the
beneficiaries). This had the effect of transferring all of the Wayles'
debts to the executor's personal estates. There was a sale of land and
slaves in what was thought sufficient to pay the debts. The buyers gave
their bonds for the purchase price and these were paid off in virtually
worthless paper currency under the legal tender acts passed by Virginia
during the war. A substantial portion of the assets were gone but the debts
remained and interest continue to run. Far from being "great wealth" that
Jefferson  "mismanaged," the Wayles inheritance began  Jefferson's lifelong
slide into increasing debt. 


Richard E. Dixon
Editor, Jefferson Notes 
Thomas Jefferson Heritage Society
703-691-0770
fax 703-691-0978



> [Original Message]
> From: Henry Wiencek <[log in to unmask]>
> To: <[log in to unmask]>
> Date: 7/10/2007 3:07:38 PM
> Subject: [VA-HIST] TJ's debts
>
> The PBS statement that TJ's charity broke him is ridiculous. In no way did
> his charities sink him. Jefferson's financial picture was very complicated
> and hard to summarize briefly. He wrote everything down, and never added
> anything up: "For tho' I kept such exact entries in my daily memorandum
book
> as would enable me, or anybody else, to state the account accurately in a
> day, yet I had never collected the items, or formed them into an account,
> till within these few days."  He successfully juggled creditors for his
> entire adult life.  He inherited great wealth from his father-in-law, John
> Wayles, and a manageable debt, which he mismanaged--he also got caught in
> the collapse of Continental currency and was too honest to wiggle out of
> paying, as others did. A creditor told Jefferson that he was one of just
> three "respectable" names who had agreed to make payments on their debts;
> the rest were welching. The interest on his debts was crushing. But his
> debts never stopped him from doing anything. He entertained lavishly at
the
> White House because he enjoyed doing it and because he believed it to be
> politically important. He built Monticello--twice; then he built Poplar
> Forest; then he invested many thousands building a mill and canal at
> Shadwell. Well aware of his position, he remained an optimist. As he wrote
> to his daughter Martha, on January 5, 1808, in response to her letter
> detailing the financial calamities in her husband's family: "I have now
the
> gloomy prospect of retiring from office loaded with serious debts, which
> will materially affect the tranquility of my retirement. However, not
being
> apt to deject myself with evils before they happen, I nourish the hope of
> getting along."  Don't we all.
>
> Henry Wiencek