The interest rate on the Louisiana Purchase was 6 percent. This was stipulated in each of two conventions that accompanied the Purchase treaty.  The first convention was for 60 million francs outright payment. The second convention provided an additional 20 million francs from which various claims owed to French citizens were settled by a commission established for that purpose.  The following language from the first convention speaks to the point - the corresponding terms in the second convention are much more convoluted - but in both cases the interest rate was 6 percent.
Article 1
The Government of the United States engages to pay to the French government in the manner Specified in the following article the sum of Sixty millions of francs independant of the Sum which Shall be fixed by another Convention for the payment of the debts due by France to citizens of the United States.
Article 2
For the payment of the Sum of Sixty millions of francs mentioned in the preceeding article the United States shall create a Stock of eleven millions, two hundred and fifty thousand Dollars bearing an interest of Six per cent: per annum payable half yearly in London Amsterdam or Paris amounting by the half year to three hundred and thirty Seven thousand five hundred Dollars, according to the proportions which Shall be determined by the french Govenment to be paid at either place: The principal of the Said Stock to be reimbursed at the treasury of the United States in annual payments of not less than three millions of Dollars each; of which the first payment Shall commence fifteen years after the date of the exchange of ratifications:--this Stock Shall be transferred to the government of France or to Such person or persons as Shall be authorized to receive it in three months at most after the exchange of ratifications of this treaty and after Louisiana Shall be taken possession of the name of the Government of the United States.
It is further agreed that if the french Government Should be desirous of disposing of the Said Stock to receive the capital in Europe at Shorter terms that its measures for that purpose Shall be taken So as to favour in the greatest degree possible the credit of the United States, and to raise to the highest price the Said Stock.
Article 3
It is agreed that the Dollar of the United States Specified in the present Convention shall be fixed at five francs 3333/100000 or five livres eight Sous tournois.
The present Convention Shall be ratified in good and due form, and the ratifications Shall be exchanged the Space of Six months to date from this day or Sooner it possible.
In faith of which the respective Plenipotentiaries have Signed the above articles both in the french and english languages, declaring nevertheless that the present treaty has been originally agreed on and written in the french language; to which they have hereunto affixed their Seals.
Done at Paris the tenth of Floreal eleventh year of the french Republic/ 30th April 1803 ./



--
Jon Kukla ....................... Executive Vice-President and CEO
1250 Red Hill Road ........ Patrick Henry Memorial Foundation
Brookneal, VA 24528 .... www.redhill.org .... 804 376-2044
Home 804 376-4172 ...... Office email: [log in to unmask]
--

To subscribe, change options, or unsubscribe, please see the instructions
at http://listlva.lib.va.us/archives/va-hist.html