Louisiana Purchase

3. The chart in Figure 2 illustrates the value of money between 1800 and 1999. It
illustrates that $100 in 1999 had less value than in previous years. For example, $100 in
1999 is the equivalent of $10 in 1920.

Use the chart in Figure 2 to determine the price of the Louisiana Purchase in today’s
dollars.

Figure 2. Chart showing the value of a U. S. dollar from 1800 to 1999.

4. Go to this web site: http://www.westegg.com/inflation/
Use the inflation calculator on this web page to determine the exact cost of the Louisiana
Purchase in today’s dollars.

5. Use the amount found in problem 4 to find the percentage change in 1803 dollars
compared to 1999 dollars.

It might surprise you that the U.S. was able to purchase this large territory for so little
money (even in current dollars). Events that might explain this bargain include the fact
that Emperor Napoleon of France had just lost an army and the island of Santo Domingo
in the Caribbean to Toussaint L’Overture, the leader of a slave insurrection. As a result,
Napoleon was no longer interested in maintaining a French foothold in North America.
The purchase was ratified through congressional legislation in October of 1803.