Memorandum from Henry Dearborn, [7 November 1805]
Memorandum from Henry Dearborn
[7 Nov. 1805]
The amount of the propositions this day made by the Creek Chiefs, are that we pay them $200,000 in 18 annual instalments, which by an eaqual division of the whole sum, would amount to $11,111,11,1, each year,—and in addition to the above sum, they require in tools & blacksmiths, what may be estimated at $22,600,—it is presumed that they may be induced to relinquish one half of the last mentioned claim.
The difference between paying $200,000 down, or a perpetual interest for that sum, and paying by 18 eaqual instalments, will be $102,000, or thereabouts, which will reduce the sum of $200,000, to $98,000.—the foregoing difference, is the result of a deduction of the interest of 17 years, from the sum remaining after each payment every year.
by paying $12,000 each of the two first1 years
and $11,000 each of the other 16 years would amount to the sum proposed, and reduce each payment to round numbers, which would be more convenient, in fixing the stipulation, & in the payments—
RC (DLC); undated; in Dearborn’s hand; endorsed by TJ as received 7 Nov. and “Creek Purchase” and so recorded in SJL.
amount of the propositions: continued negotiations resulted in a final agreement on eight annual payments of $12,000 followed by ten annual payments of $11,000. The administration calculated the down payment as just under $133,000, which along with earned interest would enable fulfillment of U.S. obligations (Expenditures for Land Cessions, printed at 19 Nov.; TJ to the Senate, 11 Dec.).
1. MS: “firs.”