How did the United States pay for the Louisiana Purchase?

The Louisiana Purchase was a massive land deal that doubled the size of the United States, but the way the transaction was handled was more complex than a simple cash transfer.

Initially, American delegates James Monroe and Robert R. Livingston were sent to Paris to negotiate the purchase of New Orleans and the Mississippi Delta, with $3 million in gold for a down payment. However, a financially strapped Napoleon offered to sell the entire Louisiana Territory for $15 million. The American delegates, without presidential approval, accepted the deal.

The payment wasn't a straightforward cash transaction. It was composed of three parts: a $3 million gold down payment, the cancellation of a $3.75 million debt that France owed the U.S. for piracy, and the remainder paid in bonds. French banks were unwilling to accept the bonds, so two foreign banks, Hope and Company of Amsterdam and Barings of London, bought the bonds at a 12.5% discount. This provided Napoleon with the money he needed for his ongoing war.