… From this portion of my personal condition, I must turn to another of unpleasant hue, and apologize to you for what has given me much mortification … [a debt of] ten or twelve thousand Dollars … [what my agent] mr Barnes suggested that … the 4500.D. of yours … would entirely relieve my remaining deficiency. the proposition was like a beam of light; & I was satisfied that were you on the spot to be consulted the kindness of your heart would be gratified, while recieving punctually the interest for your own subsistence, to let the principal be so disposed of for a time, as to lift a friend out of distress …
To Tadeusz Kosciuszko, February 26, 1810
Patrick Lee’s Explanation
A debt-burdened leader is a conflicted leader.
Jefferson ended his long letter with an embarrassing admission. While he had hoped to finish his Presidency with his personal debt near zero, he found he still owed $10-12,000. His friend, President Madison, co-signed for 2/3 of that debt, but he had no access to more credit.
Jefferson was executor for the American portion of Koscuiszko’s estate when the Pole returned to Europe. At his death, that money was to free and educate slaves, and Jefferson was to make sure it happened. In the meantime, the money was invested.
The indebted former President, at his business agent’s suggestion, loaned Koscuiszko’s money to himself. He rationalized that Koscuiszko didn’t care who paid his interest, so long as it was paid. The principal of the estate covered the remainder of Jefferson’s large debt.
The Polish leader replied, “I approve of everything that you have done with my fund. I have complete confidence in you. I only ask that the interest be paid regularly …”
Koscuiszko later wrote other wills which conflicted with the one governing his American estate. He died in 1817, and Jefferson could not probate the slavery-relief funds. They remained part of his indebtedness and were never used for their intended purpose. Koscuizsko’s complicated estate wasn’t finally settled until several decades after Jefferson’s death in 1826.