Tag Archives: Expenses

THIS is how to get U.S. out of debt! Part 2 of 3

The state of our finances continues to fulfill our expectations. Eleven millions & an half of Dollars recieved in the course of the year ending on the 30th. of Sep. last, have enabled us, after meeting all the ordinary expences of the year to pay 3,600,000. Dollars of the principal of the public debt. This paiment, with those of the two preceding years, has extinguished upwards of twelve millions of principal and a greater sum of interest within that period, and, by a proportionate diminution of interest, renders already sensible the effect of the growing sum yearly applicable to the discharge of principal.
To United States Congress, November 8, 1804

Patrick Lee’s Explanation
Principled leaders make debt their servant, not their master.
President Jefferson’s annual report to Congress detailed in simple fashion the nation’s financial health.
1. Income for the fiscal year ending September 30 was $11.5 million.
2. Expenses were $7.9 million.
3. The $3.6 million surplus was applied to paying down the national debt.
4. $12 million had been applied to that debt in the previous three years.
5. Interest saved and applied to the debt would lower it even faster in coming years.

Jefferson reduced the size of the federal government, including its army and navy, repaying debt with the savings. His administration reduced that debt in seven of its eight years, from $83 million to $57 million.  The one exception was 1803, when the U.S. borrowed $11.25 million to finance the purchase of Louisiana.

“We have also had Mr. Lee portray [Lewis & Clark’s] Captain Clark
and were so impressed that we had to have him back to witness his other characters.”
President, Nevada Association of Land Surveyors
Invite Thomas Jefferson (or Daniel Boone or Captain William Clark) to speak!
Call 573-657-2739
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Cash out & in, 1804, plus sad news

Jan. 1                   Gave in charity 5.D. [$5]. …
Feb. 13                 Paid for 13. glass pens 2.43 3/4. …
Mar. 28                Sent Mrs. Madison for a mantua [lady’s dress] maker 3.50. …
Apr. 3                   Culpepper C.H. [Court House] oats & etc. .58.   barber .50…
May 13                 Thomas Shields for finding pistol   .1.D…
June 7                  Gibson & Jefferson have sold my tobo [tobacco]… 1267.D.
July 20                 Pd. S.H. Smith for newspapers 10.D. …
Aug. 30                Pd. shoeing horses at Mr. Madison’s 1. …
Sept. 14                Recd. of J. Barnes 500.D. …
Oct. 31                  Tooth pick case 1.75. …
Nov. 13                 Paid at the races 1.D. …
Dec. 10                 Recd. back from Jos. Daugherty 3.50 overpaid [for] contingencies.
Memorandum Books, 1804

Patrick Lee’s Explanation
Careful leaders keep a record. (They should also keep a balance.)
The link above lists all of Jefferson’s expenditures and receipts for 1804. I excerpted one entry from the 50 or so listed for each month. These are not meant to be representative but to illustrate a variety of money coming and going.

Mr. Jefferson was an avid list maker. He would have jotted these amounts day-by-day during the year and summarized them all at year’s end. I have read (but cannot verify) that while he kept a careful record of every expense, he never struck a total at the end of the month or year, never a profit or loss statement, never an accounting of his net worth. Had he done so, he might have been more aware that his general financial health was slowly deteriorating through the years. He died deeply in debt.

Not all entries concerned money. On April 17, after recording a payment of $156.67 for corn, he also noted, ” This morning between 8. & 9. aclock my dear daughter Maria Eppes died.”

“Patrick Lee … as Thomas Jefferson … is obviously a very talented person
and did a great job of putting our regulatory burden in perspective.”
President & CEO, Citizens National Bank
Mr. Jefferson and I together will make a great addition to your meeting.
Invite us to speak. Call 573-657-2739
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