Editing Thomas Jefferson (section)

===Financial affairs===
[[File:Albert Gallatin (by Gilbert Stuart).jpg|thumb|[[Albert Gallatin]], Jefferson's [[United States Secretary of the Treasury|Treasury Secretary]], depicted in a portrait by [[Gilbert Stuart]]]]

Jefferson's first challenge as president was shrinking the $83&nbsp;million national debt.<ref>[[#Meacham|Meacham, 2012]], pp. 352</ref> He began dismantling Hamilton's Federalist fiscal system with help from the secretary of the treasury, Albert Gallatin.<ref name=Peterson41>[[#Peterson2002|Peterson, 2002]], p. 41.</ref> Gallatin devised a plan to eliminate the national debt in sixteen years by extensive annual appropriations and reduction in taxes.<ref name="Peterson pp. 43-44">[[#Peterson2002|Peterson, 2002]], pp. 43–44.</ref> The administration eliminated the whiskey excise and other taxes after closing "unnecessary offices" and cutting "useless establishments and expenses".<ref name="Wood, 2010, p. 293">[[#Wood2010|Wood, 2010]], p. 293.</ref><ref>[[#Bailey2007|Bailey, 2007]], p. 216.</ref>

Jefferson believed that the [[First Bank of the United States]] represented a "most deadly hostility" to republican government.<ref name="Peterson pp. 43-44"/> He wanted to dismantle the bank before its charter expired in 1811, but was dissuaded by Gallatin.<ref>[[#Wills02|Wills, 2002]], pp. 50–51.</ref> Gallatin argued that the national bank was a useful financial institution and set out to expand its operations.<ref name="Peterson p. 44">[[#Peterson2002|Peterson, 2002]], p. 44.</ref> Jefferson looked to other corners to address the growing national debt.<ref name="Peterson p. 44"/> He shrank the Navy, for example, deeming it unnecessary in peacetime, and incorporated a fleet of inexpensive gunboats intended only for local defense to avoid provocation against foreign powers.<ref name="Wood, 2010, p. 293"/> After two terms, he had lowered the national debt from $83&nbsp;million to $57&nbsp;million.<ref name=Meacham387>[[#Meacham|Meacham, 2012]], p. 387.</ref>