structural:reformatting, stylistic:tone
Financial affairs

Jefferson's first challenge as president was shrinking the $83 million national debt. He began dismantling Hamilton's Federalist fiscal system with help from the secretary of the treasury, Albert Gallatin. Gallatin devised a plan to eliminate the national debt in sixteen years by extensive annual appropriations and reduction in taxes. The administration eliminated the whiskey excise and other taxes after closing "unnecessary offices" and cutting "useless establishments and expenses".

Jefferson believed that the First Bank of the United States represented a "most deadly hostility" to republican government. He wanted to dismantle the bank before its charter expired in 1811, but was dissuaded by Gallatin. Gallatin argued that the national bank was a useful financial institution and set out to expand its operations. Jefferson looked to other corners to address the growing national debt. 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. After two terms, he had lowered the national debt from $83 million to $57 million.