Jefferson discussed his financial policy with his two closest advisers. The advisers were Secretary of State James Madison and Treasury Secretary Albert Gallatin. The men agreed that the government must stop spending as much money as it did under former president John Adams. And they agreed that the government must pay its debts as quickly as possible.

Albert Gallatin said: We must have a strong policy. The debt must be paid. If we do not do this, our children, our grandchildren, and many generations to come will have to pay for our mistakes.

Jefferson began saving money by cutting unnecessary jobs in the executive branch. He reduced the number of ambassadors. And he dismissed all the tax inspectors.

Congress would have to take the next steps. Most government offices, Jefferson said, were created by laws of Congress. Congress alone must act on these positions. The citizens of the United States have paid for these jobs with their taxes. It is not right or just for the government to take more than it needs from the people.

President Jefferson also wanted to cut taxes on the production and sale of some products, including whiskey and tobacco. He hoped the government could get all the money it needed from import taxes and from the sale of public lands.

The Federalists were furious. They warned that Jefferson’s financial program would crush the nation. They declared there would be anarchy if Federalist officials were dismissed.