Before he entered on the duties of the office he submitted to Mr.Jefferson, March 14, 1801, some rough sketches of the financial situation, and suggested the general outlines of his policy.

He insisted upon a curtailment in the appropriations for the naval and military establishments, the only saving adequate to the repeal of all internal duties; and upon the discharge of the foreign debt within the period of its obligation.

He estimated that the probable receipts and expenditures for the year 1801 would leave a surplus of more than two millions of dollars applicable to the redemption of the debt.
On taking personal charge of the Treasury Department, his first business was to get rid of the arrears of current business which had accumulated since the retirement of Wolcott; his next, to perfect the internal revenue system, so far as it could be remedied without new legislation.
The entire summer of 1801 was passed in "arranging, or rather procuring correct statements amongst the Treasury documents," a task of such difficulty that he was unwilling, on November 15, to arrive at an estimate of the revenue within half a million, or to commit himself to any opinion as to the feasibility of abolishing the internal revenues.
In his "notes" submitted to Jefferson upon the draft of his first message, there are several passages of interest which show Mr.
Gallatin's logical habit of searching out economic causes.

Under the head of finances, he remarks, "The revenue has increased more than in the same ratio with population: 1st, because our wealth has increased in a greater ratio than population; 2d, because the seaports and towns, which consume imported articles much more than the country, have increased in a greater proportion." The final paragraph in these "notes" is a synopsis of his entire scheme of administration.
"There is but one subject not mentioned in the message which I feel extremely anxious to see recommended.

It is generally that Congress should adopt such measures as will effectually guard against misapplications of public moneys, by making specific appropriations whenever practicable; by providing against the application of moneys drawn from the Treasury under an appropriation to any other object or to any greater amount than that for which they have been drawn; by limiting discretionary power in the application of that money; whether by heads of department or by any other agents; and by rendering every person who receives public moneys from the Treasury as immediately, promptly, and effectually accountable to the accounting officer (the comptroller) as practicable.