I do not ask that in the present situation of our foreign relations the debt be reduced, but only that it shall not be increased so long as we are not at war." In his eight years of service under Jefferson, Gallatin had not found the Treasury Department a bed of roses.

Under Madison there was an undue proportion of thorns.
It has been shown that the entire reliance of Gallatin for the expenses of government was on customs, tonnage dues, and land sales.

The effect of the Embargo Act was soon felt in the falling off of importations, and consequently in the revenue from this source.

Mr.Gallatin felt the strain in the spring of 1809; and on March 18, soon after Mr.Madison's inauguration, he gave notice to the commissioners of the sinking fund of a probable deficiency.

In his annual report to Congress, December, 1809, he announced the expenses of government, exclusive of the payments on account of the principal of the debt, to have exceeded the actual receipts into the Treasury by a sum of near $1,300,000.