Upon assuming office, he first confronted an $83 million national debt. He began dismantling Hamilton's Federalist fiscal system with help from Secretary of the Treasury Albert Gallatin. Jefferson's administration eliminated the whiskey excise and other taxes after closing "unnecessary offices" and cutting "useless establishments and expenses". They attempted to disassemble the national bank and its effect of increasing national debt, but were dissuaded by Gallatin. Jefferson shrank the Navy, deeming it unnecessary in peacetime. Instead, he incorporated a fleet of inexpensive gunboats used only for defense with the idea that they would not provoke foreign hostilities. After two terms, he had lowered the national debt from $83 million to $57 million.