So it happened that Jefferson gave up his Virginia dogmas, and adopted Gallatin's ideas. They were both jealous of the army and navy; but they were willing to spend money with comparative liberality on internal improvements; and the wisdom of this course was evident. Even in a military point of view, roads and canals were more necessary than forts or ships.
The first evidence of change was the proposed fund for internal improvements and war purposes described in the second Inaugural Address. The suggestion was intended to prepare the public for a relaxation of Gallatin's economy. Although the entire debt could not be paid before 1817, only ten and a half millions of bonds remained to be immediately dealt with. By the year 1809 these ten and a half millions would be discharged; and thereafter Gallatin might reduce his annual payments of principal and interest from $8,000,000 to $4,500,000, freeing an annual sum of $3,500,000 for use in other directions. During the next three years Gallatin was anxious to maintain his old system, and especially to preserve peace with foreign nations; but after the year 1808 he promised to relax his severity, and to provide three or four millions for purposes of internal improvement and defence. The rapid increase of revenue helped to create confidence in this calculation, and to hasten decision as to the use of the promised surplus. The President had already decided to convert it into a permanent reserve