American history. As historian Gordon S. Wood writes, "it was one of the first popular elections in modern history that resulted in the peaceful transfer of power from one 'party' to another." Presidency (1801–1809) Jefferson was sworn in by Chief Justice John Marshall at the new Capitol in Washington, D.C. on March 4, 1801. His inauguration was not attended by outgoing President Adams. In contrast to his predecessors, Jefferson exhibited a dislike of formal etiquette. Plainly dressed, he arrived alone, and walked to the Capitol with his friends. His inaugural address struck a note of reconciliation and commitment to democratic ideology, declaring, "We have been called by different names brethren of the same principle. We are all Republicans, we are all Federalists." Ideologically, he stressed "equal and exact justice to all men", minority rights, and freedom of speech, religion, and press. He said that a free and democratic government was "the strongest government on earth." He nominated moderate Republicans to his cabinet: James Madison as secretary of state, Henry Dearborn as secretary of war, Levi Lincoln as attorney general, and Robert Smith as secretary of the navy. Widowed since 1782, Jefferson first used his two daughters as hostesses. Starting in late May, 1801, he asked Dolley Madison, wife of his long-time friend James Madison, to be the permanent White House hostess. She accepted, realizing the diplomatic importance of the position. She was also in charge of the completion of the White House mansion. Dolley served as White House hostess for the rest of Jefferson's two terms and then eight more years as First Lady to President James Madison. Financial affairs Jefferson's first official challenge was the $83 million national debt. He began dismantling Hamilton's Federalist fiscal system with help from the Secretary of the Treasury Albert Gallatin. Gallatin devised a plan to eliminate the national debt in sixteen years by extensive annual appropriations and reduction in taxes. The administration eliminated the whiskey excise and other taxes after closing "unnecessary offices" and cutting "useless establishments and expenses". Jefferson believed that the First Bank of the United States represented a "most deadly hostility" to republican government. He wanted to dismantle the bank before its charter expired in 1811, but was dissuaded by Gallatin. Gallatin argued that the national bank was a useful financial institution and set out to expand its operations. Jefferson looked to other corners to address the growing national debt.