[176] 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.[176]

Financial affairs
Albert Gallatin Jefferson's Treasury Secretary.Stuart 1803
Jefferson's first official challenge was the $83 million national debt.[177] He began dismantling Hamilton's Federalist fiscal system with help from the Secretary of the Treasury Albert Gallatin.[174] Gallatin devised a plan to eliminate the national debt in sixteen years by extensive annual appropriations and reduction in taxes.[178] The administration eliminated the whiskey excise and other taxes after closing "unnecessary offices" and cutting "useless establishments and expenses".[179][180]
Jefferson believed that the First Bank of the United States represented a "most deadly hostility" to republican government.[178] He wanted to dismantle the bank before its charter expired in 1811, but was dissuaded by Gallatin.