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Gallatin was elected a U.S. senator in 1793, but was voted out of his seat by [[Federalist Party|Federalist]] opponents on the dubious grounds that he had not been an American citizen for a full nine years. Returning home, he found western Pennsylvanians (mostly Scotch Irish) angry at the whiskey tax imposed in 1791 by Congress at the demand of [[Alexander Hamilton]] to raise money to pay the national debt. Farmers could only export whiskey because transportation costs were too high for grain. Although Gallatin had opposed the tax before it was passed and attended numerous protest meetings, he counseled moderation. Nevertheless, the role he played in the [[Whiskey Rebellion]] in the early 1790s proved a lasting political liability, as President [[George Washington]] denounced the tax protesters, called out the militia, and marched at the head of the army to put down the rebellion. A group of radicals, headed by a blatant demagogue named David Bradford, staged incendiary meetings, to which they summoned the local militia, terrorized conservatives in Pittsburgh, threatened federal revenue officers with death, and called for rebellion.  

Gallatin was elected a U.S. senator in 1793, but was voted out of his seat by [[Federalist Party|Federalist]] opponents on the dubious grounds that he had not been an American citizen for a full nine years. Returning home, he found western Pennsylvanians (mostly Scotch Irish) angry at the whiskey tax imposed in 1791 by Congress at the demand of [[Alexander Hamilton]] to raise money to pay the national debt. Farmers could only export whiskey because transportation costs were too high for grain. Although Gallatin had opposed the tax before it was passed and attended numerous protest meetings, he counseled moderation. Nevertheless, the role he played in the [[Whiskey Rebellion]] in the early 1790s proved a lasting political liability, as President [[George Washington]] denounced the tax protesters, called out the militia, and marched at the head of the army to put down the rebellion. A group of radicals, headed by a blatant demagogue named David Bradford, staged incendiary meetings, to which they summoned the local militia, terrorized conservatives in Pittsburgh, threatened federal revenue officers with death, and called for rebellion.  

Gallatin calmed the westerners : with courage and persuasive oratory, he faced the excited and armed mobs, heartened the moderates, won over the wavering, and at last secured a vote of 34 to 23 in the revolutionary committee of sixty for peaceable submission to the law of the country. The rebellion collapsed as the army moved near, Bradford fled, and there was no fighting. Gallatin's neighbors approved his advocacy of their cause and elected him to the U.S. House of Representatives for three terms, 1795-1801. There he became a leader in the new Jeffersonian [[Democratic-Republican Party]], headed by [[James Madison]]. By 1797, when Madison retired, Gallatin became the party leader in the House. He strongly opposed Federalist domestic programs, as well as the [[Jay Treaty]], which he thought was a sellout to the British. When the [[Quasi War]] with France erupted in 1798 he kept a low profile, but did oppose the [[Alien and Sedition Acts]]. He was instrumental in creating the [[Ways and Means Committee]] to oversee finances.

Gallatin calmed the westerners : with courage and persuasive oratory, he faced the excited and armed mobs, heartened the moderates, won over the wavering, and at last secured a vote of 34 to 23 in the revolutionary committee of sixty for peaceable submission to the law of the country. The rebellion collapsed as the army moved near, Bradford fled, and there was no fighting. Gallatin's neighbors approved his advocacy of their cause and elected him to the U.S. House of Representatives for three terms, 1795-1801. There he became a leader in the Jeffersonian Republicans. By 1797, when Madison retired, Gallatin became the party leader in the House. He strongly opposed Federalist domestic programs, as well as the [[Jay Treaty]], which he thought was a sellout to the British. When the [[Quasi War]] with France erupted in 1798 he kept a low profile, but did oppose the [[Alien and Sedition Acts]]. He was instrumental in creating the [[Ways and Means Committee]] to oversee finances.

Gallatin's mastery of public finance, an ability rare among members of the Jeffersonian party, led to his automatic choice as Secretary of the Treasury, despite Federalist attacks that he was a "foreigner" with a French accent. He was secretary from 1801 to May 1813 (and nominally until February 1814) under presidents [[Thomas Jefferson]] and [[James Madison]], the longest tenure of this office in American history. The national debt was seen as an indicator of waste and corruption. It stood at $80 million in 1801, and Gallatin devoted 3/4 of revenues to reducing it. Despite spending $15 million on Louisiana, and losing the tax on whiskey when it was repealed in 1802, Gallatin trimmed the debt to $45 million. The [[War of 1812]] proved expensive, and the debt soared to $123 million, even with burdensome new taxes, the tariff revenues collapsed as the British blockade cut off legitimate trade (there was plenty of smuggling, but smugglers never paid taxes.)

Gallatin's mastery of public finance, an ability rare among members of the Jeffersonian party, led to his automatic choice as Secretary of the Treasury, despite Federalist attacks that he was a "foreigner" with a French accent. He was secretary from 1801 to May 1813 (and nominally until February 1814) under presidents [[Thomas Jefferson]] and [[James Madison]], the longest tenure of this office in American history. The national debt was seen as an indicator of waste and corruption. It stood at $80 million in 1801, and Gallatin devoted 3/4 of revenues to reducing it. Despite spending $15 million on Louisiana, and losing the tax on whiskey when it was repealed in 1802, Gallatin trimmed the debt to $45 million. The [[War of 1812]] proved expensive, and the debt soared to $123 million, even with burdensome new taxes, the tariff revenues collapsed as the British blockade cut off legitimate trade (there was plenty of smuggling, but smugglers never paid taxes.)