American Military History, Volume 1

President Thomas Jefferson took office in 1801 committed to a policy of peace and economy. With Europe at peace and American relations with France and England better than they had been for ten years past, Congress proceeded to economize. It sold the Navy that had acquitted itself so well in the quasi war with France, retaining only the frigates and a few of the other larger ships. Instead of ships for the defense of U.S. harbors and coastline, Jefferson touted the idea of building a number of small, armed gunboats as a less expensive alternative. The Army did not feel the effect of the economy drive until March 1802. Until then the military establishment was much as Adams had left it after the Provisional Army troops had been discharged, with an authorized strength of 5,438 officers and men and an actual strength of about 4,000. In the reduction of March 1802 Congress cut back the total strength of the Army to 3,220 men, approximately what it had been in 1797 when Adams took office. It was more than 50 percent stronger in artillery, but the more expensive cavalry was eliminated.

When Congress reduced the size of the Army it also abolished the Office of the Quartermaster General and in its place instituted a system of contract agents. It divided the country into three military departments, each with a military agent. Each agent, with his assistants, was responsible for the movement of supplies and troops within his department. Since the assistant agents were also appointed by the President, the three military agents had no way to enforce accountability on their subordinates. This system soon led to large property losses.