United States federal executive department
The
Department of the Treasury
(
USDT
)
[2]
is the
national treasury
and finance department of the
federal government of the United States
, where it serves as an
executive department
.
[3]
The department oversees the
Bureau of Engraving and Printing
and the
U.S. Mint
. These two agencies are responsible for printing all
paper currency
and minting
coins
, while the treasury executes
currency circulation
in the domestic fiscal system. The USDT
collects
all
federal taxes
through the
Internal Revenue Service
; manages
U.S. government debt instruments
;
licenses and supervises banks
and
thrift institutions
; and advises the
legislative
and
executive branches
on matters of
fiscal policy
. The department is administered by the
secretary of the treasury
, who is a member of the
Cabinet
. The
treasurer of the United States
has limited statutory duties, but advises the Secretary on various matters such as coinage and currency production.
[4]
Signatures of both officials appear on all
Federal Reserve notes
.
[5]
The department was established by an
Act of Congress
in 1789 to manage government
revenue
.
[6]
The first secretary of the treasury was
Alexander Hamilton
, who was sworn into office on September 11, 1789.
[7]
Hamilton was appointed by President
George Washington
on the recommendation of
Robert Morris
, Washington's first choice for the position, who had declined the appointment.
[8]
Hamilton established the nation's early financial system and for several years was a major presence in
Washington's administration
.
[9]
The department is customarily referred to as "Treasury", solely, without any
preceding article
, as a remnant of the country's transition from
British
to
American English
during the late 18th century. Hamilton's portrait appears on the
obverse
of the
ten-dollar bill
, while the
Treasury Department building
is depicted on the
reverse
.
[10]
History
[
edit
]
Revolutionary period
[
edit
]
The history of the Department of the Treasury began in the turmoil of the
American Revolution
, when the
Continental Congress
at
Philadelphia
deliberated the crucial issue of financing a war of independence against
Great Britain
. The Congress had no power to
levy
and
collect
taxes, nor was there a tangible basis for securing funds from foreign investors or governments. The delegates resolved to issue paper money in the form of
bills of credit
, promising
redemption
in
coin
on faith in the revolutionary cause. On June 22, 1775, only a few days after the
Battle of Bunker Hill
, the Continental Congress issued $2 million in bills; on July 25, 28 citizens of Philadelphia were employed by Congress to sign and number the currency.
On July 29, 1775, the
Second Continental Congress
assigned the responsibility for the administration of the revolutionary government's finances to joint Continental treasurers
George Clymer
and
Michael Hillegas
. Congress stipulated that each of the colonies contribute to the Continental government's funds. To ensure proper and efficient handling of the growing
national debt
in the face of weak economic and political ties between the colonies, the Congress, on February 17, 1776, designated a committee of five to superintend the treasury,
settle accounts
, and report periodically to the Congress. On April 1, a Treasury Office of Accounts, consisting of an auditor general and
clerks
, was established to facilitate the settlement of claims and to keep the public accounts for the government of the United Colonies. With the signing of the
Declaration of Independence
on July 4, 1776, the newborn republic as a
sovereign nation
was able to secure loans from abroad.
[11]
Despite the infusion of foreign and domestic loans, the
united colonies
were unable to establish a well-organized agency for financial administration. Michael Hillegas was first called Treasurer of the United States on May 14, 1777. The Treasury Office was reorganized three times between 1778 and 1781. The $241.5 million in paper Continental bills
devalued
rapidly. By May 1781, the dollar
collapsed
at a rate of from 500 to 1000 to 1 against
hard currency
. Protests against the worthless money swept the colonies, giving rise to the expression "
not worth a Continental
". The office has, since the late 18th century, been
customarily referred
to as the singular "Treasury", without any
preceding article
, as a remnant of the country's transition from
British
to
American English
.
[12]
[13]
For example, the department notes its guiding purpose as "Treasury's mission" instead of "the Treasury's mission."
[14]
Robert Morris
was designated Superintendent of Finance in 1781 and restored stability to the nation's finances. Morris, a wealthy colonial
merchant
, was nicknamed "the financier" because of his reputation for procuring funds or goods on a moment's notice. His staff included a
comptroller
, a
treasurer
, a
register
, and
auditors
, who managed the country's finances through 1784, when Morris resigned because of ill health. The treasury board, consisting of three commissioners, continued to oversee the finances of the confederation of former colonies until September 1789.
Creation of the Treasury
[
edit
]
The
First United States Congress
convened in
New York City
on March 4, 1789, marking the beginning of government under the
U.S. Constitution
. On September 2, 1789, Congress created a permanent institution for the management of government finances:
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That there shall be a Department of Treasury, in which shall be the following officers, namely: a Secretary of the Treasury, to be deemed head of the department; a Comptroller, an Auditor, a Treasurer, a Register, and an
Assistant to the Secretary of the Treasury
, which assistant shall be appointed by the said Secretary.
[6]
[15]
Alexander Hamilton
took the oath of office as the first
secretary of the treasury
on September 11, 1789. Hamilton had served as
George Washington
's
aide-de-camp
during the
American Revolutionary War
and was influential in the
ratification
of the Constitution. Hamilton's
financial and managerial acumen
made him a logical choice for addressing the problem of the new nation's heavy
war debt
. His first official act as secretary was to submit a report to Congress in which he laid the foundation for the nation's financial health.
To the surprise of many legislators, he insisted upon
federal assumption
and dollar-for-dollar repayment of the country's $75 million debt in order to revitalize the
public credit
: "[T]he debt of the United States was the price of liberty. The faith of America has been repeatedly pledged for it, and with solemnities that give peculiar force to the obligation."
[16]
Hamilton foresaw the development of industry and trade in the United States, suggesting that government revenues be based upon
customs duties
.
[16]
His sound
financial policies
also inspired investment in the
Bank of the United States
, which acted as the government's
fiscal agent
.
[
citation needed
]
The Department of Treasury believes their seal was created by
Francis Hopkinson
, the treasurer of loans. He submitted bills to Congress in 1780 that authorized the design of department seals, including a seal for the Board of Treasury. While it is not certain that Hopkinson designed the seal, it closely resembles others he created.
[17]
2003 reorganization
[
edit
]
The
U.S. Congress
transferred several agencies that had previously been under the aegis of the Treasury Department to other departments as a consequence of the
September 11 attacks
. Effective January 24, 2003, the
Bureau of Alcohol, Tobacco and Firearms
(ATF), which had been a bureau of the department since 1972, was extensively reorganized under the provisions of the
Homeland Security Act of 2002
. The
law enforcement
functions of ATF, including the regulation of legitimate traffic in
firearms
and
explosives
, were transferred to the
Department of Justice
as the Bureau of Alcohol, Tobacco, Firearms, and Explosives (BATFE).
[18]
The regulatory and tax collection functions of ATF related to legitimate traffic in alcohol and tobacco remained with the treasury at its new
Alcohol and Tobacco Tax and Trade Bureau
(TTB).
[19]
Effective March 1, 2003, the
Federal Law Enforcement Training Center
, the
United States Customs Service
, and the
United States Secret Service
were transferred to the newly created
Department of Homeland Security ("DHS")
.
[20]
2020 data breach
[
edit
]
In 2020, the Treasury
suffered a data breach
following a
cyberattack
likely conducted by a
nation state adversary
, possibly Russia.
[21]
[22]
This was in fact the first detected case of the much wider
2020 United States federal government data breach
, which involved at least eight federal departments.
[23]
Responsibilities
[
edit
]
Basic functions
[
edit
]
The basic functions of the Department of the Treasury mainly include:
[24]
With respect to the estimation of revenues for the
executive branch
, Treasury serves a purpose parallel to that of the
Office of Management and Budget
for the estimation of spending for the executive branch, the
Joint Committee on Taxation
for the estimation of revenues for Congress, and the
Congressional Budget Office
for the estimation of spending for Congress.
From 1830 until 1901, responsibility for overseeing
weights and measures
was carried out by the Office of Standard Weights and Measures under the auspices of the Treasury Department.
[25]
After 1901, that responsibility was assigned to the agency that subsequently became known as the
National Institute of Standards and Technology
.
Organization
[
edit
]
The Department of the Treasury is organized into two major components: the departmental offices and the operating bureaus. The departmental offices are primarily responsible for the formulation of policy and management of the department as a whole, while the operating bureaus carry out the specific operations assigned to the department.
Structure
[
edit
]
Bureaus
[
edit
]
Bureau
|
Description
|
The
Alcohol and Tobacco Tax and Trade Bureau
(TTB)
|
The Alcohol and Tobacco Tax and Trade Bureau (TTB) is responsible for enforcing and administering laws covering the production, use, and distribution of alcohol and tobacco products. TTB also collects excise taxes for firearms and ammunition.
|
The Bureau of Engraving & Printing
(BEP)
|
The Bureau of Engraving & Printing (BEP) designs and manufactures U.S. currency, securities, and other official certificates and awards.
|
The
Bureau of the Fiscal Service
|
The Bureau of the Fiscal Service was formed from the consolidation of the Financial Management Service and the Bureau of the Public Debt. Its mission is to promote the financial integrity and operational efficiency of the U.S. government through exceptional accounting, financing, collections, payments, and shared services.
|
The
Community Development Financial Institution
(CDFI) Fund
|
The Community Development Financial Institution (CDFI) Fund was created to expand the availability of credit, investment capital, and financial services in distressed urban and rural communities.
|
The
Financial Crimes Enforcement Network
(FinCEN)
|
The Financial Crimes Enforcement Network (FinCEN) supports law enforcement investigative efforts and fosters interagency and global cooperation against domestic and international financial crimes. It also provides U.S. policymakers with strategic analyses of domestic and worldwide trends and patterns.
|
The Inspector General
|
The Inspector General conducts independent audits, investigations and reviews to help the Treasury Department accomplish its mission; improve its programs and operations; promote economy, efficiency and effectiveness; and prevent and detect fraud and abuse.
|
The Treasury Inspector General for Tax Administration (TIGTA)
|
The Treasury Inspector General for Tax Administration (TIGTA) provides leadership and coordination and recommends policy for activities designed to promote economy, efficiency, and effectiveness in the administration of the internal revenue laws. TIGTA also recommends policies to prevent and detect fraud and abuse in the programs and operations of the IRS and related entities.
|
The Internal Revenue Service
|
The Internal Revenue Service (IRS) is the largest of Treasury's bureaus. It is responsible for determining, assessing, and collecting internal revenue in the United States.
|
The Office of the Comptroller of the Currency (OCC)
|
The Office of the Comptroller of the Currency (OCC) charters, regulates, and supervises national banks to ensure a safe, sound, and competitive banking system that supports the citizens, communities, and economy of the United States.
|
The U.S. Mint
|
The U.S. Mint designs and manufactures domestic, bullion and foreign coins as well as commemorative medals and other numismatic items. The Mint also distributes U.S. coins to the Federal Reserve banks as well as maintains physical custody and protection of the nation's silver and gold assets.
|
Budget and staffing
[
edit
]
The Treasury Department has authorized a budget for
Fiscal Year 2015
of $22.6 billion. The budget authorization is broken down as follows:
[33]
Program
|
Funding (in millions)
|
Employees (in FTEs)
|
Management and Finance
|
Department Administration
|
$311
|
1,320
|
Office of the Inspector General
|
$35
|
213
|
Inspector General for Tax Administration
|
$157
|
837
|
Special Inspector General for TARP (Troubled Asset Relief Program)
|
$34
|
192
|
Community Development Financial Institutions Fund
|
$225
|
73
|
Financial Crimes Enforcement Network
|
$108
|
346
|
Alcohol and Tobacco Tax and Trade Bureau
|
$101
|
517
|
Bureau of the Fiscal Services
|
$348
|
2,350
|
Tax Administration
|
Internal Revenue Service
|
$12,476
|
92,009
|
International Programs
|
International Programs
|
$2,610
|
0
|
Non-Appropriated Bureaus
|
Office of Fiscal Stability
|
$184
|
86
|
Small Business Lending Programs
|
$17
|
25
|
State Small Business Credit Initiative
|
$7
|
12
|
Financial Stability Oversight Council
|
$20
|
26
|
Office of Financial Research
|
$92
|
249
|
Bureau of Engraving and Printing
|
$749
|
1,944
|
United States Mint
|
$3,571
|
1,874
|
Office of the Comptroller of the Currency
|
$1,104
|
3,997
|
TOTAL
|
$22,583
|
106,080
|
Freedom of Information Act processing performance
[
edit
]
In the latest
Center for Effective Government
analysis of the fifteen federal agencies that receive the most
Freedom of Information Act
FOIA requests, published in 2015 (using 2012 and 2013 data, the most recent years available), the treasury failed to earn a satisfactory overall grade.
[34]
See also
[
edit
]
Notes and references
[
edit
]
- ^
"Department of Treasury ? List of Federal Departments"
.
federalpay.org
.
Archived
from the original on January 28, 2019
. Retrieved
January 28,
2019
.
- ^
Donald A. Torres (1985).
Handbook of Federal Police and Investigative Agencies
. Greenwood Publishing Group. p. 275.
ISBN
0313245789
.
- ^
"An Act to Establish the Treasury Department"
. September 2, 1789.
Archived
from the original on September 14, 2018
. Retrieved
October 11,
2018
.
- ^
"The Treasurer"
.
U.S. Department of the Treasury
.
Archived
from the original on April 4, 2018
. Retrieved
May 6,
2018
.
- ^
Crutsinger, Martin (November 15, 2017).
"New money: Mnuchin and Carranza signatures now on the dollar bill"
.
USA Today
. Gannett Satellite Information Network, LLC. The Associated Press.
Archived
from the original on May 7, 2018
. Retrieved
May 6,
2018
.
- ^
a
b
"Image 1 of An act to establish the Treasury department .... [Dated] 1789, July 2. New-York. Printed by Thomas Greenleaf.]"
.
The Library of Congress
. January 1, 1970.
Archived
from the original on December 1, 2022
. Retrieved
December 1,
2022
.
- ^
"Appointment as Secretary of the Treasury"
.
founders.archives.gov
.
Archived
from the original on March 4, 2017
. Retrieved
March 4,
2017
.
- ^
Adams, Jonathan.
"Department of the Treasury"
.
George Washington Digital Encyclopedia
. Mount Vernon Ladies' Association.
Archived
from the original on May 7, 2018
. Retrieved
May 6,
2018
.
- ^
Scanlan, Laura Wolff (2006).
"Alexander Hamilton: the man who modernized money"
.
Humanities: The Magazine of the National Endowment for the Humanities
.
27
(1).
Archived
from the original on May 7, 2018
. Retrieved
May 6,
2018
.
- ^
"$10"
.
U.S. Currency Education Program
.
Archived
from the original on May 7, 2018
. Retrieved
May 6,
2018
.
- ^
Hammond, Bray (1957).
Banks and Politics in America: From the Revolution to the Civil War
. Princeton, NJ: Princeton University Press.
- ^
Hamilton, Alexander (1851).
Reports of the secretary of the Treasury of the United States: prepared in obedience to the act of May 10, 1800
. Printed by Blair & Rives.
Archived
from the original on December 13, 2023
. Retrieved
April 27,
2020
.
- ^
Dewey, Davis Rich (1922).
Financial History of the United States
. Longmans, Green and Company.
Archived
from the original on December 13, 2023
. Retrieved
November 22,
2020
.
- ^
"Role of the Treasury | U.S. Department of the Treasury"
.
home.treasury.gov
.
Archived
from the original on April 29, 2020
. Retrieved
April 27,
2020
.
Treasury's mission highlights its role as the steward of U.S. economic and financial systems, and as an influential participant in the world economy.
- ^
"Chapter 12, 1 Statue. 65"
(PDF)
. Archived from
the original
(PDF)
on October 19, 2017.
- ^
a
b
Syrett, Harold C., ed. (1962).
The Papers of Alexander Hamilton, vol. 6
. New York City:
Columbia University Press
.
ISBN
978-0231089050
.
Archived
from the original on May 7, 2018
. Retrieved
May 6,
2018
.
- ^
Friedberg, Albert L. (2017).
Paper money of the US 21st Edition
. Clifton, New Jersey: Coin & Currency Institute. pp. 6?7.
ISBN
9780871840219
.
- ^
"Move to Justice Dept. Brings ATF New Focus"
.
Washington Post
. January 23, 2003.
Archived
from the original on March 11, 2023
. Retrieved
March 11,
2023
.
- ^
"History"
.
TTBGov
. November 18, 2015.
Archived
from the original on March 11, 2023
. Retrieved
March 11,
2023
.
- ^
"Who Joined DHS"
.
Department of Homeland Security
. July 27, 2012.
Archived
from the original on March 11, 2023
. Retrieved
March 10,
2023
.
- ^
Nakashima, Ellen (December 13, 2020).
"Russian government spies are behind a broad hacking campaign that has breached U.S. agencies and a top cyber firm"
.
The Washington Post
. Archived from
the original
on December 13, 2020
. Retrieved
December 14,
2020
.
- ^
Bing, Christopher (December 14, 2020).
"Suspected Russian hackers spied on U.S. Treasury emails ? sources"
.
Reuters
.
Archived
from the original on December 14, 2020
. Retrieved
December 14,
2020
.
- ^
Office, U. S. Government Accountability (March 21, 2024).
"SolarWinds Cyberattack Demands Significant Federal and Private-Sector Response (infographic) | U.S. GAO"
.
www.gao.gov
. Retrieved
April 10,
2024
.
- ^
US Treasury website
Organization
Archived
October 11, 2011, at the
Wayback Machine
- ^
Records of the National Institute of Standards and Technology (NIST)
Archived
October 19, 2017, at the
Wayback Machine
, National Archives website, (Record Group 167), 1830?1987.
- ^
Treasury Order 101-05
Archived
March 19, 2021, at the
Wayback Machine
, U.S. Dept. of the Treasury. January 10, 2011. Updated April 26, 2011. Accessed November 11, 2012.
- ^
DF Org Chart
Archived
January 16, 2022, at the
Wayback Machine
, "The Office of Domestic Finance". U.S. Dept. of the Treasury. October 2011. Accessed November 11, 2012.
- ^
International Affairs
Archived
June 22, 2016, at the
Wayback Machine
, "About International Affairs". U.S. Dept. of the Treasury. February 14, 2012. Accessed November 11, 2012.
- ^
"Officials | U.S. Department of the Treasury"
.
home.treasury.gov
.
Archived
from the original on September 22, 2018
. Retrieved
April 20,
2021
.
- ^
"Environment and Energy"
.
www.treasury.gov
.
Archived
from the original on November 7, 2017
. Retrieved
October 30,
2017
.
- ^
Terrorism and Financial Intelligence
Archived
September 5, 2015, at the
Wayback Machine
, "About Terrorism and Financial Intelligence". U.S. Dept. of the Treasury. July 2, 2012. Accessed November 11, 2012.
- ^
"Treasury Announces Coordinated Climate Policy Strategy with New Treasury Climate Hub and Climate Counselor | U.S. Department of the Treasury"
.
home.treasury.gov
.
Archived
from the original on April 20, 2021
. Retrieved
April 20,
2021
.
- ^
2015 Department of the Treasury Budget in Brief
Archived
July 14, 2014, at the
Wayback Machine
, pg 9, United States Department of the Treasury, Accessed July 6, 2015
- ^
Making the Grade: Access to Information Scorecard 2015
Archived
August 11, 2019, at the
Wayback Machine
, March 2015, 80 pages,
Center for Effective Government
, retrieved March 21, 2016
External links
[
edit
]
- Official website
- Department of the Treasury
on
USAspending.gov
- Department of the Treasury
in the
Federal Register
- Map of Major Foreign Holders Of Treasury Securities 2009
- Annual Reports of the Secretary of the Treasury on the State of Finances
? These annual reports also contain the reports of the many departments of the Treasury, including the Bureau of the Mint, Bureau of Engraving and Printing, Bureau of Customs, Office of the Comptroller of the Currency, Secret Service, and the Internal Revenue Service.
- United States Department of the Treasury
at the
Wayback Machine
(archived December 26, 1996)
- Act to establish the Treasury Department. 1st Congress, 1st Session, Ch. 12, 1 Stat. 65
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