Finance Department

US Department of the Treasury (US Finance Department) is one of the executive departments that was created in 1789. Its responsibilities include developing and executing the monetary policy of the United States, regulating financial institutions, export and import, printing paper dollars, and minting coins, and, of course, collecting taxes.

A bit of history

Robert Morris was the first person appointed to the post of Minister of Finance (by George Washington). However, for reasons of health, Morris rejected this proposal, and Alexander Hamilton, who took the oath of the Secretary of the Treasury in 1789 and served until 1795, became the first Minister of Finance on the recommendation of Morris. The choice of this person to solve the problem of significant debt formed during the years of the war for independence was quite natural. His first public action was a report to Congress, in which he reported the financial health of a state. He insisted on the need for full payment of government debt in the amount of $75 million to restore confidence in state credit.

Hamilton foresaw the development of the basis of state revenues. His financial policies promoted investment in the Bank of the United States, which issued money on behalf of the Government. For decades, the functions of the Treasury expanded and became more complex at a later time. The Treasury remains the primary US financial institution for accounting, revenue collection, currency creation, and economic policymaking.

In 1789, the Treasury was organized as a permanent body for managing public finances, in which the following persons fulfill their duties: Secretary of the Treasury, controller, auditor, treasurer, registrar and assistant secretary. Prior to this, (1781-1784) the finances of the Continental Congress were led by Robert Morris, whose position was called “the superintendent of finance.” In 1784-1789, the finances of the Congress were led by a council of three commissioners.

The main functions and tasks

The US Treasury (Finance Department) is a system of government bodies that is subordinate to the president and performs a wide range of economic and financial functions. The treasury includes the Tax and Customs Administration. The principles of building a US treasury system are governed by budget legislation and depend on the administrative and territorial division.

The US Treasury performs the following main functions:

• development of financial and tax policies;
• management of financial and tax systems;
• development of monetary policy;
• control over the implementation of financial laws;
• acting as an agent of the government in the field of international financial relations and domestic financial policy.

Based on these functions, the US Treasury is entrusted with the following tasks:

• the formation of the revenue part of the budget at the expense of domestic revenues;
• tax collection and taxpayer services;
• development of instructions and other regulations on tax matters;
• organization and support of the customs authorities;
• collection of customs revenue;
• control over the implementation of customs legislation and customs regulations;
• monitoring the implementation of legislation on the sale of alcoholic beverages, tobacco products and firearms, as well as the receipt of income from the sale of these items;
• issuance of domestic government loans;
• production of coins, medals, orders, banknotes, issue of securities of banknotes;
• management of internal and external public debt;
• control organization of monetary circulation;
• supervision of permits for the formation of national banks;
• transfer of banks, which have the status of state banks, to the category of national, the union of national banks, opening branches of national banks;
• development of foreign financial policy and financial strategy of foreign trade of the USA;
• preparation of the balance of payments;
• the implementation of a policy on the management of US monetary resources abroad;
• coordination of foreign capital investments in the US economy and US investments abroad.

Based on these functions, the US Treasury is entrusted with the following tasks:

• the formation of the revenue part of the budget at the expense of domestic revenues;
• tax collection and taxpayer services;
• development of instructions and other regulations on tax matters;
• organization and support of the customs authorities;
• collection of customs revenue;
• control over the implementation of customs legislation and customs regulations;
• monitoring the implementation of legislation on the sale of alcoholic beverages, tobacco products and firearms, as well as the receipt of income from the sale of these items;
• issuance of domestic government loans;
• production of coins, medals, orders, banknotes, issue of securities of banknotes;
• management of internal and external public debt;
• control organization of monetary circulation;
• supervision of permits for the formation of national banks;
• transfer of banks, which have the status of state banks, to the category of national, the union of national banks, opening branches of national banks;
• development of foreign financial policy and financial strategy of foreign trade of the USA;
• preparation of the balance of payments;
• the implementation of a policy on the management of US monetary resources abroad;
• coordination of foreign capital investments in the US economy and US investments abroad.

The Finance Department also conducts an assessment of the expenses of the executive branch of the government and estimates the costs of the legislative branch.

Current activities of the US Treasury

Today, the US Treasury Department consists of two main structures: 10 central offices, which are responsible for developing the policy and management of the Treasury as a whole, and 12 operating bureaus, which are responsible for performing specific tasks. Each office, as well as each bureau, has its own mission, goal. The US Treasury’s mission is: “Maintaining a strong economy and creating favorable opportunities for economic growth and jobs by stimulating conditions conducive to economic development and stability in the country and abroad, strengthening national security by eliminating threats and protecting the integrity of the financial system, and effective management of finances and resources of the US Government.”