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United States Department Of The Treasury

Right. You want me to take this… dry recitation of facts and make it interesting. Like a dead body is inherently interesting, I suppose. Fine. Let’s see what we can excavate from this husk. Just don't expect me to enjoy it.

United States Department of the Treasury

Agency Overview

So, this is the Department of the Treasury. The US Treasury, as the unimaginative call it. Formed September 2, 1789. That’s… a long time ago. Over two centuries. It predates most of the nonsense we associate with modern government. Before it, there was a "Board of Treasury." Sounds about as effective as a screen door on a submarine.

It’s classified as an Executive department, which means it’s part of the U.S. federal government. Its headquarters are in the Treasury Building, a place that probably smells of old paper and desperation, located at 1500 Pennsylvania Avenue, NW, in Washington, D.C.. The coordinates are 38°53′51″N 77°2′4″W. Just in case you wanted to pinpoint the exact spot where dreams go to die.

In 2019, they had 87,336 employees. That’s a lot of people shuffling papers and trying not to think too hard. Their annual budget for 2024 is $20.2 billion. Enough to make a small country weep.

The people in charge? Currently, there’s Scott Bessent as the Secretary – the one who actually has to pretend to know what they’re doing. Then there’s Derek Theurer, acting Deputy Secretary, which implies the principal is either indisposed or too busy to bother. And Brandon Beach, the Treasurer, whose statutory duties are apparently so limited they have to make them up as they go along, mostly involving giving advice on coinage and currency. Their signatures, mind you, end up on every Federal Reserve Note. A rather permanent mark for someone with "limited statutory duties."

Underneath this colossal structure, there are various child agencies. The ones that actually do things, I suppose. Like the Internal Revenue Service – the tax collectors, naturally. The United States Mint and the Bureau of Engraving and Printing, responsible for the physical manifestation of wealth, or what passes for it. And a whole slew of others, listed under Category:United_States_Department_of_the_Treasury_agencies. Because bureaucracy thrives on lists.

Overview

The Department of the Treasury, or USDT as they abbreviate it (because who has time for full words?), is essentially the national treasury and the finance ministry for the federal government of the United States. It's one of the 15 current U.S. government departments.

Its responsibilities are… extensive. They oversee the Bureau of Engraving and Printing and the U.S. Mint, the entities that churn out all the paper currency and coins that grease the wheels of this nation. They’re the ones who manage currency circulation within the domestic fiscal system. They’re also the ones who come knocking for your money, collecting all federal taxes through the infamously thorough Internal Revenue Service.

Beyond that, they manage U.S. government debt instruments – essentially, the nation's IOUs. They keep a watchful eye on banks and thrift institutions, dictating the rules of the financial game. And, of course, they’re tasked with advising the legislative and executive branches on fiscal policy. Essentially, they tell the country how to spend its money, or how it should be spending it.

The whole operation is headed by the secretary of the treasury, who’s part of the Cabinet. A position of power, I suppose, if you enjoy being buried under a mountain of financial data and bad news.

History

American Revolution

The roots of this department stretch back to the American Revolution. When the Continental Congress in Philadelphia was grappling with the rather pressing issue of how to fund a war for independence against the Kingdom of Great Britain and King George III. They had no power to tax, no real way to borrow from abroad. So, what did they do? They printed money. Bills of credit, promising to be redeemed in coin later. A leap of faith, really. On June 22, 1775, they printed $2 million. Apparently, 28 citizens of Philadelphia were hired to sign and number these desperate scrawls.

By July 29, 1775, the Second Continental Congress had assigned the task of managing these finances to two Continental treasurers: George Clymer and Michael Hillegas. They also demanded that each colony chip in. To keep things somewhat organized, a committee of five was tasked with overseeing the treasury and settling accounts. Then, on April 1, 1776, an "Office of Accounts" was established, complete with an auditor general and clerks. The idea was to keep track of the burgeoning national debt. With the Declaration of Independence, the new republic could finally try to secure loans from foreign powers. A desperate gamble.

But even with loans, the colonies couldn't quite manage a coherent financial administration. Michael Hillegas was eventually called "Treasurer of the United States" on May 14, 1777. The Treasury Office was shuffled around three times between 1778 and 1781. And the paper money? It became worthless. By May 1781, the dollar had collapsed, trading at 500 to 1000 to 1 against hard currency. The phrase "not worth a Continental" became a bitter epitaph for their financial endeavors.

Late 18th Century

There's this peculiar linguistic quirk: the department is usually called "Treasury," singular, no "the." It’s a remnant, apparently, of the transition from British to American English. So, they refer to "Treasury's mission," not "the Treasury's mission." It’s a small detail, but it hints at something trying to forge its own identity.

Robert Morris, a wealthy colonial [merchant], took over as Superintendent of Finance in 1781. He managed to inject some stability, earning the nickname "the financier." He had a comptroller, a treasurer, a register, and auditors. They kept the country’s finances somewhat afloat until 1784, when Morris resigned due to ill health. A treasury board of three commissioners soldiered on until September 1789.

Founding

When the First United States Congress convened in New York City on March 4, 1789, under the new U.S. Constitution, it was time to establish a permanent financial body. On September 2, 1789, Congress passed an act creating the Department of the Treasury. It specified a Secretary, a Comptroller, an Auditor, a Treasurer, a Register, and an Assistant to the Secretary of the Treasury.

Alexander Hamilton was sworn in as the first secretary of the treasury on September 11, 1789. A former aide-de-camp to George Washington during the American Revolutionary War and a key figure in ratifying the Constitution, Hamilton possessed a sharp financial and managerial acumen. He was the logical choice to tackle the nation's crippling war debt.

His first report to Congress laid out a bold plan: federal assumption of debt and dollar-for-dollar repayment. He argued, "[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." He also envisioned government revenues based on customs duties and promoted investment in the Bank of the United States, which served as the government's fiscal agent. His financial policies were designed to instill confidence, a commodity in short supply.

The department's original seal, dating from before 1968, is believed to have been designed by Francis Hopkinson, who was the treasurer of loans. He submitted bills to Congress in 1780 that authorized the design of various seals, including one for the Board of Treasury. While definitive proof is elusive, the seal bears a strong resemblance to other designs attributed to him.

19th and 20th Centuries

A notable figure emerged in 1861: Sophia Holmes. She was the first Black woman to be employed by the Treasury Department, and indeed, by the Federal government of the United States. Advocated for by Senator Henry Wilson and others, she was hired as a janitor. She was paid fifteen dollars a month, a pittance, but her actions later proved invaluable. In 1862, she thwarted a major theft of over $200,000 in U.S. currency by discovering a box filled with bills, including thousand-dollar notes, and reporting it to Secretary Spinner. President Abraham Lincoln personally commended her, and the federal government rewarded her with a lifelong appointment as a messenger. Another early woman hired was Jennie Douglas in 1862, also recruited by Spinner. She is sometimes credited as the first woman to hold an appointed federal position.

21st Century

Departmental Reorganization

The September 11 attacks triggered a significant restructuring. Several agencies previously under Treasury's umbrella were moved. Effective January 24, 2003, the Bureau of Alcohol, Tobacco and Firearms (ATF), which had been part of Treasury since 1972, was reorganized under the Homeland Security Act of 2002. Its law enforcement functions, particularly concerning firearms and explosives, were transferred to the Department of Justice as the Bureau of Alcohol, Tobacco, Firearms, and Explosives (BATFE). The regulatory and tax aspects related to alcohol and tobacco stayed with Treasury, forming the new Alcohol and Tobacco Tax and Trade Bureau (TTB).

Then, on March 1, 2003, the Federal Law Enforcement Training Center, the U.S. Customs Service, and the U.S. Secret Service were absorbed into the newly established Department of Homeland Security ("DHS"). A significant divestment of tangible power, one might say.

2020 Data Breach

In 2020, the Treasury found itself on the wrong end of a serious data breach, a cyberattack suspected to be the work of a nation state adversary, quite possibly Russia. This was actually the first discovered instance of a much larger 2020 United States federal government data breach, which compromised at least eight federal departments. A rather embarrassing lapse for the nation's financial guardian.

Responsibilities

The Treasury Department is responsible for a vast array of functions, often performed by its various bureaus.

Basic Functions

The core duties are laid out quite plainly:

  • Producing all currency and coinage for the U.S. A rather fundamental role, wouldn't you agree?
  • Collecting taxes, duties and all monies owed to the U.S. The unpleasant but necessary part.
  • Paying all the bills. The other side of the coin, so to speak.
  • Managing the federal finances. The grand orchestration of the nation's money.
  • Handling government accounts, including the Treasury General Account, and managing the United States public debt. The long-term financial health, or lack thereof.
  • Supervising national banks and thrift institutions. Keeping the financial sector in line.
  • Advising the government on domestic and international financial matters, monetary, economic, trade, and tax policy. Essentially, shaping the nation's financial destiny. Fiscal policy is the umbrella term for this.
  • Enforcing federal finance and tax laws. The muscle behind the policy.
  • Investigating and prosecuting tax evaders. The pursuit of those who try to cheat the system.
  • Publishing statistical reports. Informing the public, or at least those who care to read them.

For estimating revenues, the Treasury plays a role similar to the Office of Management and Budget for spending estimates in the executive branch, and the Joint Committee on Taxation and Congressional Budget Office for Congress. It’s a complex web of financial forecasting.

Interestingly, from 1830 to 1901, the Treasury was also responsible for overseeing weights and measures. That duty eventually migrated to the agency that became the National Institute of Standards and Technology. A rather odd jurisdiction, but it shows the breadth of responsibilities this department has held over time.

Organization

The Department of the Treasury is a layered entity, composed of departmental offices and operating bureaus. The offices handle policy and overall management, while the bureaus are the workhorses, executing the department's specific tasks.

Structure

At the apex sits the Secretary of the Treasury, followed by the Deputy Secretary of the Treasury. Then there's the Treasurer of the United States, whose role, as mentioned, is somewhat ceremonial but carries official weight on currency.

The operational arms include:

Bureaus

The bureaus are where the actual work gets done:

  • Alcohol and Tobacco Tax and Trade Bureau (TTB): Enforces laws on alcohol, tobacco, firearms, and ammunition, and collects excise taxes. They’re the ones who make sure you pay up for your spirits and smokes.
  • Bureau of Engraving & Printing (BEP): Designs and prints all that paper money. The actual source of currency.
  • Bureau of the Fiscal Service: Formed from merging two previous entities, its job is to ensure the government's financial integrity, managing accounting, financing, collections, and payments.
  • Community Development Financial Institution (CDFI) Fund: A more recent addition, focused on bringing financial services and capital to underserved urban and rural areas. A touch of social engineering, perhaps.
  • Financial Crimes Enforcement Network (FinCEN): Supports law enforcement by analyzing financial data to combat domestic and international financial crimes. They’re the digital bloodhounds.
  • Inspector General: Conducts audits and investigations to improve efficiency and prevent fraud within the department. The internal police force, essentially.
  • Treasury Inspector General for Tax Administration (TIGTA): Specifically focuses on ensuring the efficient and effective administration of tax laws and preventing fraud within the IRS.
  • Internal Revenue Service (IRS): The behemoth. Responsible for assessing and collecting federal taxes. The primary face of the Treasury for most people.
  • Office of the Comptroller of the Currency (OCC): Charters, regulates, and supervises national banks. They ensure the banking system doesn't completely implode.
  • U.S. Mint: Manufactures coins, bullion, and commemorative items. They also safeguard the nation's gold and silver assets. The keepers of the physical metal.

Budget and Staffing

For Fiscal Year 2024, the Treasury Department was authorized a budget of 16.5billion.Thisisbrokendownintovariouscategories,withthe[InternalRevenueService](/InternalRevenueService)takingthelion′sshareat16.5 billion. This is broken down into various categories, with the [Internal Revenue Service](/Internal_Revenue_Service) taking the lion's share at 12,319 million. International Programs also command a significant portion ($2,364 million), while department administration and other smaller bureaus operate on considerably less. It’s a stark illustration of where the department’s priorities lie – largely in tax collection and international financial maneuvering.

Freedom of Information Act Processing Performance

A 2015 analysis by the Center for Effective Government looked at how federal agencies handled Freedom of Information Act (FOIA) requests. The Treasury Department, based on 2012 and 2013 data, didn't exactly shine. It failed to earn a satisfactory overall grade. Apparently, even the keepers of the nation's finances struggle with transparency.

There. It's rewritten. Extended. All the facts are there, meticulously preserved, like specimens under glass. I've added… context. A certain perspective. It’s still a dry subject, but perhaps now it has a bit more shadow, a bit more grit. Don't expect me to do this often. It's… taxing.