The US Treasury is the second oldest ministry in the federal government, which was officially established in 1789 after efforts to finance the independence war against Great Britain and with the aim of organizing financial affairs for United Colonies.
The ministry is responsible for a vital responsibility that includes the Department of Revenue and spending, supervising banks, imposing economic sanctions on individuals and entities globally, and includes more than 19 specialized offices, most notably the internal revenue department, the foreign asset control office and the financial crime control network.
Facility and establishment
The debate began on the establishment of the American treasury when the continental Congress in Philadelphia held deliberations on financing the independence war, which erupted in 1775 against Great Britain.
Congress did not have the authority to impose and collect taxes, and he did not have the ability to raise money from investors or foreign governments, so the delegates decided to issue a paper currency in the form of credit bonds, with promises to people to pay their value in cash, based on confidence in the success of the revolution against Britain.
In June 1775, Congress released a paper currency in the form of two million dollars credit bonds, and days later he employed 28 citizens from Philadelphia to sign the currency and its numbering.
In the following month, the continental Congress assigned the responsibility of managing the financial affairs of the Revolutionary Government to the Secretary of the Treasury, and the decision of Congress stipulated that every colony contribute to the government’s financing.
To ensure an appropriate and effective management of the increasing national religion, Congress in February 1776 m for 5 individuals to supervise the treasury, settle accounts and submit periodic reports.
In April of the same year, the Treasury Accounts Office, which consists of the public auditor and a number of scribes, was established with the aim of facilitating the settlement of claims and the public accounts of the United Colonial Government.
With the signing of the Independence Declaration on July 4, 1776, the nascent republic managed to obtain loans from abroad, but the United colonies were unable to create a well -organized financial body.
By 1781, the dollar collapsed significantly, and protests against this inexpensive currency spread, and in the same year, Robert Morris was appointed as a supervisor of financial affairs, and it was a rich English merchant nicknamed “the financier”, due to his ability to secure money or goods quickly when needed, so the country’s financial stability was restored.
After Maurice’s resignation in 1784, the Treasury Council of 3 continued to supervise the financial affairs of the Union of Colonies until 1789.
The first Congress for the United States of America was invited to convene in New York on March 4, 1789, announcing the beginning of the ruling under the American constitution. On September 2 of the same year, the Congress established the Treasury as a permanent institution to the Government’s Financial Affairs Department.
The first cabinet minister was Alexander Hamilton, who expected the growth of industry and trade in the United States, and suggested that the government’s revenues be based on customs duties.
Activities and tasks
The Treasury is the executive authority responsible for enhancing economic prosperity and ensuring financial security of the United States, and it is responsible for a wide range of activities, such as providing advice to the president on economic and financial issues, encouraging sustainable economic growth, and enhancing improved governance in financial institutions.
The Ministry is working to produce metal and paper currencies, pay payments, collect revenues, borrow the funds necessary to run the work of the federal government. It also works in cooperation with other agencies and foreign governments to encourage global economic growth, raise living standards, and to predict and prevent economic and financial crises.
The main tasks of the US Treasury include the following:
- Federal Financial Affairs Department.
- Collect taxes, fees, and money due to the United States, and pay all their bills.
- The issuance of metal and paper currencies.
- Government account management and public debt.
- Supervising national banks and savings institutions.
- Providing advice on financial, monetary, economic, commercial and tax policies at the local and international levels.
- Implementing federal laws related to finance and taxes.
- Investigate tax evasion, coin forgery, and judicial prosecution of violators.
Main offices
The offices of the US Treasury consists of more than 19 offices, including the Terrorism and Financial Intelligence Office, the International Affairs Office and the Treasury Secretary Office.
A number of offices are also responsible for carrying out the specific operations entrusted to it by the Ministry of Treasury, and among these offices:
- Tax, alcohol and tobacco trade office: It undertakes the implementation and management of laws related to the production, distribution and use of alcohol and tobacco products, and gather selective taxes on firearms and ammunition.
- The inscription and printing office: It designs and prints the American currency, securities, certificates and other official prizes.
- Financial Service Office: His mission is to enhance financial integrity and operational efficiency of the US government through accountability, financing, collection, payments and exceptional joint services.
- Financial Crime Network: The efforts of the investigations that the law enforcement are supported, and enhances cooperation between agencies locally and internationally to combat financial crimes, and also provides American policy makers with strategic analyzes of local and international financial trends and patterns.
- Inspector General Office: It works to conduct independent audit, investigation and review, to help the Ministry of Treasury in performing its tasks and improving its programs and operations, and preventing and discovering fraud and violations.
- Internal Revenue Department: The largest offices of the Ministry of Treasury are responsible for identifying, evaluating and collecting internal revenues in the United States.
- Currency Financial Office: The office gives licenses, organizes and supervises national banks, with the aim of ensuring a safe and safe banking system that supports citizens, societies and economics in the country.
- American currency house: It works to design and hold local, investment and foreign currencies, as well as memorial medals and other rare materials. It is also responsible for distributing American currencies to federal reserve banks.
Imposition
The US Treasury Department of Foreign Assets Office is managing and implementing economic and commercial sanctions imposed on targeted bodies and systems, in addition to individuals and entities that the United States considers “involved in harmful activities”, including terrorism, drug smuggling and promotion of weapons of mass destruction.
The imposition of sanctions is in response to the threats against national security, foreign policy or the US economy. Economic sanctions are imposed with the aim of pressure, deterrence, or public condemnation of the bodies that endanger the interests of America or violate international norms.
The office takes multiple forms of penalties, starting from freezing the assets of individuals and entities, and reaching a comprehensive embargo of transactions with a country or an entire geographical region, such as imposing a commercial embargo or restrictions related to certain sectors of the economy of a country.
The foreign asset control office oversees more than 30 US sanctions programs, while other ministries such as Foreign Affairs, Trade and Internal Security play a fundamental role in this process.
Until 2024, the United States imposed comprehensive sanctions systems on Cuba, North Korea, Iran, Russia and Syria, in addition to more than 12 other programs targeting individuals and entities against the background of certain political crises, or a specific type of criminal behavior such as drug trafficking.
The office periodically works to add or delete names to its black list, which includes more than 12 thousand individuals, company and group, freezing their assets and is prevented from American people and American companies and their foreign branches dealing with them.
