The Department of the Treasury is an executive department and the treasury of the United States federal government. Established by an Act of Congress in 1789 to manage government revenue, the Treasury prints all paper currency and mints all coins in circulation through the Bureau of Engraving and Printing and the United States Mint, respectively; 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.
This Article has been Edited for Accessibility
What is the 'U.S. Treasury'
The U.S. Treasury, created in 1789, is the government department responsible for issuing all Treasury bonds, notes and bills. Among the government departments operating under the U.S. Treasury umbrella are the Internal Revenue Service (IRS), the U.S. Mint, the Bureau of the Public Debt, the Alcohol and Tobacco Tax Bureau, and the Secret Service, which is best known for its responsibility for protecting the president and vice president of the United States.
Explaining 'U.S. Treasury'
The U.S. Treasury is the Cabinet-level department responsible for promoting economic growth and security. It was established by the First Congress of the United States, which convened in New York on March 4, 1789, following the ratification of the Constitution. The secretary of the Treasury is nominated by the president and must be confirmed by the U.S. Senate.
The U.S. Constitution was ratified in 1789, replacing the Articles of Confederation, under which the U.S. had functioned during and immediately following the American Revolution. The Constitution provided for a much stronger federal government, and the establishment of a centralized Treasury Department was an important part of that. Alexander Hamilton was the first secretary of the Treasury and served until 1795. Among his major accomplishments while he was secretary of the Treasury were the federal government's assumption of the states' debts related to the American Revolution, provisions for the payment of war bonds and the institution of a system for the collection of federal taxes.
Internal Revenue Service
In 1862, President Abraham Lincoln created the position of commissioner of internal revenue and implemented an income tax to pay for the Civil War. That tax was repealed in 1872, but the office lived on. The income tax as it exists now began with the 1913 ratification of the 16th Amendment to the U.S. Constitution, and the IRS assumed responsibility for collection and enforcement.
Treasury Bills and Bonds
Borrowing by the Treasury is done through the issuance of shorter-term notes, called bills, and longer-term bonds. The bonds have a maturity of as long as 30 years. Treasury bonds are backed by the full faith and credit of the U.S. government, and as such are popular investments by governments, companies and individuals worldwide. The global market for the instruments was an estimated $12.9 billion at the end of 2015.