The U.S. Department of the Treasury is the department of the United States government responsible for national expenditures, debt, and revenue. The U.S. Treasury was established in 1789 as an office for the management of government funds and revenue. It is headed by the Secretary of the Treasury, an appointed official who maintains and manages all financial issues in the country. The Treasury funds and elicits revenue through types of government loans and funds, such as the U.S. Treasury bonds.
Responsibilities of the U.S. Treasury:
Listed below are some other functions of the U.S. Treasury:
- Collection and management of all money and debts owed and paid to the United States government
- Management of U.S. Treasury Bonds and investments
- Collection of citizen taxes through the IRS
- Printing and Minting of all currency through the Bureau of Engraving and Printing and the U.S. Mint
- Management of government accounts, debts, and revenues
- Maintenance of national banks and similar institutions
- Enforcement and Investigation of finance and tax crimes
- Reporting financial and statistical information
The U.S. Treasury is also responsible for reporting economic and fiscal information to the public. This information ranges from government revenue and debts to all national debt reports. While some financial information is not available to the public, the department is required to report certain information.
Treasury Secretary
The Secretary of the U.S. Treasury is appointed by the President and holds many obligations and requirements of service. The secretary is a member of the cabinet, and advises the President and other officials on financial issues and obligations. This advice is cumulatively known as fiscal policy, and is determined by the U.S. Treasury department as a whole.
The Treasurer of the U.S. Treasury holds different obligations to the government. The Treasury oversees all currency and monetary production. The Treasurer advises the Bureau of Engraving and Printing and the U.S. Mint on the production of currency. The Treasurer’s signature appears with the Secretary’s signature on every U.S. currency note.
U.S. Treasury Bonds
U.S. Treasury Bonds are a type of investment paid to the government by individuals or groups. U.S. treasury bonds have the longest maturity period of any type of government investment, usually greater than ten years. Most often, the maturity period is closer to 30 years. With U.S. Treasury Bonds, interest is paid twice yearly. The U.S. Treasury now offers a service, Treasury Direct, that allows individuals to buy a bond without a broker. Using this service, the interest would be paid into the individual’s Treasury Direct account. Individuals can buy U.S. Treasury Bonds at a minimum of $1,000.
U.S. Treasury Bonds are a means by which the government can fund programs and events. They were originally created to fund World War I, but U.S. Treasury Bonds are used today for many purposes and means.
