7 Important Treasury Secretaries From the First to the Current
The U.S. Secretary of the Treasury is the chief financial officer for the federal government. In this capacity, his job (so far, no women have served in this office) is to oversee and manage the public debt, even though he has no control over spending and deficits. He collects taxes, even though he doesn't set tax policy. He prints money and manufactures currency, although he doesn't create the money supply. Nevertheless, Treasury Secretaries throughout our nation's history have played crucial roles. Understand the importance of many Treasury Secretaries, from Alexander Hamilton to Jack Lew.
The Secretary of the Treasury has several important functions. First, he advises the President on financial, economic, and tax policies, both domestically and internationally. He also participates in setting fiscal and budgetary policies.
The Treasury Secretary manages all the various functions of the Treasury Department. The most important is funding the public debt by overseeing the Treasury auction process. The one that is most important to most taxpayers is executing federal tax policy and collecting income taxes through the Treasury's Internal Revenue Service. The Secretary oversees Treasury's function of manufacturing coins and currency, which affects everyone.
The Secretary sits on many Federal government financial boards and councils. He is the Chairman and Managing Trustee of the Social Security and Medicare Boards of Trustees. He also sits on: the President’s National Economic Council, the International Monetary Fund, the International Bank for Reconstruction and Development, the Inter-American Development Bank, the Asian Development Bank, the African Development Bank, the European Bank for Reconstruction and Development, and the North American Development Bank.
Jack Lew was sworn in as Treasury Secretary on February 28, 2013. His biggest challenge will be to work with Congress to find the best way to reduce the national debt. Lew was selected by President Obama because he has a lot of experience dealing with budgets and administration. He was Obama's former Chief of Staff, Director of the Office of Management and Budget and Chief Operating Officer for Management and Resources in the State Department. He also served as OMB Director under President Clinton, where he helped negotiate a bi-partisan transition to a balanced budget.
Lew has also worked for Citi Global Wealth Management and Citi Alternative Investments (CAI), and was the chief operating officer of New York University. (Source: White House, Jack Lew)
Tim Geithner served under President Barack Obama during his first term of office, from January 2009 to January 2013. A month after he took office, he launched the $2 trillion Financial Stability Plan, using funds from the TARP program. Prior to serving as Treasury Secretary, he was head of the New York Federal Reserve Bank. In this role, he was intimately involved in guiding the bank bailouts intended to soften the 2008 financial crisis. Read more about Tim Geithner.More »
Hank Paulson was asked to become Treasury Secretary by President George W. Bush in 2006. He was reluctant to leave his position as CEO of Goldman Sachs, but his experience at the firm gave him intimate knowledge that would prove useful when the 2008 financial crisis hit. He spearheaded the bailout efforts, and used his personal relationships in the banking industry to force them to accept government ownership to shield the weaker banks with the credibility of the stronger ones. Prior to the financial crisis, he managed the Bush tax rebates in early 2008. He has been widely criticized both for doing too much, such as bailing out the banks, and for not doing enough, such as allowing Lehman Brothers to fail. Read more about Hank Paulson.More »
Larry Summers was Treasury Secretary for President Bill Clinton from 1999-2001. His oversaw the repeal of the Glass-Steagall act, which allowed banks to invest in risky assets like collateralized debt obligations. Summer also was a strong advocate for the deregulation of derivatives. This is one reason why government officials had no idea that the collapse of subprime mortgages would spread to general economy. They literally did not know how pervasive the use of credit default swaps and other unregulated derivatives had become. Read more about Larry Summers.More »
Henry Morgenthau was Treasury Secretary from 1934-1945, serving both President Franklin D. Roosevelt and Harry Truman. He was co-author of the New Deal, an aggressive spending program designed to create jobs, set up social safeguards and end the Great Depression of 1929. Morgenthau oversaw the sale of war bonds to finance World War II.After the war, he proposed the Morgenthau Plan to prevent Germany from building up the economic strength to ever be a military threat again. It was very harsh. It suggested that Germany be divided into two states, its industries annexed by neighboring countries, and sharply reduce the standard of living. Truman opposed the severity of the plan, but the last part was implemented. A Directive banned assistance to German farmers, and prohibited the production of oil, rubber, merchant ships, and aircraft until 1947. (Source: United States Holocaust Memorial Museum, Henry Morgenthau)
Salmon Chase was the Treasury Secretary from 1861-1864 under President Abraham Lincoln. He did two important things: he created the country's banking system and invented the paper currency in use today. Like many Treasury Secretaries, he helped fund a war -- in this case, the Civil War at a cost of $500 million. He did so, even though he was opposed to the war, and was an anti-slavery activist. Chase created the first paper dollar bill in 1861, and made sure the phrase "In God We Trust" was stamped on it. In his memory, the $10,000 bill was printed with his face on it from 1928-1946. His name lives on in the name of JPMorgan Chase, since the Chase Manhattan Bank was originally named after him. (Source: Joshua Brown, The Reformed Broker, The Most Important Treasury Secretary You Never Heard Of)
Alexander Hamilton was the first Treasury Secretary. His first task was to pay off the $50 million debt the U.S. had incurred to pay for the Revolutionary War. He also absorbed the states' debts. This responsibility established the new country as credit-worthy, allowing needed foreign direct investment to build the nation's economy.
Hamilton paid off the debt by issuing the first U.S. Treasury bonds, and by establishing the first taxes -- on liquor. He created the first federal mint, to issue a national currency. He also successfully argued for the first central bank of the United States, so the Federal government would have a safe place to store funds.
Hamilton's vision was for the federal government to have political dominance over the states. He also pushed the new country to move toward an industrial economy. He was in favor of tariffs to protect these new industries, and increasing liquidity to help start new businesses. (Source: Martin Kelly, About.com Guide to American History, Alexander Hamilton and the National Economy)
Role of the Treasury Secretary
The Secretary of the Treasury has several important functions. First, he advises the President on financial, economic, and tax policies, both domestically and internationally. He also participates in setting fiscal and budgetary policies.
The Treasury Secretary manages all the various functions of the Treasury Department. The most important is funding the public debt by overseeing the Treasury auction process. The one that is most important to most taxpayers is executing federal tax policy and collecting income taxes through the Treasury's Internal Revenue Service. The Secretary oversees Treasury's function of manufacturing coins and currency, which affects everyone.
The Secretary sits on many Federal government financial boards and councils. He is the Chairman and Managing Trustee of the Social Security and Medicare Boards of Trustees. He also sits on: the President’s National Economic Council, the International Monetary Fund, the International Bank for Reconstruction and Development, the Inter-American Development Bank, the Asian Development Bank, the African Development Bank, the European Bank for Reconstruction and Development, and the North American Development Bank.
Current Treasury Secretary Jack Lew
Jack Lew was sworn in as Treasury Secretary on February 28, 2013. His biggest challenge will be to work with Congress to find the best way to reduce the national debt. Lew was selected by President Obama because he has a lot of experience dealing with budgets and administration. He was Obama's former Chief of Staff, Director of the Office of Management and Budget and Chief Operating Officer for Management and Resources in the State Department. He also served as OMB Director under President Clinton, where he helped negotiate a bi-partisan transition to a balanced budget.
Lew has also worked for Citi Global Wealth Management and Citi Alternative Investments (CAI), and was the chief operating officer of New York University. (Source: White House, Jack Lew)
Tim Geithner
Tim Geithner served under President Barack Obama during his first term of office, from January 2009 to January 2013. A month after he took office, he launched the $2 trillion Financial Stability Plan, using funds from the TARP program. Prior to serving as Treasury Secretary, he was head of the New York Federal Reserve Bank. In this role, he was intimately involved in guiding the bank bailouts intended to soften the 2008 financial crisis. Read more about Tim Geithner.More »
Hank Paulson
Hank Paulson was asked to become Treasury Secretary by President George W. Bush in 2006. He was reluctant to leave his position as CEO of Goldman Sachs, but his experience at the firm gave him intimate knowledge that would prove useful when the 2008 financial crisis hit. He spearheaded the bailout efforts, and used his personal relationships in the banking industry to force them to accept government ownership to shield the weaker banks with the credibility of the stronger ones. Prior to the financial crisis, he managed the Bush tax rebates in early 2008. He has been widely criticized both for doing too much, such as bailing out the banks, and for not doing enough, such as allowing Lehman Brothers to fail. Read more about Hank Paulson.More »
Larry Summers
Larry Summers was Treasury Secretary for President Bill Clinton from 1999-2001. His oversaw the repeal of the Glass-Steagall act, which allowed banks to invest in risky assets like collateralized debt obligations. Summer also was a strong advocate for the deregulation of derivatives. This is one reason why government officials had no idea that the collapse of subprime mortgages would spread to general economy. They literally did not know how pervasive the use of credit default swaps and other unregulated derivatives had become. Read more about Larry Summers.More »
Henry Morgenthau
Henry Morgenthau was Treasury Secretary from 1934-1945, serving both President Franklin D. Roosevelt and Harry Truman. He was co-author of the New Deal, an aggressive spending program designed to create jobs, set up social safeguards and end the Great Depression of 1929. Morgenthau oversaw the sale of war bonds to finance World War II.After the war, he proposed the Morgenthau Plan to prevent Germany from building up the economic strength to ever be a military threat again. It was very harsh. It suggested that Germany be divided into two states, its industries annexed by neighboring countries, and sharply reduce the standard of living. Truman opposed the severity of the plan, but the last part was implemented. A Directive banned assistance to German farmers, and prohibited the production of oil, rubber, merchant ships, and aircraft until 1947. (Source: United States Holocaust Memorial Museum, Henry Morgenthau)
Salmon Chase
Salmon Chase was the Treasury Secretary from 1861-1864 under President Abraham Lincoln. He did two important things: he created the country's banking system and invented the paper currency in use today. Like many Treasury Secretaries, he helped fund a war -- in this case, the Civil War at a cost of $500 million. He did so, even though he was opposed to the war, and was an anti-slavery activist. Chase created the first paper dollar bill in 1861, and made sure the phrase "In God We Trust" was stamped on it. In his memory, the $10,000 bill was printed with his face on it from 1928-1946. His name lives on in the name of JPMorgan Chase, since the Chase Manhattan Bank was originally named after him. (Source: Joshua Brown, The Reformed Broker, The Most Important Treasury Secretary You Never Heard Of)
First Treasury Secretary Alexander Hamilton
Alexander Hamilton was the first Treasury Secretary. His first task was to pay off the $50 million debt the U.S. had incurred to pay for the Revolutionary War. He also absorbed the states' debts. This responsibility established the new country as credit-worthy, allowing needed foreign direct investment to build the nation's economy.
Hamilton paid off the debt by issuing the first U.S. Treasury bonds, and by establishing the first taxes -- on liquor. He created the first federal mint, to issue a national currency. He also successfully argued for the first central bank of the United States, so the Federal government would have a safe place to store funds.
Hamilton's vision was for the federal government to have political dominance over the states. He also pushed the new country to move toward an industrial economy. He was in favor of tariffs to protect these new industries, and increasing liquidity to help start new businesses. (Source: Martin Kelly, About.com Guide to American History, Alexander Hamilton and the National Economy)
