Robert Morris, who Congress had designated Superintendent…
September 1789 CE
Morris, a wealthy colonial merchant, is nicknamed "the Financier" because of his reputation for procuring funds or goods on a moment's notice.
His staff includes a Comptroller, a Treasurer, a Register, and auditors, who manage the country's finances through 1784, when Morris resigned because of ill health.
The Treasury Board of three Commissioners has continued to oversee the finances of the confederation of former colonies until September 1789.
On September 2, 1789, Congress creates a permanent institution for the management of government finances: Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That there shall be a Department of Treasury, in which shall be the following officers, namely: a Secretary of the Treasury, to be deemed head of the department; a Comptroller, an Auditor, a Treasurer, a Register, and an Assistant to the Secretary of the Treasury, which assistant shall be appointed by the said Secretary.
Alexander Hamilton takes the oath of office as the first Secretary of the Treasury on September 11, 1789.
Hamilton had served as George Washington's aide-de-camp during the Revolution, and has been of great importance in the ratification of the Constitution.
Because of his financial and managerial acumen, Hamilton is a logical choice for solving the problem of the new nation's heavy war debt.
Hamilton's first official act is to submit a report to Congress in which he lays the foundation for the nation's financial health.
To the surprise of many legislators, he insists upon federal assumption and dollar-for-dollar repayment of the country's war debt of seventy-five million dollars in order to revitalize the public credit: "[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."
Hamilton foresees the development of industry and trade in the United States, and suggests that government revenues be based upon customs duties.
His sound financial policies also inspire investment in the Bank of the United States, which acts as the government's fiscal agent.