On this day in 1789, George Washington signed into law the act that created the Treasury Department. The move became crucial to America’s survival, but it also created a constitutional debate about federal powers that remains with us today.
The Founders knew that government under the new Constitution had to stabilize the shaky financial foundations of a new nation that struggled with debts incurred during and after the break from Great Britain. In July 1789, Congress approved a bill establishing a Treasury Department and sent it to President George Washington for consideration.
At first, President Washington offered the Secretary of the Treasury job to Robert Morris, who was known as the “financier of the Revolution” and had led a predecessor department during the pre-Constitution era. Morris declined but recommended that Washington turn to Alexander Hamilton for the critical position. (Morris and Hamilton had similar visions of a national bank that would become a point of political debate for generations.)
