The Birth of Public Debt

The history of the U.S. Department of the Treasury began amidst the financial challenges of the American Revolution. With no power to levy taxes, the Continental Congress issued paper currency to fund the war. On July 29, 1775, the Second Continental Congress appointed George Clymer and Michael Hillegas as Joint Continental Treasurers to oversee government finances. They relied on contributions from the colonies, marking the early efforts to manage the nation's financial stability during the war.

The public debt of the United States originated in 1776, when a committee of founders secured funding through loan certificates (similar to bonds) from France and the Netherlands to pay for the American Revolutionary War. This committee evolved into the Department of Finance, with Robert Morris appointed as Superintendent in 1782. 

The Department of Finance was created.

Morris initiated the practice of annual Treasury reports to the President, beginning with the first comprehensive debt report on January 1, 1783. At that time, the U.S. public debt totaled $43 million.