Historically, which governmental department held the most power in the early days of the federal government?

In the early days of the federal government, the Department of the Treasury held significant power primarily due to its crucial role in managing the country’s finances. Established in 1789, this department was vital for handling the financial affairs of the new nation, such as managing debt, collecting taxes, and overseeing federal revenue and expenditures.

Alexander Hamilton, the first Secretary of the Treasury, was instrumental in laying the groundwork for the nation’s financial systems. He developed policies that ensured economic stability and growth. Hamilton's influence in shaping economic policy gave greater prominence to the Treasury, especially in contrast to other departments that had more limited scopes initially.

While the Department of State was important for foreign affairs, and the Department of Defense (which was not known by that name in the early years) was less centralized in national security matters, the Treasury's management of finances directly impacted other governmental functions and the overall stability of the federal government. Consequently, the Department of the Treasury's early importance and the financial leadership it provided explain why it held the most power among the departments at that time.