1.28 1.29

1.30 1.31

Subpart B-Procedures

In general.

Certain tort claims arising from negligent or wrongful act or omission by Treasury Department employees. Judgments against the United States. Payment of sums appropriated in private relief acts.

1.32 Compensation for requisitioned property.

1.33 Offers of compromise. 1.34 Disposition of lands and other property under the control of the General Counsel.

AUTHORITY: §§ 1.1 to 1.34, inclusive, issued under Pub. Law 404, 79th Cong., 60 Stat. 237; 5 U.S.C., Sup., 1001 et seq.

SOURCE: $ 1.1 to 1.34, inclusive, contained in Regulations, Acting Secretary of the Treasury, effective Sept. 11, 1946, 11 F.R. 177A-7, 12045, except as noted following provisions affected.

Subpart A-Organization

CENTRAL ORGANIZATION

§ 1.1 Secretary of the Treasury. (a) The Secretary of the Treasury, appointed by the President by and with the advice and consent of the Senate, is the head of the Department of the Treasury, which carries out the responsibilities imposed upon him. The Department was established by the act of September 2, 1789, (1 Stat. 65; 5 U.S.C. 241), which con

cluded a description of the duties of the Secretary by providing that he should "perform all such services relative to the finances, as he shall be directed to perform." (5 U. S. C. 242.) The present expanded and varied duties of the Secretary and of the Department are reflected in the departmental bureaus, divisions and offices referred to in Parts 1 and 2 of this title. Among such added responsibilities are the coinage and printing of money and the procurement of federal supplies; the Coast Guard, the Bureau of Narcotics and the Secret Service are now within the Department; more recent acquisitions of duties lie in the field of international monetary operations.

(b) The more important and familiar duties of the Secretary are, as indicated, described in connection with the respective bureaus, divisions and offices of the Department. However, it should be noted in connection with the discussion of the functions of the Bureau of the Public Debt in Part 323 of this title, that sections 1, 18, and 22 of the Second Liberty Bond Act, as amended (31 U. S. C. and Sup., 752, 753, 757c) require the approval of the President to be given to the issuance by the Secretary of bonds, notes or savings bonds. As to less familiar and important authorities and duties of the Secretary: he is authorized to sell lands acquired by the United States by devise (40 U. S. C. 304); to lease unOccupied and unproductive property of the United States (40 U. S. C., 303a); to provide for the preservation, collection, or sale of abandoned or derelict property (40 U. S. C. 310); and to dispose of bonds, notes, or other securities acquired by the United States by judicial process or otherwise (31 U. S. C., Sup. V, 741a). In addition, under statute the Secretary invests the money accruing to numerous trust and other funds of a public character; assists in the financing of various governmental corporations and other agencies; has custody of certain official bonds; and is charged with duties relative to the approval of sureties on official bonds. The Secretary has certain emergency powers pursuant to 15 U. S. C. 605e, under which, with the approval of the President, he may request the Reconstruction Finance Corporation to subscribe for the preferred stock of an insurance company which is in need of funds or may otherwise assist such company.

(c) Under long-standing provision of statute the Secretary is required to pub

lish an annual report to Congress, and to make public on the first day of each month the last preceding weekly statement of the Treasurer of the United States (5 U. S. C. 271). The abovementioned report, entitled "Annual Report of the Secretary of the Treasury on the State of the Finances" is available through the Government Printing Office.

(d) Pursuant to 5 U. S. C. 4 and 6 the President has provided in Executive Order No. 8714, March 18, 1941 (3 CFR, Cum. Supp.) that in case of absence or sickness the duties of the Secretary shall be performed by officials of the Treasury in the following order: the Under Secretary, the Fiscal Assistant Secretary, two Assistant Secretaries in order of seniority, and the General Counsel. See also Treasury Department Circular No. 244, July 15, 1943.

(e) The immediate staff of the Secretry includes, in addition to the officials in the preceding paragraph, the following: a varying number of Assistants to the Secretary, and Special Assistants to the Secretary, and an Administrative Assistant to the Secretary. The members of this immediate staff and their offices are discussed below.

(f) The Secretary of the Treasury is chairman or managing trustee of three organizations in the nature of interdepartmental boards or committees. These offices are:

(1) Chairman of the National Advisory Council on International Monetary and Financial Problems. The Secretary has been designated by the act of July 31, 1945, 59 Stat. 512 (22 U. S. C., Sup. V, 286b) Chairman of the National Advisory Council on International Monetary and Financial Problems, which includes as its other members the Secretary of State, the Secretary of Commerce, the Chairman of the Board of Governors of the Federal Reserve System, and the Chairman of the Board of Trustees of the Export-Import Bank of Washington. The object of the Council is to coordinate the policies and operations of the representatives of the United States on the International Monetary Fund and the International Bank for Reconstruction and Development and of all agencies of the Government which make or participate in making foreign loans or engage in foreign financial exchange or monetary transactions.

A report to the President and to the Congress on the participation of the United States in the Fund and the Bank is required of the Council not less than every six months. The first of these reports, entitled "Report to the President on Activities of the National Advisory Council on International Monetary and Financial Problems", was transmitted to the President on March 4, 1946, by the Chairman of the Council and forwarded to the Congress by the President on March 8, 1946. Special reports on the operations and policies of the Fund and the Bank are to be submitted at twoyear intervals by the Council, the first to be made not later than two years after the establishment of the Fund and the Bank.

(2) Managing Trustee of the Board of Trustees of the Federal Old-Age and Survivors Insurance Trust Fund. Pursuant to the provisions of 42 U.S.C. and Sup., 401 the Secretary is the Managing Trustee of the Board of Trustees of the Federal Old-Age and Survivors Insurance Trust Fund, composed of the Secretaries of Treasury and of Labor and the Chairman of the Social Security Board. This fund results from the extensive contributions and collections from which Social Security benefits are paid. The duties of the Managing Trustee include the investment in interest-bearing obligations of the United States or in obligations guaranteed as o both principal and interest by the United States of those trust funds which in his opinion are not required to meet current withdrawals; the sale at the market prices of any obligations acquired by the fund, except special obligations issued exclusively to the fund (which may be redeemed at par plus accrued interest); and the payment into the Treasury from the trust fund of amounts estimated by him and the Chairman of the Social Security Board to be adequate to reimburse for a 3month period the expenditures incurred in connection with the administration of certain provisions of the Social Security Act.

The Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance Trust Fund, reporting the status of the fund, is submitted to the Congress on the first day of each regular session.

(3) Chairman of the Library of Congress Trust Fund Board. The Secretary serves as Chairman of this board, estab

lished pursuant to 2 U. S. C. 154, which is composed of the Secretary of the Treasury, the Chairman of the Joint Committee on the Library, the Librarian of Congress, and two persons appointed by the President for a term of five years each.

Reimbursement from the trust fund, not to include compensation to the members of the Board, is allowed for those expenses covered by the voucher of the chairman. The Board is authorized to accept, hold and administer gifts, bequests or devises of property for the Library. The trust funds are receipted for by the Secretary of the Treasury and invested by him as the board determines (2 U. S. C. 157). Authority is given in 2 U. S. C. 158 for the deposit of the principal of the trust-however, not to exceed $5,000,000-with the Treasurer of the United States as a permanent loan with interest at the rate of 4 per centum per annum.

Records of the Board are in the custody of the Librarian of Congress, as secretary. The annual report of the Board to Congress, required by 2 U. S. C. 163, is submitted as a part of the Annual Report of the Librarian of Congress.

(g) In addition to holding the foregoing offices, the Secretary of the Treasury is United States Governor and Chairman of the Board of Governors of the International Bank for Reconstruction and Development and of the International Monetary Fund; he is a member of the Economic Stabilization Board, Contract Settlement Advisory Board, National Munitions Control Board, Advisory Board of the Export-Import Bank of Washington, Foreign-Trade Zones Board, Cabinet Committee on Palestine and Related Problems, Joint Committee on Reduction of Non-essential Federal Expenditures, Executive Committee of the Federal-State Committee on Fiscal Policies of the Council of State Governments, Board of Directors of the Federal Farm Mortgage Corporation, Board of Trustees of the Postal Savings System, Smithsonian Institution, National Archives Council, Board of Trustees of the National Gallery of Art, National Park Trust Fund Board, and the Foreign Service Buildings Commission. He is Trustee of the Franklin D. Roosevelt Library. He designates a representative to cooperate with the Army and Navy Munitions Board in the purchase of strategic and critical materials. The Secretary is usually elected Treasurer, and Chairman of the Board of Trustees of the Endowment

Fund, of the American National Red Cross and he is usually appointed by the President of the United States to its Central Committee.

§ 1.2 Under Secretary. Except for the Secretary, the Under Secretary is the chief officer of the Treasury, and is the first officer of the Department to act as Secretary in case of the absence or sickness of the Secretary himself (5 U. S. C. 245; Executive Order No. 8714, March 18, 1941, 3 CFR Cum. Supp., Treasury Department Circular No. 244, July 15, 1943). He is appointed pursuant to 5 U.S.C. 244 by the President, by and with the advice and consent of the Senate. By statute he is directed to perform such duties in the Office of the Secretary as may be prescribed by the Secretary or by law. There have been assigned to his supervision the Bureau of Internal Revenue and the Bureau of Customs (Treasury Department Order No. 63, April 19, 1946) as well as the Division of Research and Statistics (Treasury Department Circular No. 244, July 15, 1943).

§ 1.3 Assistant Secretaries. (a) There are provided for the Department by 5 U. S. C. 246 two Assistant Secretaries, to be appointed by the President by and with the advice and consent of the Senate. Under 5 U. S. C. 247 they are required to perform such duties in the Office of the Secretary as may be prescribed by the Secretary or by law. Pursuant to 5 U. S. C. 4, 6, Executive Order No. 8714, March 18, 1941, 3 CFR Cum. Supp., and Treasury Department Circular No. 244, July 15, 1943, the Assistant Secretaries in certain instances of absence or sickness of other officials are authorized, in the order of their seniority, to act as Secretary.

(b) By Treasury Department Order No. 64, April 19, 1946 there was assigned to an Assistant Secretary the supervision of the Coast Guard, the Bureau of Narcotics, the Bureau of the Mint, the Bureau of Engraving and Printing, the Chief Coordinator of Treasury Enforcement Agencies, and the Secret Service. By Treasury Department Order No. 65, April 23, 1946, there was assigned to the supervision of the same Assistant Secretary the Office of the Comptroller of the Currency; and by Treasury Department Order No. 66, May 10, 1946, the Procurement Division was placed under his supervision.

(c) The office of the second Assistant Secretary is at the present vacant. Prior to this vacancy there was assigned to the Assistant Secretary occupying it the supervision of the Division of Monetary Research and Foreign Funds Control. By Treasury Department Order No. 70, August 20, 1946, supervision of the Division of Monetary Research and Foreign Funds Control was assigned to a Special Assistant to the Secretary.

§ 1.4 General Counsel (a) The Office of the General Counsel, who is appointed by the President by and with the advice and consent of the Senate, was created by section 512 of the Revenue Act of 1934, Act of May 10, 1934, 48 Stat. 758 (5 U. S. C. 248a; see also section 3930 of the Internal Revenue Code, 53 Stat. 479, 26 U. S. C. 3930). By order dated June 20, 1934, the Secretary of the Treasury established the Legal Division, Department of the Treasury, and directed the General Counsel to perform all duties and functions incident to the administration of the legal activities of the Department and such other duties as might be prescribed by the Secretary. Subordinate to the General Counsel are six Assistants General Counsel, among whom is divided the supervision of the work of all the legal staffs of the various bureaus, divisions, and offices of the Department. One of these, the Assistant General Counsel for the Bureau of Internal Revenue (who has the operative title of "Chief Counsel" of that bureau), is appointed by the President by and with the advice and consent of the Senate (26 U.S. C. 3931). His office is treated separately in § 600.11 of Title 26. The remaining five Assistants are appointed by the Secretary. Any one of the Assistants General Counsel may be designated by the Secretary of the Treasury to act as General Counsel during the absence of the General Counsel. The Office of the Tax Legislative Counsel and the Committee on Practice, which are under the supervision of the General Counsel, are discussed in § 1.20 and Part 12 of this title, respectively.

(b) Although the chief function of the General Counsel is to give legal advice and assistance to the administrative officers of the Department, numerous duties and powers, some of them seldom exercised, are vested in nim by statute. Executive order, or otherwise. In certain instances of absence or sickness of other officials, he is authorized

to act as Secretary of the Treasury pursuant to 5 U. S. C. 4, 6, Executive Order No. 8714, March 18, 1941, 3 CFR Cum. Supp., and Department Circular No. 244, July 15, 1943. The recommendation of the General Counsel is necessary to enable the Secretary of the Treasury to compromise claims in favor of the United States (31 U.S.C., Sup. 194, 19 U. S. C. 1617). Sureties on certain official bonds must be approved by him (5 U.S.C. 44, 520, 26 U.S.C. 3943, 31 U. S. C. 475). It is the duty of the General Counsel to exercise a general supervision over measures for the prevention and detection of frauds upon the revenue (5 U. S. C. 326); to issue warrants of distress against delinquent disbursing officers and receivers of public money (31 U. S. C. 506, 514); and to perform specified duties relative to the collection of revenues and debts due the United States (5 U. S. C. 323–325, 327, 328). The General Counsel is authorized to appoint agents to purchase lands sold on execution by the United States (31 U. S C. 195); to control, rent, or sell lands or other property acquired in payment of certain debts (40 U. S. C. 301, 302); and to release real estate to a debtor upon payment of the debt to the United States (40 U. S. C. 306).

§ 1.5 Fiscal Assistant Secretary. (a) The Fiscal Service, at the head of which is the Fiscal Assistant Secretary, was established in the Treasury by Reorganization Plan No. III, 54 Stat. 1231 (5 U. S. C. 133t, note), which became effective on June 30, 1940 (5 U S. C. 133u). The Fiscal Assistant Secretary is appointed by the Secretary of the Treasury in accordance with the civilservice laws. The Fiscal Service includes the Office of the Fiscal Assistant Secretary, the Office of the Treasurer of the United States, the Bureau of Accounts and the Bureau of the Public Debt. In the absence or disability of the Fiscal Assistant, the Secretary may designate any other officer of the Treasury Department to act as Fiscal Assistant Secretary.

(b) Reorganization Plan No. III gave to the Secretary a discretion to establish within the Fiscal Service agencies other than the Office of the Fiscal Assistant. the Office of the Treasurer, the Bureau of Accounts and the Bureau of the Public Debt. And it gave to the Fiscal Assistant Secretary, with the approval of the Secretary, discretion as to the allocation of