Federal Government Service
During his time as Navy Secretary, he ended the last formal vestiges of racial segregation in the Navy and advocated the force levels and technological advances necessary to maintain a flexible defense strategy. In May 1954, Anderson left his Navy post to become Deputy Secretary of Defense. He received the Medal of Freedom in 1955. From 1957 to 1961, he served as President Eisenhower's Secretary of the Treasury.
Eisenhower was particularly impressed by Anderson's abilities, believing him to be more than capable of being president himself, and he named him as one of his leading choices to be his running mate in 1956, should Richard Nixon have accepted Eisenhower's recommendation that he leave the vice-presidency in order to serve as Secretary of Defense. However, Nixon opted to remain on the ticket with Ike. As 1960 approached, Eisenhower acknowledged that Nixon no doubt had the Republican presidential nomination sewn up, but he privately pressed Anderson to enter the primaries and challenge Nixon, but Anderson declined. Once Nixon was nominated, Eisenhower suggested that he select Anderson as his running mate, but Nixon chose Henry Cabot Lodge, Jr. instead.
In 1959, as Secretary of the Treasury, Anderson supported the creation of the International Development Association, after pressure from then-Senator Mike Monroney (D-Oklahoma).
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