Andrew W. Mellon, American banker, financier, and diplomat, 49th United States Secretary of the Treasury (d. 1937)

Andrew William Mellon: A Titan of Industry, Statesmanship, and Philanthropy

Andrew William Mellon, often simply referred to as A.W., was a towering figure in American history, embodying the roles of a shrewd banker, powerful businessman, influential industrialist, generous philanthropist, discerning art collector, and dedicated politician. Born into Pittsburgh's prominent Mellon family on March 24, 1855, he meticulously built a vast and formidable business empire before dedicating over a decade to public service as the United States Secretary of the Treasury.

Early Life and Forging a Financial Empire

Mellon's journey began with a strong foundation laid by his father, Thomas Mellon, who had himself become a notable banker and attorney in Pittsburgh. Andrew William Mellon stepped into the family business, T. Mellon & Sons, in the early 1870s, quickly rising to become the dominant force within the institution. Under his astute leadership, T. Mellon & Sons was eventually rebranded as Mellon National Bank, and he further expanded his financial footprint by establishing the Union Trust Company. By the close of 1913, Mellon National Bank had amassed more deposits than any other bank in Pittsburgh, while its formidable sibling, Union Trust, controlled the region's second-largest bank, a testament to Mellon's unparalleled financial acumen. Beyond banking, his business career was characterized by an astonishing breadth of investments and ownerships. He either owned outright or played a crucial role in financing a diverse array of major corporations, including industrial giants like Alcoa, Westinghouse Electric Corporation, and Koppers, as well as significant players in shipbuilding (New York Shipbuilding Corporation), consumer goods (Old Overholt whiskey), and infrastructure (Standard Steel Car Company, Pittsburgh Coal Company, the Carborundum Company, Union Steel Company, the McClintic-Marshall Construction Company, and Gulf Oil), among countless others. His influence wasn't limited to commerce; he was also a powerful benefactor to the Republican Party throughout the significant political shifts of the Gilded Age and the Progressive Era.

A Decade at the Helm of the Treasury

The national stage called to Mellon in 1921 when newly elected President Warren G. Harding selected him to serve as his Secretary of the Treasury. This appointment marked the beginning of an extraordinary eleven-year tenure, during which Andrew Mellon would serve under three Republican presidents: Harding, Calvin Coolidge, and Herbert Hoover. His primary mission was to reform federal taxation in the wake of the immense financial strains of World War I. Mellon championed a controversial yet influential economic philosophy, arguing that reducing tax rates on the wealthiest Americans – often referred to as "supply-side economics" or, in his time, the "Mellon plan" – would paradoxically stimulate the economy, encourage investment, and ultimately generate greater overall tax revenue for the government. While he advocated for these cuts at the top, he generally maintained a progressive income tax structure. Elements of his proposals were first implemented through the Revenue Act of 1921 and the Revenue Act of 1924, but it was with the passage of the Revenue Act of 1926 that the "Mellon plan" was fully realized. Under his stewardship, the nation also saw a remarkable reduction in the national debt, which significantly decreased throughout the economically booming 1920s. Mellon's political clout, both within state and national spheres, reached its zenith during Calvin Coolidge's presidency. Journalist William Allen White famously observed the extent of his influence, stating that the Coolidge administration could fairly be described as "the reign of Coolidge and Mellon," highlighting the profound impact Mellon had on national policy during this prosperous era.

Later Years and Enduring Legacy

However, the economic landscape shifted dramatically with the Wall Street Crash of 1929, ushering in the devastating Great Depression, and Mellon's national reputation suffered significantly. As a key figure in the Hoover administration, he participated in various initiatives aimed at revitalizing the economy and stabilizing the international financial system, though he firmly opposed direct governmental intervention in the economy, a stance that became increasingly unpopular as the crisis deepened. Facing mounting criticism and the initiation of impeachment proceedings by Congress, President Hoover strategically moved Mellon to the prestigious role of United States Ambassador to the United Kingdom. Following Hoover's defeat in the 1932 presidential election to Franklin D. Roosevelt, Mellon returned to private life. His post-treasury years were not without challenge; from 1933, the federal government launched a high-profile tax fraud investigation against him, a complex case that eventually concluded with his estate making substantial payments to resolve the matter. Despite these later controversies, Andrew Mellon left an indelible mark through his philanthropic endeavors. Shortly before his death in 1937, he was instrumental in the establishment of the magnificent National Gallery of Art in Washington D.C., a monumental gift to the nation. His generous support also played a pivotal role in the later founding of two other esteemed institutions: Carnegie Mellon University and the National Portrait Gallery, solidifying his legacy as a titan of industry, public servant, and cultural benefactor.

Frequently Asked Questions About Andrew Mellon

Who was Andrew Mellon?

Andrew William Mellon was a prominent American banker, businessman, industrialist, philanthropist, art collector, and politician from Pittsburgh, Pennsylvania, who served as the U.S. Secretary of the Treasury during the 1920s.

What was Andrew Mellon famous for?

He was famous for building a vast business empire, serving as U.S. Secretary of the Treasury for over a decade during the Roaring Twenties, implementing tax reforms known as the "Mellon plan," reducing the national debt, and his significant philanthropic contributions, including establishing the National Gallery of Art.

What role did Andrew Mellon play during the 1920s?

As Secretary of the Treasury from 1921 to 1932, Mellon presided over the economic boom of the 1920s, advocating for policies that reduced taxation (especially for top earners) and significantly decreased the national debt, serving under Presidents Harding, Coolidge, and Hoover.

What was the "Mellon Plan"?

The "Mellon Plan" was his economic philosophy that argued for lower tax rates, particularly on top earners, believing that this would stimulate investment, economic growth, and ultimately lead to greater government tax revenue. It was fully realized with the Revenue Act of 1926.

What was Andrew Mellon's legacy?

His legacy is multifaceted, including his immense contributions to American industry and finance, his long and influential tenure as Secretary of the Treasury, and his transformative philanthropy that led to the creation of institutions like the National Gallery of Art, and supported Carnegie Mellon University and the National Portrait Gallery.