Andrew Mellon – Biography of Andrew Mellon

Andrew William Mellon He was an American financier, philanthropist, and secretary of the treasury (1921–32) who reformed the tax structure of the United States government in the 1920s. He was born on March 24, 1855, in Pittsburgh, Pennsylvania.

After completing his studies at Western University (now University of Pittsburgh), Mellon He joined his father’s bank in 1874 and proved so capable that, in 1882, his father transferred ownership of the bank to him. Over the next three decades, he built a financial-industrial empire by supplying capital for Pittsburgh-based corporations to expand in fields such as aluminum, steel, oil, coal, coke, and synthetic abrasives.

Good judgment of Mellon about new technologies and potentially successful businesses and entrepreneurs allowed him to help found the Aluminum Company of America (Alcoa) and the Gulf Oil Corporation. In partnership with Henry Clay Frick, he helped found the Union Steel Company, which was later merged with United States Steel Corporation. Along with Frick they were also the main organizers (in 1889) of the Union Trust Company, which became Mellon’s main financial instrument and which acquired his family’s bank. In the early 1920s, Mellon he had become one of the richest men in the United States.

Mellon was appointed in 1921 by the president Warren G. Harding, to head the United States Secretary of the Treasury.

In discussions about reducing the national debt, which totaled about $ 26 billion in 1920 due to World War I expenditures, Mellon He argued that continued high wartime tax rates would discourage business expansion and therefore reduce revenues. He also advocated for the reduction of surcharge rates on income. In large part, through his efforts, Congress repealed the excessive income tax and gradually lowered the income tax rate until in 1926 the additional tax was lowered from 50 to 20 percent. Later reductions in tax rates were made; By June 30, 1928, the national debt had fallen to $ 17,604 million.

As ex officio chairman of the World War I foreign debt commission, Mellon He also played a prominent role in the formulation of policy regarding the financing of America’s war debts by foreign governments. His policies helped fuel the American economic boom of the 1920s, and he continued to head the Treasury under Presidents Calvin Coolidge and Herbert Hoover. However, his popularity waned after the Great Depression began in 1929, and in 1932 he resigned to serve as the United States ambassador to England for a year.
Mellon, was also one of the nation’s leading art collectors ;, he delivered a collection valued at $ 25 million to the United States government in 1937. Among other paintings, the collection included Raphael’s Alba Madonna, 23 Rembrandts, and 6 Johannes Vermeer. Mellon donated $ 15 million to build the National Gallery of Art, opened in 1941, which would house the collection.