When Andrew Mellon arrived in Marion, Ohio, for his interview with President-elect Warren Harding in December 1920, nobody met him at the train station. The third-richest man in America picked up his worn leather valise and his cane and walked a mile down the road to Harding's house, mounted the reinforced front porch where fifty thousand supporters had gathered that summer, and told an aide: "Tell the senator I am here at his bidding. I know he's busy. Whenever he's ready I'm here." Harding appointed him Treasury Secretary. Over the next twelve years, Mellon slashed the top tax rate from 73 percent to 25 percent, balanced the budget, cut the national debt by a third, and was hailed as the greatest treasury secretary since Alexander Hamilton. Then the economy crashed, Roosevelt was elected, and everything Mellon had built was turned against him.
Today's guest is Greg Steinmetz, author of The President and the Oligarch: Roosevelt, Mellon, and the Triumph of Big Government. We discuss how Roosevelt ordered his attorney general to find dirt on Mellon and build a tax fraud case even though his own advisers told him it was flimsy, why Mellon's father divided the world into "tax payers and tax eaters" and raised his son to believe that the income tax was un-American and immoral, and how the young Roosevelt was a shallow aristocrat who ignored the Triangle Shirtwaist fire until polio taught him what suffering felt like. We look at how Mellon secretly bought twenty-one masterworks from the Soviet Hermitage for $6.6 million and planned to give them to the nation, how the tax case generated 10,000 pages of testimony and was decided in Mellon's favor after he was already dead, and why Roosevelt attended the dedication of the National Gallery that Mellon built and praised his generosity without acknowledging that he had spent four years trying to put the donor in prison. Steinmetz argues that the Roosevelt-Mellon clash was the last serious fight over whether America would be a big-government or small-government country, and that Roosevelt won so completely that no president since, not even Reagan, has seriously reversed the expansion of federal power that Mellon spent his career trying to prevent.
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