Andrew Mellon

Andrew W. Mellon endured three economic depressions. After years of experience, he noticed that certain companies seemed to be crash proof. During general market declines, the stock dropped in value, but rebounded back faster. Why did certain companies seem to always bounce back faster? Ultimately, it came down to profitability. The most profitable companies were the ones that retained and returned value after an economic crash. Mellon was a conservative investor who earned a fortune investing in the very best companies.

During down periods in the market, Mellon would continue to purchase assets and simply wait it out. Often, the rebounds were unexpected and the economy would improve for reasons that nobody really understood. Mellon was Secretary of Treasury during the Hoover and Roosevelt Adminstrations. His conservative policies of lower taxes and reduced government spending are credited with helping to lower the public debt. He was criticized for his hand's off policies that included tightening up the money supply and allowing weak banks to fail. His final years of public service were spent renogiating European debt.

The first paper currency issued by the Department of the Treasury were Demand Notes Series 1861. The original "Greenback" was created during the Lincoln Administration. It is considered by some to be a "fiat currency" because its value is not connected to gold or silver. The first series Greenback is exchangeable for a government bond that pays 6 per cent interest per annum. The Greenback came with a red seal.

 

The above image is a counterfeit 1862 note. It was printed on legitimate paper, but has no red seal. Therefore, it is counterfeit.