Conversation 007-139

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Mr. Haldeman, this is Grayson.

Yeah.

Hello, Bob.

I've got the first wire reaction.

Good.

The reaction lead is...

Hold just a minute.

Sure.

Okay.

Yeah.

Uh, the lead on the reaction story is Mansfield, who, and it says, Senate Democratic Leader Mike Mansfield Sunday night hailed President Nixon's imposition of a wage price freeze and other steps to combat the nation's economic ills as harsh but very necessary measures, which is a damn good lead.

Then they pick up the quote, I'm delighted that his patience has finally run out.

I'm pleased he's facing up to the realities of the situation.

He wished he had taken the steps earlier, but there's no saying better later than never.

That's a nice kick the other way.

Wright Patman says, I'm certainly glad he's taking some action.

Action was needed.

It was needed quickly.

Certainly something will be done from this, and I think it will be constructive.

Javits says, the plan was bold and welcome.

Without the freeze, we were blindly rushing through a national economic disaster.

Bob Bird says,

I got that.

Well, on the wire quote, though, it says, something had to be done, and the steps being taken by the president represent an attack on a very broad front.

We believe Nixon would have, in general, bipartisan support for his program.

And on economist reaction, Galbraith said that the freeze was a sound policy.

No doubt this will benefit the consumer.

He said the import tax would reverse the general 30-year tendency to lower tariffs.

No, Friedman is...

very disappointed in the wage-price freeze.

They are symptoms, not causes of inflation.

Yeah, I knew that.

Then he says he agrees with the tax and spending cuts, although the 10% surcharge was not desirable.

I think on the whole, Mr. Nixon has done a fine job on the economy, and from my point of view, I think he backslid.

I realize he was under a lot of pressure.

Governor Milliken's quote could be as significant on the domestic scene as the China announcement word on the international front.

Chrysler said it was very pleased with the proposed appeal of auto outsized packs.

Stats need the President of the National Association of Home Builders said that the Nixon had taken bold, decisively logical steps to halt growing emplacements in the country.

Those are wires.

You know, what the wire's moving with.

Right.

Now I got some other people stuff.

Elmer Bogst.

It's his most comprehensive and definitive action to meet with the rather distressing economic problems here and abroad ever taken by any president.

He approves of every proposal, those of the president and those which the congressman's backed up, and still burns from applause.

And Gullender of the NAM is putting out a statement pledging support of American industry.

They're with us all the way.

Jim Suffridge of the retail clerks says,

He's trying to catch his breath.

It was terrific, dramatic, stunning, broad in scope.

Labor should generally be favorable.

But what will happen at the end of 90 days?

And what about the international unions that haven't negotiated yet?

He says, Meany will like this, but the staff won't let him praise it.

It was breathtaking and dramatic.

The rank and file will go with it.

Harry Van Arsdale.

George says, the important thing is that the President recognized the problem and demonstrated action.

I would support him.

Sam Johnson of Johnson Black says, some I like and some I don't like, but it's basically a positive program.

On balance, a bold, positive statement which shows a great measure of leadership.

It's good to get the leadership.

Let's hit that all day.

Yeah, we sure will.

Kendall, Don Kendall, his overall program was excellent.

He's met the challenge with a very strong program.

Liked the challenge of prosperity with peace without war.

Job development, part of his remarks, very good.

Research and development measures, excellent.

Pleased about the cuts to federal spending.

Smart move on revenue sharing and welfare delay, even though he strongly supports both measures.

Wage price freeze, I'm against it.

We've penalized the unions, haven't negotiated yet.

The president looked excellent.

The situation calls for strong action, and the president has more than adequately met the challenge.

Jack Knight says, I approve of what the president had to say.

We can't fence around with these things.

We have been critical of the do-nothing policy.

I intend to call each of my editors personally tomorrow and urge them to support the president.

Herb says that after the breakfast, Knight had told him that the economy was the one area where he thought you weren't digging in hard enough.

He's very much impressed with the comprehensive approach.

Larry Israel on WTOP here says, a bold, innovative move to me.

President's appearance came across well.

This would give us momentum going into the fourth quarter, which means a good year in 72.

Jim Copley, a strong and well-thought-out speech.

Tax credits and defense at Dollar Abroad was particularly meaningful.

I liked the idea that he opened the door for more meaningful competition.

I think the people will now feel the President is on top of the whole thing.

That's the thing you're getting all the way through here, are you?

Lucille Bluford, the executive editor of the Kansas City Call, a darn good package, fully in support of income tax exemption, repeal of excise.

Frank Stanton said, this was quite a laundry lesson.

When you said this was big, you weren't exaggerating.

This will really shake things loose in a favorable way.

The symbol of the President's speech was action.

I'm pleased with how he's getting at these serious problems.

Joe Alsop, well done.

I don't understand all aspects of economics, but I do know about balance of payment problems, and the President is handling them well.

It was first rate as a performance.

Bold and sensible.

Murray Light, the editor of Buffalo Daily News.

Wow.

Most comprehensive program since FDR.

We've been calling for action on the economic front, but I don't think we expected anything like this.

Bold and adventurous.

Internationally, the other countries are going to be screaming bloody murder, but he had to do something drastic.

It was a tough bullet for President Nixon in particular to fight.

We've supported both revenue-sharing and welfare reform, and I hate to seem to give those up, but the whole program is a hell of a good move.

Which is, uh... We didn't throw him out.

Right.

I've got some bankers here.

Hageman of State Street Bank in Boston says, Very good positive speech.

A real assertion of leadership.

A good balance to the speech.

Good to drop revenue sharing and welfare reform.

Should have closed the goal window long ago.

The president inherited most of these difficulties.

Fred Ehrman, senior partner at Lehman Brothers.

Great political speech.

I like most of it.

The economy was going to improve anyway.

The press and news media have always torn down his proposals.

Psychology has always been as a result that Nixon cannot cope with economics.

This shift in economic policy will reverse all that psychology.

That's good.

That's very important.

Smart analysis, too.

Walter Thayer says it was a blockbuster.

The business community will herald it as a major step.

He's 100% for it.

The reaction will be bullish.

Congratulations.

William Dial, chairman of the board, First National Bank of Orlando, wonderful speech, showed great leadership, gained support of 100% of the people of the South, well-rounded program, I'll be glad to pay more when I go to Europe next week.

George Whitney, senior partner of Whitney, says, terrific job, the president overemphasized speculators, they're smart people and we're playing them too.

Kirkland.

Here's Lane Kirkland's report.

Quite a package.

He told Hodgson this is quite a package.

He thinks he was quite impressed and they're going to have a session in the morning.

Rademacher of the postal union said he's concerned about the raise already negotiated for postal workers, but even if they lose it, the president has done the right thing for the country.

Bunny Lasker says this was...

He says, this was absolutely fantastic.

I have not felt this good in six months.

I swear to God, this has to be marvelous.

The calls I've already had from the market are ones of great excitement.

The president has taken the leadership.

I don't think I've been this thrilled since I was 21.

We've been kicked in the tail in the past weeks by Germany and Japan and others, and finally we're taking the leadership.

This was great.

He's an old bunny.

He'd eat.

The market will be all right.

You can't tell.

You sure can't.

But these guys, their communication is sure to be strong.

Clausen, the president of Bank of America, says, I think it was fine.

We've been asking for the president's leadership, and he came through like a blockbuster.

We may have trouble on the international side on the import tax without regard to the developed nations versus underdeveloped countries.

And he says, what this tactic really does is buy some time for us to come up with a strategy.

90-day freeze was the biggest attention-getter, and I'm proud of my surprise.

It's the kind of leadership we want.

It's leadership, leadership, leadership overnight.

Charles Winding, or Winding, the chairman of Rush Headland in New York, says quite a package.

Wait, freeze was long overdue.

No one likes it, but it's necessary.

Hopefully.

that the gold thing is simply recognizing what already exists.

Surcharge on imports is the right move, but I hope it won't lead to retaliation from the foreign market.

The President was trying to hit it on the head.

George Murphy of Urban Trust, quite a blockbuster, I applaud it.

I think the face-up to some of these problems freezes good.

It's a complicated, all-inclusive package.

Because the Bank of Hawaii is present to be complemented for tackling three areas in one bundle, considerable cost for some.

Okay, Lovestone.

Agreed with some points, agrees with the import duty, solidly behind the 90-day provisions.

Hopes they will be extended and import.

Concerned with reduction of government employees, and concerned with the tax deductions of this value.

Government employees.

Yeah, I understand that, but I don't understand why he'd be concerned about the tax, he doesn't.

Well, that's a pretty good view.

The president first, his is interesting, when the president of First City National Bank in Houston, very satisfied with the speech, feels the president's measured the mood of the country, had remotely made the speech, hopes that a good deal of clarification of the terms will be made.

There were too many details, a great deal of uncertainty in many of the aspects, but it will be a thoroughly accepted program.

But he wonders how the Secretary of the Treasury will respond.

Interesting.

Stuart Sillaway of IDS said the speed up of the $50 tax credit is fine.

He wouldn't give the 7% tax credit on automobiles because 72 is going to be a good year for cars anyway.

The investment tax credit should have been done earlier.

90-day freeze should be regulated to productivity.

I think the Germans and Japs work harder than we do.

And the important tax breaks.

That's the closest to a negative one right now.

Gabe Hauge says, quite a speech.

Sweeping decisions.

Cuts the ground up.

The critics.

And... Brady Black is being pulled up.

The Enquirer says it was a great talk.

Major impact is going to be psychological.

The immediate reaction will be very good.

It had to be done, and now it's being done.

However, I think cutting federal...

I'm not sure about what will happen when the freeze expires.

However, I think cutting federal spending and personnel will be particularly reassuring to the American people.

Leonard Goldenson at ABC says the basic concept was very good.

The President seems to be strong and delivered himself well.

Pleased with what he's doing in foreign trade.

Sound integrated package.

Question 3.

Martin Hayden.

Excuse me.

Because I have kind of mixed emotions.

We've been against the surtax on imports over the years, and we're worried about the possibility of retaliation.

But reduction in government employment and in the budget is good.

Wilbur Mills will love it.

I suppose the freeze had to be, but the real question is what happens at the end of it.

As to gold, it's the type of devaluation I guess I think is good.

I'd be in favor of it.

Tax credit should increase jobs and the excise tax suspension is a great deal in Detroit and we're very much for it.

It's the most revolutionary program since Franklin Roosevelt.

Pierre Renfray, this is on the wire now, says this was the most thrilling economic speech I've ever heard.

A blockbuster.

Sure.

For the first time in more than three years, I feel proud to be a Republican economist.

This is the economic equivalent of going to China.

Treasury Secretary John Connolly is now the key economic man in the White House, without a doubt.

These actions mean an abandonment of the do-nothing policy of George Shultz.

That's all right.

George can take that.

I won't bother George.

Here's the UPI analysis by Chemster.

Now, this is their first economic analysis.

The President makes a bold and sweeping change in economic policy as a tacit admission is 31-0 gain when failed to achieve for a moment.

So, all the steps are being worked out.

The President did not start off the portion procedure.

And, uh, the President just announced

The manager of Ernst & Ernst in New York says, I don't fully understand everything, but I'm delighted he's taken action.

I like what he's doing.

I'm very pleased of it.

Strongly approve of the 90-day price freeze.

It's a tax on imports and a cut in government spending.

I think the reaction of people would be good.

Chairman Harold Mike in Jacksonville says a brilliant attempt to restore the American people's confidence in their economy.

Terrific.

The best thing that's been done.

BAT and JCPenney says under the circumstances some kind of action needed to be initiated.

We can't drift.

The cycle has to be broken.

It's a calculated risk and well worth it.

I'm glad he announced revision of the previous program.

Oh, Weicker, thought it was a fine speech, is with the President 100%, he'll stay with him.

The President has a lot of guts, he admires them.

Hopes the nitpickers will not start any of the nonsense.

The President should have been more in one area over the other.

Bobby Griffin, just plain great.

Great for Michigan, couldn't do better.

Or tickled things.

Saxby, thought the speech was great, feels the statement on 10% increase on foreign trade was bold.

If it is justified, he will go along with all of it.

Mayhan says, it's a good thing from what I know of it.

I'll have to study the address before I analyze the proposal and generally favor it.

Ribacoff, the speech was very appropriate, although a little late.

Very good stuff and necessary.

I will look at it sympathetically when it comes to the World Finance Committee.

We're in a trade war and I'm concerned with foreign relations.

Joe Wagner says, the most forceful statement yet by the President.

On balance, a good address, but three years late.

He and the President made a mistake by eliminating

controls in three months should have made it clear he would extend generally paid fees.

Keith Wilson, the editor of the Omaha World Herald, a little bit more sweeping than many felt it would be, but we support the move to devalue the dollar abroad while the president takes firm and effective measures on the coherent and cohesive program, and what we can be hopeful about.

Jackson Betts of Ohio, all of his proposals are very good.

The wage price for you would be very moderate.

So it looks like a pretty good initial reaction, right?

Right.

Okay.

Charles Schultz was on TV, you know, the former budget guy.

Said he thought it would bring immediate favorable economic impact.

Tom Wicker said the president scored considerable political success.

So I think the negative is pretty muted and, at this point, limited to the same kind of negative as turning.

It's saying, I don't know what it means, I've got to study it.

That's going to happen later.

Yeah, that's fine, but what will happen when we take the freeze?

Well, if it gets this kind of reaction and kicks the thing up, then the other stuff is pretty much going to take care of itself.

OK. Bye, Bob.