Nixon White House Tapes › Tape 16 › Conversation 016-126

Nixon phone call with Connally on Monetary Policy and International Finance

Sunday, December 19, 1971 · 7:55 PM–8:01 PM ET · White House Telephone · 5 min

ParticipantsNixon, Richard M. (President); Connally, John B.Conversation016-126 on Tape 16 (tape position 04:38:54–04:43:42)StartSunday, December 19, 1971 at 7:55 PMEndSunday, December 19, 1971 at 8:01 PMRecording deviceWhite House TelephoneSourceNixon Library record for 016-126 ↗

AI Summary

President Nixon and John Connally discuss the positive public reception of a recently negotiated international monetary agreement and plan Connally's upcoming travel schedule. They also address concerns raised by economist Milton Friedman regarding the money supply, with Nixon urging Connally to leverage his influence over Federal Reserve Chairman Arthur Burns to ensure appropriate policy adjustments. They decide to schedule a formal Quadriad meeting to discuss these monetary issues further.

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Transcript (AI-generated)

This transcript was generated automatically by AI (WhisperX) and has not been reviewed for accuracy. Names and numbers are often wrong; speakers are not identified. Do not cite it as authoritative — verify against the audio and the finding aid.

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Hello.
Yes, sir.
Well, how are you feeling now?
You recovered?
Pretty well.
I haven't done one single thing all day except mess around.
What I wanted to tell you, John, was this, that I was talking to Bob.
I would like to arrange that immediately after the dinner down there that we have the plane so you come back to Washington that night.
How would that be?
Well, I want you to be there for your anniversary, though.
Well, whatever suits you.
The plane will be there.
well whatever you want whatever you want you just in other words if the evening is early you just might as well get on come on well i think it'd be better though i guess spending the night perhaps the british should be your favorite i think that's right i think they would feel like if i just got left yeah and we'll be through you know we won't have i talked to tony last night
So we know we're not going to have a whole lot to talk about, so I don't think they'll feel bad if I leave the next day.
Well, I told the president what Iran reported to you, that this whole agreement could not have been possible without your leadership.
And it was really one of the most superb jobs and negotiations we've ever had.
And we're very proud of it that you've done it.
Hell of an achievement.
Well, you're more than generous.
I don't think that's true.
I know it's true.
The way you ground them down and finally cajole them.
And, you know, it's a way to work it out.
Well, it was difficult.
It was tiring.
It was hard on everybody, I must say that.
It's playing well, don't you think?
Yes, sir.
I think it is.
We, as I told you, we were going to low-key it, so...
We've got some stories in the papers today at least that, you know, that indicate we gave a lot, which is all right.
It's not necessarily stiffening, but we, and particularly while these finance ministers were all still here, we had Crowe and Brackenbach and what he's done.
Later on, we can talk about the fact that it means jobs and that's a whole stability and all the rest.
One other thing I want to mention to you briefly that we can talk about at a later time.
I had a note from Friedman.
He's very concerned about the money supply thing.
Yes.
He says that the $500 million went up, but Arthur took it down $300 million when we took it down to next.
I really think, John, we've got to, you and I, have got to sit down with Arthur.
Maybe we've got to do it in the quadriads so that it's on the record.
How do you feel?
I think we probably do have to in the quadriads, but I think...
In the meantime, we do it every time we see him.
I think he just got to, because he told me and he told Charlie Walker that in separate meetings that he had met with the Open Market Committee, that they were tough, but that he'd finally persuaded them to do what he wanted them to do.
It indicated to me that the money supply was going to increase.
Now, this was 10 days ago.
Well, I wonder if, well, you can't do it tomorrow, I guess, but sometimes.
sometime in the next couple of days if you would continue to express your concern about Arnold.
Would you do that?
Yes, sir.
I sure will.
You can influence him where Schultz and others cannot, you see.
Well, I think I can have some influence on him.
How did he play in this game?
Very well, very well.
He had some fixed ideas.
And outside of a couple of things, we got along marvelously well.
He cooperated well.
He sat there.
He was patient.
Did he believe the agreement with Goodman?
Yes.
Oh, yes.
Oh, he thinks it's superb.
He thinks it's magnificent.
And he thinks it's better than we had any right to expect, better than he ever thought we would get.
And, of course, he would have given more for a number of reasons, not the least of which is that...
that philosophically he would have given a little bit more.
But he's tickled a bit.
And extremely complimentary.
Was last night.
Okay.
All right.
Well, we'll see you tomorrow, huh?

NARA Description

On December 19, 1971, President Richard M. Nixon and John B. Connally talked on the telephone from 7:55 pm to 8:01 pm. The White House Telephone taping system captured this recording, which is known as Conversation 016-126 of the White House Tapes.

Nixon Library Finding Aid

Conversation No. 16-126

Date: December 19, 1971
Time: 7:55 pm - 8:01 pm
Location: White House Telephone

The President talked with John B. Connally.

     President’s schedule
           -H. R. (“Bob”) Haldeman
           -Connally’s schedule
                -Plane from Bermuda
                -Connally’s anniversary
                -Anthony Barber [?]
                -Press
                      -Ronald L. Ziegler

     Monetary Agreement
         -Praise for Connally
         -Press reaction
               -Jobs

     Money supply
         -Milton Friedman
              -Concerned
         -Proposed meeting with Arthur F. Burns at the Quadriad
              -Charls E. Walker
              -Open Market Committee
                    -Burns meeting
                         -Increase in money supply
              -Connally influence on Burns
              -George P. Shultz
         -Burns
              -Reaction to meeting
                    -Cooperative

Also recorded on December 20, 1971

  • 016-124 7:44 PM · 11 min — President Richard M. Nixon and William F. ("Billy") Graham talked on the telephone from 7:44 pm to 7:55 pm.
  • 016-125 7:55 PM · 7 sec — President Richard M. Nixon and the White House operator talked on the telephone at 7:55 pm.
  • 016-127 8:02 PM · 7 sec — President Richard M. Nixon and the White House operator talked on the telephone at 8:02 pm.

Cite this conversation

Conversation 016-126, December 20, 1971. White House Tapes, Richard Nixon Presidential Library and Museum, National Archives. Audio and AI transcript via Easy Nixon, https://www.easynixon.org/tapes/016-126 (accessed October 11, 2026).