Nixon, President's Commission on Financial Structure and Regulation & Hunt…

3:42That's all hard good decision, I hear.
3:44I hear it a lot.
3:45Good.
3:45I had to ride it a lot this morning.
3:48It's a big deal.
3:50We're out breaking.
3:53We have a couple of our doctors that are carrying a big load.
4:09Yes.
4:09Yes.
4:36Well, I guess we've covered everybody.
4:40Where is he?
4:40Oh, he's on the line.
4:44You're on my left, Charlie.
4:45You have to put the pictures yourself.
4:50I'm not sure how to say it.
5:13Well, I wanted to express my appreciation to all of the stakeholders in this commission.
5:16I know it's had a rather spotty existence of the report, spotty not in terms of their own efforts.
5:34I've been talking about, like, the entire life of this for years, since the talk started out.
5:40Right.
5:41It's been a bit of fun and exciting.
5:43And I've always had, I've always had excellent reports.
5:47I think I've been sad.
5:49I shouldn't have done it.
5:51Perhaps the best way to proceed would be to turn over to you, and that's what you can do, and to run the show, and what we like to do.
6:04I had a chat about the recovery of national finance.
6:11What else?
6:12I thought we'd get that out of the way fast.
6:16We're going to stick right where we are.
6:19The financing problem.
6:20It's finally gotten out and it's very serious.
7:06And it has to be about where we are.
7:08And Don Diggins, Dr. Diggins, Dr.
7:10Sessions, all of those are our children.
7:11Dr. Diggins, Dr.
7:12Sessions, National Studies, all of our other work.
7:15I don't rule on any special assistant.
7:17I think we all need to, and I think the profession owners in the whole field, we're a little ahead of them.
8:29You have a very good chance of having all the original material in.
8:34The commission members need to sign it by the office meeting.
8:40Take a break there.
9:00We'll have another look at what we have planned together.
9:04By our goal, we should have pretty close to a final position.
9:10There may be some changes in November, December.
9:15We hope to be able to give you some pretty good indication of who we are.
9:27Well, if you, are you ready to tap on the computer screen?
10:25It really comes down to also something else that I think is important, that Charlie probably is still going to do well, but in our service, at least in the Congress, and not just right now.
10:43Thank you very much.
10:47I hope there's some others.
10:48Every time we have any legislation in this field, please get us a new question.
11:05It's the best that enters versus the people, et cetera, et cetera, et cetera.
11:10We all in this room, that's a bunch of nonsense.
11:12We're trying to find out whether it's the best way to operate in this environment.
11:28All of his problems is still there.
11:30Like all the other countries.
11:32I was talking to John Collins the other day.
11:35He's an international finance thinker.
11:38He said, what are the Dutch going to do?
11:41What are the Swiss going to do?
11:43What are the Germans going to do?
11:45They all live by our silence.
11:48You wouldn't say that.
11:50The Belgians, too.
11:51I speak in the terms of, and they very well know it, in terms of their distances as nations, and so forth and so on, in terms of the size of their economies, as important as they are.
12:07We consider that a problem, too.
12:11I want you to know that I'm aware of the tremendous magnitude of the problem.
12:52We haven't left anything unturned yet, but we don't either have on the table, or we don't have on the table, but there's a big bulk of materials.
13:03And the reading material, and the time they put in, and the attendance, and the cut quality, which I don't know if they have enough.
13:17I think we're going to come up with a very constructive overall study, and each one of us will be able to accept from the start, put together something that will fly, and be recognized.
14:13But I think that would be helpful, not the idea of talking about what you should do about that.
14:21The idea is to tell you what we can and can't do.
14:27The resolution is quite final.
14:30This is a very sensitive document.
14:59How are you, you guys?
15:01Well, the commercial value is supporting me, my first hand.
15:0647, 46.
15:06I'd like to say, Mr. President, the commercial banks are posing quite a problem, and we're going to figure out something to do with it.
15:17It's a tall building out there.
15:19You've got to get permission.
15:20We're working awfully hard on it.
15:22Guarantee that.
15:23I might say that the resident side issue is the area of atomic liquid.
15:27So we say, what was the discussion between the commercial bank and the city?
15:31It's a little bit of a concern, but then we find out how it works out in this hotel room.
15:45It's good.
15:45Of course you're competitive, thank God.
15:48But the other hand, and I hope it's always that way, the other hand, there are some minds where you realize this is also some common enemies.
15:56And those who, as I said earlier, have a mind about it, almost want it.
16:25Well, Mr. President, as a politician on the group, I'm particularly pleased with what I sense is a great public concern in the attitude of the members of the commission in producing a system that will be more viable in its ability to serve the people of this nation.
16:47Is it all, has everybody agreed that this kind of study, and shall we say recommended recommendations need to be made, or can we just muddle through it?
16:58I don't think we can muddle through it.
17:05In any business, government institution,
17:35A military institution, what have you, there are people who have a vested interest in the status quo.
17:42They have to have it.
17:44They live with it and so forth.
17:45They're used to doing business that way.
17:46They just want to be comfortable about it.
17:48They don't want to change it and so forth.
17:50We all understand it.
17:51We all have that way.
17:53And so you're looking to change this.
17:56You know how you're getting along this way, but you change it over here, you're not so sure.
18:01And I think that's really the problem, right?
18:03All of you must have one.
18:04Here you are.
18:05Here you are all in successful operations.
18:07Everyone of you.
18:11You read this list of people who were in that group.
18:14So why change it, right?
18:17What about the idea on that story?
18:18Well, it must be crazy because you have a lot of radicals around this table.
18:25Is there anything controversial?
18:26Everything's controversial.
18:27It's very healthy.
18:28It's very hard to exchange opinions.
18:30Everyone.
18:32Do you understand?
18:33We want to change everybody else's business.
18:35Yeah.
18:36Of course, we've got insurance companies.
18:42We've got it.
18:43Just a few.
18:47One tonight.
18:49Yes.
18:50We came back over to the accrediting discussion this morning.
18:54They don't have a job.
18:57How big are they?
18:59Fifteen beds.
19:01Fifteen accredited beds?
19:03Yeah, that's right.
19:04That's the back of the organization.
19:06That's the back of the organization.
19:08Twenty-three native members.
19:11Twenty-three native members.
19:13Well, of course.
19:16First came together with ASAI, and ever since, right from the outset, many of them didn't feel, remember this condition, we had a job to do, and we didn't do it.
19:29So, my wife, she was in the financial studies, and Dr. B worried constantly at the outset that they would be accused of writing this time before.
19:40She was way behind them.
19:46Yes, usually it's that nice.
19:52It's not working, but we're glad to get your views.
20:02That's why we don't pay you.
20:03Let me ask you a question, if I could, in terms of your schedule today.
20:07How much time do you have?
20:12I think it's probably one of the most significant.
21:10For example, there was a great column that they allowed.
21:15They talked about sanity with regard to the negotiations between the U.S. and the U.S.
21:34It was 20 years ago that the United States made a project that gave a percent of all the students in the world the factors that matter.
21:4420 years ago, all the students in the world.
21:47Five years ago, the Japanese, and I raised this in the U.S. in particular studies, the Japanese made 5 million tons of steel.
21:56Last year, they made $100,000.
21:59Next year, they will pass the United States to steel production.
22:12The United States?
22:14I don't know.
22:41But, I digress.
22:47Part that I make is that
23:43Oh, yes.
24:06This is a new subcommittee.
24:08They've written chairman Herman Chavez on it, and they want to... On trading?
24:13Yes.
24:13And it's not in the tariffs, but it's actually the overall question.
24:17What is it you have to do?
24:19Well, here you are, and here it goes to three large insurance companies, savings and loans, banks, and other institutions.
24:33But when you come in, what is your next meeting?
24:39Kansas City.
24:52Thank you.
24:53I'll have you come out and do it there for you.
24:56Yes, sir.
24:58Have theaters go out to Kansas City at their next meeting.
25:01It'll take you, you should set aside, if you will, two hours for his presentation.
25:06It's an hour and a quarter.
25:08If you want to have questions, I'm sure.
25:10Have you go to Kansas City and lay it on.
25:13I really think, I feel so strongly about it.
25:16I think that everybody here is part of what I call the apparent distance elite.
25:21And for that matter, later these people who have to make this account should begin to see these long range terms that we're looking at.
25:36As you know, we have a productivity council.
25:40It's a pretty tough setting in life.
25:51I think that, well, not directly, but it may.
25:57It could have some effect on the riverations.
26:02It has to do with the flow of capital.
26:14I seldom recommend briefings for anybody because they're hard on the floor, but most people actually say no.
26:21I'm just something we have only shown to the government, and so far, and to any select group of top administration people, and
26:43I think you should see him.
26:46Did I have a point here, Mr. President?
26:51Sure.
27:01For two minutes at 2.30, he said he announced what had been made.
27:04I briefed them fairly early on the Lockheed situation, and I think they've done a good response around the state.
27:14The answers to them, you know, you can have questions your age, why do you obey a lot of companies that are deficient in management?
27:23The same arguments, I think, are present on the other side.
27:27Of course,
28:03Whatever criticisms can be leveled against a defense contractor, and most defense contractors, is inefficient by definition.
28:11Whatever can be said about that, it is our biggest concern.
28:16In this instance, they were the cause of it.
28:20It's phenomenal.
28:22The whole place goes black.
28:24What do they do?
28:26Of course, on the other side of the line, you let it go.
28:30The dark side of it.
28:58And it's about 12,000 individuals, small companies, large and small part involved.
29:04The whole idea is that it's 12,000.
29:08You can see, I'm sure they're all going to die because of what happened to Milwaukee.
29:15They're all going to be affected by it.
29:23Mr. President, those of us that are members of this commission are going to admit that we didn't give you a report on Mr. Hunt, who's been our chairman.
29:34All of us are amazed at the ability to agree to involve each of us in very specific work tasks in these meetings, and through his leadership himself.
29:49As far as I'm concerned, it's an absurd presidential commission.
29:52The greatest personal commitment of a group of commissioners in the history of this forum, and it is to its leadership.
29:59We'll give him another one.
30:04I'm aware.
30:04Seems like such a
31:00Well, not usually.
31:22Mustn't a while pay around those smart enough to get us arguing with each other.
31:26The present one reading the attempts is so good now because we're all dedicated and interested that we can all come and defend our position.
31:37Good job.
32:05I'm saying as a non-institution, I must say they're shy.
32:11They keep implying that they're at each other's throats, but I think we're all impressed with the extent to which their interests are far higher than their particulars in these kinds of industries.
32:21They're real trusted with us.
32:23The writing, to me, I must admit, has been their dedication to the organization.
32:59I can't escape however the feeling that, you know, we're living financially here.
33:06It's a very precarious existence.
33:11And if this commission doesn't come up with some suggestions that can be adopted, which will really make our financial system secure,
33:28You can be sure that another commission will be in business shortly thereafter to do its unfinished business.
33:39Because our financial system is just too vulnerable as it is now to trust.
33:45And we have a period of quiescence now.
33:50But it...
33:51There's no reason for believing that it can last.
33:55It really could come in quite suddenly.
34:01It's got to be done.
34:04Let me ask this.
34:06I noticed that you are not addressing yourself at all.
34:18You are?
34:19Not to federal, not to monetary policy as such, Mr. President.
34:23Are you addressing yourself, for example, to the problem of the independence of the Fed?
34:36We have not, you said.
34:38I mean, I don't, don't, it's no sacred count.
34:41Understand, I refuse to express something, but I think there's too much of a tendency among bankers and tax people and government people and all the rest to say, well, now the bed was set up back when he was president, and that was the creation, and God created a perfect thing.
35:02Well, it depends.
35:02He said there was a commission that created that perfect thing.
35:05Ha ha ha!
35:14Don't die if you think you want to discuss it.
35:17I think it's very important for a group to decide what you want to discuss.
35:22That question is not you how to address yourself to a total subject.
35:30So don't be confused to express it.
35:37You have to.
35:40You've got to.
35:41You've got to go.
35:50They are participating.
35:51They are contributing an awful lot of studies to us.
35:54As you say, we have not made a judgment in the area about the aptitude of the students.
36:02I think you can express them any way you want.
36:06You may want to express them in an awkward way, just like that.
36:20is something that has to be, that is, let's put it this way, you can't, those who examine the financial system a dozen times, or talk about it without talking about it, is available.
36:46When I said Mr. President, we weren't dealing with monetary policy.
36:56That's one kind of problem.
36:59There is another whole set of questions, and that's the institutional structure of the reserve system, which after all was set up
37:14set up when we thought of the financial system as being a commercial banking system, period.
37:21And, well, it's a lot more complicated thing now.
37:25Yeah, who ever thought of training juniors?
37:28Well, 15, 15 of us were training juniors.
37:30Right, exactly.
37:31One out of every 10 people in the country got an account in a credit union.
37:36I guess it's an interesting number.
37:39We had insurance companies in the U.S.
37:41There are lots of, you're actually right, there are very great problems there.
37:50But, you know, we've been concentrating on the banks and the whole private financial structure, and that itself is the big order.
38:00Yeah, I would move.
38:02I just think the other thing too.
38:06Yeah.
38:09We won't, I don't want to hold you longer, but I, since you were all, I said we can't afford you, I have to give you a gift.
38:17That's the saddest thing around here.
38:18All of these are...
38:24I didn't know, too, that, well, this looks very expensive, but it isn't.
38:28You don't have to write it.
38:31You don't have to report it.
38:35Neither do I.
38:36These are complex.
39:14I had a rich friend.
39:16I mean, I don't mean he's so rich, but he has a company that's very rich.
39:22He makes the Wilson golf balls, so they had presidential golf balls.
39:26And a signature for President Oswald.
39:28And my two bits of advice that I give with this one is,
39:35I never gave anything to the vice president.
39:41If you don't mind, just a puppet.
39:43That's all you get for all your work.
39:47And of course, I will see you again.
39:49You can get your report when I'm about to receive it.
39:54After I've had a chance to read it.
40:11Don't ask me to pay the bill.
40:14I just want to buy insurance.
40:18Bill, you're quite welcome.
40:19I'll give you some money.

Nixon, President's Commission on Financial Structure and Regulation & Hunt…

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Also recorded on May 6, 1971

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