Nixon, Shultz & Connally on Economic policy and Federal Reserve

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So, George, I just wanted to call you to tell you that I greatly appreciated your comments with regard to my speech last night.

They were related to this morning.

Well, we've been, come on in.

We've been, you know, of course, working on these things.

We had to keep them private for reasons you're well aware, but it just shows that when all these boys were talking about, we've been doing them, we were about three jumps ahead of them.

And now we're on a darn good wicket.

We're going to stick right on.

Even though the North Vietnamese, of course, will say no the first time.

We'll keep at it, and eventually they're going to have to take the deal.

Okay.

Thank you a lot.

I wanted to get your, uh, sort of feel about the, uh, why we had to do two or three things.

First, it's quite obvious that Arthur is going on his own for prayer village.

He admitted it, right?

I, I, he set it out there, and I, I'm gonna, I'm gonna call in for a comment.

I'm gonna tell a comment, and I'm totally behind you.

I thought about calling, and I'm gonna have to meet, and I'm gonna have to buy, and I'm gonna have to, uh,

Well, look, we have constantly, I have said, we're not going back forever.

Now, you know what I mean?

And we just can't consider it.

And to talk about going back to it creates some of the doubt.

On the second point, I wonder, what about ours is concerned about us understanding all the rest of their worries about our money, et cetera, et cetera, et cetera?

To what extent do we have to hold on to it, right?

Understandably, it may lead to a right or a wrong.

I...

I don't tend to get that excited about what our first bureau can do right now.

If they would get excited in the sense of what we did, if we dropped scripts and did that, by gosh, we have to balance this burden on the people.

And it doesn't mean that the economy doesn't spend as much money on it.

I don't know if they would spend on it.

That's disastrous for our government and for children.

Well, they're great.

They're great interestors in a prosperous America.

Prosperous America is very important to them.

They, of course, work.

And that's a big surge in the money supply here, which particularly would help them very well.

Plus, that makes it difficult for them

I think that when we have no convertibility, we don't have to worry about their problem because they can't do anything to it.

When we were convertible, then they could

We have to remember that our group fought this at Camp David and lost, and just particularly

It's an anxious way to live about it.

Well, he's fought for the credibility of changing the price of gold.

Now, he also said that changing the price of gold, that doing anything out of your ability is not very important.

And if that's satisfied, then OK.

Okay, I just wanted to be sure that I'm on the right track.

Now, the other point is with regard to, I'd like to say one more thing.

Sure, sure, sure.

Now, Arthur, you've got this Belgian banker on the line.

So you've got the trophy about that.

He's still running around the bar, but he wrote a statement about what he thought about the communication.

And Marker circulated that .

But the paper, which I've been facing completion, called for a virtual return to the old system .

Now, as far as our own crew is concerned, you, Stein, and Conrad are all together, right?

I haven't really had a discussion with the areas prior to this.

That's okay, sir.

That's okay.

Well, I know that I can see where he's at with Stein.

Tell Stein that he is not, that the line is set.

That's what we are.

I understand now, I'll mention it, but I want to hear, you know, if he's a therapist, not to bring him on fire.

I was a therapist, yeah, but it's more of a case study.

Yeah.

Second point is, with regard to the car, it gets back to the back of the road, the problem.

Yeah.

and figures and so forth and so on.

But in your analysis of the figures, you have a funny thing, this goddamn financial or economic community, and one day they're up and the next day they're down and so forth and so on.

I tend, I mean, I'm not calling it an issue of God, but I tend to deal with the little Johnson's, which I have a lot more confidence

Now, I think there is, we hear it from many sources, but just give me your views about that.

And I, we can't, who's right, who's wrong.

I think there's, there's what?

What about, what about science?

You know, the, the, the, the, the, the, the, the, the, the, the, the, the, the,

We're on the other side, so I didn't have that to come around.

The physical production side of this picture looks better than it has for quite a while.

I think it's going to look a lot better.

Well, that's true.

That is not a month-to-month proposition.

That's a question of the way they take the survey.

And we all know that you could ask a question in a different way if you get the information.

I see if you say, see, their test for somebody on the soil is a behavioral test.

And I think that's good.

They have never gone for this sort of attitude

Another dimension of that is, when did he go?

How long ago did you do it?

You could define it as a week, or you could define it as a longer period.

All right, what do they have to do it for a month, and what time they do it for a week?

They do it for a week.

They have first questions.

The first questions you do is they were going to ask you, what were you doing most of the last week?

You were doing something else.

So you were doing something, got a lot of questions about what happened to the treatment industry.

and say something else, and they don't know what you're doing.

School, housewife, or what?

And then they take it out on the floor, and they ask you about your work.

What did you do when you were working for work?

And by the way, that's why I don't think you did do anything.

And I haven't spent this time, and I haven't been back home, and I'm here before I can't be on the floor.

So that's the definition of change.

We could make a change now, and that's just not going to happen.

We've got to make a change now.

All right, I've got one point.

I don't need to have the memo.

Just, you know what I mean, what we're trying to do here is to do the best we can to get the pictures for people to lie about, but we want the best pictures we can get.

There's been a long history of experimentation and discussion of the concept of a phone and the change in a person, such as what kind of person was laid off and where a car model changed over time.

There's a lot of things like that.

Now, I know you're busy.

I just wanted to tell you that

I totally support the proposition of queer religion.

I talked to George Shultz on the side of his mind.

I heard him question about it.

But I heard a little cat out of the bag when he said he was talking about queer religion.

And so what we do about it, John, I don't know, but I just thought we should know that we're going to stand absolutely firm.

If I ever ask about it, if I can say something, I'll say something.

Because God damn it, we're just not going to allow it.

Right.

Yeah.

On the Canadian side, my view is that, and there's no hurry on this, but you might say, talk to him tomorrow and just say, no, but here, we've got to do these tough things.

Because I have another reason for doing it.

I think that doing something to Canada

may be an indication to the Japanese, Europeans, and other places that we're not going to be pushing around.

Yeah.

And there are biggest questions.

Okay, well, that's my view.

And now, what is involved here, John, is that I will, I and I've heard you both do, and what I'll do is to just rule around on the truth, and I'll say, to be honest with you, I don't care if the Russians can't do it right now.

Just put it off.

Don't you agree?

Because you see, once we do these things, as I pointed out, there will be the name of the Canadians who are going to go to people who are going to stir up those tickets at that time and that time.

Frankly, I'm just not going to tolerate that.

Right.

On the gold, you're in charge of that.

I'm sorry, not the trade thing, the gold.

Well, I just wanted you to know that George and I had a talk, and you've got Stein, George, and Patrick and I, and we all wanted to get it done.

But with ours, it was just, I don't know.

Now the other point that George made, which I think is somewhat reassuring, George says as long as we do not have convertibility, he says the Europeans can't do all that much to us.

Because he says when we have convertibility, then they have a right to lecture us about what we have to do with convertibility.

And without convertibility, that is not the case.

And we just shouldn't get all that excited about the fact that they worry about our functions.

That's your view?

We're doing fine.

And I think we should talk.

In fact, things are coming along.

I'm sure it takes time.

We've got a lot on display.

We're going to get the gold and the rest.

We're going to get our trade.

We're going to do that.

Make the best out of it, whatever we've got.

So I just want you to know that after the meeting, that's my commitment to you.

Henry had a cousin named Amon.

He'll be martyred by, he'll say to you, he's the secretary of your business.

And I'm going to say, he sure doesn't call me about Henry.

He's enraged that you would have done this without telling him.

Okay.

That's a game I'm going to play with you.

Play it, play it.

We're right on.

Okay.

All right, John.

Thank you.

Hey, John.

The Rylance is coming down.

We'll go there today.

Oh.

Okay.

Oh, this is a very great fellow.

I went down to Richmond when I was a congressman, believe it or not.

And they gave me a wonderful reception and say that I have a fond memory of Richmond.

For Christ's sake, don't come off for busting.

I know how strong you are for it, but don't.

All right.

Okay, then.

He's a good soldier.

Just as well, you see, the fight is, the fight is, whether he saw it or not, he now sees it.

See, I didn't understand it that way, but he said that's right.

That's absolutely right.

And he said, you just don't know about the mattresses and that.

So he sees it.

The thing to do, though, you see, John,

God actually is busy as hell and works around the wreck.

But we must constantly, and you should do this after a meeting on his calendar, on his partner's calendar.

You're right, absolutely, and reassuring.

And you're a lot more careful to draw on that and share it with some of the other businesses and persons that are going to do it.

Now on the economy, the retail sales, the rest doesn't worry as much.

It's worried.

Everything's worried.

I'm worried, but I'm not frightened, which is a good way to put it.

The money's hurting.

The money supply, I don't know.

The thing about the sales is the reason why, over the last year, we were getting these figures, this number five now, so it's a failure to just let them come to me.

The retail sales, that's sort of the end of the line.

We've got strength in retail sales, as you pointed out many times.

Sooner or later, that's going to draw a production process in particular.

Now, a lot of our strength in retail sales last year, and other sales, was going to go outside.

purchasing from other countries, that's really international.

It was probably, it may have given us, given us a lift.

And that's going to turn around, that's going to be a help for us now.

And I don't agree at all with the general assessment of the impact of that with

that there is a surge that we would like to see a stronger impact in six months from now.

And the impact is likely to be a surge.

We doubt that there's not going to be another form of gasoline change.

It takes a little while for gasoline to be driven on that side.

But anyway, there's no time.

So in a way, I think it's going to be a better record than what we've got now.

But in the meantime,

You see, the way the M-1 is just bigger than the M-1 and M-2.

The basic difference between the M-2 and the M-2 includes savings for lots of various kinds.

Now, the reason why these many people seem to think that the M-1 is a little better than the M-2, that only includes things that are near cash, checking account, and cash.

He put money in the savings account.

He said, well, he's got money in the spending account.

He said, there's a check in the account.

He's figuring out .

So when Stein said, we want to see that in one room, well, that's the kind of money that he associated with a big retail sale.

all right so now that's why that's important now arthur says the system is but

So did you get the kids and their friends?

Well, that is a great school.

She's also good.

All right.

The Rockers had already called.

Good.

He did look good.

Good.

That's good.

You'll follow through.

We want her.

All right.

Take the expression of truth.

You know what that's about?

Oh, yeah, sure.

Ideas go.

Ideas.

Well, you can't do much in the women's game, you know, except to call it symbolism.

The man that she's qualified, Steinbach, that likes her, so does the other fellow.

And she'll have a little zest for that, but she's ready for that, so...

You know, I hadn't realized that maybe you had made it with the helicopter.

Remember when we were flying out to the airport, I think it was down in Florida, and I mentioned her to you, and told you that she was gone.

I was afraid to tell you, but I told you only once I saw her.

Standing there in the cabin, and talking to you.

I don't know what it was about, but it kind of got him out in the slamming period.

He cried with a tremendous mind.

He was so, so much ahead of the other people.

He told them, I consent.

We've always consented.

The president's a genius, and his manager's a genius.

You know, I didn't know it, but he wrote a great book, and he wrote a very good book.

Finally, I wrote it with a man named Martin Smith, who was my person, and I was very pleased.

And I got a new book, and he said, call me at the end of the day.

And I said, yeah.

And I started to inspire him.

And this was one of the first books in my field of fact-powered mathematics.

And now it's in the United States.

It's a really good book.

Well, it's very good.

And to be honest with you, I can't do the math on that book.

I can't do it.

I suppose that the problem is that we have our enterprise and our distribution and what we're trying to do in our region is more important.

international on certain things, during conference and all that sort of thing.

And I guess George and all these other people, George Stein, George is a leader, talk optimistically, privately talk optimistically, but not foolishly.

And Peterson, yes, he's a good talker.

He's a good talker.

The banks have lots of money, that's right.

And what part of the business have you tried to loan us and so on and so forth?

That's the whole point.

That's exactly what we wanted to do.

Sure, get out there where you're at.

Stop waiting for people to come in and get out and knock on doors and try to sell.

And in addition to doing, putting in additional taxes, also to get their price down, their price to be able to sell.

It's still to sell.

Sell their money instead of getting loaned that way.

That's what stimulates.

There ain't a trade that's still too high here.

Well, you know, when things would go down, it wouldn't hurt a thing.

They're historically high.

They're low compared to what they were a year and a half or two years ago when the banks were pushing money.

The rest of them were right in saying that, but they're unhappy about it.

The rates are down.

But we want them to be in a position where they want to go out and run a business in front of the heads of banks

running on his own and count people saying, you know, get out there any way, any way that we can get to the banking community where we could probably make a speech to the banking home.

We're trying to get a whole group of them to say, oh, my gosh, this is not going to depend on you or something, or you can do that.

The best way to pressure them is just to increase that in one, and they've got that money.

They've got to load it out.

They want to load it out because they've been told that that's always their route.

But they want to get that out in the form of a loan that's in their spare.

Now, that's, there's no interest in driving the money.

When they see that, they want to get rid of it.

Well, I thought we had many ways to investigate it.

I'm going to describe it to you.

Because he had said it.

First of all, the only way to get him or her is very important.

You can see that about three times a day.

Second, you can see that there's about seven factors.

Third, you can see that he's having trouble to leave our bank.

Remember me, you and I have a contest of, you know, hey, this is not playing ball.

He's not carrying his policy out.

He said, I can handle it.

He said, I agree that that is a problem.

So I think that's a lot of progress.

Could we get, well, maybe it's another vote on the board?

I think we're looking forward to it.

It would be good if we could.

We've got one.

We've got to argue.

We've got one more.

We've got to argue.

We'll call it the other day.

Not today, but call it tomorrow.

There'll be a lot of press conference tomorrow.

And if you call tomorrow, we don't know when that is.

It's vitally important to the economy that we get our other hope.

And we've got to have this post for some post in the U.S. Is there any help that you can give?

Could we give you an XM bank?

I don't know.

almost anything, you know, really hiding anything.

We've got to find a job for Brimmer.

UN sounds great, we can get him up there.

We'll find a job for him.

Back home, we've kind of been trying to assess the retail sales and above and beyond the M1 supply.

And, of course, the thing is, we're in freedom.

I'm glad to know what that is.

Thank you.

I'm glad to know what that is.

Thank you.

So what Freedman is worrying about is, well, that's going to show up on a respondent.

This is what Freedman was saying.

And I was saying, back in 1969, if that happened to you, you'd still mark it.

And everybody would agree that I had the whole thing down.

I said to him, I said, you know, we've done too much.

And we're going to pay a price for you on that.

Before that, we did pay a price.

That is what I was worrying about.

Well, we can't do anything about what's happened.

How do we follow that?

Well, one way to follow that would be

Tell Bull I'll come over there to see the congressman.

He could be there probably now and I'll be right over.

I don't know.

Do I get our version?

Is it problem-marked?

Do you do what he says?

We don't realize that we have a problem.

That's the first step that everybody has to take in solving problems.

I'll talk to you about it.

But let's move with a murmur.

There must be a person who needs to be healed.

I'm coming over to the Capitol.

I'm supposed to be down at the square.

I don't want to leave.

I'm going to go to the Capitol.

when he met the secretary of the board.

I remember that Archer had introduced him to a fellow who was the secretary of the board.

And I don't know what, I remember telling him that Archer wanted that man to be a governor.

And that fellow was, I'm sure, very much under Archer's thumb.

Archer is looking to make a deal with him.

I don't think that Governor Robertson would be nice if this man came on the board.

Well, I would think that this guy may not be as good as the brother of the Archer's son, whoever Archer was.

Well, on the other hand, George and Archer are going to want to move in, so I think that Archer

having our custodians around.

And the only trouble with that is so, and so is caused by his strong will, that as we have discovered, it's very hard to get in on him.

So the chance that he's on the right track now, I don't know, maybe 70% of the ability to get on the right track.

uh...

Nixon, Shultz & Connally on Economic policy and Federal Reserve

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Nixon Library Finding Aid

Transcript (AI-generated)

Also recorded on January 26, 1972

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Nixon, Shultz & Connally on Economic policy and Federal Reserve

AI Summary

Audio

NARA Description

Nixon Library Finding Aid

Transcript (AI-generated)

Also recorded on January 26, 1972

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