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https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Collection: Paul A. Volcker Papers Call Number: MC279  Box 7  Preferred Citation: Congratulatory Letters: "S", 1979; Paul A. Volcker Papers, Box 7; Public Policy Papers, Department of Rare Books and Special Collections, Princeton University Library Find it online: http://findingaids.princeton.edu/collections/MC279/c120 and https://fraser.sdouisfed.org/archival/5297  The digitization ofthis collection was made possible by the Federal Reserve Bank of St. Louis. From the collections of the Seeley G. Mudd Manuscript Library, Princeton, NJ These documents can only be used for educational and research purposes ("fair use") as per United States copyright law. By accessing this file, all users agree that their use falls within fair use as defined by the copyright law of the United States. 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Mudd Manuscript Library 65 Olden Street Princeton, NJ 08540 609-258-6345 609-258-3385 (fax) muddCet_),princeton.edu   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  September 17, 1979  Dear T4thbait: I appreciated your note on my appointment and hope to see something of you here. Sincerely,  Mr. Thibaut de Saint Phalle Board of Directors Export-Import Bank of the United States Washington, D. C. 20571  PAV:ccm  E UNITED STATES EXPORT-IMPORT BANK OF TH WASHINGTON, D.C. 20571  " CABLE ADDRESS "EXIMBANK  TELEX 89-461  BOARD OF DIRECTORS   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  July 26, 1979  Mr. Paul A. Volcker President York Federal Reserve Bank of New 33 Liberty Street New York, New York 10045 Dear Paul: to learn that the Was absolutely delighted succeed Bill Miller as to u yo d te na mi no d ha t Presiden e Board. Congratulations! rv se Re l ra de Fe e th of Chairman you in Washington. I look forward to seeing Best regards.  Thibaut de Saint Phalle  TSP/ljh  ,OLeA  klA)x-\   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  September 17, 1979  Dear Mr. Schulze- Boysen: I appreciate your letter on my appointment, and all good wishes for your stay in New York. Sincerely,  Mr. Hartmut Schulte-Boysen Sonsul General Federal Republic of Germany New York, New York  PAV:ccm  THE CONSUL GENERAL OF THE FEDERAL REPUBLIC OF GERMANY  Hartmut Schulze-Boysen   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  New York, August 1, 1979  Mr. Paul A. Volcker President of the Federal Reserve Bank 33 Liberty Street New York, N.Y. 10045  Dear Mr. President: It is a particular honor and pleasure to congratulate you on your appointment as Chairman of the Federal Reserve Board. Having been posted to New York fairly recently, I have not yet had the privilege of meeting you personally, but I know both from my predecessor and from my staff at the Consulate General that you have often been very generous in cooperating with our Mission and in sharing your views with many of our visitors from Germany. We also appreciate, especially, the leading role you have played and will, I hope, continue to play in the American Council on Germany. The many messages congratulating you on your new and most important position that you have doubtless received from my country will prove to you the high esteem in which you are held by your German friends. Q.fttjtd/t-1 /  L%--4 Very truly yours,  W:0 Avy, o;(  CHAIRMAN OF THE BOARD OF GOVERNORS FEDERAL RESERVE SYSTEM  • •  WASHINGTON, D. C. 20551  s. c-) • <4,  0 1- • -• R • .... •   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  September 18, 1979  Dear Rodger: I appreciate the letter on my appointment-and more the offer of help.  As you know, I'll need  all I can get. Best regards. Sincerely,  Paul A. Volcker  Mr. Rodger D. Shay Chairman of the Board Merrill Lynch Government Securities, Inc. One Liberty Plaza 165 Broadway New York, New York 10080  ....... - •-•  • ..........................  •  I  One Liberty Plaza 165 Broadway New York New York 10080 212 766-8752  Merrill Lynch Government Securities Inc.  Rodger D. Shay Chairman of the Board   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  August 22, 1979  Mr. Paul A. Volcker Chairman Board of Governors of the Federal Reserve System 20th & Constitution Avenue, N.W. Washington, D.C. 20551  Dear Paul: It certainly isn't necessary to tell you how well received in the financial community was your selection and acceptance of the Chairmanship. In my own view, there is no one more qualified for the position regardless of the times in which we find ourselves today. There is probably very little that I can offer to assist you, with the possible exception of "market side" input. I hope that my position in the industry is such that you would feel free from time to time to call upon me for views from this perspective. Please accept my sincere congratulations and best wishes for the awesome job you have before you.  Very truly yours,  1  • • • .... • •  •  ....... COI/4- • • CHAIRMAN OF THE BOARD OF GOVERNORS  • 2 LIJ •  FEDERAL RESERVE SYSTEM  i••• •  WASHINGTON, D. C. 20551  4•J •  • RA L RE-S • • •. • • •  ......... September 18, 1979  Dear Rocco: Many thanks for the note on my appointment.  All we can do is hope for the best: Best regards. Sincerely,  Paul A. Volcker  .........  Mr. Rocco C. Siciliano Chairman and Chief Executive Officer Ticor 6300 Wilshire Boulevard Los Angeles, California 90048 ...  .•  ... ...  ...........................   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  ..... .....  .....  ..  .......  1   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  TICOR ROCCO C. SICILIAN° Chairman and Chief Executive Officer  IS19 VC.77  . •q  August 21, 1979  The Honorable Paul A. Volcker Chairman, Federal Reserve Board 20th & Constitution Avenue Washington, D. C. 20551 Dear Paul: May I join your many friends in sending you my very hearty congratulations on your new appoin tment. It is a tremendous responsibility but one whi ch I know you can easily assume. Our country is fortun ate. Cordially,  Ticor  6300 Wilshire Boulevard  Los Angeles, California 90048  213 852 6300   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  September 18, 1979  Dear Merritt: I don't know whether you're back from the Sierras yet, but I'm slogging away in Washington! I greatly appreciated your note -- therP are very few, if any, who can write with such long experience of the Fed, and with its interest so much at heart. I'll do what I can to help keep the tradition and strong, and you know how much help I'll need will get! Thanks for writing. With best regards, Sincerely,  P.S.  Someday, I may even get a pension!  Mr. Mertitt Sherman  PAV:ccm   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  BEATRICE AND MERRITT SHERMAN  July 31, 1979  Dear Paul, I am delighted with your designation to be Chpirman of the Board of Governors of the Federal Reserve System. I send you my sincere congratulations on being appointed to this key post, along with best wishes for a satisfying and successful leadership in a position that has such potential for the welfare of our country and all the world. Although your task of combatyinE,7 inflation seems especially complex and difficult at this particular time, I personally feel comfortable -- and confident -- in knowing that you acce pt the responsibility. Not the least of my pleasure in your selection derives from the belief that, apart from your competence in the monetary policy/financial area, you will give strength to continuing those features of our decentralized central banking system that are unique within, and blend so Well into, our Federal structure of government. Good luck and many Happy Landinz.s, Paul, and my wife joins in sending heartiest greetings! Faithfully,  Mr. Paul A. Volcker, President Federal Reserve Bank of New York.  c,  4—Ck.:'  CCk 3  Lt  C  0--  Psij t—t-  "1.. C4  ti  c4A.›7_77jbk_L,7  CA--4.-  /  'Lc  _  -4&z.)  v  lLL  C  e -e(  G. I._ CI4.  accf   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  September 24, 1979  Mr. Morton D. Siegel First Vice President E. F. Hutton & Company Inc. One Battery Park Plaza New York, N.Y. 10004 Dear Mort: I appreciate the letter and the congratulations. So far as the speaking date is concerned, you are right -I am deluged, and 99.4% refused.  In this case, if I may,  I will put the invitation aside for further review next month, and let you know definitely then. My best to Natalie and you. Sincerely,  jmr   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  ELEHutton E. F. Hutton & Company Inc.  One Battery Park Plaza New York, N.Y.10004  (212) 742-5423  Morton D. Siegel First Vice President  September 5, 1979 Mr. Paul Volker 151 East 79th Street New York New York 10021 Dear Paul: Firstly, may I express my personal congratulations to you on the high honor which has been bestowed upon you. Both Natalie and I think it's simply smashing that at least one of the Carnegie Avenue crowd made it to the top! I have been asked, by the President of the Securities Industry Association, Ed O'Brien, to extend an invitation to you to be the Keynote speaker at the annual Securities Industry Institute meeting held at the Wharton School of the University of Pennsylvania in March, 1980. Traditionally, the Keynote speech is made at the Thursday night dinner held in the Rotunda of the University Museum to approximately 300 senior executives of the Industry who meet together for a full week each year. This year, the event will take place on Thursday, March 13, 1980, and is scheduled for 6:30 to 9:30 p.m. In the event you would honor us with your presence, you will follow such illustrious people as Reginald Jones, John de Butts, and other men of powerful persuasion. Needless to say, all expenses for you and Barbara would be handled by the Institute, and an honorarium will be offered. Paul, I know that you are probably besieged by requests similar to this invitation, but I sincerely believe that it would provide a high level, industry-related and publicly reported forum for your views and philosophy. I do hope you will see fit to join us that evening. My very best wishes to you and Barbara. Cordially, ••• MDS:mmt   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  September 17, 1979  Dear Maurice: I appreciated your note on my appcbintment, even if my reply is belated. But what are you doing in Arizona -developing, I hope, some resources.  That may  be by far more important than mere money! Regards,  Mr. M. F. Strong Resources, Inc. P.O. Box 29008 Phoenix, Arizona  PAV:ccm  85038  RESOURCES,INC. 5025 East Washington Street/Phoenix, Arizona 85034 Telephone:(602) 267-7511 TWX: 910-951-1372   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Mailing Address: PD. Box 29008 Phoenix. Arizona 85038  July 31, 1979  Mr. Paul Volcker Chairman Designate Federal Reserve Board 33 Liberty Street New York, NY 10045 Dear Paul: I was delighted to hear of your appointment as Chairman of the Federal Reserve Board. My warmest congratulations. I can't think of anything which will do more to inspire a renewal of confidence in the U.S. economy, and certainly you couldn't have taken on this awesome responsibility at a more challenging or important time. The news reached me in Europe, and I am dictating this by telephone from there. I am sure you already know that your appointment was greeted with universal enthusiasm and relief here. It would only be right for you to get at least a small fraction of the value you have already added to the U.S. dollar. Again, my very best wishes and warm personal regards. Sincerely, / "1 (• / M. F. Strong  MFS:jr  (Dictated but not read)   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  September 17, 1979  Dear Ray: It was great to hear from you as you pause in your journey through the banking system. When you learn where the fish are in St. Petersburg, let me know. Meanwhile, I'll try to stay out of too much trouble. Thanks for writing. Best regards,  Mr. Raymond F. Sabatella, Jr. President Danbury Bank and Trust Company 342 Main Street Danbury, Connecticut 06810 PAV:ccm  : LI' DANBURY BANK 17 and TRUST COMPANY  1  RAYMOND F. SABATELLA, JR. PRESIDEVI  342 Main Street, Connecticut 06810 • Tel. (203) 744-1211  August 1, 1979  Mr. Paul A. Volcker, President Federal Reserve Bank of New York Federal Reserve P.O. Station 10045 New York, NY Dear Paul: Congratulations on your nomination as Federal Reserve Board Chairman. I doubt anyone envies the difficult role you must assume, but I did want to add my best wishes for success to the many you have already received. Of course, with this move, you will have changed jobs pay more frequently than I (except that I haven't taken a now, cut). I assumed my current position a year ago -- and ng effective August 6, I will be back in the national banki nal system when I begin a new job as President of the Natio h thoug Trust Bank of Florida at St. Petersburg. It seems as ng fate (or foolishness) has condemned me to a life of getti troubled banks on sound footing. If you are ever near St. Petersburg, please give me a call at (813)- 347-9711. Paul, I wish you all the best; and, if I might ever be helpful in your new adventure, let me know. Best pers nal regards,  Pre RFS/ltt   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1 Ckt/_4111-k  A,lp/vt  1411AeA ft)  OAAAA-  '114(A,  n thit a  'Ai  . Sabatella, Jr. ent   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  September 18, 1979  Dear Joel: I'm using a trans-Atlantic plane trip to catch up on correspondence -- I did appreciate your good wishes on my appointment. you  I hope the moving *mins are behind  Barbara refuses to face the thought of moving at  pll: Sincerely,  Paul A. Volcker  Joel S. Stern, Esq. Stern & Fixler Attorneys at Law 950 Third Avenue New York, New York 10022  PAV:mrk  STERN  & FIXLER  ATTORNEYS AT LAW  JOEL_ 5. STERN  950 THIRD  HERBERT B. FIXLER  NEW YORK, N. Y. 10022  AVENUE  (AOMITTED IN N. Y. & DIST. OF COLUMBIA)  (212) 355-7220 DAVID L. BEIER   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  August 7, 1979  Pa_ul A. Volcker  Dear Paul:  Both Lisa and I were delighted to see your appointment as the Head of the Federal Reserve. Congratulations!  I am sure you will do an excellent job.  Sincerely,  JSS:MM  oel S. Stern   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  September 25, 1979  Dear Sarvetnicks: It was good to have an excuse for both a letter and a party after all these years. Thanks so much for "showing up" and for the good wishes. We'll find another excuse when inflation is zero, if that's not inconsistent with the prosperity of Acrilex: Best regards. Sincerely,  The Sarvetnicks  PAV:sep  CAST ACRYLIC SHEET  8 HOPE STREET, JERSEY CITY, NEW JERSEY 07307 PHONE 201-798-1200  V-77  1-0,—A--&—•.e   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  a--  .S,e9  ‘0%--*--   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  September 18, 1979  Dear Walter: It's taken me a while to catch up on correspondence, but I appreciated so much your warm note on my appointment. Among the minuses -- Barbara is staying in New York for the time being. But she'll be down from tire to time, and I hope we can see you both before too long. Our best to you both. Sincerely,  Paul A. Volcker  Mr. Walter S. Slant  P^V:mrk  WALTER S. SALANT  .2.6, 147?  `‘ C.Arbt-r4s-14-64-  ttIAILZ:eA  4-1  14  4 4-t-  e_Anz4,r47  rAft.tt-trs  0-1-• etv 4,7107,  . 6.f.1)  Tt,,ea  ik-e-d  (.14.t4;t-t-A-19a r e--‘,4  c/L-e, T  L..„44ZIta ed-c2-e  Ii)k-   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  of  4 -C-7Z41 LL- •  &)(lit e‘zil.e,td  vi\\  zt)  e   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  September 18, 1979  Dear Mr. Smith: I appreciate your sending me so full an analysis of your views on Mr. Carter and energy. I read it with interest. Sincerely,  Paul A. Volcker  Mr. John E. Smith  PAV:mrk  A   https://fraser.stlouisfed.org dr Federal Reserve Bank of St. Louis  vy,c_X  THE MAKING OF A PRESIDENTIAL LEADER  A notabte episode in the continuing saga o6 Pkesident Jimmy Cat-ten. Fekhaps indeed an epic tukning-point in necent Amekican histoty. Manked by his speech detiveted in Kansas City, Missouki (shades o6 Hanky Putman). When the Ptesident made 4utt amends 604 his anticlimactic damp-squib, instead oi the bombshett expected 4tom his nationwide addtess a 6ew days be4ote. Not a samon this time, ptacing the btame 604 the enetgy CAi4,C4 ptincipatty on the Amekican peopte themsetves. But (natty pointing to the oit companies 4o4 investigation o6 theik tote in continuing to hoed back essentiat suppties 6ot evet highet ptices. Conzttuctivety atzo, he ceased to emphasize the negative but abeit necessaky puksuit o4 coms,etvation, and instead outtined speci6ic positive steps to inckease ptoduction. Maybe unwise., howevet,,itastity to cuttait impottz betione ctosing the enengy gap by incteased domestic phOdUCtiOn. FOA at this ctiticat junctuke when setiousY tecession appeaks to be a dainite pkospect, any widening o4 the gap cannot 4ait 4utthet to stow down a tatteting economy. To towet pkoductivity, inckease unemptoyment and theteby add 4uet to the games o6 uncontkottabte ingation. Nevetthetess, happily at tazt Ptesident Cantet appeats to be awate o4 the disastkous advice he has been keceiving 6kom hiz Cabinet and othek pko6e4sed economic and 4inanciat counsettots. He is now. obviouzty thinking iot himzet4, and iz commencing to disptay the same skills, intettect, and teadekship which tewatded him and the countky with such outstanding success in the 6ietd o4 4oteign a66aiks. No tonget witt a Depattment o4 Enetgy aid and abet the oil intetests in theit constant chive dot evet highet pkices. In this connection, to be hoped howevet that the Ptesident wilt Looicatty backtkack on his stkange poticy o4 deconttot o4 oil pkices, now that he haz dizcoveted 4ok 1vimset4 that this apptoach to the zotution o4 the enetgy ptob.tem earl Lead onty to economic disastek (thete4ote bting back con-tuts). Even mote impottantty, the Pkesident is HOW viewing the enetgy oasis in its -Owe pekoective. Not only az a ctippting btow eon. the Ametican peopte, and a cataclysmic conttibution to atteady dangenous ingationany pkessukes, but atso az a positive thkeat to nationat secukity. Fot this teason above att, as the Pkesident now cteatty sees the countty move tapidty towakds comptete independence o6 6okeign soukces o.6 suppty o6 oil and gas. This witt entail o6 coukse not onty steps taken dkasticatty to inckease domestic ptoduction o4 natutat oil and gaz, but atzo a ctash ptogtam to develop on a vast scate, pkoduction o6 synthetic 4uets. Heke again, the Pkesident disptays botdness and enajaened petception. To wit, $140 bittion to be spent to attain nationat 4et44u44iciency in enetgy means. Abso, cteation o6 an Enekgy Mobilization Boatd in ptace o6 the tamentabty btundeking Depaktment o6 Enekgy.  I   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Howevet, the mean (,4 payment 60A thiz mot inco nzidetabte amount teavez much to be dezined. Namety pkopozed wind 4att ttemendouzty incteazed oil company pko6its kezuttin tax on the g 4tom the zadty envizaged decontnot o4 oil pkicez. But acconding to a kezpected Congnezzionat zotace the ptopontion o4 the pko6its actuatty be necovened 4nom the oil companiez woutd that would not be o4 the onden o4 50/60%, but a mene 10%. Doubt4ut, moneoven contnot witt ziani4icantty inckeaze as intended the , whethet dezuppty o6 oil. But kezt azzuked, it witt de4inite1y boot ingationa ky pnezzukez,. and zutiouzty hukt buzinezz and conzumen atike'.. And the sotutioni4 centainty not highen intenezt /La-te, the ztnatophenic at tevet o4 which haz atneady taken itz iniaht4ut tott o4 the Amek az well az the ztock and bond makketz. What the econ ican economy omy, the 4inancia2 manketz, and the dottan itzeq neatty need iz a powen4u1 zhot in the ann. In what 4o/tin? Nothing tezz than botd and imaginative teadetzhip on the pakt o4 Cat-ten to biting about dkaztic cuts in both intekezt and tax tevetz (togethen with ovendue ne4o toophote-nidden tamzhackte tax zyztem). Keynezian econ nm o4 the omicz i4 you witt, but what woutd F.D.R. and the countny itze16 have done without John Maynand Keynez and hiz "New Dear don the United States. Vez indeed, high time 4ot adoption o4 hiz "managed money" paiciez de4icit 4inancin9 and eazy money in time o4 Aecezzio n, and convekzety a batanced budget and monetany neztAaint in time o4 boom. Cteatty thete iz a CluiZa Oi con4idence az ztated by the Pkez ident, buzinezz and conzumet con4idence can be neztoned onty by pnovbut iding buzinezz and conzumek with incentive to invest and buy in a Aizing and buoyant economy. PAoductivity iz the ptincipat enemy o4 ingation and unemptoy ment, and thiz can be 4u1ly achieved onty in a ctimate o4 eazy money and dectining taxez. Theze wene the economic pkin ciptez that azo guided Puzidentz Tkuman and Kennedy, and kept the coun tny 4/Lee o4 economic tecezzionz that ptaaued the hand-money adminiztnati onz o4 Pnezidentz Hooven and Eizenhowen. Eveny expectation the Pkezident Cat-ten, cazt in simitan Democnatic mod, witt ndone, that the 600tztepz o6 hi-s ittuztkiouz (and zuccezztiut) pked 4o1low in ecezzokz. Panticutat4y when the attainment o4 budgetany batance iz pozzibte onty in a petiod o4 economic byoyancy with itz concomit ant conzequencez oi a tow evet o4 unemptoyment (mone on the tax nott z and tezz on wet4ane and the unemptoyment dote), and gneatet pto4itab itity o4 buzinezz. Howeven, the immediate pubtem o4 hiahezt nationat pnio nity -bsitilt the enekgy ckizi)s the pkincipat contkibutok to ingation. Foktunatety, the Pkezident haz chozen the bet meanz o6 eventuat achievement oi independence o4 4oneign zoukcez o4 oil and gaz notabty by pnoviding zubzidiez •io/t the napid conztnuc tion o4 zynthetic &let ptantz. But in -this connection the tecentty pubt izhed Hanvatd Buzinezz Schoot papek on "PAagmatic Enengy Stnategiez" (a bnittiant exencize in econometkicz) might have had -some inguen ce on the   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  3  Ptesident's thinking with tezpect to atteknatives the ptincipat 4ounces o4 Ametican enekgy. It woa to oit and gas az d appeat that undue emphasis has been paced on the development o4 sotat atthough highty desi/Labte witt take zevetat decades enagy, which, be4oke it can ptay an impottant paat in ctosing the ene/Lgy gap. Atso , on consmation, the 4utt bene4its o4 which tikewise wowed be too tong delayed. Anotha enemy soutce mentioned iz Westetn oil-beatinq shate. But, besides its ecotogicat disadvantages, and the need 4ok tatge-scate use o4 wata in ateas that zu4 6et 4aom seaious shottages, the use o4 shate, tike tat-sands, does not apkaA to p/Lovide a paacticat sotution o4 the enekgy p/Lobtem. On the othet hand the coat option is damoed with 4ccint ptaise and is not cons ideted, az it showed be, to be the countty's ptincipat means o4 achi evin g enekgy 4et44u44iciency. Unquestionabty them is evety teazon to betieve that a c/Lash ptogtam concenttated on the distittation o4 oil and gas 4/tom coat does o44et the Ptezident with a gotden oppoAtun ity to attain the countky's essentiat goat o4 comptete independence o4 4o/Leign sotaces o4 suppty o4 oil and gas (patticutatty o4 OPEC ). Atso, independence 4/tom the domestic oil companies, which have 4ait ed tamentabty adequately to exptoit in the national intetezt dome stic enagy soutces. Fot this teason, Ptesident Cattek can 4u1ty tede em him4et4 in the eyes o6 the Ametican pubtic (and etectmate) onty by taking a dutmatic step that would undo the hatm uncle/Led by oil p/Lice de- . contkot and the constant /Lip-o(146 ingicted on the peopte by The 'oil intekests. Tkiz nothing shwa o4 nationatization o4 the oil, gas and coat companies. The iiesuttant rAo liits to be /Leatize state (and the peopte) would go 4a4 to pay do/i. the cons d by the The. coat distittation ptants and taineties whic natu ttuction a4 h tatty would be buitt on sites adjacent to the coat mina. The Hatv at/so makes much ado concetning the tetease in this puc atd kepoAt ess o4 zutphut dioxide and the p/Loduction o4 catbon diox ide. But, the wtitets o4 the tOott tike the 4anatic ecotogists and envitonmentatizts appeat to be unawate o4 the inetuctabte 4act that in the coatdistittation opekation not onty can the °Lit pottutants be temoved, but sutphut and othet by-ptoductsr thus de/Lived have value. Stitt mo/t.e impottantty, the end p/Loduct-cok a high commaciat e- is the cteanest and most e44icient 4tiet in existence (untike the waste 4tom nucteat teactots, which ptesentz a pubtem so 4at oand to be incapabte o4 sa4e. sotution). Howevek, in °Aden to gain comptete pubtic con4idence in Paesident Cattet's teadekship it has been necessaty to teptace thes cabinet who have conttibuted to his 4aituke on the home e in his 4/Lont. In patticutat, o4 coutse hiz Enetgy Secutany, and the Sect Tteasuty whose consetvative poticiez have saddled the etaty o4 the count/1.y with the highest &vet o4 intetest tatez in histoty. With nesutts that the economy is in a disasttous taitspin the inevitabte ; ingation has not yietded, and haz been on the conttaty aggtavated by the high cost o4 money; mottgate-money is eot-out o4 /Leach 4o/L the avet age citizen;  4  zmatt buzineszez ate inckeazinaty keduced to bankkuptcy. Funthekmote, the exekcise o4 conzekvative conventionat wizdom in this tezpect zekvez neithek to enzute ioteign ketention oi investment in thiz county, non_ command coniidence in the U.S. dottak. But stkangety enough the announcement o4 the Pkezident'z wize decizion betatedty to ovekhaut hiz Cabinet ptoduced mot unexpected kepetcuzzion's abkoad. The dottak 4e11 shakpty on the Eukopean exchange matketz, and gotd hit an hatotic high. But the myztic yettow meta, a bakbakic tink with a tezz entightened pat, now haz no 044icia1 connection with cukkency vatuez. In ecent yeakz, az tong tecommended by Pkoiezzok Robekt Tte44im-o4 Yate (the gteatezt authokity in the woktd on inteknationat monetaky aiiaikz), gotd no tongek zekvez az a cukkency ztandakd, and happity iz now juzt anothek commodity (o4 tezz commekciat vatue than itz ziztek-metat zitvek, and it cektainty doez not pozzezz the utititakian quatitiez oA ikon and othek baze metaiz). Nevetthetezz, the agez-tong hoakdekz continue to have 6aith in thiz zcakce metat az a zuke hedoe againzt imitation (but ovek the yeakz o6 ketention with no ke)tukn, and the high coze c)4 zaie-keeping, what a pook inveztment). Thu the Eukopean exchange tkadekz dizptay tittte Logic in zupposing that the dottak iz eli4ectivety tinked to the gytationz o4 gotd. Mokeovek, Pkezident Cakteez action to kid ho Cabinet o4 thoze who have contkibuted to the weaknezz o4 the dottak zhoutd have been intekpteted as a buttizh kathet than a beakizh 4actok. In any . - event, atthough, 4ok the zhott kange the dottat iz vutnekabte -to &e.'4 eihcest44.(L-h -rptavg ciivssi-Acm-1-1.% the tongek kange 4actokz. So, a4tek moke than 50 yeakz ctoze Awl4cc4-64- tW(V' t'%vaissociation with the inteknationat exchange and money makketz the wkitet ventukez to make the Ottowing pkedictionz;-   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1.  Expected zuccezz o6 Pkezident Ca/aut. in zotving the U.S. enekgy pkobtem witt Lead to zhakpty deckeazed impoktz o4 4okeign ocit, which in tau. witt etiminate the intetnationat batance o4 paymengz de4icit. The Latent ztkength o4 the U.S. dottan witt atzo devetop az a kezutt oA the Pkezident'z intent to ztazh bukeauckatic ked-tape, and thuz give a 44inite boozt to Amekican induztkiat pkoductivity, and unkeztkicted exptoitation ci4 the countky's peektesz weatth o4 natukat kezoukcez (pakticutak ba-se and pkecious metatz). colx.e , 0cL Crun.5 e 2. Govetnment pkezzuke on Detkoit to pkoduce zmatt cakz with gazotine conzumption in the akea o4 50 m.p.g. witt eventuatty bking about a zhakp keduction oA the pkezent good o6 W. Gutman and Japaneze "Beettes". Hence, with the combination c)4 a hakdet dottat and zo6tet Makkz and Yen the Lattet cutkenciez coutd expetience a Act/up dectine. 3.  With the ketukn o4 con4idence in the U.S. dottak even the 4otmekty impkegnabte Swizz Ftanc iz tikety to come undek heavy pkezzuke. Pakticutakty in view o6 the gtowing pkezzuke on Switzektand to put an end to inde4enzibte banking   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  5  6ecitecy, which when zucce664ut witt bAing about a panicky exodu4 oS inteknationat gight and tax-eva6ion capitat. Finatty, thekeiou, t Pkezident Cattee6 entightened e6ioAtz in katotation o6 heatth and 4,ftength to the Ametican economy witt put a timety end to the tong petiod o,11 U.S. dottak weakne46 and vutneitabiti ty. Thu6, a powequt btow 4tAuc1z jjon. guatet intetnationat cutnency., 4tabitity and unwed 6aith in the U.S. dottco, 4tandatd. 0op _ e.;)vLA. 5•i  --1-1-,A.A-C 4  c h  L.°  (-La./L. Cc_ 5  MJ4-  at.S2-Alr  ru.L,L)  5  ct.„1„n ChN,  t (  JES/mp  John E. Smith Judy 25th, 1979  u_.30-erinet,  5   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  September 18, 1979  Dear Mr. Streett: I appreciate the message from the Princeton Club of St. Louis -- even if I can't tell whether Woodrow Wilson is resting peacefully or turning over. In either event, we can only try our best. Thanks for writing. Sincerely,  Paul A. Volcker  Mr. Donald H. Streett President Princeton Club of St. Louis 319 North 4th St. Louis, Missouri 63102  PAV:mrk  Princeton Club   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  August 1, 1979  of St. Louis  Mr. Paul A. Volcker c/o Federal Reserve Bank of New York Federal Reserve P.O. Station New York, New York 10045 Dear Mr. Volcker, On behalf of the 300 members of the Princeton Club of St. Louis, I would like to extend congratulations to you for your nomination to become the Chairman of the Federal Reserve Board. I am sure that, having heard of your appointment, President Woodrow Wilson is resting comfortably wherever he may be; if there were ever an opportunity for Princeton to be in the Nation's Service, this is it. Congratulations and Godspeed. Sincerely,  Donald H. Streett President DHS/mrw   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  a  September 24, 1979  Dear Al: Can I thank you for both the letter and for coming to the party in one note?  It was great  to finally have an excuse for getting together. The next celebration is when inflation is zero! Best regards,  Mr. Albert E. Sproul, Jr.  jmr   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Albe  ul, Jr.  ofro'  kiro - / 19'77 7 -24  2e,(6.oz  0-„  r  t-74"„  fi  41-n,z1A-e  „,_)) 4)-(1-vit /tat in, is,  tiW   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1  FEDERAL RESERVE BANK OF NEW YORK NEW YORK. N.Y. 10045  ••••  AREA CODE 212 791-6173  PALL A. VOLCKER  1.•  PRESiDENT  August 1, 1979  Dear John: Your telegram of congratulations and good wishes is very much appreciated. Thanks so much for sending it. I, too, will look forward to seeing you at the time of the Reserve Bank directors' meeting--let's count on it! ...  Sincerely,  Paul A. Volcker  Mr. John Sagan Vice President-Treasurer Ford Motor Company 1345 Avenue of the Americas New York, New York  ................................  ....................................  ........................................... ....... .............. . ......... .... . . . ........................................... ...... . ... .... ................................................................................................ . . .... •• • • ........................ . ...... .....  .  ...  .... ..  .. .  •  ...  ................  ......... ...............................................  ..... .... .... . . ........................ .. . .................:............................... ........ ..... .........   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  ......  ...  .....  ...........  .....................  ILI  Telegram  western union T I C562(1851)(1...120137 A216)Pe O7/25/79 1641 ICS I PMNQ NA NYK 393 ICS IPMTI31 /1..030861'4216 P7/25/79 TL X F °ROAM DR BN A 295 PD DEAR BOR N MICHIGAN JULY 25 1979 PMS THE HONORABLE PAUL A VOLCKER, PRESIDENT FEDERAL RESERVE BANK OF NEW YORK 33 L I VERT Y STREET NEW YORK, NEW YORK DEAR PAUL  PLEASED TO HEAR THE ANNOUNCEMENT OF YOUR SELECTION AS CHAIRMAN OF THE BOARD OF GOVERNORS. MY CON GR ATUL AT I ONS AND BEST WISHES. LOOK FORWARD TO CON GR ATUL AT I NG YOU IN PER SON AT ONE SF-1201 (R5-69)  OF THE FEDERAL RESERVE DIRECTORS MEETINGS. PERSONAL REGARDS  BEST  JOHN SAGAN VI CE...PRESIDENT...TREASURER FORD MOTOR NNNN  RECEIVED JUL 26 1979 P. A. V, ANSWERED ATTENDED TO,  SF-1201 (R5-69)   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  ;  kugust 7, 1979  Dear Billy: Thanks so much for the warm note. Somettmes I think I should retire now while the market behaves, but somehow I better stick around and try my best. I appreciate all the help in New York. Keep in touch. Sincerely,  Paul A. Volcker  Mr. William R. Salomon One New York Plaza New York, New York 10004  PKV:smk   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  WILLIAM R. SALOMON ONE NEW YORK PLAZA NEW YORK, NEW YORK 10004  July 26, 1979  Dear Paul: being Heartiest congratulations on at the present nominated for what I consider post in the United time the most responsible unquestionably States Government. You are and ability uniquely by background, training, The announcequalified for this assignment. ide support by ment obviously received worldw marketplace. the actions of the sensitive ent I am very proud that our Presid inating you at displayed great wisdom in nom best wishes for this difficult time. My very good health. great success and continued Warmly,  Mr. Paul Volcker President York Federal Reserve Bank of New 33 Liberty Street New York, New York 10045  FEDERAL RESERVE BANK OF NEW YORK NEW YORK.N.Y.I0045 AREA CODE 212 791-6173  PAUL A. VOLCKER PRESIDENT  August 1, 1979  Dear Charlie: Thanks so much for your note of July 25.  Your kind words are appreciated. Sincerely,  azd Paul A. Volcker  .......... .......................................... 1.. ..................  Mr. Charles E. Saltzman Limited Partner Goldman, Sachs & Co. 55 Broad Street 10004 1:1,w York, New York  *.  ........•....  ........................ ................................... .... ....................... .. ... .. .............. ........................ ...................................................... ...... ....................................... ........ ........................................................ . ...... .........1.1..... .1.. .. . . ............. ............................................ :............................................................................ ... ...................... . .. ....................................................................................... ................ ........... ... ... ......... ........................................................... ..................... ......................................  ........ ......... . ............ .........•......................•............................ . ..................................................................................................... ........... ............................... ... ....................... ............................. .. ...................  ... ............................................. ... ....... .. ........ ........................................................................................................  .............. ....... • .. .. ............... ..... ...... ............... ....... ............... •. ......................... ..... ................ ................... .......  ..... • ... • • .......... • ...................................... ...................................... ..... ....................  .......................•............................................ ........................................................................ ............................................................ .. • ..  . ..............................   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  ..............  .   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Goldman,Sachs & Tel: 212-676-8360  I 55 Broad Street I NewYork, NewYork 10004  Charles E. Saltzman Limited Partner  fioldman Nat  July 26, 1979  RECEIVED Mr. Paul A. Volcker Federal Reserve Bank of N. Y. 33 Liberty Street New York, NY 10045  JUL 26 1979 P. A. v. ANSWERED  ATILNDED Dear Paul: With so many others, I am pleased and reassured by the news of your appointment to be Chairman of the Board of Governors of the Federal Reserve System. I don't see how a better appointment could be made, if as good. In my opinion, you will see matters as they really are and when it is necessary for you to speak out you will tell it as it really is. Yours sincerely,  itA Charles E. Saltzman SST  New York Boston Chicago Dallas Los Angeles Philadelphia I St. Louis I San Francisco Detroit Memphis   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  August 22, 1979  Dear Nat! I appreciate both the calls and the warm note. I don't think the hoopla has Q.,one to my head—vet. And I suspect the brickbats will mile soon enough to force me to retain all sense Sf perspective. Keep in touch. Best rec;ards. Sincerely,  Paul A. Volcker  Mr. Nathaniel Samuels  NATHA NIEL SAMUELS   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  August 9, 1979  Dear Mike: Many thanks for the note.  I'm afraid after all  those oress notices its downhill from here on--but we shall struggle: Regards, Sincerely,  Paul A. Volcker  Mr. M. G. R. Sandberg Chairman , The Hongkong and Shanghai Banking Corporation Box 64 GPO Hong Kong CHINA   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  The Hongkong and Shanghai Banking Corporation Incorporated in Hong Kong with limited liability  Ig19 11 11 7 ---7 !".  Box 64 GPO Hong Kong M.G. R.Sandberg Chairman  °Fir  Mr Paul A Volcker Chairman Federal Reserve Board Room 2046 Twentieth Street and Constitution Avenue WASHINGTON, DC.  31 July 1979.  Dear Paul Rather belatedly, but I have been more or less living on airplanes for the last week, may I offer you my sincere congratulations on your appointment as Chairman of the Federal Reserve Board. It must be very satisfying for you to read of the universal pleasure your appointment has given, and this is well deserved. You are bound to have received an enormous nunber of congratulatory messages, so please do not consider acknowledging this short note. Yours  so  M G R  Sandberg.  •  1 Queen's Road Central Telephone: 5-2677-111 Telex: 73205 HSBC HX Telegrams: Hongbank Hongkong •   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  August 23, 1979  Mr. Charles S. Sanford, Jr. Executive Vice President Bankers Trust Company P. 0. Box 318 Church Street Station New York, New York 10015 Dear Charlie: appreciate the note, however belated the response. Take credit for knowing me quickly -- you know the short half life in these things! Just keep the market in shape  always remembering  the "upsIf are mine and the "downs" yours (and maybe some "speculators" of little faith). Best regards,  Paul A. Volcker  PAV:mhw  ,)   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  tantM"  BANKERS 280  PARK  TRUST AVENUE,  CHARLES S. SANFORD, JR., EXECUTIVE VICE PRESIDENT TELEPHONE 212 692-4550  COMPANY NEW  YORK  MAILING  ADDRESS  POST  OFFICE  BOX  318  CHURCH ST R E ET STATI 0 N NEW YORK, NEW YORK 10015  July 26, 1979  Mr. Paul A. Volcker Chairman of the Board Federal Reserve Bank of New York 33 Liberty Street New York, New York 10045 Dear Paul: When Bill Simon was named Secretary of the Treasury I found that I was the only person on Wall Street who did not claim to be his closest personal friend. While I am not able to make the same claim with respect to you at least I shall be able to say I know him, which should raise my social standing down here immensely. In all seriousness, congratulations.. al.e" V Kindest personal regards 1•?‘' Sincerely,   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  August 10, 1979  Dear  Steve: I hope you will continue to send along your  "organized views".  I will find them helpful.  Thanks for the greetings. Sincerely,  Paul A. Volcker  Professor Raymond J. Saulnier Lehman Hall Bernard College Columbia University New York, New York 10027   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  ..e.-+•+P...••••••••••••••••••••  A/0 91 r ' August 7, 1979 Paul:  Attached are some notes I do ocassionally, mainly to organize my own views, and test them for sound, at least. In the present ease, I am concerned mainly that what I though wouldn't amount to anything much turns out to be an alarming monetary expansion. I wish you all the best.  R J. SAULNIER   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  NOTES ON THE US ECONOMY AUGUST 6 1979 RAYMOND J SAULNIER  Although inflation and r cession have been at tho center of attention recently in econonic news, a related development - the reversal of money supply behavior to explosively rapid 2xpansion - clearly deserves more notice than it has had. Briefly, the story is this. During much of the second half of 1973 and the first two or three months of this year, growth in the monetary ai;gregates was retarded to rates close 'co zero, in tile case of ni to a nczAtive number. Monetarists saw this as a sure sign that recession would begin by midyear. This writer interpreted it as precisely what was needed to slow tlic inflation rate, and took the view that if money policy was :ascd a bit as we moved through 1979 there was a good chance of avoiding anything that could reasonably be called a selfreinforcing, cyclical recession. So it seemed until early summer. Reappraised with the year more than aalf over, the odds have shifted to favor a recessiS n forecast; but in the process, money supply (6rowth, instead of accelerating ahas bc(,.n transformed into exceptionally rapid expansion. The monetary base (reserves and bank-held currency), after having slowed to an increase around 4 percent a year in January/March, rose betwen April and July at an annual rate well over 10 percent. El (demand deposits and currency) was moving down about 1.5 percent a year in the six months ending March 1979 but spurted in a series of jumps in Apruly to a rate close to 11 percent. And 112 (El plus net time deposits), after having increased hardly at all from November 1978 thrS ugh February of this year, surged ah2ad subsequently at close to 14 percent a year. For a time it seemed reasonable to interpret what was happonins to money supply as aberrations soon to be reversed, but they persisted too long to permit that view. And it does not help greatly to say, as many do, that conventional measures of monetary chang': tell a less complete story than formerly. They still tell most of the story, and what they don't tell would only make the tale more harrowing.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  ri as npuiotilt  hoio  an say that what we have here is an extreme case of the micmanagement acteriz- d the long history of central banking: excessive tightness ds or c s t rates t ul oge ase te, bfo el eex ed m ereec sh oaioruinndi a l l, owand bdI b ieev imw ieds yt r ee cor trheac t, v tie sse oalmhesaasecrtt le- have c h an e s banking akn finlcance iimvn- int ernat iona l an ciiceo uc ly and cl d the tas yo f manag mone y s upply t hada t expansion was generated unwittingly. In any case, the question now all happnned but what will be done about it.  A  As indicated, opinion has (rightly or wrongly) come to favor a recession forecast - official forecasters soem content to debate only how deep recession will be, and how long it will last - but there are still grounds for the view that what is in prospect is not a typical cycle but a period in which thc economy bumps along without much movement up or down, in a manner that will be ultimately recognized as the way a basically vigorous economy, reasonably free of structural imbalance and operating side by side with a large public sector, behaves as it struggles with the problem of reducing inflation. Support for this view is supplied by the Composite Index of Coincident Indicators, which fluctuated without significant change of level from December through June, by the July employment figures, and by signs of some revival recently of new car demand. Without abandoning the "bumping along" theory altogether, it must be conceded that the chances of avoiding recession have been materially reduced. Moreover - and this is a major implication of the recent money supply expansion - the need to slow the 6-rowth of money supply has reduced the chances still more. The start of a recession pattern is already present, of course, in quarterly estimates of price-deflated GNP. The second quarter decline was less than was hinted a month ago by official sources, but was still a sizeable 0.3 percent, not annualized. This is bigger than any of the three quarterly dnclines that constituted recession in 1960, and caused something of a furor at the time, and only slightly less than the first quarterly decline in the 1973-75 cycle. Projecting GNP for the rest of this year and into 1980, two possibilities present themselves. A plausible view is that it will drop again in the third quarter, still on the 1973-75 path, but will turn up slightly in the fourth quarter and continue up in 1980 at a rate which, in an inflationary context, will be weaker and less certain than typical of past recoveries. A less sanguine forecast, incorporating a deeper decline in spending on cars and other consumer durables, and a speedup of inflation in the second half of this year rather than a slowing, has real output dropping again in the fourth quarter, still roughly on the 1973-75 path, and defers recovery until mid-1980. In either case, the downturn would exceed 1960 by a considerable margin but even in the less sanguine forecast would fall short of 1973-75 (a 5.7 percent drop, peak to trough) by a few percentage points. The relation to this outlook of the recent surge of money supply is that the authorities have no option, as I see it, but to try to slow it's growth, and this the is certain to repress activity below what it would otherwise .Io Federal Reserve will have some support in this effort from the federal budget it is nowhere near enough. Outlays in the first eight months of this fiscal year exceeded their volume in the comparable fiscal 1973 period by 10.4 percent when the increase should have been held to around 8 percent. The much faster growth of tax receipts, reflectinE inflation, will reduce the deficit, and thus Treasury's borrowing needs, by upwards of $15 billion, but the slowing of money supply growth will have to be engineered predominantly by the Federal Reserve, and the impact will necessarily fall mainly on private business and the consumer/householder. One way or another this will accentuate the economic decline, but considering the   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  - 3-  that any liquidity that has already been built into the economy, the likelihood ic data shift of monetary policy will occur slowly, and forward-looking econom st of that are on the whole still favorable, I am disposed to favor thc foreca mild rather than severe downturn, but with recovery on the anemic side. ively on The implications for inflation and interest rates depend almost exclus recent what government does. To allow monetary expansion to continue on its a panicky course, worse still to let it accelerate, would be disastrous. So would monetary expansion reaction to poor economic statistics. But if steps to slow the le, the can be taken without being unduly disruptive, which should be possib this year result should be at least a limited lowering of the inflation rate, and next, and support for the interest rate downtrend already underway.  NEW YORK CITY   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  RAYMOND J SAULNIER   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  August 22, 1979  Dear Mr. Sayles: Many thanks for your note.  All I can do is  y try my best -- and that includes maintaining the integrit of this place. Sincerely,  Paul A. Volcker  Mr. Thomas D. Sayles, Jr. President Summit and Elizabeth Trust Company Summit, New Jersey 07901  PAV:mrk  SUMMIT and ELIZABETH ,Y7,;(4.4Wel-i-0er/ir SUMMIT, NEW JERSEY 07901  (201) 277-6200  THOMAS D. SAYLES, JR. PRESIDENT   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  August 16, 1979 r--  Mr. Paul A. Volcker Chairman Federal Reserve Board 20th Street and Constitution Avenue, N.W. Washington, DC 20551 Dear Chairman Volcker: Now it is my turn to congratulate you on your selection and appointment to the Chairmanship. This is indeed a highly critical position, and your appointment is both well-deserved and appropriate. You certainly will have a challenging job facing you, and I wish you every success in carrying out your important deliberations. The strength of the dollar exhibited by the world financial markets is fine testimony to you and your reputation. I hope you will be successful in keeping the Board free from political intervention.  611 tofrt/fr  Personal regards, Sincerely  frA, TDS/lk  (;J. fbro:  to'  ,  Many thanks for your congratulations and kind words.  I'll do my best!  Mr. Morris A. Schapiro One Chase Manhattan Plaza 10005 New York, New York  •.•.  .•  ..................................   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  ..  ... ,....................................................................................................................................... .............•................. ..... ...................  ....•...........   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  MORRIS A. SCHAPIRO ONE CHASE MANHATTAN PLAZA NEW YORK, N.Y. 10005  July 26, 1979  Dear Paul, Unanimous applause greeted the announcement of your nomination as Chairman of the Fed, and I am one of the great, great many joining in the ovation. From past observation, I know you will do a fine job, and I hope you will get personal satisfaction and much pleasure in your new position. Congratulations and very best wishe s.  Mr. Paul A. Volcker Federal Reserve Bank of New York New York, New York 10045  RECEIVED JUL 26 1979 ANSWERED  ATTENDED TO__   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  August 16, 1979  Dear Mr. Scheer: I appreciate your note.  I know something of  the problems and can only try my best. Sincerely,  Paul A. Volcker  Mr. Seymour Scheer  PAV:ccm   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1979 AUG 10 P" 1': H OFF'  August 7, 1979  Mr. Paul A. Volcker, Chairman Board of Governors Federal Reserve System Constitution Avenue at 20th Street Washington, D.C. 20551 Dear Mr. Chairman, Just a short note to congratulate you on your appointment and to wish you well as you assume your new duties. I know that you have the requisite strength, capacity and, certainly, experience to deal with your new responsibilities, and that all of us will benefit through your efforts. With best wishes for a successful tenure, and warmest personal regards, I am •  .•  .•  NE GOvtii.. CHAIRMAN OF THE BOARD OF GOVERNORS FEDERAL RESERVE SYSTEM •  WASHINGTON,D.C. 20551  August 8, 1979  Dear Mr. Scherpenhuijsen Rom:  AP  • A, ..*" "^-'s -.  1..2.  • — •  I appreciate the note. I suspect YOU have not seen the last of me, at least at the IMC. Barbara joins me in sending our best to you both.  •no,  Sincerely,  •0131•01 . 3..; ,  33 .  •  •3.  . 44e-  Paul A. Volcker  •10  r !'•• JA' r•'t ,N:•`!,; t`  ,•- •1*•  Mr. W.E. Scherpenhuijsen Rom Chairman of the Board of Managing Directors Nederlandsche Middenstandsbank N.V. 2 Eduard Van Beinumstraat Amsterdam The Netherlands   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  • • :;.,  • ,  • -  •  • • .••• -.•;,..?`"••:"••_,' ••  •  ••• • °  , ••••  ••••  •  •.• •  • r11, ' •,  •- 110 • •  • •  r".  •••  .(13,•  •••—  ••••.• . • ..-•  •••• •••••••^...,  os•  1•1•• *. • /-  •••••  •••••& , •0111  niekig Vs"-' - • ••  3"  _   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  NEDERLANDSCHE MIDDENSTANDSBANK NV. CHAIRMAN BOARD  OF  OF THE MANAGING  AMSTERDAM, July 2/, 1979.  DIRECTORS  W. E.SCHERPENHUUSEN ROM  2 EDUARD  VAN  BEINUMSTRAAT  Mr. Paul A. Volcker, Chairman of the Federal Reserve Board, 20551 WASHINGTON D.C. U.S.A.  Dear Mr. Volcker, It was a great pleasure for me to learn of Your nomination as Chairman of the Federal Reserve Board, on which nomination please accept my sincere congratulations, also on behalf of my wife. I do hope that it will still be possible for you to attend the meetings of the Trilateral Commission and of the International Monetary Conference also in the future. Meanwhile I am, with best wishes and kind regards,  Yours sincerely,  (Registered under No. 31.431 in the Commercial Register of the Amsterdam Chamber of Commerce)   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  August 6, 1979  Dear Frank: I appreciate the note.  Barbara is being "left' in  New York, so living will be a little more difficult than usual.  But somehow we will survive. Our best to you both. Sincerely,  Paul A. Volcker  Mr. Frank W. Schiff Vice President and Chief Economist Committee for Economic Development 1700 K Street, N.W. Washington,D. C. 20006  COMMITTEE FOR ECONOMIC DEVELOPMENT, 1 700 K Street, NW., Washington, D.C. 20006 • 202 296-586n   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  FRANK W. SCHIFF Vice President and Chief Economist  _,A111  July 26, 1979  Honorable Paul A. Volcker President Federal Reserve Bank of New York 33 Liberty Street New York, New York 10045 Dear Paul: My warmest congratulations on your appointment as Chairman of the Fed! I was absolutely delighted to learn the news, both from a personal viewpoint and because of what it means for the future of monetary and economic policy. There is no one better qualified than you to hold this position and I know that you will do a superb job. Erika joins me in wishing you every success in your new tasks. Although the decision to leave New York must have been a difficult one for you, we hope that both you and Barbara will find your return to Washington in your new capacity thoroughly satisfying and enjoyable. Cordially,  Frank W. Schiff  rerfall  L;  VEO.  .5 1 1979  v. ................ ...... ................   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  August 7, 1979  Dear John: Thanks for writing. I shall try ny best. Sincerely,  Paul A. Volcker  Er. John M. Schiff Lehman. Brothers Kuhn Loeb, Incorporated One William Street New York, N. Y. 10004 AV;   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  ie,o,Z-kbYa ,A„d szemitezhai 6tell,a,a/mX,ed ill.3/04,i17*f000# July 26, 1979  Mr. Paul A. Volcker President Federal Reserve Bank of New York 33 Liberty Street New York, New York 10045 Dear Mr. Volcker, It is encouraging to know that the President has nominated you to be Chairman of the Federal Reserve Board. You certainly are well qualified for this position and it gives me great confidence to know that you will carry on these duties. Sincerely,  John M. Schiff  RECEIVED /sah  JUL 3 0 1979 R A. V. ANSWERED ATTENDED TO.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  August 7, 1979  Dear Herb: T appreciate the vote. I expect both the challenge and the excitement. but I will be looking forward to that quiet dinner when the bombardment starts. The family stays in New York, so the shuttle pains. All the best. Sincerely,  Paul A. Volcker  Mr. Herbert S. Schlosser Executive Vice President RCA 10 Rockefeller Plaza New York, New York 10020  PAV:snk  RCA 30 Rockefeller Plaza New York, NY 10020 Telephone (212)598-5900  Mr. Paul Volcker President Federal Peserve Bank of New York 33 Liberty Street New York, New York 10045  Herbert S Schlosser  Dear Paul:  July 26, 1979  Executive Vice President Telephone(212)598-5125   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Congratulations on being named Chairman of the Federal eserve Board. It is a superb appointment and one I was hoping the President would make. The job will be challenging, but it will be very exciting. And it will project you into a role that will be good for the country. Will you live in Washington or here? When you settle down, perhaps we can have lunch or a cuiet dinner with our wives. Good luck.  We are all proud of you.  Cordially,  RECEIVED JUL 3 0 1979 P. A. V. ANSWERED ATTENDED   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  August 17, 1979  Mr. Wilson E. Schmidt Professor of Economics Center for Study of Public Choice Virginia Polytechnic Institute and State University Blacksburg, Virginia 24061 Dear Wil: Thanks for the note.  You have me unaware on  the trade question, but I'll get informed. Sincerely,  Paul A. Volcker PAV:pg   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  VIRGINIA'S LAND-GRANT UNIVERSITY  VIRGINIA POLYTECHNIC INSTITUTE AND STATE UNIVERSITY Blacksburg, Virginia 24061 CENTER FOR STUDY OF PUBLIC CHOICE (703)  961- 5210  August 13, 1979  The Honorable Paul A. Volcker Chairman Board of Governors Federal Reserve System Washington, DC  0") ':173  Dear Paul: Congratulations! And best of luck! I hope you can do something about the recent Congressional suppression for 48 hours of the f.a.s. trade balance in favor of the c.i.f. trade balance. I don't have any brief for one or the other, but the suppression sets a very bad precedent for politicization of the data. Sincerely,  Wilson E. Schmidt Professor of Economics WES/dle   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  August 7, 1979  Dear Ed: Sometimes even 1 pet confused about political affiliations, but I love to see Business Week reporters goof. M  y thanks for the note -- we'll see what we  can do. My best to you both, Sincerely,  Paul A. Volcker  Mr. Edward C. Schmults White & Case 14 Wall Street New York, New York 10005  PAV:smk  20 PLACE VENDoME, 75001 PARIS, FRANCE (1) 260. 34 05; TELEX: 220242  280 PARK A"ENUE, NEW YORK, N.Y. 10017 212) 73 2-1040; TELEX: 126697  WHITE & 1747 PENNSYLVANIA AVENUE, N. W., WASHINGTON, D G. 20006  14  66 GRESHAM ST, LONDON EC2V 7L8, ENGLAND f) 600-6691; TELEX. 884757  CASE  WALL STREET  202) 872-0013; TELEX: 89543  AVENUE LOUISE 89,1050 BRUSSELS, BELGIUM 1021 538. 00. 70; TELEX' 23100  NEW YORK, N. Y. 10005 (212) 732-1 040 125 WORTH AVENUE, PALM BEACH, FLORIDA 33480   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  TELEX  2 ICE HOUSE STREET, HONG KONG 5-253061; TELEX: 63604  126201  3051 833-1040  July 26, 1979  ECS:HB  Mr. Paul A. Volcker, Chairman Designate Board of Governors of the Federal Reserve System Federal Reserve Bank of New York 33 Liberty Street New York, New York 10045 Dear Paul: My warmest congratulations on being nominated by the President to be Chairman of the Federal Reserve Board. You are taking on a tough job in perilous economic times (haven't they all been recently). With your wisdom and background, I have no doubt that you will make the right choices and will have the courage to stick with them. As evidenced by a question the President received at his press conference last night, you are off to a good start in that you have already convinced the Washington press corps that you are a "conservative Republican". As I recall, Francine Neff made the same mistake when you interviewed her at the Treasury. Keep up the good work. Diane and I send our very best to you and Barbara. Sincerel  Edward C. S hmults  RECEIVED JUL 3 0 1979 ',NW/ER[0 ATTENDED TO  .  .........  1.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  August 20, 1979  Dear Herm: I was delighted to hear from you. a challenge, as you know.  It's quite  There are a lot of new faces on the Hill and elsewhere. I'm already nostalgic for some of the "old" ones that I learned to respect and work with in the past, like yourself. But we can only try our best. Best regards. Sincerely,  Paul A. Volcker  Mr. H. T. Schneebeli Distributor Gulf Oil Products P.O. Box 2136 Williamsport, Pennsylvania  17701  Gulf Oil roducts g )  •  1979 nu Jo  10 'U  H. T. SCHNEEBEL1 C.=-FrE  DISTRIBUTOR  P. 0. BOX 2136 • WILLIAMSPORT, PA. 17701 TELEPHONE (717) 323-6620  4 /  17( e  z 7(?  (c  (  1  C1/1 .7/17(fi  citix ezi--/et•(  led( //(c ( I   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  A  4f1(  (1/(7   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  August 16, 1979  Dear Tony: Many thanks for your note and good wishes. We shall try our best. Sincerely,  Paul A. Volcker  Mr. Anthony D. Schoberl Franklin State Bank Somerset, New Jersey  PAV:ccm   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  9iavk c4Pa,id ameme4 ccPee.e. *Ace  01€e 4ge,1,wt August 7, 1979  Dear Paul: Congratulations to you on your appointment to the important position as Chairman of the Federal Reserve System. Congratulations must also go to the President and the Senate on their superb judgment. The bankers that I have spoken to recently in the State of New Jersey, members and nonmembers alike, are heartened by this appointment. Your testimony before the Senate Committee regarding our number one problem - inflation, was most encouraging. Please accept our good wishes and desire to cooperate in making your stewardship a success. Sincerely,  -V" NPN  7 Anthony D. Schoberl  The Honorable Paul A. Volcker Chairman of the Board of Governors Federal Reserve System 21st & Constitution Avenue, N.W. Washington, D.C. 20551  ?MS/  40e; 1,•*t  11;$1<d  /141° .  a)(  044.14«.•.,/ see 4,14d4./   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  a  Aucust 14, 1979  Dear David: You were kind to write -- but not to tempt me with all those trout when I have to keep my nose to the grindstone. Someday, I will need just that perspective. Meanwhile, I mean to give it the best try I can here. Regards,  Daul A. Volcker  Mr. David Scholey S. G. Warburg s Co. Ltd. 30, Gresham Street London, EC2P 2FB England  PAV:ccm  Telephone 01-800 4555  S. G. WARBURG & CO. LTD. (Incorporating Seligman Brothers)  Telegrams wARBURCO, LONDON. International Telex: 888476  30, GRESHAM STREET, EC2P 2EB LONDON,   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  2nd August 1979  C•••••  I cannot think of any appointment since the last U.S. President election which has attracted more international interest and acclaim or carried more hope and responsibility than yours to the chairmanship of the Federal Reserve Board. Inevitably you will not be as accessible as you have so kindly been to me in recent years, but I hope you will continue to keep in mind the open trout fishing invitation which I extended to you at Anthony Rawlinson's last fall. I send you my heartiest congratulations and every possible good wish in your vast and vital task.  oft  - gA4.41, David Scholey  r. Paul A. Volcker, Federal Reserve Bank of New York, 33 Liberty Street, New York, N.Y.  DGS:er  I "'a I  Zs'4if 8  A.4 v. ATTENDED To *** ***  0  FEDERAL RESERVE BANK OF NEW YORK NEW YORK, N.Y. 10045 AREA CODE 212 791-6173  PAUL A. VOLCKER PR  NT  August 1, 1979  Dear Paul: It was thoughtful of you to write me on the occasion of my appointment as Chairman of the Federal Reserve Board.  I appreciate your good wishes in coping with the money  challenges that will face me.  With the help of people like  you--we should be able to meet those challenges. Sincerely,  Paul A. Volcker  r. Paul A. Schosberg President Savings Association League of New York State 700 White Plains Road Scarsdale, New York 10583   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  'MP  -9a/1e(%,17 , *oilde _Vide  700 ).4.411.(1/  Yerz,maa,  9)Peaci  *.r.,e /0141 July 25, 1979  Mr. Paul A. Volcker President Federal Reserve Bank of N.Y. 33 Liberty Street New York, N.Y. 10045 Dear Paul: Just heard the news about your nomination as Chairman of the Board of Governors of the Federal Reserve. It's an honor you richly deserve and a responsibility everyone in the financial community is confident you will meet with your own unique brand of dignity and competence. You have our very best wishes for every success in coping with the challenges which lie ahead, not the least of which will be the Magnolia Mafia. With warmest regards, Sincerely,  JUL 26 1979 P. A. V.  ANSWERED ATTENDED TO„.,   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  C7/Ifie)nfd„,  eu *o / t,_Viak , 1:A 700 Cift  5ezzi4.d4  -Peezd c oibe /0.541 ce, * le/  _J  .!3i 0 A-0,1_5P4t_ -7‘ce 1W,  -7 ).")  a‘'  11°  e.Q  sj  7-4?  /ze  A  FIRST FEDERAL SAVINGS bXc:  Paul Schosberg  AND  //  ()P.  LOAN  ASSOCIATION  nFI FLUtRA. I-LAZA  OF  ROCNIESTSR  ,Oho, 146,4 1.40Lr1ESTER FE A'  James M. Cirona President Phone: 716-454-4010  November 3, 1977  Mr. J. Robin Harris, President Decatur Federal Savings and Loan • Association 250 East Ponce de Leon Avenue P.O. Box 968 30031 Decatur, GA Re:  Paul Volker  Dear Robin: At our meeting in Chicago a couple of weeks ago, you asked me to give you some thoughts on Mr. Volker relating to the chaiLmanship of the Federal Reserve Board of Governors. Very discreet inquiry has resulted in expressions of respect He is very highly for Mr. Volker, both personally and professionally. regarded for the role he played in the recent crisis experienced in New York city and state finances. He took the time to educate himself as to the problems and became a real advocate for the city and state with Chairman Burns. People in the financial sector who had occasion to work with him during that time came to regard him as tough but fair. The same people cite an exceptional ability to join disparate groups Although he is regarded as a team player, in confronting vital issues. he is still respected as his own man. Others can relate better to his wide breadth of experience in international financial affairs. He certainly has a solid foundation And, of course, he has served under in the area of domestic finances. both Republican and Democratic administrations without any apparent ill effects from either. All in all, he has gained an exceptional regard in this part of the country and would, I believe, be considered an excellent choice for this position. Sincerely,  444 JMC/ab   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  a   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  ....... ..• CHAIRMAN OF THE BOARD OF GOVERNORS  .6  "2• w• I- •  FEDERAL RESERVE SYSTEM WASHINGTON. ED. C. 20551  6')  •.•AN •• /?,IL • • .... •  August 24, 1979  Dear Mr. Schreiber: Thank you so much for your warm words on my appointment as Chairman of the Federal Reserve.  You know the problems as  well as I--and I count on some of that luck. But we will be trying. Sincerely,  //a'ajadiel Paul A. Volcker  Mr. H. J. Schreiber Member of the Board of Managing Directors Dresdner Bank AG Frankfurt, Germany  A  --, T7 MI-2 FE  '! •  •  j0.--  •  • -1--; .11  L  -  • .., •  •7';')  I  .  •  -3 3 - A3D A  3  .  A  3  v  ri  MR. VC1 CKFR  D2A.  111Commesionsmameaus  WITH 3RE4T PERSONAL SATISFACTION I HAVE RECEIVED THE NEWS OF YOUR APPOINTMENT TO THE CHAIR OF THE FEDERAL RESERVE BOARD. I WANT TO CONGR ATI/ ATE YOU 'SINCERELY TO THIS NOMINATION AND WISH: YOU ALL 1:11: PEST OF LUCK FOR THIS IMPORTANT AND OHALLEN3IN3 TASK. I AY1 CONVINCED THAT YOUR NOMINATION WILL BE UNANIMOUSLY- WELCOMED 13Y MAE INTERNATIONAL BANKING COMMUNITY.  BEST ?---;;3ONA1  REGARDS .  '?"1A .1'.' YOURS VERY SINCERELY cr.17 D7TZ:771-2-  412310 DRF D FED RIS BD DC  L1231 1. L 07/27 ANS4ER VIA TRT S10...941-2200   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  August 9, 1979  Mr. William A. Schreyer President Merrill Lynch Pierce Fenner & Smith Inc. One Liberty Plaza 165 Broadway New York, New York 10080 Dear Bill: Many thanks for the note.  Now the press stories  stop and the work begins. Sincerely,  Paul A. Volcker  One Liberty Plaza 165 Broadway New York New York 10080 212 766-8756  Merrill Lynch Pierce FennerISmith Inc.  William A. Schreyer President   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  er) 1.;  July 30, 1979  C7)  Dear Paul: I would like to be another grateful citizen to congratulate you upon your nomination to become Chairman of the Federal Reserve Board. I particularly want to congratulate you and your family upon your willingness to accept this totally vital assignment. I don't believe any appointment has ever been so widely welcomed as yours, and you certainly have the best wishes from me and all my colleagues at Merrill Lynch for great success. Best wishes.  Sincerel  Jup Mr. Paul A. Volcker Chairman Federal Reserve Board Washington, D. C.  t „tiro  .vbe   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  August 7, 1979  Dear Bob: Many thanks for your note.  All I can do is try  my best. Sincerely,  Paul A. Volcker  Mr. Robert C. Sedwick, D.B.A. Fairleigh Dickinson University Teaneck, New Jersey 07666  PAV:smk  r—  FAiRkiqh (fickiNsoN uNiVERSITy It ANE  TEANECk - IIACkENSACk CAM pus  ck, NEW jERSEy 07666  SAMUEL j. SilbERMAN  collEgE of busiNEss  AriiidMiNISTRAdON  officu  (2o1)8)6-65oo  Of Till dFAN  July 25, 1979  Paul A. Volcker President Federal Reserve Bank of New York 33 Liberty Street New York, New York 10045 Dear Paul, Congratulations! I heard the news on the radio that the President has nominated you Chairman of the Board of Governors. He is to be congratulated too on his excellent choice. Good luck. Sincerely,  Robert C. Sedwick, D.B.A.  RECEIV ED RCS:mc   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  311L r/145- 0 1979 P•  V•  ANSWERED ATTENDED  floRhAm -MAdiSON•RuTkRIFoRd/wAyNE•TEANEck-hAckENsAck, NEW jERsEy   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  August 10, 1979  Dear Hal: The right place or a meat grinder? Who knows, but many thanks for writing. Sincerely,  Paul A. Volcker  Mr. Harold B. Scott Chairman Harold B. Scott, Inc. 1 Landmark Square Stamford, Connecticut  06901  1 Landmark Square Stamford, Conn. 06901 Telephone (203) 356-1154 Telex 643-663 HARBESCOT STD  Harold B. Scott, Inc.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  August 6, 1979  Mr. Paul Volcker Chairman-Designate Board of Governors Federal Reserve Board System Washington, D.C. 20551 Dear Paul: As far as I am concerned, relief is spelled "V-O-L-C-K-E-R". Now you are in exactly the right place at the right time. All good wishes,  Harold B. Scott Chairman HBS:lpb  Moscow Office: Ulitsa Lunacharskovo 7, KB16, Moscow G-2, USSR. Tel. 203-00-55 Tlx. 7766 Warsaw Office: Ul.Fr. Chopina 7, m3, 00-559, Warsaw, Poland, Tel. 28-77-01 Tlx. 812737  .. . ••••••• ........... ........... .... •"• ••••••••••• ..... •••  ... • ........... .•-••••••• ......  FEDERAL RESERVE BANK OF NEW YORK NEW YORK.N.Y.I0045 AREA CODE 212 791-6173  PAUL A. VOLCKER PREsIDENT  •  August 1, 1979  Dear Herta: Many thanks for your congratulations and good wishes.  I appreciate your kind words.  Best regards. Sincerely,  ...  Paul A. Volcker  Oci-4  /).  ,(At zAt 4%-e-Le dee-, 4.p.e.4- aqk  Ms. Herta Lande Seidman Deputy Commissioner Division of International Commerce State of New York Department of Commerce 230 Park Avenue New York, N.Y. 10017  ..........  ............ • .............   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  ................  STATE OF NEW YORK  DEPARTMENT OF COMMERCE 230 PARK AVENUE NEW YORK, N. Y.10017 HERTA LANDE SEIDMAN  CABLE ADDRESS: NYCOMM NEW YORK  1212) 949-9290  TELEX:666705  DEPUTY COMMISSIONER DIVISION OF INTERNATIONAL   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  COMMERCE  July 26, 1979  Mr. Paul Volcker, President Federal Reserve Bank of New York 33 Liberty Street New York, New York 10045  Dear Mr. Volcker: Congratulations! has made lately.  You are the wisest decision the President  Best wishes for continued success. With kindest personal regards I remain,  Sincerely,  Herta Lande Seidman  RECEIVED JUL 2 7 1979 ANSWERED ... ATTENDED  •,.$  ...  ................111.l16   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  August 15, 1979  Dear Mr. Shanley: I appreciate your cable.  Maybe someday on the  lunch -- but not for a while. Sincerely,  Paul A. Volcker  Mr. Graham Shanley, President Princeton Club of Switzerland 33 Avenue de Bude Geneva, Switzerland  Lieuluu triNY ut...,  A  DATE OF DISPArCH  08/06/79 0600 EDTO ,v119  4/0.420188 FRNY Ul2200A TXCB CH  ;  ;  *oserstapi  RE Sr.. RVE vE'is CRK BANti  Auc  S38Atl '79  SERIAL NO.  4  4i OJ 9  cITY ENTER6 1311  VOLCKER  / 1  CHECK:2 V 7--Lf :I CONGRATULATIONS FROM PRINCETON CLUB OF SWITZERLAND STOP WOULD  LIKE TO ORGANIZE LUNCH IN GENEVA WITH YOU AS SPEAKER FOR AMERICAN  SWISS BUSINESS  AND FINANCIAL COMMUNITY STOP PLEASE ADVISE WHEN  THIS MIGHT BE CONVENIENT PREFERABLY WITH MAXIMUM ADVANCE gm•mossimmanumws STOP LETTER FOLLOWS GRAHAM SHANLEY 1950 PRESIDENT  33 AVENUE DE BUDE, GENEVA  nig;  C'a  420188 FRNY Ul 282004 TXCB CHr.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  i/Litip•  7.  4CUlutJ rr(NY  08/06/79 0600 EDT4 420188 FRNY U123200A TXCB CH  ;  -,..--,•,-;,.. f.'lyissaw Uf 0'411r#IE :::Fnit Brill  5  -oRtf Pin S 38 Ail '73  DATE OF DISPAICH SERIAL NO. 4 0j9 ____________ ...... C'TV • -----*/_(-1---•(,____-, ENT EIVI) '  1?EV IZtv.I. `. -.',,, CHECKE2, I-T-717T- CONGRATULATIONS FROM PRINCETON CLUB OF SWITZERLAND STOP WOULD VOLCKER  LIKE TO ORGANIZE LUNCH IN GENEVA WITH YOU AS SPEAKER FOR AMERICAN SWISS BUSINESS AND FINANCIAL COMMUNITY STOP PLEASE ADVISE WHEN -••••••••,9q^` , --''  THIS MIGHT BE CONVENIENT PREFERABLY WITH MAXIMUM ADVANCE NOTICE STOP LETTER FOLLOWS GRAHAM SHANLEY  1950  PRESIDENT 33 AVENUE DE BUDE, GENEVA  tft 420188 FRNY Ul 28200A TXCB CH   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  THIS tt417:50:-  •   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  August 7, 1979  Dear Monica: You were nice to write.  I'll try my best.  Sincerely,  Paul A. Volcker  MS. Monica Shaughnessy Assistant Treasurer . The Chase Manhattan Bank, N.A Branch 60th Street and Park Avenue 510 Park Avenue New York, New York 10022  PAV:sifik   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  N. A. The Chase Manhattan Bank, nch Bra nue Ave k Par 60th Street and 510 Park Avenue New York, New York 10022  05 CHASE  July 26, 1979  Dear Paul; nomination to Chairman Congratulations on your e Board. Qt the Federal Reserv ar the news of your appointWAS delighted to he ll restore confidence ment and I'm sure you wi e dollar. to this country and in th ntinued success. Best wishes for your co Sincerely,  Monica Shaughnessy Assistant Treasurer Mr. Paul Volcker ederal Reserve Bank 33 Liberty Street New York, Nr loom  RECEIVEU Jul_ '30 19./9 P. A. V. ANSWERED MEM   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1 August 7, 1979  Dear Ed: Many thanks for the note.  I can only try  my best. Sincerely,  Paul A. Volcker  Mr. Edward E. Shea Chairman of the Board Reichhold Chemicals, Inc. 525 North Broadway White Plains, New York 10603  PAV:smk   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  REICHHOLD CHEMICALS, INC. 525 NORTH BROADWAY  WHITE PLAINS, N.Y. 10603 OFFICE OF  PHONE:(914) 682-5700  CHAIRMAN OF THE BOARD  July 26, 1979  Mr. Paul A. Volcker Chairman of the Board Federal Reserve Bank of New York 33 Liberty Street New York, N.Y.  Dear Paul: Congratulations on your appointment as Chairman. You must be pleased to see the favorable reaction reported in the newspapers here in the United States and other nations. No one has more experience and appreciation of the multiple interests which must be considered in order to help the Board to serve both the long and short term benefit of our economy and the world economy. Best wishes for your success and also for your own enjoyment of the coming years.  Sincerely,  42  Edward E. Shea Chairman of the Board  EES:hdc  RECEIVED JUL •  P. A. Ai. ANSIA/ERED ABODE)TO.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  August 7, 1979  Dear Mark: The only bonus from this appointment is hearing from old friends. Glad to hear you have a permenant niche. My only problem is whether, after a few years, my remaining pants will have a seat. Regards,  Paul A. Volcker  Mr. Mark T. Sheehan Director of Public Information United States Department of Justice Washington, D. C. 20530  thuteb tate5 111 epartment of Yu5tice DIRECTOR OF PUBLIC INFORMATION VVASHINGTON, D.C. 20530  RECEIVED  July 25, 1979  JUL 3 1 1979 The Honorable Paul Volcker President Federal Reserve Bank of New York Federal Reserve Post Office Station New York, New York 10045   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  ANSWERED ATTENDED TO,,  Dear Paul: I just read the bulletin on the wire announcing your nomination and I wanted to let you know how pleased It's always nice to see someone so unfailingly decent move up. More important, I have great respect for your knowledge and judgment, both of which are greatly needed in these apparently perilous times. Since we last met, I've become a lawyer (if I'd stayed at Treasury I would have become an economist, so you can see I've moved up.) The reason was so that I wouldn't have to be snowed by experts. I've recently spent a three-month stint as a spokesman for the Council on Wage and Price Stability winning the war on inflation. I tried to tell Kahn not to smile on TV when they showed him headlines of the dollar's cS llapse but I was about as successful there as usual. (Where are you, Douglas Dillon, when we need you?) You'll be happy to know this is not a letter asking for a job. I'm happy and secure at Justice, and am determined to stVy here until retirement, report cards notwithstanding. You may however, look forward to a steady stream of resumes from my deadbeat friends (e.g. Dixon Donnelley) which I will be sending you. (FYI Cy Vance always replies with a cordial note from his secretary.) Looking over this letter it seems to be largely about me. I'd appreciate it if you'd ship it along to my alumni magaz•ine when you're through with it, in lieu of a contribution   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  2  The very best of luck in the new job, and remember, when you have to steer the economy by the seat of your pants, you get to make up your own rules. Sincerely,  Mark T. Sheehan   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  August 3, 1979  Dear Mr.  Liqqiti I appreciate your note.  But I'm also aware of the  orohlens and I do want to remain in contact with the "real world" as we tr7 to work our way through them. Sincerely,  Paul A. Volcker  Mr. PhilicTi p Shelbourne Chairman Samuel Montagu & Co. Limited 114 Old Broad Street London EC2P 2HY  SAMUEL MONTAGU & CO. LIMITED (INCORPORATING DRAYTON)  114 OLD BROAD STREET PHILIP SHELBOURNE   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  LONDON  CHAIRMAN  EC2P 2 HY  G. P.O. BOX 525)  TELEPHONE: 01 -588 6464 TELEX  887213  27th July 1979.  Dear Mr. Volcker, May I add my congratulations to the many you will already have received on your appointment as Chairman of the Board of Governors of the Federal Reserve System. I hope you will permit a foreigner to say that this is the outstanding appointment made by the President in the course of the last few weeks and the most encouraging event for all the friends of your great country. The immediate upward movement of the Dollar on the Foreign Exchange Markets was strong confirmation of this. I would like to send you my best wishes for your important new task. We here share the confidence of the international Banking community which follows from your appointment. I have always enjoyed my meetings with you in the past in New York and I hope that I may call on you in future when I am in Washington. In the meanwhile, I may have an opportunity to see you in Belgrade at the IMF meeting. , 1 9A 1  Yours sincerely,  4111'TA) Itt4DP  44 4141, tP9 ‘f  Aff 1)tt°1CtA4LOVIIN  Mr. Paul Al Volcker, Chairman, Board of Governors, Federal Reserve System, Twentieth Street and Constitution Avenue, Northwest, Washington, D.C. 20551. PS/crf   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  August L 1970  Dear Geoff: The nicest thing about this is hearing from sote old friends.  1 appreciate the note and hope things go well  with you. Sincerely,  Paul A. Volcker  Mr. Geoffrey C. Shepard Staff Vice President Government Affairs Vitt Corporation 1600 Arch Street Philadelphia, Pennsylvania  19101   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  INA Corporation 1600 Arch Street Philadelphia, Pa. 19101 215-241-2811 Geoffrey C. Shepard Staff Vice President Government Affairs  July 26, 1979  Mr. Paul A. Volcker Chairman Federal Reserve Bank of New York 33 Liberty New York, New York 10005 Dear Paul: When I worked for you at the Treasury as a White House Fellow in 1969-70, I was the only one tall enough to claim that you and I "saw things eye-to-eye." I am geniunely pleased you accepted the appointment as Federal Reserve Board Chairman -- in spite of the financial sacrifice. It is not only immediately reassuring for Americans and foreign bankers alike, it also provides great hope for the future. Best personal regards,  GCS:avf  RECEIVED JUL 3 1 1979 P. A. V. AN'„:4EFLD .. ....... ...... ATTENUEO .......  FEDERAL RESERVE BANK OF NEW YORK NEW YORK,N.Y. 10045 AREA CODE 212 791-6173  PAUL A. VOLCKER   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  PRESiDENT  August 6, 1979  Dear Bill: Thanks for writing--haven't seen the Courier-News for years. We'll try out best. Sincerely,  adatieLt_ Paul A. Volcker  Mr. William J. Shepherd President and Chief Executive Officer Horizon Bancorp 334 Madison Avenue 07960 Morristown, New Jersey   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  HORILON Bancorp  Corporate Offices: 334 Madison Ave. Morristown,  American National Bank & Trust of New Jersey Princeton Bank and•Trust Company Horizon Creditcorp  07960  (201) 539-7700  William J. Shepherd President and Chief Executive Officer  July 31, 1979  Mr. Paul A. Volcker President Federal Reserve Bank of New York 33 Liberty Street New York, New York 10045 Dear Paul: I thought you might be interested in the enclosed clipping from The Courier-News which we continue to get in Westfield, because my wife grew up in Plainfield and I in Dunellen. The photograph needs a little retouching, but all the sentiments are positive. We will miss you as President of the Federal Reserve Bank of New York, but I would like to congratulate you on your nomination as Chairman of the Federal Reserve Board. I am confident that you will do a wonderful job, and want to extend best wishes for every possible success. Since  iam J. Shepherd WJS:ab Enclosure  k-tECEIVED "AUG ANSWERED ......  AMNDED  3 1979 .... .......................  Removal Notice 7KHLWHPLGHQWLILHGEHORZKDVEHHQUHPRYHGLQDFFRUGDQFHZLWK)5$6(5 VSROLF\RQKDQGOLQJ VHQVLWLYHLQIRUPDWLRQLQGLJLWL]DWLRQSURMHFWVGXHWR copyright protections.  ŝƚĂƚŝŽŶ/ŶĨŽƌŵĂƚŝŽŶ Document type: newspaper article  Pages Removed: A-21  Author(s): [Associated Press]  Title:  Financial Community Hails Pick for Fed Chief...  Date:  July 26, 1979  Journal:  The Courier-News  Volume: URL:  Federal Reserve Bank of St. Louis   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  https://fraser.stlouisfed.org  Removal Notice 7KHLWHPLGHQWLILHGEHORZKDVEHHQUHPRYHGLQDFFRUGDQFHZLWK)5$6(5 VSROLF\RQKDQGOLQJ VHQVLWLYHLQIRUPDWLRQLQGLJLWL]DWLRQSURMHFWVGXHWR copyright protections.  ŝƚĂƚŝŽŶ/ŶĨŽƌŵĂƚŝŽŶ Document type: newspaper article  Pages Removed: A-21  Author(s): The Courier-News Staff and The Associated Press  Title:  ... And Volcker's Former Plainfield Neighbor Agrees  Date:  July 26, 1979  Journal:  The Courier-News  Volume: URL:  Federal Reserve Bank of St. Louis   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  https://fraser.stlouisfed.org   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  August 7, 1979  Dear Gene: Many thanks for your note.  I'll need lots  of support and I know I can count on you. Sincerely,  Paul A. Volcker  Mr. Eugene J. Sherman Lxecutive Vice President Lasser Marshall, Inc. 76 William Street !lex.: York, 3ew York 10005   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  1  LASSER MARSHALL INC. INTERNATIONAL & DOMESTIC MONEY MARKET SERVICE  76 WILLIAM STREET NEW YORK, N. Y. 10005  EUGENE J. SHERMAN EXECUTIVE VICE PRESIDENT  July 26, 1979  Mr. Paul A. Volcker President Federal Reserve Bank 33 Liberty Street New York, New York 10045 Dear Paul: Heartiest congratulations and best of luck on your appointment to Chairman. You can be assured of our support and the support of your many friends and acquaintances in the financial community.  Very truly yours,  EJS:jam  Many thanks for your congratulations  Mr. Alvin V. Shoemaker President Blyth Eastman Dillon & Co., 1221 Avenue of the Americas 10020 New York, New York  ............. ................ ........ ...... . .................. ........................................... .................................... .................................... .................. .......... .................. ................ • ................ • .. ... ........... ............... ................................................ ................ ..................................................... ..................... . ...................................................... • . ......... .................................................................................................... .................. ................ ............  -. .............................. -----------------------------------.. .. ... ............................................. ... .......................... .......... ............. .............. .......... ................................................... ................   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  BLYTH EASTMAN DILLON & CO. INCORPORATED 1221 AVENUE OF THE AMERICAS NEW YORK, NEW YORK 10020  ALVIN V. SHOEMAKER  (212) 730-8O0  PRESIDENT  July 25, 1979  Dear Paul: Congratulations on your new position.  We are all  counting on you to straighten out those people in Washington. Best personal regards, Sincerely,  Mt. Paul Volcker, President Federal Reserve Bank of New York 33 Liberty Street New York, New York 10005  RECEIVED JUL 2797 p. A. V. ............ ...... ANSWERED......... ... ATTENDED  CHAIRMAN OF THE BOARD OF GOVERNORS  _  •  11  4  FEDERAL RESERVE SYSTEM  \et 1  $  WASHINGTON, D. C. 20551  kiimminummak  *A  •• ••`?•ALR-s'••• ' • ..• •  August 8, 1979  Dear Terence: 4.400..,p0.4•TAO*• 0.• itVIV•• •=0114 " 7 -  I can't reciprocate the poetry, but I can enjoy it:  IPh  Your letter is greatly appreciated--all the more so after so many corporate congratulations. You are doing the work of the Lord so well--I only regret that I am even more poorly placed to help: •  Best regards.  '.• J2. rm..' $..„s7 "•  Sincerely,  Paul A. Volcker -• • •- 4 vv.,-.• r  Mr. Terence Shook  . • .. • -" -  .^..•••• ".• •  '  rr . .•••••  ../.••••••• • e' "  ••c-  `,•• " .4  4••••  —411110.• 1 11111101 . " 11 Immimb   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  •`W.I.'.  •  July 31, 1979  PAUL A. VOLCKER, President The Federal Reserve Bank of New York Thirty-three Liberty Street New York, N. Y. 10045  Dear Mr. Volcker: What a curious thing time is. The last time I saw you, it was here in Newark--the next time, on nationwide TV--I simply was reminded how much time has passed, but how short the span seems. At any rate, I want to offer my congratulations on your recent appointment. I guess I feel somewhat like Allstate--we are certainly in good hands. The attached lines are written because I need only an occasion and I then have reason to rhyme. The Chorus goes well; a struggle as always, but we've managed to stay in existence and actually do some truly creative work. Again, my most sincere good wishes, for great reward and success in this new venture. Mo  .11ce e  Terence Shook   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  ,  LINES COMPOSED TO PAUL VOLCKER ON THE OCCASION OF HIS BEING NAMED TO HEAD THE FEDERAL RESERVE BOARD  At a benefit dinner (Bill Simon was the lure) I met a man (Because the timing was poor). Full was the tunnel (And so he was late) Steuben Glass for the Honoree(Better,--my fate). I remember it well ('Twas the Old Robert Treat) He entered, then occupied, (A lone, vacant seat). I liked him at once. (Z. bit different, he seemed) Distinctly Individual (Among those, Corporate-teamed). Well, Now there's been a shuffle, A big over-haul. This man seems a winner-(I knew not DeGaulle). However. Personally. I think. Politics need watching. There's that constant turning. But, Appointing you Chairman Was assuredly discerning!   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  TERENCE SHOOK July 31, 1979   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  •  August 16, 1979  Ae Honorable Muriel F. Siebert Superintendent of Banks No. 2 World Trade Center 32nd Floor New York, New York 10047 Dear Mickie: Many thanks for the note!  Keep the New York flag  flying while I tilt at the windmills down here.  I know I'll  need the luck. Keep in touch; you illustrate directly the courage and independence we all need. Best regards,  Paul A. Volcker  PAV:mhw   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  NEW YORK STATE BANKING DEPARTM,ENT MURIEL SIEBERT SUPERINTENDENT  August 13, ]979  mr. Paul A. Volcker Chairman Board of Governors Federal Reserve System Constitution Avenue, Washington, D. C. 20551 Dear Paul: "WIf you and wish to express I am my best wishes for your continued success. The personal sacrifice you are making is the highest deed you can do for the country in these trying and difficult times. The President made an excellent choice and I am sure you will make a very positive and lasting contribution to our nation. Good luck. j . Cordially, V-- ai/7ZA  rey  r ne,4571--   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  August 7, 1979  Dear Mr. Silbert: Many thanks for your note.  All I can do is try  my best. Sincerely,  Paul A. Volcker  Mr. Theodore H. Silbert Chairman Sterling National Bank & Trust Company 540 Madison Avenue New York, New York 10022  PAV:smk  ,*terling  ational  & Tr-not TontinuT  OF NEW YORK  ADDRESS ALL REPLIES TO:   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  540 MADISON AVENUE  50TH  THEODORE H. SILBERT  NEW YORK, N. Y.10022  CHAIRMAN  (212) 826-8010  4N AilvERst\°  PERSONAL & UNOFFICIAL July 25, 1979  Mr. Paul A. Volcker Federal Reserve Bank Washington, D.C. Dear Paul: Congratulations on the good news that you have been appointed to head the Federal Reserve Bank in Washington. You have my best wishes for success and good health in meeting the new challenges which will be facing you. I am sure that with your capability you will succeed.  Theodore H. Silbert Chairman THS/E  RECEIVED JUL 3 0 1979 ........................... ANSWERED ......................... ATTENDED  the note--we have thought of you and your  Mr. Charles Simon Salomon Brothers One New York Plaza New York, New York   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  FLOWERS BY CORT 821 PARK AVENUE NEW YORK, N. Y. 10021 REgerrt 7-9141   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  CHARLES SIMON  6461e41 4,1640 6,%41 11491  Ida #6°Z4  /d-411  etA 4e.ta44. 6-1 40>R) cLH2mmu;1,4' cx,449  Ctv4v\ 8 v dt 1 (I no,   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  August 20, 1979  Mr. H. Simonet Ministere des Affaires Etrangeres Du Commerce Exterieur Et De La Cooperation Au Development 1000 Bruxelles Rue Des Quatre-Bras, 2 Belgium Dear Mr. Simonet: Many thanks for your note.  I was delighted  to have the chance to dine with you in New York recently, and do hope to see you again, in October or otherwise. Sincerely,  Paul A. Volcker  PAV:pg  :,IINISTERE DES AFFAIRES ETRANuc..RES, DU COMMERCE EXTE.RIEUR ET DE LA COOPERATION AU DEVELOPPEMENT  1000  BRUXELLES,  le July 27, 1979  RUE DES QUATRE-BRAS, 2 TEL. : 513.62.40  nwlitht deJ fiffaiita eitar*AeA HS/JW 21/T2  Dear Mr Volcker,  It was not a real surprise but a true pleasure to hear about your appointment to be Chairman of the Federal Rese rve Board. Since I had the privilege in meeting with you during my last stay in New-York, early april this year, at the Lehrmann 's Institute, I am deeply convinced that your qualify in ever y respect to face the challenges of your high office. I wish you success in your task and hope to meet again with you early october when I expect to be back in New-York.  Yours ever,  Mr. P. VOLCKER Chairman of the Federal Reserve Board WASHINGTON D.C.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  •  August 23, 1979  Dear Mike: 49 will triumph--or at least try and hope for the best.  Thanks for writing. Sincerely,  Paul A. Volcker  Mr. Michael Singer Office of the Executive Vice President The Van Heusen Company 1290 Avenue of the Americas New York, New York 10019  T.  Wk NI  FlauseN •Qc)ivi F'ANJ V  1290 AVENUE OF THE AMERICAS, NEW YORK, N.Y. 10019 / ;212, 541-5200  OFFICE OF THE EXECUTIVE VICE PRESIDENT  July 27, 1979 Mr. Paul Volcker President The Federal Reserve Bank of N.Y. 33 Liberty Street New York N.Y. 10045 Dear Paul: Absolutely delighted to hear of your appointment as Chairman of the Federal Reserve Board. It looks like the Class of '49 is finally getting some meaningful representation in our government. We sincerely hope that it will bring some stability and order to the current confusing situation. If there is anything that I can do to help you in your new assignment, please don't hesitate to call upon me. In the meantime, I look forward to seeing you when you come back to the Club in New York. Sincerely, t‘, Michael Singer  MS:bjs   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  A  RECEIVED AU G  2 1979  P. A. V. ANSWERED ATTENDED  A DIVISION OF PHILLIPS-VAN HEUSEN CORPORATION  ..1.11111419   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  August 23, 1979  Mr. Walter A. Slowinski Baker & McKenzie 815 Connecticut Avenue, N.W. Washington, D. C. 20006 Dear Walter: Many thanks for the note, but I assure you Annette's concern about the salary doesn't begin to match Barbara's! It was nice to have Mary see me sworn in -- we'll see how long before I'm sworn at.  Barbara stays in New York  for the time being -- but we hope to see you both at some point. Best regards,  Paul A. Volcker  PAV:mhw  BAKER & MCKENZIE ATTORNEYS  AT LAW  815 CONNECTICUT AVENUE, N. W. WASHINGTON, D. C. 20006  AMSTERDAM  M ns -sEAPO LIS  BANGKOK  NEW YORK  BOGOTA  PARIS  TELEPHONE (202) 298-8290 TE LECOPIER (202) 338 -1298  July 26, 1979  CABLE AB0GAD0 TELEX 69-552 (WU) 248441 (RCA)   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  BRUSSELS  RIO DE JANEIRO  CARACAS  ROME  CHICAGO  SAN FRANCISCO  FRANKFURT  SAO PAULO  GENEVA  SYDNEY  HONG KONG  TAIPEI  LONDON  TOKYO  MADRID  TORONTO  14-A.NILA  WASHINGTON, D. C.  MEXICO CITY  ZURICH  MILAN  Dear Paul: We were all very pleased with your nomination, and Annette joins me in sending congratulations.  However, she was a little  disappointed with your cut in salary: We look forward to seeing you with your family in Washington. With kindest regards,  Sincerely,  Mr. Paul Volcker Federal Reserve Bank of New York 33 Liberty Street New York, NY 10045  Sc   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  August 23, 1979  Dear Ed: I appreciate your note, however belated the response.  Look forward to seeing you again. Sincerely,  Paul A. Volcker  Mr. Edward K. Smith Senior Economic Consultant Brimmer & Company, Inc. 1201 Connecticut Avenue, N.W. Suite 916 Washington, D. C. 20036  Economic and Financial Consultants  BRIMMER & COMPANY, INC. SUITE 916  1201 CONNECTICUT AVENUE, N.W.  (202) 466-3474  WASHINGTON, D. C. 20036  ml Vol lent ii Rese )erty irk, NI  July 27, 1979  Mr. Paul A. Volker President Federal Reserve Bank Of New York 33 Liberty Street New York, New York 10045  r. Vol  Dear Paul:  allow k Uni congr Bank  Let me congratulate you on your nomination as ChaiLman of the Federal Reserve Board. Your talents are much needed. It will be a pleasure to see you in Washington again, and I wish you all the best.  mpany owed direc in a liar.  Sincerely yours,  Edward K. Smith Senior Economic Consultant  that  EKS/by  Hek  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  August 20, 1979  Dear Bill: Many thanks for the note--but much more for your support and wisdom over these recent years.  Don't let us  get isolated down here--keep in touch, and keep New York in shape: Very best regards, Sincerely,  Paul A. Volcker  Mr. William S. Sneath Chairman of the Board Union Carbide Corporation 270 Park Avenue New York, New York 10017  UNION CARBIDE CORPORATION 270 PARK  AVENUE  NEW YORK, N. Y. 10017 WILLIAM S. SNEATH CHAIRMAN OF THE BOARD  August 7, 1979  Mr. Paul A. Volcker Chairman Board of Governors Federal Reserve System 20th Street and Constitution Avenue, N.W. Washington, D. C. 20551 Dear Paul: I had hoped to be able to attend the dinner in New York to congratulate you personally, but the date selected was already committed. In any event, congratulations and good luck. I greatly admired your performance as head of the New York Fed, and the country is extremely fortunate to have you move into a position of such importance -- particularly since you so well recognize the interdependence of the United States with the World's economies. If there is any way I, or my associates at Union Carbide, can be of assistance, I hope you will give us a call. Kindest personal regards,  WSS/rjb   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  ,OA-/ UP41800r IJ ' 10 4U91P1  40,414 401,1iter , 1t #   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  August 3, 1979  Dear John: Thanks so much for your note.  Now that I'm back,  I hope to see you soon. Sincerely,  Paul A. Volcker  Mr. John W. Snyder   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  JOHN W. SNYDER  July 27, 1979  Mr. Paul A. Volcker President Federal Reserve Bank New York, New York 1004 5 Dear Paul: I was delighted to hear of your well received nomination as Member of the Board of Governors of the Federal Reserve Bank and as its Chairman. Please accept my warmest wishes for an interesting, productive and satisfyi ng experience in your tremendously important unde rtaking.  John W. Snyder  r  -   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  0lin W. Snyc_er   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  -  4 7911UG  r.  24  '1St NV a  20008  •as  August 7, 1979 Dcar Paul: casion e to be present on the oc eg il iv pr t en gr a s wa It mony as Chairman of the re ce n -i ng ri ra sw ur yo of e White House yesterday. th at d ar Bo e rv se Re l ra Fede ur including me. I grcatly appreciate yo at appointment and know th ur yo er ov y pp ha ry ve I am nt erations of our governme op al sc fi d an ry ta ne mo the and administered during ed at ul im st y tl ca gr be will an and Board rrember. rm as ce fi of of ur your to With warmest good I am  hes ..cerelyyo  John W, Snydi2r  friend,   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  August 10, 1979  Dear Mr. Solis: I appreciate your note and best wishes. are difficult times, but I will try my best. Sincerely,  Paul A. Volcker  Mr. Alejandro Albert Solis President Banco hispano Americano Madrid SPAIN  These  BANCO HISPANO AMERICANO   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  ALEJANDRO ALBERT SOLIS  A1ADRID  19791H  PRESIDENT  July 28, 1979  Mr. Paul Volcker Chairman of the Board Federal Bank of Reserve 20th Street at Constitution Avenue Washington, D.C. 20551  Dear Mr. Volcker, I was delighted to read today in the international press of your elevation to the post of Chairman of the Board of the Federal Bank of Reserve of the United States - a promotion not only well deserved but also truly earned. I need not mention that we at Banco Hispano Americano are convinced that your vast experience and renown value will provide you with many years of continued success. Please accept my warmest congratulations and best wishes in the accomplishment of your new duties. Sincerely yours, •••46   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  August 7, 1979  Dear Peter: eppreciete the note. For the time being, I will keep one foot tn thR1 City, se keep it up: Sincerely,  Paul A. Volcker  Oetcr J. Solomon Deputy *Tor The City of New York New York, N. Y. 10007   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  ;  THE CITY OF NEW YORK OFFICE OF THE MAYOR NEW YORK, N. Y. 10007  PETER J. SOLOMON DEPUTY MAYOR  JuZy 26, 1979  MA. Paul A. Votcken Pte6ident Fedenat Re6etve Boakd o6 New Yotk 33 Libetty Stteet New Yotk, New Votk 10045 Pau: HeaAtiezt congtatutationz on youA. appointment. You aiLe the pettcect man son. the job even though we ate zotty to Zoze you in the City. With be-st wi4he6. Youtz ttuty,  PJS:hb  L  fp , 4  P. A. V. ANSWERED_ AMNDED . 3).6   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  August 7. 1979  Dear Beryl: Many thanks for the note and the good advice. in touch. Sincerely,  Paul A. Volcker  Mr. Beryl W. Sprinkel Executive Vice President and Economist Parris Bank 111 West Monroe Street Chicago, Illinois 60690  Keep   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Beryl W.Sprinkel Executive Vice President and Economist  al  HARRIS BANK July 27, 1979  Dear Paul: Congratulations on your recent nomination as Chairman of the Federal Reserve Board. In my opinion that position is the second most powerful one in the U.S. Government, and can make a major contribution towards getting our serious inflation under control. Needless to say, I have been distressed at the massive money growth that has been encouraged in recent years and I am certainly looking for better performance during your tenure. I noted with interest your press conference comment that you would be much more interested in evaluations after you leave the job, and I fully share that view. Performance is the name of the game, and of course that is especially difficult given the political pressures that inevitably decend on the office. If at any point there is anything that I can do to help, please let me know. Sincerely,  Mr. Paul A. Volcker President Federal Reserve Bank of New York 33 Liberty Street New York, NY 10045  RECEIVE' JULry 1 1979 3 P. A. V.  ANSWERED ATTENDED  Harris Trust and Savings Bank 111 West Monroe Street Wholly owned subsidiary of Harris Bankcorp, Inc.  Chicago, Illinois 60690  August 7, 1079  Dear Elmer: I appreciate your letter, and the subsecuent ruling. I take it as a happy augury of the prospect that we can "live together." All the best, Sincerely,  The Honorable Elmer B. Staats Comptroller General of the United States Washington, D. C. 20543   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  "N=1  COMPTROLLER GENERAL OF THE UNITED STATES WASHINGTON, D. C. 20548  July 27, 1979  The Honorable Paul A. Volcker President Federal Reserve Bank 33 Liberty Street New York, New York 10045 Dear Paul: Let me join in the chorus and say how pleased I am that you will become Chairman of the Federal Reserve Board. You and Bill Miller will make a fine team. In no time since World War II has it been more important to have strong people in these two posts. Our relationship to the Federal Reserve Board has changed since you and I last visited. I think things have gone well and there have been no particular problems on either side. We look forward to working with you. Best wishes.  RECEIVED JUL 3 0 1979 Elmer B. Staats  P. A. V. ANSWERED  ATTENDED TCL,„..,_   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  COMPTROLLER GENERAL OF THE UNITED STATES WASHINGTON, D. C. 20548  July 30, 1979  The Honorable Paul A. Volcker President Federal Reserve Bank 33 Liberty Street New York, New York 10045 Dear Paul: I realize that you are not yet in business at the Fed but I thought you might wish to have this ruling which is being issued here today which takes exception to the executive branch view that the Federal Reserve Board comes under the provisions of the Civil Service Reform Act of 1978 establishing a Senior Executive Service. Best wishes. Sinc  Elmer B. Staats Enclosure  R  CE .  •._  &V.  FIIIMMEN   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  DECISION  THE COMPTROLLER GENERAL OF THE UNITED STATES WASHINGTON,  FILE:  B-195418  D.C. 205413  DATE:  MATTER OF: Federal Reserve Board - Applicability of Senior  Executive service DIGEST: Federal Reserve Act, as amended, expressly  excepts the appointment and compensation of all employees of the Board of Governors, Federal Reserve System, from the provisions of the civil service laws and regulations. The Act must be given priority over a su'T:sequently enacted statute applicable to Federal agencies generally, absent a clear indication that the Congress intended otherwise. Hence, the provisions of Civil Service Reform Act of 1978 estai:lishing a Senior Executive Service do not apply to the employees of the Board. By letter dated July 10, 1979, the General Counsel of the Office of Personnel Management (OPM` has requested our opinion whether the employees of the Board of Governors of the Federal Reserve System are subject to the provisions of Title IV of the Civil Service Reform Act of 1978, Public Law' ,To. 95-454, October 13, 1978, 92 Etat. 1111, 5 U.S.C. § 3131 et seq., establishing a Government-wide Senior Executive Service (FES), designed to insure the high quality of Government executives. It is the position of OPM that the employees of the Board of Governors of the Federal Reserve System ("Federal Reserve Board") are subject to the provisions of Title IV of the Civil Service Reform Act governing the Senior Executive Service. OPM has found that the Board falls under the SES criteria contained in 5 U.S.C.§ 3132(a), and thus is included under FES, unless excluded by the President pursuant to 5 U. S. C. § 3132(c). OPM points to Executive Order No. 9004, dated December 30, 1941, which placed all positions under the Board of Governors in Schedule A, Positions Excepted From Examination, which thereby excluded all Board employees from the competitive service. OPM argues that hut for this Executive order, the Board's employees would have been swept into the competitive service by Executive Order No. 8743, dated April 23, 1941. Executive Order No. 8743 provided that all offices and positions in the executive civil service are covered into the classified civil service, unless excepted under .Schedule A of the Civil Service Rules (and other exceptions not applica::le).   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  B-195418  OPM believes that the provisions in section 11(1) of the Federal Reserve Act of 1913, which states that "nothing herein shall prevent the President from placing said employees in the classified service," made the Board's independent status conditional and provided the statutory authority for a subsequent change in that status. As stated in a letter of June 15, 1979, to the Board, 0PM's position is as follows: "Under the condition, the Board positions could have been brought into the competitive service well before the reach of the Ramspeck Act 154 Stat. 1211, November 26, 1940] and Executive Order No. 8743, had the President elected to do so. The terms of the Executive Order No. 8743 superseding the Board's independent authority to place Board employees in the competitive service left the President no choice but the need to exercise his Presidential authority under the Federal Reserve Act's conditional provision if he wanted to avoid the competitive service reach of Executive Order No. 8743." OPM concludes that the placement of the Board employees in Schedule A unequivocally placed them in the civil service, and " owing to the excepted service Schedule A status of the Board's employees, their positions would qualify as SES positions under the definition in 5 U. S.C. `c* 3132(a)." The Board of Governors disagrees with the conclusions reached by OPM. In concluding that its employees are not subject to the Senior Executive Services, the Board relies on section 11(1) of the Federal Reserve Act of 1913, and section 6(b) of the Banking Act of 1933, both of which are set out below. Section 11(1) of the Federal Reserve Act of 1913, 38 Stat. 251, 262, as enacted authorized the Board: "(1) To employ such attorneys, experts, assist-  ants, clerks, or other employees as may be deemed necessary to conduct the business of the board. All salaries and fees shall be fixed in advance by said board and shall be paid in the same manner as the - 2-   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  B-195418  salaries of the members of said board. All such attorneys, experts, assistants, clerks, and other employees shall be appointed without regard to the provisions of the Act of January sixteenth, eighteen hundred and eighty-three (volume twenty-two, United States Statutes at Large, page four hundred and three), and amendments thereto, or any rule or regulation made in pursuance thereof: Provided, That nothing herein shall prevent the President from placing said employees in the classified service." (Emphasis added.) In 1933, Congress moved to strengthen the independence of the Federal Reserve Board. Section 6(b) of the Banking Act of 1933, 48 Stat. 162, 167, amended section 10 of the Federal Reserve Act,244 to read, in pertinent part, as follows: Board shall determine and prescribe the manner in which its obligations shall be incurred and its disbursements and expenses allowed and paid, and may leave on deposit in the Federal Reserve banks the proceeds of assessments levied upon them to defray its estimated expenses and the salaries of its members and employees, whose employment, compensation, leave, and expenses shall be governed solely by the provisions of this Act, sS.cific amendments thereof, and rules and regulations of the Board not inconsistent therewith; and funds derived from such assessments shall not be construed to be Government funds or appropriated moneys * *" The Board points out that these provisions expressly empowered the,Board to appoint employees without regard to the proons of the Civil Service Act of 1883 "and amendments thereto or any rule or regulation made pursuant thereof." Further, section. 6(b) stStes that the "employment, compensation, leave, and other expenses" of employees of the Board "shall be governed solely by the provisions" of the Federal Reserve Act, or "specific amendments thereof, and rules and regulations of the Board not inconsistent therewith." The Board's letter of March 12, 1979, to OPM states: - 3-   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  B-195418  "the purpose of this amendment to the Act was ndto reinforce the importance of the Board's indepe insure ence within the government and in particular to own that the Board is able to exercise control over its 73d internal management policies. H. Rep. No. 150, re, it is Cong., 1st Sess. [2] (1933) * * *. Furthermo rules the Board's view that, under generally accepted enof statutory construction, civil service legislation to all acted after the Federal Reserve Act and applying implifederal employees in general does not repeal by confers cation the express language of that Act, which emon the Board the sole authority to manage its own has ployees * * *. It should be noted that Congress eral never acted to revoke those provisions of the Fed pendent Reserve Act that established the Board's inde ained in status, nor has any such revocation been cont service in any legislation dealing with the federal civil general." ors of the We are of the opinion that the Board of Govern e IV, Senior Executive Federal Reserve System is not subject to Titl the following reasons. Service, of the Civil Service Reform Act for 1913, as amended The provisions of the Federal Reserve Act of to give the Board by the Banking Act of 1933, show a clear intent system. This intent independence in regard to its own personnel 0 and 1941 folis also reflected in the events that occurred in 194 ember 26, 1940. lowing the passage of the Ramspeck Act of Nov Federal Reserve The understandings between the President, the ng the period in Board, and the Civil Service Commission duri were issued do which the executive orders relied upon by OPM ed on the executive not support the interpretation that OPM has plac orders. documents which Specifically, our Office was furnished three t's actions. These support a different interpretation of the Presiden the Board for signadocuments consist of a draft letter prepared by President on ture by the President which was forwarded to the rd. December 27, 1940, by the chairman of the Boa   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  B-195418  The draft letter prepared for the President and addressed to the President of the Civil Service Commission reads as follows: "The Chairman of the Board of Governors of the Federal Reserve System has conferred with me regarding the possibility of action under the Ramspeck Civil Service Act of November 26, 1940, to place the employees of his Board under the classified civil service and the Classification Act of 1923, as amended. "I have advised him that it is not my intention to place the employees of the Board of Governors of the Federal Reserve System under the classified civil service or the Classification Act, as amended, in viel,v of the desirability of avoiding a condition under which the employees of the Board of Governors would be placed in a different status in this regard from those of the Federal Reserve Banks and their branches, and in viei,v also of the fact that the salaries of the Board's employees are paid from funds derived from assessments on the Federal Reserve Banks and not from appropriations by Congress." According to a memorandum of December 30, 1940, in the Board's files the draft letter was retyped on White House stationery and signed by the President. The Commissioners replied to the President by letter dated January 3, 1941, which reads as follows: ''The Commission has received your letter of December 27, 1940, to the effect that it is not your intention to place the employees of the Board of Governors of the Federal Reserve System under the classified Civil Service Act or the Classification Act, as amended. The Commission, of course, will be guided accordingly." Finally, a Board of Governors' memorandum, written for the files of the Board of Governors and dated March 10, 1941, summarized a conversation concluded that day between the Chairman of the Board of Governors, Mr. Eccles, and the Administrative - 5 -   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  B-195418  ds, with regard to the ol yn Re Mc . Mr t, en id es Pr Assistant to the ed Ramspeck Act and the propos status of the Board under the is President. Chairman Eccles e th of 3] 74 18 r de Or e iv ut Exec olds bstance of what Mr. McReyn su e th d te la re ve ha to ed report s: said in pertinent part as follow tly sure that we were ec rf pe s wa he at th id sa e "H was nothing further for e er th at th id sa He . ed ud not incl ; just to forget it. us to do, nothing whatever ded as follows: The memorandum conclu at Mr. McReynolds "Chairman Eccles said th we were not under the law at th ed er id ns co he at th said ly ndent agency reporting direct pe de in an e ar we e us ca be do not get any appropriations we at th d an ss re ng Co to olds went on to say that yn Re Mc . Mr . ss re ng Co from uld be a big mistake wo it d, ne er nc co s wa he as as far have a special status in to put us under because we at he thought that until relation to Congress and th d there would be no point the whole System is change asized the fact that that in putting us under. He emph of the Commission, ew vi e th so al s wa it at th was his view; s office agreed." and that the Attorney General' President and the e th n ee tw be s er tt le of ge an We find the exch emporaneous memont co e th th wi g on al , on Civil Service Commissi e, to be persuasive us Ho e it Wh e th of on ti si t of randum reporting the po Board entirely independen e th ep ke to nt te in r ea cl a in showing documents contradict e es th at th e ev li be We rs the civil service system. e intent of Executive Orde th on M OP by ed ac pl on ti ese the interpreta ing inherent in either of th th no nd fi we r, he rt Fu . 04 ven 8743 and 90 nt with the independence gi te is ns co in is h ic wh rs de Executive Or xing their compensation fi d an s ee oy pl em its ng ri the Board in hi e Act of 1913 and by rv se Re l ra de Fe e th of 1) under section 11( rther, in view of the Fu . 33 19 of t Ac g in nk Ba e section 6(b) of th t envision the President no n ca we rs de Or e iv ut history of these Exec rs would provide the de Or e iv ut ec Ex e es th of intending that either creating the SES, at th as ch su n, io at sl gi le means by which future independence with respect its ng si lo d ar Bo e th in lt su would re to its employees. 6   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  B-195418  ce There is nothing in the legislative history of the Civil Servi Reform Act of' 1978 indicating any intent to alter the Board's d's independent status in the Government or to eliminate the Boar ing the autonomy in matters of personnel management. In enact in Federal Reserve Act and in amending section 10 of the Act of the 1933, Congress dealt specifically with the precise issue On the Board's relationship to the Federal civil service system. external basis of an explicit finding that the Board's insulation from funcinfluences was essential to the performance of its mandated ies and tions, Congress provided that the Board's personnel polic Federal actions are to be governed solely by the provisions of the Reserve Act. On the other hand, Title IV of the Civil Service ices in Reform Act deals generally with senior management pract cannot the civil service at large and, consequently, Title IV reasonably be viewed as repealing by implication the earlier rity congressional determination giving the Board exclusive autho over its own employees. It is a basic principle of statutory construction that a statute dealing with a narrow, precise, and specific subject is not - a later enacted statute covering a more generalized submerged spectrum. 'Where there is no clear intention otherwise, a specific statute will not be controlled or nullified by a general one, regardless of the priority of enactment." Morton v. Mancari, 417 U.S. 535, 550-551. The principle has also been stated as follows: The enactment of a general law broad enough in its scope and application to cover the field of operation of a special or local statute will generally not repeal a statute which limits its operation to a particular phase of the subject covered by the general law * * An implied repeal of prior statutes will be restricted to statutes of the same general nature, since the legislature is presumed to have known of the existence of prior special or particular legislation, and to have contemplated only a general enactment. Therefore, where the later general statute does not present an irreconcilable conflict the prior special statute will be construed as remaining in effect as a qualification of or exception to the general law." 1A J. 23. 15 (4th Sutherland, Statutes and Statutory Construction - 7-   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  B-195418  States v. United ed. C. Sands 1972). See United S. 164, 168; Continental Tuna Corp., 425 U. 296 U.S. 497, Pasadas v. National City Bank, 503. l ployee provisions of the Federa When Congress enacted the em independence of the Board the on ng usi foc s wa it t, Ac e Reserv rd to the hiring and compenga re h wit lly ica cif spe s, or rn of Gove ngress enacted the Civil Co en Wh s. ee oy pl em n ow its sating of its focus was on the objective of Service Reform Act of 1978, and it enacted a general e, vic ser lic pub of y lit qua the improving Executive Service applicable to provision, creating the Senior s not otherwise exempt. ee oy pl em e vic ser il civ of se the broad univer otherwise" can be discerned, the ion ent int ear "cl a ess unl , us Th discussed above counsels that ion uct str con ory tut sta of ple princi en deral Reserve Act are to be giv Fe the of s ion vis pro ic cif spe the effect. uation falls into any of sit t sen pre the t tha e iev bel not We do The statutory provisions on. ati lic imp by s eal rep of s the categorie reconcilable conflict" in "ir in be to d sai be not can at issue here t repugnacy between them or tha the sense that there is a positive n two statutes are capable of they cannot mutually coexist. "Whe to regard each courts * co-existence, it is the duty of the supra., 417 U.S. at 551. as effective." Morton v. Mancuri, il Service Reform Act can Civ the of es os rp pu ic bas the , Here the provisions of the Federal to ect eff l ful ing giv by ed rv se be fairly Civil Service Reform the of e os rp pu y ar im pr e Th t. Reserve Ac as to establish a Senior Act provisions establishing the SES "w executive management of the Executive Service to ensure that the e to the needs, policies, siv pon res is tes Sta ted Uni Government of the highest quality. '5 U. S. C. the of ise erw oth d an ion Nat the and goals of of 1933 in amending the § 3131. The purpose of the Banking Act ard the determination Bo the "to ve lea to s wa t Ac e Federal Reserv es." S. Rep. No. 77, 73d of its own internal management polici Cong., 1st Sess. 14 (1933). e and compensate its emBy allowing the Board to continue to hir ral em, the purposes of the Fede ployees outside of the civil service syst t continued application of Ye . ed rv se be sly iou l t obv wil Ac e rv Rese - 8-   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  B-195418  rfere with the 12 U. S. C. 244 and 248(1) will not unduly inte Act and specifically the operation of the Civil Service Reform to coexist in this manner, SES. Since it is possible for the statutes as to justify a finding they are not so repugnant to each other is nothing in the legislative of an implied repeal. Further, there gest that Congress history of the Civil Service Reform Act to sug e provisions of the gave any consideration to a repeal of thes e, that the specific Federal Reserve Act. We conclude, therefor prevail over the provisions of the Federal Reserve Act must isions of the Civil broader, more generally applicable SES prov Service Reform Act. scope of the Accordingly, although we recognize that the very broad, we Senior Executive Service was intended to be history, that the believe, in the absence of contrary legislative e System mandates statutory independence of the Federal Reserv of Governors are the conclusion that the employees of the Board not covered by the Senior Executive Service.  Comptroller General of the United States  9   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  August 6, 1979  Dear Pastor: The one real blessing of this appointment is hearing from so many friends from the past and most particularly those who, whether they knew it or not, influenced my "growing up." Mother is a bit excited, especially when the local press wants interviews. Forget about the cheering, but at this point I'll sit still for a prayer or two. All the best. Sincerely,  57/4- LI Pastor Albert P. )(tandem=   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  AtbcAtP Staudekman  July 26, 1979  Dear Paul: Congratulations! I rejoice with all your friends on your appointment to one of the most responsible jobs in our land, but even more touching were the many tributes that came from leaders both here and abroad.  For a man to have such respect and  admiration from his colleagues says a great deal about his character and competence. Naturally, all of us who had something to do with you during your formative years preen a little when we hear such good things about you, whether we deserve any credit or not. Surely your mother must be proud!  And your dad  would have puffed on his pipe and said, "Well, I expected it!" God's blessings be with you as you tackle your tough job.  We need your kind of leadership today! And  believe me, we're all with you, cheering some and praying some. With kind regards, Mit),Cre Pastor   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  •  August 23, 1979  Dear Mr. Steigmann: I appreciate your note and will pursue the heresies. Sincerely,  Paul A. Volcker  Mr. A. J. Steigmann Ford Motor Company The American Road Dearborn, Michigan 48121   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Economics Department  '°9U& 2Q  August 17, 1979 f  • 7  •  Mr. Paul A. Volcker Chairman Board of Governors of the Federal Reserve System Washington, D.C. 20551  Dear Sir: Congratulations on your new appointment. You should be warned, sir, that my heresies have spread to the Fed.  `Cte--y  A. J. Steigmann Enclosures   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  c(`C OCI ‘0  <6  -c.x\e oe'z'  07:* c1/4  <\civ \G•c\--  ' rl  Removal Notice 7KHLWHPLGHQWLILHGEHORZKDVEHHQUHPRYHGLQDFFRUGDQFHZLWK)5$6(5 VSROLF\RQKDQGOLQJ VHQVLWLYHLQIRUPDWLRQLQGLJLWL]DWLRQSURMHFWVGXHWR copyright protections.  ŝƚĂƚŝŽŶ/ŶĨŽƌŵĂƚŝŽŶ Document type: journal article  Pages Removed: 188-192  Author(s): A. J. Steigmann  Title:  A Reformation of the Keynesian System  Date:  May 1965  Journal:  The Canadian Journal of Economics and Political Science / Revue canadienne d'Economique et de Science politique  Volume:  Vol. 31, No. 2  URL:  Federal Reserve Bank of St. Louis   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  https://fraser.stlouisfed.org  Removal Notice The item(s) identified below have been removed in accordance with FRASER's policy on handling sensitive information in digitization projects due to copyright protections.  Citation Information Document Type: Journal article (partial) Citations:  Number of Pages Removed: 3  Floyd, John E. and J. Allan Hynes. "The Structure of Production, The Composition of Final Demand, and the Determination of the Price Level and Employment." Journal of Money, Credit, and Banking, Vol. X, No. 2, May 1978.  Federal Reserve Bank of St. Louis  https://fraser.stlouisfed.org   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  August 7, 1979  Dear Herb: Now-retired professors have the responsibility for advice, Public or private.  Keep in touch.  Our best to both of you. Sincerely,  Paul A. Volcker  Mr. Herbert Stein Senior Fellow American Enterprise Institute for Public Policy Research 1150 Seventeenth Street, N.W. Washington, D. C. 20036  4  American Enterprise Institute for Public Policy Research 1150 Seventeenth Street, N.W.,Washington, D.C. 20036  (202) 862-5800  July 31, 1979  Honorable Paul A. Volcher Chairman-Designate Board of Governors of the Federal Reserve System Washington, DC Dear Paul: Some of my friends think that a Volcher Rally is an auto race for small German cars. However, I have assured them that all of us old professors who have been waiting for the Dow to reach 1200 and the CPI to settle at 200 so we can retire now have our last best hope. Mildred and I congratulate you and the country on your appointment and wish you all success.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  Sincerely,  Herbert Stein Senior Fellow  congratulations--but it is far too soon   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  RICHARD B  STEINKAMP  July 29, 1979  Honorable Paul Volcker, Chairman-designate Office of the Chairman Board of Governors of the Federal Reserve System vashlngton, ]D.C. 20551 Dear Mr. Volcker: Congratulations on your amDointment to be Chairman of the FEB. In your search for a Washington residence ()11 may wish to consider renting our lovely home, locateu on one of capitol hill's finest blocks. ' have enclosed a description of it for your convenience. We will be pleased to show it during August 2-5. We will be and after these dates. Please at 547-5816 if you would like  to you anytime out of town before call us to see it.  l'erhaps its only disadvantage is that you may find our home too close to the Congress i! Test wishes for a successful tenure.  Sincerely,  fiigiffilNprliIrh--..didImmninmsaamimaiaiohiagimmmsmoahim--_   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  FOR RENT CAPITUL HILL (above Lincoln Park) Live in restored elegance of this 1890 brick three-story Victorian mansion. Perfect for VIP, familyamd entertaining. Four spacious bedrooms + den. 2 baths. Fireplaces in living and dining room. Pantry with wet bar leads into gourmet eat-in kitchen which overlooks secluded and shaded brick patio and yard. Garage with automatic door. Central air-conditioning and separate gas-fired radiatce heat. Many extras: Original wood paneling and detail, skylight above unusual u-shaped staircase, ceilinG fana l launary. Available immediately after Labor Jay.  $900 plus utilities, .   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  August 3, 1979  Dear Fritz: It was nice of you to write.  I can't live up to  all those notices, but I think I can interpret the real meaning of all those measures of support.  I can only try  my best. Sincerely,  Paul A. Volcker  Mr. Fritz Stern   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  FRITZ STERN July 25, 1979  r. Paul A. Volcker The Federal Reserve Bank of New York 33 Liberty Street New York, NY 10004  Dear Paul,  That's the best Presidential appointment in many, many years. I am absolutely delighted. how fortunate for the nation and the world -- even as at times it might be hard for you. So, warmest congratulations and all good wishes,  Yours sincerely,  •  Go  •  • •27 ("" • co  •e t • -  CHAIRMAN OF THE BOARD OF GOVERNORS  ,• • .2 •  FEDERAL RESERVE SYSTEM WASHINGTON, D. C. 20551  e,• ••• • ▪ •••••••• R-4-v-• s-9-••••  t  :••  -  St 41/0011  •  •••• A...Jr-0 ,  .6.•;0,,S,I:••4 'a;  -  August 8, 1979  4.',4;•-•c •  ' •  • .4' a:" 4r:A.:Y`:•11-*.ire° itt-••■-  Dear Gary: I appreciate the note--and you are right about the challenges. , 77 1111.101,10 . 0 : .00" _  pow ft..•  Sincerely,  Paul A. Volcker  • •  • / 1 2„...ek  Mr. Gary H. Stern A. Gary Shilling & Company, Inc. 111 Broadway New York, New York 10006   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  .  .  .90R•  • . I AO.  ,.•  . „.• on•-•  ••••••,  d' •  •  "•!., •  •  •  •••• • ..,  •  •  • ,".•  46.W ,  •  - ‘• ....; '. •  ..` . ,40"......  r-N  ....  . 0.  ... -I  •  ...  •  ' " .  ". • •  - ••  •  • .;"  0"'11  • - .^' • -1•••  -  - •  • ,t1.••••,, •  •••.,  a  •.  ,.... ....  ..r 'v.  It • • ..1 ' 16.. ' dc.. , ‘ .‘c  • 'le .  ,••  ; • ,•  ...Vr •  .  •• ... .., — •  • •   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  ECONOMIC  CONSULTANTS  A.Gary Shilling & Company,Inc. 111 BROADWAY, NEW YORK, NY 10006, 212 349-6000  August 1/ 1979  Mr. Paul A. Volcker President FEDERAL RESERVE BANK OF NEW YORK 33 Liberty Street New York, NY 10045 Dear Paul, Congratulations on your appointment as Chairman. I trust that the very favorable reaction of the currency markets will prove accurate. And at the least, I'm sure there will be plenty of challenges for you in Washington. Best personal regards. Sincerely /  Gary H, Stern  GHS:jg  RECEI V17 AUG 3 19'9 P. A. ANSWERED WENDED TO,,  ral)   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  August 3, 1979  Dear Ralph: appreciate the note and the support. try:, Sincerely,  Paul A. Volcker  Mr. Ralph S. Stillman  1 shall   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  RALPH S. STILLMAN  610.  //-17.4,4-  /14  7 /61: 4,  444  7tix,1 viax_  2cLeA  h efri  f  A ra/W. .  ( -1/4.,.  Lay.  6-c?7zJaJIS—Pv -4 6.4 Lt147 rin--  gc-rou) avi  4-e,74-1  15 /at c;  2/4  I  n  a-  /k1L  -11-1/  I4  cy  •  a--  47  4wtL..  /.1/4,i (NA_,1  A EtL  lix  c LA.  .   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  August 20, 1979  Dear Don: I appreciate so much your letter--and I can only wish you success in getting Mike to spend some time up there. But I recognize I still owe you a report. When do I do it? Maybe for relaxation after this job gets me down: All the best, Sincerely,  Paul A. Volcker  Mr. Donald E. Stokes Dean Princeton University Princeton, New Jersey  08540  a  Princeton University   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  WOODROW WILSON SCHOOL OF PUBLIC AND INTERNATIONAL AFFAIRS OFFICE OF THE DEAN PRINCETON, NEW JERSEY 08540 (609) 452-4800  July 30, 1979  Personal Mr. Paul A. Volcker President Federal Reserve Bank of New York 33 Liberty Street, New York, N. Y. 10005 Dear Paul: Let me add my own congratulations to the many others you will have had on the news of your appointment to the chairmanship of the Federal Reserve Board. All of your friends in Princeton are perfectly delighted by a splendid piece of news. You had been very much in my thoughts for several days. Not just because the press had for once correctly divined who was on the President's mind. But also because I had written Mike Blumenthal to say that he ought certainly to take the Volcker Senior Fellowship for Treasury Officials for a term or year of writing and teaching as he made up his mind what he would do after that. You are very warmly remembered, sir. With congratulations for the country and warm good wishes for you in the months ahead, As ever,  Donald E. Stokes Dean  1   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  August 7, 1979  Dear Tom; I appreciate the note, and even more, your intelligence and advice. Regards, Sincerely,  Paul A. Volcker  Mr. Tom Storrs h   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  August 16, 1979  Dear John: The bonus of this is hearing from old friends and associates. Many thanks for writing. Sincerely,  Paul A. Volcker  Mr. Joachim Stresemann  PAV:tb  7  19acitin1 egiPeJemall  2?  -7  -ge,/97p /  /_/‘(2 c-4.3•,2e"  -ifLe  ( / 17t44 62•0,_ S7,ccrl A.L'43"  Xez ge'WYCZicE17* --PL  ; L4z70Le 2z-64-5 4 —  f7  .1(cZ  --e (7/ 4 -  c/4  ker e,-e4ii-zt4d6=zildeitil c-cLr416 /22it5,1 a -Lozutd , aie, ze, teez?. a4d acw/ p14k1 )4 / ai2 4-/Le 4 / v.ze7 0 mgie 4_4 "(X 14t   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  IVED •  1 4 1979 -  ANSWERED ATTENDED TOF.  e'601A%fr  //te?4   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  September 7, 1979  Dear Mr. Strauss: Many thanks for your note and good wishes. hope we can meet when I get to Dallas. Sincerely,  Paul A. Volcker  Mr. Theodore H. Strauss Chairman of the Board First City Bank of Dallas One Main Place Dallas, Texas 75250 PAV:ccm  I do   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  N OF DALLAS  THEODORE H. STRAUSS Chairman of the Board (214) 655-8234  August 30, 1979  Mr. Paul A. Volcker Chairman Federal Reserve Board 20th and Constitution Avenue, N.W. Washington, D. C. 20551 Dear Chairman Volcker: Congratulations on your new assignment which has reflected such a positive response throughout the nation and the world. I hope that the future will provide an opportunity for us to meet, and I shall look forward to that with great pleasure. All good wishes. Sinderel  eoa re H. Strauss THS/cm  ONE MAIN PLACE • PO.BOX 50688 • DALLAS,TEXAS 75250 •(214)655-8000 MEMBER FIRST CITY BANCORPORATION OF TEXAS,INC.   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  August 16, 1979  Dear Allen: Many thanks for the note.  We can only try!  Sineerely,  Paul A. Volcker  Mr. Allen P. Stults Chairman of the Executive Committee Amerietan National Bank and Trust Company of Chicago 33 North LaSalle Street Chicago, Illinois 60690  PAV:ccm   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  American National Bank & Trust Company of Chicago 33 North LaSalle Street, Chicago 60690  ALLEN P. STULTS  August 8, 1979  CHAIRMAN OF THE EXECUTIVE COMMITTEE  Honorable Paul A. Volcker Chairman Federal Reserve System Washington, D. C. 20551  ,  ,  Dear Paul: C.1)  What an extremely beneficial turn of events. It's great for the country, and I couldn't be more pleased. Sincerely,   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  August 16, 1979  Mr. Daniel Sugarman Ms. Annette Cohen % Collingwood Hotel 45 West 35th Street New York, New York 10001 Dear Mr. Sugarman and Ms. Cohen: I appreciate your letter, many thanks. Sincerely,  Paul A. Volcker   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  July 30, 1979  Paul Volcker Federal Reserve Board Washington, D.C. Dear Sir: Lr  good friend joins with me in this letter  wishing you the very best of luck in your new position.  Respectfully yours, Daniel Sugarman o/o Collingwood Hotel 45 West 35th Street New York, New York 10001  -  FEDERAL RESERVE BANK OF NEW YORK NEW YORK.N.Y.10045 AREA CODE 212 791-6173  .•.........••••••••••••••.........•••••••••••••........................••••  PAUL A. VOLCKER PRESIDENT  August 1, 1979  Dear Mike: Thanks for your telegram of congratulations and your offer of assistance. I appreciated hearing from you. Sincerely,  Paul A. Volcker  •  Mr. Michael Sumichrast Staff Vice President/Chief Economist National Association of Home Builders Washington, D.C.  4.  ..........  ........  • ...........................   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  ..  • •  .•.......  Li u u • western union YSC049(1306)(1012333A206)FD 07/25/7  Telegram 1335  ICS IPMNQNC NYK 313 ICS IPMYS31 /1...0134710206 07/25/79 TLX NAHth WSH 31 WASHINGTON DC 7/25/79 PMS MR PAUL VOLKER PRESIDENT FEDERAL RESERVE 34NK  (N17105315500 BIZY)  35 LIthERTY STREET NY 10045  SF-1201 (R5-69)  INLE LU western union  Telegram  SINCERE CONGRATULATIONS ON YOUR NEW APPOINTMENT* I LOCA FORWARD TO WELCOMING YOU SACK TO WASHINGTON* PLEASE CALL ON ME IF I CAN  Assrsr  YOU IN ANY WAY*  VERY 3EST WISHES* MICHAEL SUMICHRAST STAFF VICE PRESIDENT/CHIEF ECONOMIST NATIONAL ASSOCIATION OF HOME SUILOEriS TELEX 89260WASH DC NNNN  SF-1201 (R5-69)  https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  •A.  ANSWERED ATTENDED TO   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  August 14, 1979  Dear Alexander: Many thanks for your note and good wishes. I don't have many illusions about the job or, more precisely, about the problems. So don't keep your good analyses hidden waiting for me to get to Geneva. Someday--but meanwhile, my best to you both. Sincerely,  Paul A. Volcker  Mr. Alexander Swoboda International Center for Monetary and Banking Studies Geneva SWITZERLAND   https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis  centre internationu, d'etudes monetaires et bancaires international center for monetary and banking studies}  Dr. Paul Volcker President Federal Reserve Bank of New York 33, Liberty Street New York, N.Y. 10045 U.S.A.  Geneva, August 1, 1979  Dear Dr. Volcker: Just a few lines to offer my heartfelt congratulations on your nomination to the Chairmanship of the Board of Governors. This is obviously not an easy time in which to take on that responsibility but monetary policy in the United States could not have been entrusted to better hands. Manige joins me in expressing our very best wishes - and the hope that your new duties will, some day, leave you enough time to visit us again in Geneva. With best personal regards. Yours sincerely,  L yilexander Swoboda  E  FE IL.D  4..U13  8 1979  R A. V. ANSWERED ATTENDED TO
Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102