View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  Collection: Paul A. Volcker Papers Call Number: MC279  Box 25  Preferred Citation: Chronological File, 1987 August-September; Paul A. Volcker Papers, Box 25; Public Policy Papers, Department of Rare Books and Special Collections, Princeton University Library Find it online: http://findingaids.princeton.edu/collections/MC279/c151 and https://fraser.stlouisfed.orearchival/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. They further agree to request permission of the Princeton University Library (and pay any fees, if applicable) if they plan to publish, broadcast, or otherwise disseminate this material. This includes all forms of electronic distribution. Copyright The copyright law of the United States (Title 17, United States Code)governs the making of photocopies or other reproductions of copyrighted material. Under certain conditions specified in the law, libraries and archives are authorized to furnish a photocopy or other reproduction. One of these specified conditions is that the photocopy or other reproduction is not to be "used for any purpose other than private study, scholarship or research." If a user makes a request for, or later uses, a photocopy or other reproduction for purposes not permitted as fair use under the copyright law of the United States, that user may be liable for copyright infringement. Policy on Digitized Collections Digitized collections are made accessible for research purposes. Princeton University has indicated what it knows about the copyrights and rights of privacy, publicity or trademark in its finding aids. However, due to the nature of archival collections, it is not always possible to identify this information. Princeton University is eager to hear from any rights owners, so that it may provide accurate information. When a rights issue needs to be addressed, upon request Princeton University will remove the material from public view while it reviews the claim. Inquiries about this material can be directed to: Seeley G. Mudd Manuscript Library 65 Olden Street Princeton, NJ 08540 609-258-6345 609-258-3385 (fax) mudd@princeton.edu   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  August 12, 1987  The Honorable Jimmy Carter The Carter Presidential Center One Copenhill Atlanta, Georgia 30307 Dear Mr. President: Even if I am, as of this morning, "retired," I think it only appropriate I write to the man who appointed me once more on Federal Reserve stationery. Someone recently brought to my attention some exceedingly generous comments you made on public radio the day my departure from the Federal Reserve was announced. Naturally, I appreciated it all the more, given the obvious difficulties, as most people would see it, presented by Federal Reserve policy in 1980 to a President running for re-election. (I don't doubt the "difficulties" -- I'd only argue they were dictated by economic circumstances, not policy!) From my perspective, all I can say is that I was privileged for a short time to see a tough but compassionate man struggling with some intractable problems in a way that made me (and always will make me) proud to have been an appointee of his -- even if it turned out the gods of fate and public opinion turned elsewhere Someday, I will get to the Carter Center when you are there -- better that than trying to compete on Spruce Creek. I don't want to get skunked.   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  My best and warm wishes to Rosalynn as well,  Paul A. Volcker  August 20, 1987  Mr. Thomas E. Dustin 1802 Chapman -- Box 141 Huntertown, Indiana 46748 Dear Mr. Dustin: As I leave a (not my) Federal Reserve office for the last time, I want to thank you for writing so warmly -- even if I suspect no living being could adequately justify all those nice words and confidence. Frankly, I am in what to do -- but I'd before I spend all my on the Public Service don't expect to spend  a bit of a quandary about better resolve it soon, time with the Commission for nothing. And I really my time speaking forever!  Your spontaneous expression of interest means a lot. Sincerely,  Paul A. Volcker PAV:gli   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  August 20, 1987  Mr. Nicholas G. Lieberman Bona Fide Mortgage, Inc. 701 Parkcenter Drive, Suite 110 Santa Ana, California 92701 Dear Mr. Lieberman: I appreciate that warm and long letter -with its ambitious proposal. I confess I, inevitably, Am leaving the Federal Reserve (physically, literally today) with some mixed feelings, but my ambition has to be a little freedom and financial repair, not a presidential campaign! At the same time, the kind of confidence you express means a great deal as I return to New York. Thanks so much for writing,  Paul A. Volcker PAV:gv   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  PAUL VOLCKER September 4, 1987  The Honorable William Proxmire Chairman Committee on Banking, Housing and Urban Affairs United States Senate Washington, D.C. 20510 Dear Mr. Chairman: but your I am in no position to take umbrage, Congress and the decision is an enormous loss to the country. ly and Who will keep us honest, intellectual otherwise? r that you I suppose it's all quite in characte d over ecte proj lf-itse age reached a decision that if even n, atio ider cons vant eight years -- was a rele of us to see. your vigor makes it hard for the rest ing legislation My concerns about banking and bank feel a lot more are much narrower, but I confess I is one calculaThat e. ther uneasy if you will not be tion I didn't make! eciated I hope you know how much I have appr s, and irie inqu ing prob your your personal support, the latter to the your good humor over the years -also realize there point of stealing some jokes. I hs. If I can help, is work to do in the next 18 mont legislation will just yell. And maybe constructive your mind -- that's be so exhilarating you will change permitted for a principled man!   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  With appreciation,  September 3, 1987  Mr. Kempton Dunn The Ambassadors' Roundtable 5 Landmark Square Stamford, Connecticut 06901 Dear Mr. Dunn: I apologize for not responding to your August 12 letter sooner -- I will simply have to attribute it to transitional problems. Those same problems lead me to want to avoid commitments of the sort you suggest for the time being, however intriguing the group. Perhaps at some other -- And considerably later -- time. Sincerely yours,  Paul A. Volcker PAV:gv   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  September 3, 1987  Mr. Carleton M. Stewart 3581 Bayou Circle Longboat Key, Florida 33548 Dear Stu: Politics is politics and government is government -I learned that at my father's knee. And I agree it isn't all that different in Longboat Key, Teaneck, New Jersey, or Washington, D.C. And bureaucracies are the same all over. But enough of that philosophy. and some day I'll retire. Sincerely,  Paul A. Volcker  PAV:qv   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  Thanks for writing,  September 3, 1987  Mr. Robert H. Riley Chairman of the Board U.S. Oigital Disc Corporation 14 Holland Road Middletown, New Jersey 07748 Dear Bob: It sounds as if you are off on an intriguing and potentially exciting challenge. At this point, without knpwing what I am going to be doing more generally, I can't possibly think of taking on a commitment as a director. In a few months maybe we could talk. But I certainly would not delay any decisions you should make on a long shot. In any event, I can certkinly wish you Godspeed and good luck. Regards,  Paul A. Volcker PAV:gv   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  September 3, 1987  Mr. Dan Adams 1011 S. Butte Crest Payson, Arizona 85541 Dear Mr. Adams: I appreciate that footnote on your letter to Senator De Concini. I understand the doubts -- but we also have an opportunity and a good Fed Chairman. Sincerely,  Paul A. Volcker PAV:gv   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  September 3, 1987  Mr. and Mrs. John Brodbeck 518 Poplar Street Savanna, Illinois 61074 Dear Mr. and Mrs. Brodbeck: Many thanks for that warm letter on my departure from the Federal Reserve. Sincerely,  Paul A. Volcker PAV:gv   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  September 3, 1987  Mr. Raymond C. Togtman 6106 W. 128th Street Palos Heights, Illinois  60463  Dear Mr. Togtman: After reading your letter, I'd really suggest you write to President Carter -- but forget your hunches about 19801 Sincerely,  Paul A. Volcker PAV:gv   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  ,  September 3, 1987  Mr. John F. Floberg 11219 Willowbrook Drive Potomac, Maryland 20854 Dear Mr. Floberg: I appreciate your letter, and more the feeling behind it. I wish there were more that had such strong -- and to me sensible as well as moral -- instincts. Thanks for writing,  Paul A. Volcker PAV:gv   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  September 3, 1987  Mr. James W. Alsdorf Chairman Alsdorf International Ltd. 4300 West Peterson Avenue Chicago, Illinois 60646 Dear Jim: I appreciated that note -- and more your interest and support for both the substantive and aesthetic part of our work. I share that hope that we will be meeting again, in Chicago or elsewhere. Best regards from us both to both of you,  Paul A. Volcker PAV:gv   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  September 3, 1987  Mr. James D. Sutherland President Meredith Village Savings Bank Lock Drawer 177 Meredith, New Hampshire 03253 Dear Mx. Sutherland: I appreciate those comments all the more from a savings banker who, I suspect, had some difficult years. Sincerely yours,  Paul A. Volcker PAV:gv   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  k  •  September 3, 1987  Mrs. Judity Kooker Paulus 975 Private Road Winnetka, Illinois 60093 Dear Judy: I appreciate your letter on a number of counts -- including the interest in the National Commission. This is a shoestring operation, and will remain that way. But one possibility is some regional meetings. All I can do now is to make sure we have you "on file" should some need arise for help in the Mid-West. Thanks for writing. Sincerely,  Paul A. Volcker  PAV:gv   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  September 3, 1987  Mr. David Rockefeller North American Chairman The Trilateral Commission 345 East 46th Street New York, New York 10017 Dear David: As I try to sort things out in terms of future commitments, I'm prepared to accept your invitation to rejoin the Trilateral Commission and become a member of the Executive Committee provided I understand your letter correctly -- that is the Executive Committee only requires two meetings a year, one of which coincides with the plenary. I look forward to seeing you long before Tokyo! Sincerely,  Paul A. Volcker PAV:gv   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  September 3, 1987  Mr. Richard M. Block President Edgewood Industries, Inc. 3 Forest Lane Scarsdale, New York 10583 Dear Mr. Block: I have your letter of July 27, but at this point do not contemplate the need for any services of the kind you describe.   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  I do appreciate your comments. Sincerely,  Paul A. Volcker  September 2, 1987  Mr. Klaus Ruege Corporate Offices Montgomery Ward Montgomery Ward Plaza Chicago, Illinois 60671 Dear Mr. Ruege: Given the uncertain nature of my plans at present, I will have to decline your invitation to address your Chicago group in January. Sincerely,  Paul A. Volcker. PAV:gv   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  August 20, 1987  Mr. Pierre A. Rinfret Rinfret Associates, Inc. 641 Lexington Avenue New York, New York 10022 Dear Pierre: I have the message, but I'm not fully convinced. A lot depends upon whether I decid e upon some academic connection. But, in any case, I appreciate the urging as an indication of interest. Sincerely,  Paul A. Volcker PAV:gv   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  August 20, 1987  Mr. Ron Nessen Vice President - News Mutual Broadcasting 1755 South Jefferson Davis Highway Arlington, Virginia 22202 Dear Mr. Nessen: I confess that I am very doubtful that I would want to tie myself down to a daily, or even less frequent, radio commentary. In want to else is talking  any event, I still haven't decided what I really do as my main commitment. Until I do, everything in abeyance, so I don't really think it is worth about your idea more.  But I do appreciate your initiative in bringing it to my attention. Sincerely,  Paul A. Volcker PAV:gv   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  August 20, 1987  Mr. Robert P. Black President Federal Reserve Bank of Richmond 701 East Byrd Street P.O. Box 27622 Richmond, Virginia 23261 Dear Bob: I have the note on Bob Tate -- and he will go on the list for consideration. But I have to say that now we have many more suggestions than we can possibly take. Thanks again for all thht support and generous words. Keep the ship of state sailing. All the best,  Paul A. Volcker PAV:gv   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  August 20, 1987  Ms. Elaine J. Mittleman 2040 Arch Drive Falls Church, Virginia 22043 Dear Ms. Mittleman: I hardly know how to carefully respond to your letter since my recollections of particular events in 1980 with respect to the Chrysler Loan Guarantee program are hazy at best. Certainly, there were many doubts, questions, and difficult decisions at that time, and a good many people were working under strong pressure. In the end, the purpose seems to have been successfully achieved, and I am sure close monitoring of Chrysler's performance played a key part in that success. I am afraid I have little recollection, and had no first-hand knowledge, of the events you describe. Sincerely yours,  Paul A. Volcker PAV:gv   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  August 20, 1987  Mr. Orman L. Graves 2206 Morningside Drive Modesto, California 95355 Dear Mr. Graves: I appreciated your letter and thoughts on the public service. Your observations are insightful and will find their way into my thinking as the Commission proceeds. Sincerely,  Paul A. Volcker PAV:gv   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  August 20, 1987  Mr. Bernard L. Swain Executive Vice President Washington Speakers Bureau, Inc. 123 N. Henry Street Alexandria, Virginia 22314 Dear Bernie:  Unfair advantage!  Sincerely,  Paul A. Volcker PAV:gv   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  .,I  August 20, 1987  Mr. Albert R. Hunt Washington Bureau Chief The Wall Street Journal 1025 Connecticut Avenue, N.W. Suite 800 Washington, D.C. 20036 Dear Al: Thanks for sending along some of those letters -- a couple of which I will file for Commission use. And I was reminded of how good Larry Woodworth was as the archtypical Congressional career staffer. I reported to Barbara your bargain -- no more crabbing. She agrees. So everybody's happy. All the best,  Paul A. Volcker PAV:gv   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  August 19, 1987  Mr. and Mrs. David Sellin 1834 - 16th Street, N.W. Washington, D.C. 20009 Dear Mr. and Mrs. Sellin: Since last November I have had the pleasure of enjoying the loan of the Homer "fish" painting. It has been hanging in my office to the right of my desk to remind me of the pleasure angling presents. Now, in theory, I will have more time to catch my own salmon, but, alas, without Homer by my side. But my purpose is to thank you both for the loan in the support of the Board's Fine Arts Program. Sincerely,  Paul A. Volcker  PAV:gv   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  August 20, 1987  Mr. Gerard Cameron Lacey Senior Development Officer Northwood Institute 19111 W. Ten Mile Road Southfield, Michigan 48075 Dear Mr. Lacey: I appreciate your letter -- and your tuition efforts. I sympathize with anyone plowing through "Purposes and Functions" from a standing start. Maybe some day I'll write my book. Meanwhile, keep up all that good work. Sincerely,  PAV:gv   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  Paul A. Volcker  August 20, 1987  Mr. John M. Hennessy Grianan Tuxedo Park, New York  10987  Dear Jack: What's this Grianan business? Back to the Gaelic roots -- in a summer palace! It ain't the pbtato famine. I'm jealous as hell of everybody else catching salmon, but I appreciate reading about it? How long are you around? talk before Labor Day.  We ought to have a  All the best,  Paul A. Volcker PAV:gv   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  August 20, 1987  Mr. Arthur R. Miller Harvard Law School Cambridge, Massachusetts  02138  Dear Mr. Miller: Thanks for the note on the Washington Speakers Bureau. It seems to be a very competitive business, but I'm not yet fully convinced I want anybody! Sincerely,  Paul A. Volcker PAV:gv   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  August 20, 1987  Mr. Peter C. Goldmark, Jr. Group Vice President, Eastern Newspapers Times Mirror 780 Third Avenue New York, New York 10017 Dear Peter: My calendar now is fluid, to say the least. Let's talk in New York the first half of September and see if the smoke is clearing. I don't have an address now, but Jerry Corrigan's office in the New York Fed should know where I am. Until then,  Paul A. Volcker PAV:gv   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  M  August 20, 1987 David Holland Group of Thirty Telex: 264766 AB CHEMBK G Facsimile: 01-380-5488 London ENGLAND Mrs. Volcker and I plan to attend your dinner on October 2.  Look forward to seeing you. 1  RBgards  Paul A. Volcker  August 19, 1987  Ms. Joyce L. Conrad 8525 Bradford Road Silver Spring, Maryland  20901  Dear Ms. Conrad: I can assure you there will be women on the Commission. Sincerely,  Paul A. Volcker PAV:gv   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  August 12, 1987  The Honorable R. A. Johnston Governor Reserve Bank of Australia 65 Martin Place Sydney2000 AUSTRALIA Dear Bob: Many thanks for that warm letter. As you can imagine, I've had a lot of mixed feelings about this whole thing, even though I was convinced the time had come. The negatives were clearly leaving that thin line of central bankers around the world who grope with similar problems and can only turn to each other for sympathy! Someday, I hope I do make it back "down under" and swap war stories over again. With all best wishes,  Paul A. Volcker PAV:gv   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  August 12, 1987  Mr. Ben C. Cochran Cochran Brothers Co., Inc. Dublin, Georgia 31021 Dear Mr. Cochran: Many thanks for that note from a surviving small businessman.  That kind of message means  more than a lot of others. Sincerely,  Paul A. Volcker PAV:p7   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  August 12, 1987  Mr. Kerry Berman Senior Vice President First Security Savings Bank 20501 Ventura Boulevard (Suite 220) Woodland Hills, California 91364 Dear Mr. Berman: Many thanks for that generous note on my departure from the Fed. Sincerely,  Paul A. Volcker PAV:gv   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  August 12, 1987  Mr. Fred W. Andrew Chairman of the Board Federal Reserve Bank of San Francisco 101 Market Street San Francisco, California 94105 Dear Fred: Many thanks for that warm note from a fellow 60-year-old retiree. You have given long and valiant volunteer service to the Federal Reserve at even less remuneration. Somehow financial and agricultural consultants sound like they should find a natural market these days. Let's hope,  Paul A. Volcker PAV:gv   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  August 12, 1987  Mr. Arthur C. Holden Box 182 Washington, Connecticut  06793  Dear Arthur, I appreciate your further letter, and I have had a chance to read the interesting essay on Nicholas Biddle -- in one sense a predecessor of mine in office. Soon I'm going to have to decide about what to do, and I will be talking to Bill Bowen in that context. Sincerely,  Paul A. Volcker PAV:gv   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  August 12, 1987  Mr. Raymond C. Togtman 6106 West 128th Street Palos Heights, Illinois  60463  Dear Mr. Togtman: I hope I didn't cost President Carter his job, because I greatly sympathize with your view of the man who originally appointed me. And I am reassured by the fact that he doesn't think so -- there were, after all, some other issues. Obviously, I appreciate your taking the time to write. Sincerely,  Paul A. Volcker PAV:gv   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  August 12, 1987  Mr. Naokuni Koyama Meguro-ku Takaban 1-9-22 Tokyo JAPAN Dear Mr. Koyama: I greatly appreciated that fine letter, received as I was leaving office. Thank you. Sincerely,  Paul A. Volcker PAV:gv   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  August 12, 1987  Mrs. Ruth M. Harwell 18139 Martin Avenue Homewood, Illinois 60430-2105 Dear Mrs. Harwell: Many thanks for that note and your good wishes as I leave the Federal Reserve.   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  Sincerely,  Paul A. Volcker  August 12, 1987  Mr. David M. Jones Senior Vice President and Economist Aubrey G. Lanston & Co., Inc. 20 Broad Street New York, New York 10005 Dear David: I particularly appreciate your letter because it gives me a chance to thank you for your consistent and sensible (I'd like to think they are synonymous) support over these past years. My wife, much more than I, is the television watcher. But I can't write how many times she has told me, "There was David Jones defending you again." Obviously, these things get personalized in the Volcker household! And naturally I appreciated it all the more from one with your special status as "Fed watcher." I'll wait for the letter from Art Carlson and then we'll see. With best regards,  Paul A. Volcker PAV:gv   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  August 12, 1937  Mr. N. Berne Hart Chairman of the Board United Banks of Colorado, Inc. One United Bank Center 1700 Lincoln Street Denver, Colorado 80274-0010 Dear Berne: Many thanks for that generous note on my "retirement." I've appreciated our contacts and your work with the Fed and I trust our paths may cross again. Sincerely,  Paul A. Volcker PAV:gv   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  August 12, 1987  Mr. William D. Mulholland Chairman of the Board Bank of Montreal First Bank Tower First Canadian Place Toronto, Ontario M5X 1A1 CANADA Dear Bill: Thanks for those generous remarks -and I regret missing the salmon expedition all the more if you had even "respectable" results, which is more than I can claim this year. Out of office, but still preoccupied for a few weeks at least with the debt problem -- which, I sense, is going to need a little tender loving -- and coherent -- care in the next month or two. With best wishes,  Paul A. Volcker PAV:gy   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  August 12, 1987  Mr. Robert N. Bee 13 Edwardes Square London W86HE ENGLAND Dear Bob: Many thanks for that warm note -- and for the news that the instinct for entrepreneurship still runs in the Bee family. London is a place I intend with some assurance to visit from time to time, so you may find me dropping in! With all best wishes for the new venture and otherwise,  Paul A. Volcker PAV:p7   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  August 12, 1987  The Honorable Norm Dicks U.S. House of Representatives 2429 Rayburn House Office Building Washington, D.C. 20515-4706 Dear Norm: That was a warm and generous letter on my "retirement," and I appreciate it. With all best wishes,  Paul A. Volcker  PAV:p7   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis  August 11, 1987  Mr. Kermit A. Mahlum President Independent Bankers of Minnesota 7850 Metro Parkway Bloomington, Minnesota 55420 Dear Mr. Mahlum: Thanks very much for adopting and writing about that nice resolution. I appreciate it -- and recognize all the Independent Bankers have done legislatively this year. Sincerely,  PAV:ccm   http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102