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https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 'WM Collection: Paul A. Volcker Papers Call Number: MC279 Box 7 Preferred Citation: Congratulatory Letters:"H-I", 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/c115 and https://fraser.stlouisfed.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) firstname.lastname@example.org https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis A https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 20, 1979 Dear Mr. Haessler: Yes -- if we don't take it for granted: Sincerely, Paul A. Volcker Mr. George Haessler PAV:mrk / /if)/ Xioeigi 2 /Ay oerA4., e,449/ 44/ / ge)OWeer /41- VW /401/4e,et-4._•• 1040‘ a/lace tar so )0tio 7j77';1: /0-#1/Ja . , /0/e/Z47ioN Ar aeeC .4e4'otei 1 ( ava /0P/7- fro aftI. ,..5--u,e -6 74 Cec*74f."147" 4-9) a:4•41i/e4obieff /49*-4 ,ote 61204 waives ; ( https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Alm) Aort7i6:411 04-f ei,41W.A144/ efi Xee- Exi4pe- Zefmte)• 09/14e -. .f #1,77-1 /clitrwev/1/ 4-er e 2,67744i • https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 3, 1979 ,ear Bob: Many thanks for your note. I -mess I do like the challenge but I don't underestimate it. Sincerely, Paul A. Volcker Mr. Robert F. Hague First Vice President Bache iialsey Stuart Shields Incorporated Bache Plaza 100 Gold Street New York, New York 10038 Bache Halsey Stuart Shields Incorporated Bache Plaza, 100 Gold Street, New York, N.Y. 1 0038 Telephone: 212-791-1000 Robert F. Hague First Vice President July 26, 1979 Mr. Paul A. Volcker Chairman Federal Reserve Board Washington, D.C. Dear Paul: Congratulations on your appointment to be Chairman of the Federal Reserve Bank. You must really like challenges to take on such a demanding job at this particular time. Best wishes as you accept the tremendous responsibilities of this position. Sincerely, RFH/gr Members all Leading Exchanges https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 17, 1979 Dear John: You know how much I appreciate your letter. sure to be seeing something more of you--just keep the flags flying up there! All the best. Sincerely, Paul A. Volcker Mr. John Hopkins Heires PAV:sep https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis JOHN HOPKINS HEIRES r /271 , /0 d Ate lett) • t..Lid 7 .‘‘,0‘..0,6.,s.4_4_„.." rr- 4,iet e/4z e 044 ,ze.4ceg„ /04t, 73 94-"-t- .44 A/4. At-‘ iv-4-4 41 44t fre_oa, -12-e7 01-124st4 4C1 .14.-r211-7 ,&74d -41# /44 dere.f. -4 e„1 y e, 4,71 th ,, L ._ .. ./ ", c_ _ 4 4 ) . A c.Qic.f20 E -" f .4 ,„a ,,, ,AL ,,, ty„ c-t (42.1 ,e.e.. 0/4,67 a_ez_4,4,I r a-e 7/-xe_ A4-atiCar a ffeaeoet, 114 /44-v-e ode.441. e.4ef -ster , 1 elf"-e-R-C.-e. Av.ie 0,C 0/4„/ ex ,/,.•;/-ti,>,/ -77,4_‘-‘4,A4 4.44 44_7 pe- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis September 24, 1979 Mr. Helmut Haeusgen Chairman of the Supervisory Board Gallusanlage 7-8 6000 Frankfurt a.M. 1 Germany Dear Mr. Haeusgen: I greatly appreciate your note. The markets don't always seem to behave so well, but I accept the challenge they give. You can be sure where my priorities lie -- and we'll try to keep the flag flying. Sincerely, Waa‘4‘7,72, cora /P 412-e.24.214 triect/col .9 9 W/e-oteiorma./Fi, ..V4,22.214.171.124eJaiW https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1979sF) \7 a.t." rs9 r September 11, 1979 The Honorable Paul A.Volcke Chairman Board of Governors of the Federal Reserve System 20th & Constitution Avenue, N.W. Washington D.C. 20551 Dear Mr. Volcker: When the very delightful news of your being appointed Chairman of the Fed went through the press, I happened to be on vacation. Now back in Frankfurt I hasten to send you my warmest congratulation on this very important appointment. You are certainly not facing an easy task, and I wholeheartedly wish you every success for the benefit of not only the United States monetary policy; the markets here are just as well affected. Keep your pecker up! With kind personal regards, Yours sincerely, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis September 17, 1979 Dear Cliff: I missed thanking you in person the other night at the R.F. for your note on my appointment. The ones that I appreciate the most are from those who have been through the mill! Best regards, Mr. Clifford M. Hardin PAV:ccm https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis CLIFFORD M. HARDIN July 27, 1979 Mr. Paul A. Volcker 151 East 79th Street New York, NY 10021 Dear Paul: Martha and I are delighted with your selection as Chairman of the Fed. From what I've heard the past few days from a rather broad spectrum of people, I don't believe the President could have made any other choice that would have even come close to the favorable reaction your nomination has received. It's great for the country: Our very best wishes. Sincerely di1/4 1h https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis September 25, 1979 Dear Margaret: Many thanks for your note and support. We obviously have just a few problems ahead, and all those markets don't want to behave. But we can do what we can, as one man, to help restore some sense of stability, and I look forward to seeing and working with you again. Sincerely, The Honorable Margaret M. Heckler House of Representatives Washington, D.C. 20515 PAV:sep \ HOUSE OF REPRESENTATIVES WASHINGTON, D. C. 20515 rTF. 17 Septhmber 1979 MARGARETM.HECKLER 10TH DISTRICT, MASSACHUSETTS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Dear Paul, The announcement of your selection as Chairman of the Federal Reserve followed by just a few hours my call to the White House urging your appointment. Needless to say, I am delighted. Central bankers are inclined to be nervous, but I believe your arrival in the Chairman's office will serve to assuage same of their concerns. Your credibility is extremely high with both the financial community and those of us who have worked with you on Capitol Hill -- I have every confidence that you will do an excellent job. With warm personal wishes and my congratulations Sincerely, Mr. Paul A. Volcker, Chairman The Federal Reserve Board Washington, D.C. 20551 t evPi x‘.ro, /( r, AiLa 01- qf If* .qt i.„01 ' 4V' 42,1A, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis September 24, 1979 Dear Mr. Horton: I appreciated the note to my mother. You will find her a pretty vigorous octogenarian-plus! Hope to meet you soon. Sincerely, The Honorable Frank Horton House of Representatives Washington, D.C. 20515 PAV:ccm WASHINGTON FRANK HORTON ,RFSENTATIVE R£7 NEW YORK 34-1-14 pa-nucr o Cern/ l‘f : GOVERNMENT OPERATIONS (202) 22.5-4918 Congre55 of Me Einiteb 6tate5 RANKING MINORITY MEMBER SELECT COMM ITTEE ON COMMITTEES https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Pouck of RepresSentatibesS Vatusbingtott, 73.e. 20515 DISTRICT OFFICES: 314 WAYNE What a nice article appeared in the Rochester "Democrat and Chronicle" about you and your son, Paul. I know that you must feel a mother's pride about the outstanding job your son is doing. I feel confident that he will find the days ahead to be challenging and exciting ones. Although I have not yet had the chance to see Paul and personally congratulate him, I am looking forward to seeing him in the near future and expressing to him my best wishes on his new position. Perhaps when I next hold my Wayne County Office Hours in Lyons we will have the chance to meet and talk. FH:AGH Honorable Paul Volcker COUNTY OFFICE BUILDING LYoNs. Nsw YoRK 14489 Dear Mrs. Volcker: Frank Horton 14614 FTS=473-6270 Mrs. Alma Volcker 114 William Street 14489 Lyons, New York With all good wishes, FEDERAL BUILDING ROCHESTER, Nrw YORK (718) 263-6270 September 12, 1979 cc: orrice.: 2229 RAyeuRN BUILDING WASHINGTON, D.C. 20513 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 17, 1979 Dear George: The Knicks are all down hill--both the economy and New York basketball need a renaissance. We shall see! Thanks for writing. Sincerely, Paul A. Volcker Mr. George L. Hacker Blyth Eastman Dillon & Co. Wardgate House 59A London Wall London EC2M 5TP PAVOrg BLYTH EASTMAN DILLON & CO. INTERNATIONAL CORPOFZATION NEWYORK AFFILIATE TE LEX BLYTH EASTMAN DILLON 8 CO ,NCORPORATID ONE CHASE MANHATTAN PLAZA WAUR:DGATE HOUSE 50A LONDON WALL • LONDON EC2N1 5TP NEW YORK,NEW YORK 10005 887838 CABLE ADDRESS TELEPHONE EASTUN ION 01-638 3491 222472 TELEX 620133 TELEPHONE f,212)785-9130 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis PRIVATE & CONFIDENTIAL GLH/WP , I'll'.c. 6 August, 1979. Dear Paul, It has been some time since we shared seats at the Knick game. Congratulations to you on the appointment and best wishes for much success Needless to say, when you visit London please call so we can renew acquaintances Yours sincerely, George L. Hacker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 3, 1979 Dear Geoff: appreciate the note. hope all goes well wit h you. Sincerely, Paul A. Volcker Mr. Geoffrey Hale Mr. Avery W. Hall President Avery W. Hall Insurance Agency, Inc. 110 N. Division Street 21801 Salisbury, Maryland ,, ......... .. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ......... ...................................... . .. .......... Avery /W. Wall https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis INSURANCE AGENCY, INC. gnsurance and Surety Bonds Office - 110 N. Division Street • Phone 742-5111 SALISBURY, MARYLAND 21801 July 27, 1979 The Honorable Paul Volcker Chairman of the Board Federal Reserve System Constitution Avenue & 20th Street, N.W. Washington, D. C. 20551 Dear Mr. Volcker: We have been reading with interest about your appointment as Chairman of the Federal Reserve Board and you look like just the man who can really do a good job in this very important position in this country; so I am writing to congratulate you on accepting the job and I shall be saying a little prayer along for you as you face this tremendous responsibility. I do wish you ever success because this country does need May God some help and I believe that you can provide iii. bless you in all your efforts. Sincere ery Hal Preside AWH:vcw . • • . • ot CO • • •. • , .• CHAIRMAN OF THE BOARD OF GOVERNORS . .• 11111 FEDERAL RESERVE SYSTEM WASHINGTON. D. C. 2055! 1111111111111111111111101111111111 ..\k' • • 4L RSe•• • • •• • • • • '••-)e • • 'S'•••••. .":••••••••.'14'-••.`;;;.; .• .1411.1'; 41-,••• e-1- f- .1.1•1A-144-4,40-47-irrize. August 8, 1979 ••• ',....T. d d• •• ,,, "...V" ' f /1/$: 2 4. , ' $::.!..j••,,:; ..7\6: •'''Ildre, $. , ,.., . •Ld '1,0 - • • r 'qt.+ ' \ r t f . -61$.. - AP Dear Paul: rot- .... ...i...-+oz. - A' *V... .,": •• evir.a.,. - 4%. •••• r riot'.-*:'...P. ,ii..•,,k Z" . *' Many thanks for writing. All I can do is try my best. Sincerely, • •.-, Paul A. Volcker • . I — • F irark.arrak•-•••.•••mommowo- •Ar. Mr. Paul Hallingby, Jr. Vice Chairman Merrill Lynch Pierce Fenner and Smith, Inc. One Liberty Plaza 165 Broadway New York, New York 10080 7+, . • 27:7 • I .. Ild . ; I dr '''‘ Jr' 0..• ..: Jo.,..•. ' . % ..... .•,‘ • . • 1.. ', .. L. •-• • • https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis e ' • • A • , t• •• • " 'S p. • - • 4 •.• .4••••.• -,.• •Ne..;.... • One Liberty Plaza 165 Broadway New York New York 10080 212 285-2296 Merrill Lynch Pierce Fenner6Smith Inc. Paul Hallingby, Jr. Vice Chairman https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 1, 1979 Mr. Paul A. Volcker, President Federal Reserve Bank of New York 33 Liberty Street New York, New York 10045 Dear Paul: Your appointment to the office of chairman of the Federal Reserve Board came as wonderful news and I send you my congratulations and very best wishes. You are ideally suited for this position of great leadership, and I will support you and cooperate with you in any way I can. Sincerely, PH:LL RECEIVED 3 1979 P. A. V. ,,, ANSWERED .... ATTENDED TO,._._ CHAIRMAN OF THE BOARD OF GOVERNORS .6 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis FEDERAL RESERVE SYSTEM WASHINGTON,0. C. 20551 • August 22, 1979 Dear Dick: Many thanks for your congratulations and kind words. I'll do my best: Sincerely, Paul A. Volcker Mr. Richard Hambro https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 8/20/79 PAV- You had asked if Richard Hamb ro is a Lord. He is not--he's just plain Mr. Ri chard Hambro. Anne YSBO2A C1056) C4 -020550S207)PD 07/26/79 1054 ICS IPMMTZZ CSP 2122 Fg7778 TDMT NEW YORK NY 25 07-26 1054A EST S PAUL VOL CKER 1:PRE SIDENT RPT DLY MGM DLR FEDER AL RESERVE SANK OF NEW YORK 33 L IBER TY ST NEW Y OR K NY 10005 MA NY CONGR ATUL AT IONS OW YOUR NEW APPOINTMENT WE AT HAMM OS ARE ALL THRILLED AND SD YOU EVERY GOOD W I SY FOR A SUCCESSFUL TIME IN WASHINGTON. REGARDS RICHARD 14 AMBRO RECEIVED 17 EAST 71 ST NEW YORK WY /0021 NPf N JUL 26 1979 P. A. V. ANSWERED ATTENDED TO F-1201 (R5-69) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 15, 1979 Dear Charles: Many thanks for the note on my appointment. Now the real work begins! Sincerely, Paul A. Volcker Mr. Charles Hambros PAV:ccm https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 41, B1SHOPSGATE, sos' se LONDON, EC2P 2AA 0"' CEAH/JB. 26th July 1979. Mr. Paul Volcker, President, • Federal Reserve Bank of New York, 33 Liberty Street, New York, N.Y. 10005. United States of America. Dear Paul, I first heard of your appointment on the radio yesterday evening and I feel I must write, first of all to congratulate you, and secondly, to say what a sense of relief it gave me and I know thousands of other people from all over the world. What marvellous news it is and how thoroughly well deserved. I can only finish by wishing you every possible success. Yours ever, 40,d/4/ 1APPA tre, 1"-ZECEI'VEri 140164)-1A AUG _ . AN ATTENDED TO 7 1979 V. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 16, 1979 Dear is. Hancock: Done. Sincerely, Paul A. Volcker Ms. Judith Hancock PAV:ccm https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis JUDITH L.HANCOCK August 7, 1979 The Honorable Paul A. Volcker Chairman Board of Governors of the Federal Reserve System Twentieth Street and Constitution Avenue, N.W. Washington, D.C. 20551 Dear Mr. Chairman: I enjoyed talking with you last week and I appreciate your offering to forward my resume to appropriate persons at the Departments of State and Treasury. Best regards. Very truly yours, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 3, 1979 Dear Mr. Hanley: Many thanks for your note on my appointment. hope I can justify your confidence. Sincerely. Paul A. Vole,er Mr. Paul Hanley I https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 7, 1979 Dear John: Many thanks for the note--all I can do is try. Sincerely, Paul A. Volcker Ht. John W. Hannon, Jr. President Bvnkers Trust Company 230 Park Avenue New York, New York 10003 PA7;jr2. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BANKERS TRUST COMPANY 280 PARK AVENUE NEW YORK JOHN W.HANNON,JR. July 26, 1979 PRESIDENT Dear Paul: I am delighted, as we all are, with your nomination as Chairman of the Federal Reserve Board. The worldwide response to that wonderful piece of news must be gratifying to you. Al Brittain is away this week but I know he joins me in sending every good wish for a successful administration. Sincerely, Mr. Paul A. Volcker, President Federal Reserve Bank 33 Liberty Street New York, N. Y.10045 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 16, 1979 Dear Jim: Many thanks for the warm note. But forget about all that nice 'press" -- now the work begins: Sincerely, Paul A. Volcker Mr. James W. Hargrove Chairman of the Board Vaughan, Nelson & Hargrove, Inc. 21.50 Two Shell Plaza Houston, Texas 77002 PAV:sep https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis cr; VAUGHAN, NELSON 8c HARGROVE, INC. GOTJ1STS EL 2150 TWO SHELL PLAZA August 9, 1979 HOUSTON, TEXAS 77002 TELEPHONE (713) 224-254-5 Mr. Paul Volcker Chairman Federal Reserve Bank Washington, D.C. Dear Paul: I was delighted, as any reasonably intelligent American was also, at your appointment as Chairman of the Federal Reserve. Not only am I glad to have a friend in that very important position, but in addition I have one who must be the most highly qualified Fed Chairman in many long years. The market certainly agrees with me, as we seem now to be enjoying the "Volcker High"! I remember with nostalgia our work together when I was at the U.S. Postal Service and we were negotiating with you on the terms of the Postal Reform Act of 1970 and our subsequent sale of the first (and, I'm sorry to say, only) U.S. Postal bonds. Incidentally, I think Bill Bolger is doing a really good job as Postmaster General. Paul, you have my very best wishes. If I can ever be of help, call me. Sincerely, W. Hargrove rman of the Board "WM https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1 August 7, 1979 Dear Elmer; Many thanks for your warm note. All we can do is try: Best regards, Sincerely, 2aul A. Volcker Mr. Elmer M. Karmon Executive Vice President and Treasurer The Bowery :?avings Bank 110 East 42nd Street New York, New York 10017 THBOWERY https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The Bowery Savings Bank 110 East 42nd Str-,t 0017 New York, New Yc. 212 953 8520 Elmer M Harmon Executive Vice President and Treasurer Mr. Paul A. Volcker President Federal Reserve Bank of New York 33 Liberty Street New York, N. Y. 10045 July 26, 1979 Dear Paul: Paul A. Volcker appointed Chairman of the Board of Governors of the Federal Reserve System. That has gotta be the best news in 1979. If there ever was a vital national post, and a person with the integrity and breadth of knowledge required to rise to the occasion and provide the needed leadership -- this gotta be it. Congratulations and best wishes of course; but more importantly, many thanks from one of your many admirers for undertaking yet another arduous assignment in service to your country. Cordially, .r A Z <4414/ EMH:ac RECEIVED JUL 3 1 1979 P. A. V. ANSWERED ATTENDED TO https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 17, 1979 Dear Mary: The only real bonus in this job is hearing from so many good friends from the past. The letter is no substitute for seeing you at Treasury, but Barbara and I were delighted to at least have the written word. Right now she's on a kind of "high" with the excitement, but not so delighted with the longer run prospect. Bogged dawn by arthritis and a few other problems, she will stay in New York for the time being. Obviously, that's a drag, but we'll survive. Just think of us when the brickbats begin, and we appreciate so much not just the note, but all your past kindness. All our best. Sincerely, Paul A. Volcker Ms. Nary E. Harris PAV:tb https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis tnff , 19:19 AUG 6 144 " V: rICT 4 August 14, 1979 The Honorable Paul A. Volcker Chairman, Board of Governors Federal Reserve System of the United States 20th and Constitution Avenue, NW. Washington, D.C. Dear Paul: I was delighted that President Carter selected you as Chairman of the Federal Reserve Board. Congratulations on a very well deserved appointment. Paul, knowing your expertise in the field of monetary affairs, I know that your's will be one of the outstanding appointments of the Carter Administration. It is only with men of your stature and knowledge that this inflationridden Country can do an about-face. On a more personal note, I know that Barbara must be delighted, and I hope happy, to return to the Potomac scene. As you well know from our traveling days, you are both my favorite people. Although I retired in February 1977, I have followed the Washington scene and at no time have been as excited about an appointment as I have been with yours. My best wishes to you and your family and may God help you with the tremendous burdens and problems that you will face in the coming months. There is no need to acknowledge this letter, as I know how busy you are and I simply wanted to let you know of my pleasure with your appointment. Most Sincerely, Mary E. Harris Wh. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 9, 1979 Dear Lowell: Good advice on both counts! Sincerely, Paul A. Volcker Dr. Lowell Harriss PAV:ccm https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The Gold Mummy Mask (detail) u TO ASSEMBLE pi OF DEMOuCsRAC AI Egyptian, Dynasty xviii, reign of Tutankharnun ( 1334-1325 B.C. It!. a EGYPTIAN MUSEUM,CAIRO , 404cdr-c•rz. • . 1111. . . 1 14•111M11,14 as - ).b= el .< 1- -teza •4• , 6110M1 serialNit ler C 0.• 4... r x taw,. IMAJOF war. Ilg masi1.3 ."'"1 aftwma11... 0-71 THE TREASURES OF TUTANKHAMUN Participating museums: National Gallery of Art, Washington, D.C.; Field Museum of Natural History and the Oriental Institute of the University of Chicago; New Orleans Museum of Art; Los Angeles County Museum of Art; Seattle Art Museum; The Metropoli tan Museum of Art, New York Photographed by Lee BoltinA/4Print in hall 71 A https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 7, 1979 Dear Orson: Great to hear from you and thanks for the best wishes. All I can do is try. Sincerely, Paul A. Volcker Mr. Orson H. Hart PV/tn https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ORSON H. HART Paul A. Volcker, President Pederal Reserve Bank of New York Nem-York, N.Y. Dear Paul: This is just a note to offer my congratulations on your selection as the next Chairman of the Fed, and my best wishes -- for us as well as for you -- for complete success in this vital assignment. The President could not have chosen better. With best personal regards, Sincerely, „ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 27, 1979 Dear Mr. Hartley: Many thanks for your note. We can only try our best. Sincerely, Paul A. Volcker Mr. Patrick G. Hartley Assistant Treasurer and Senior Money Market Officer American Security Bank 1501 Pennsylvania Avenue, N.W. Washington, D.C. 20013 PAV:sep 1 4 t, 111I1 AMERICAN SECURITY BANK i979 Ui 23 in: I I • r'At7 L41 FICL (202) 624-4060 MONEY CENTER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 15, 1979 Mr. Paul A. Volcker Chairman Federal Reserve Board Washington, D. C. Dear Mr. Volcker: Congratulations on your recent appointment and confirmation as Chairman of the Federal Reserve Board. President Carter made a wise choice in selecting an individual with your record of accomplishment and stature in financial circles. My name is Patrick G. Hartley and I am employed as the Senior Money Market Officer at American Security Bank here in Washington. My responsibilities include overseeing our activity in governments and municipal securities, euro dollar trading, federal funds management, and our foreign exchange activity. I look forward to meeting you personally sometime in the future. we could get together for lunch. Perhaps Sincerely yours, t•ik Patrick G. Hartley Assistant Treasurer and Senior Money Market Officer vo),414\ American Security Bank, National Association, 1501 Pennsylvania fvoeniiiite.N. W Wash ing ton , D. C. 20013 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis CHAIRMAN OF THE BOARD OF GOVERNORS FEDERAL RESERVE SYSTEM WASHINGTON, D. C. 20551 August 24, 1979 Dear Armida and Henry: As I'm getting out from under, I just want to thank you so much for your letter. Your kind words are very much appreciated by Barbara, as well as by me. It won't all be fun, but we'll hope for the best. Sincerely, Paul A. Volcker Mr. and Mrs. Henry Hartman https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis September 12, 1979 Dear Mr. Hayami: As I get the chance to respond personally to the messages on my appointment, I simply wanted to thank you for your warm and kind words. I must confess that in those days of 1971 I did not quite contemplate all the problems of today. But we can learn from all that experience of recent years--not least the importance of working closely with our friends abroad. That will not change. Sincerely, Paul A. Volcker Mr. Masaru Hayami Executive Director The Bank of Japan CPO Box 203 Tokyo, 100-91 Japan PAV:sep THE BANK OF JAPAN TOKYO CPO BOX 203 MASARU HAYAMI EXECUTIVE DIRECTOR TOKYO, 100-91 TEL. 279-1111 July 27, 1979 Dear Mr. Volcker, I should like to extend to you my most sincere congratulations upon your appointment to the Chairman of the Federal Reserve Board. If my memory serves me correctly, I first had the privilege and honour of working with you in the early 70's in London. As the then Chief Representative in Europe of our Bank, I took part in the early discussions which were held there on the problems confronting the old international monetary system. I have ever since been deeply impressed by your leadership and determination in solving such complicated international monetary problems, and I regard the coordinated action of last November 1 as being one of the most remarkable achievements your leadership has brought about. Thus, I am firmly convinced that your appointment to the Chairman is indeed one of the best news the world financial circles could ever have hoped for. Last but not least, I should like to thank you very much for the assistance you have accorded our Bank during the past four years as the President of the New York Federal Reserve Bank. Hoping for the ever continuing close cooperation between our two institutions, and wishing you all the success for the future, I remain, Qjtild()Al tfr " CU/ Sincerely yours, 0)°/4 tiv\ vik-1014 tP-04 Okii 5 0 AA- https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1 0,W11 02P Mr. Paul A. Volcker President Federal Reserve Bank of New York https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis CHAIRMAN OF THE BOARD OF GOVERNORS FEDERAL RESERVE SYSTEM WASHINGTON, D. C. 20551 August 24, 1979 Dear Dan: That "small" voice from Georgia country is greatly appreciated. Thanks so much for your kind words; I can promise to try my best. Best personal regards, Sincerely, Paul A. Volcker Mr. Daniel J. Haughton https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis DANIEL J. HAUGHTON July 26, 1979 Dear Paul: I was so pleased to learn of your appointment to head the Federal Reserve Board. The Wall Street Journal, today, was more supportive of you than of any other appointment by President Carter since he took office. The financial community, both domestic and abroad, hailed your appointment. I realize mine is only a small voice, but I just wanted to let you know that I think the appointment is great for our country and the world and I wish you every success. Sincerely, D. J. Haughton Mr. Paul A. Volcker President Federal Reserve Bank of New York 33 Liberty Street RECEIVED Y. 10045 N. York, New JUL 30 1979 P. A. V. ANSWERED ATTENDED J411.•...•1 .................. .••1!_t1LOILLIAS ..... ....uattusaa https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis September 12, 1979 Dear Artie: However belatedly, I do want you to know how much I appreciated your note on my appointment--somehow, it seems like a long time since those days at Chase--but also a very close memory and indispensable part of my education. All I have to do is apply it correctly. Regards. Sincerely, Paul A. Volcker Mr. Adam C. Heck Vice Chairman Chase Manhattan Mortgage and Realty Trust 307 Falmouth Road Hyannis, Massachusetts 02601 PAV:sep CHASE MANHATTAN MORTGAGE AND REALTY TRUST 307 Falmouth Road, Hyannis, Massachusetts 02601 ADAM C.HECK Vice Chairman / n evug_ 1 •-0 t(/ , tr tocz, -( (J ct-t- --<-4• h(-ea.A 4,) - 0-6etre -a-AA— )47 CI https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ,115y1 K)./ ,• . it vED JUL 3 0 1979 l 4)r\)-P e -rok ANSWERED ATTENDED TO, • 6 . . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 7, 1979 Dear Al: I appreciate your letter and best wishes. Obviously the difficulties ahead are considerably not just for me but for the System as a whole, as only our "alumni" can fully appreciate. But we can try! sincerely, Paul A. Volcker Mr. Alfred Hayes Chairman Morgan Stanley International Incorporated 1251 Avenue of the Americas New York, New York 10020 MORGAN STANLEY INTERNATIONAL Incorporated 1251 Avenue of the Americas New York, N. Y. 10020 July 25, 1979 Mr. Paul A. Volcker, President Federal Reserve Bank of New York 33 Liberty Street 10045 New York, N. Y. Dear Paul: I just want to tell you that I was keenly interested and much pleased to of the Federal learn of your appointment as Chairman of the Board of Governors course of Reserve System. You bring a great deal to this position, which is of the present critical importance both nationally and internationally, especially in years, both in state of circumstances. Certainly your broad experience over the New York and in Washington, will be exceedingly valuable. While I have not tried to keep up with doings within the System, apart on the from what I have read in the newspapers, it would seem that you have been t side of the angels in such discussions of policy as have taken place in recen itself months. I have little doubt that the announcement of your appointment in the United will be helpful in convincing our friends abroad that the authorities in States are dedicated to the maintenance of a strong dollar. Please accept my warmest congratulations and best wishes for all success as you assume your new and vast responsibilities. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Sincerely, i2L Alfred Hayes Chairman RECEIV` JUL 3 1191, p,A. v. t,K1AirDFD , https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 23, 1979 Mr. Edward K. Hamilton President Hamilton-Rabinovitz, Inc. 3345 Wilshire Boulevard Suite 402 Los Angeles, California 90010 Dear Ed. From now on I want it clearly understood all "up markets" are mine, all "downs" those other fellows! I guess it's nice to hear all those nice things if it doesn't soften my head for the subsequent brickbats. I'll take Bill Martin's sage advice and hope for the best. Regards, Paul A. Volcker PAV:mhw hamilien-RaLinoviiz,Inc. POLICY ANALYSIS AND COUNSEL/MANAGEMENT CONSULTATION/RESEARCH ON PUBLIC ISSUES/FINANCIAL SYSTEMS https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 3345 WILSHIRE BLVD. SUITE 402 LOS ANGELES, CA 90010 (213) 387-2333 July 26, 1979 The Honorable Paul Volcker Chairman-Designate Federal Reserve Board 33 Liberty Street New York, New York 10045 Dear Paul: You will be pleased to know that even here in the hinterlands your announcement has people stocking up on dollars. Gold is clogging up the sewer system, and deutschmarks are the latest fad in wallpaper. You must know that the President's choice is universally regarded as brilliant. I just want you to know that that goes for your friends as well as your fellow money managers. I know that the personal side of the switch is not all roses. We are all fortunate that you have once again decided to put the national interest first. Congratulations! Edward K. Hamilton President EKH:sld https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 7, 1979 Mr. John H. Hall Dear John: Sic transit gloria--and at this point the salary seems damn close to nothing as well. (In fact, after D.C. and N.Y. get me, it may be!) I don't know what that does to the indifference curve, but I guess I'm a sucker for a challenge. Thanks for writing and the best to you both. Sincerely, Paul A. Volcker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis JOHN H. HALL July 25, 1979 Mr. Paul A. Volcker President Federal Reserve Bank of N.Y. Federal Reserve P. 0. Station New York, New York 10045 Dear Paul: Congratulations on your forthcoming pay cut! I am certainly pleased for the country that your sound economic philosophy will now prevail at the Federal Reserve Board. When you have time, I would like to see you construct an indifference curve for yourself, plotting glory against salary. How much additional glory would be required to induce you to work for nothing? Seriously, your ascent to the peak of the economics profession is certainly well deserved, and I wish you every success as Chairman. I know that your confirmation by the Senate will be uneventful. Best regards from Cynthia and myself. Sincerely, hn H. Hall Avc https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 7, 1979 Mr. Walter W. Heller Regents' Professor of Economics University of Minnesota 1035 Business Administration 271 19th Avenue South Minneapolis, Minnesota 55455 Dear Walter: I greatly appreciate the note and the sensible advice enclosed. I hope you will keep in touch (even after the stock market inevitably has its setback and the carping begins!) I don't underestimate the difficulties of coping with too many problems with too few instruments. Best regards, Sincerely, Paul A. Volcker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis UNIVERSITY OF MINNESOTA TWIN CITIES ECEI VED Department of Economics 1035 Business Administration 271 19th Avenue South Minneapolis, Minnesota 55455 301. 3 1 1979 July 26, 1979 P. A. V. ............ ANSWERED......... ....................................... ATTENDED TO.M Mr. Paul Volcker, President Federal Reserve Bank of New York Federal Reserve Bank P.O. Station New York, New York 10045 Dear Paul: To the four "c'sh -- competence, confidence, command, conservative -- let me add a fifth: congratulations. Have you figured out what you are worth (announcement effect) on the New York Stock Exchange and the world currency markets? I think Carter already has a high return on his investment. Best of luck and let me know if there is anyway I can help. With fest regards, Walter W. Heller Regents' Professor of Economics WWH:ljh P.S. I enclose a copy of my recent pitch for a dual-purpose (anti -recession, anti-inflation) tax cut. Enclosure Statement by Walter W. Heller University of Minnesota before the House Budget Committee, U.S. Congress Washington, D. C. July 17, 1979 It is a privilege to testify before your Committee on U.S. economic prospects and policies at this critical turning point not only in the nation's economy but also, as President Carter sees it, in the nation's mood and will. With the economy shifting gears into recession, policy too will have to shift gears -- within constraints imposed by a dogged double-digit inflation, a vulnerable dollar, and a new fiscal conservatism reaching from Main Street to both ends of - ennsylvania Avenue. f The recession that started this Spring calls for corrective action conditioned first, on the likely depth and duration of the recession, second, on a careful assessment of the interplay between recession-limiting, inflation-curbing, and dollar-supporting policies, third_ in particular, on the potential for developing a fiscal-monetary mix that can simultaneously limit the length and depth of recession while curbing inflation, fourth, on the reaes of the Congressional calendar and budgetary process. Recession A number of parallels are being drawn these days between the origins of the 1974-75 recession and the 1979-30 recession, most notably, the OPEC oil price exIlosion, the surge in prices of food and housing, and the impact of fiscalmonetary restraint. At the same time, contrasts abound: unlike 1974, we find in 1979 no painful liquidity squeeze, no speculative binge in inventories, no prospect of anytninglike the sickening 60% drop in housing starts last time around, no slide as yet in foreign economies, and so on. One of the most refreshing contrasts with 1974 is the absence of the selfdelusion, dissembling, and waffling in official circles that eventually resulted in policy being blind-sided by the force of severe recession almost a year after recession had in fact started. This time around, official Washington is facing up to recession in a candid way: https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis It is a tribute to the relatively new Congressional budget process and staff that the Congressional Budget Office forecasts have been some of the most realistic in town and that CEO was one of the first to face up sI uarely to the development of the 1979-80 recession. Needless to say, July 17, 1979 -2- Heller this leadership in economic candor helps keep others honest. • The Joint Economic Committee has also responded quickly to the recessionary turn of events, not only recognizing it promptly but calling for a tax cut to compensate for the huge 'OPEC tax.' ▪ The White House has not succumbed to the temptation to see, hear, and speak no evil on the economy. Instead, in its mid-year review last week, it broke precedent by candidly acknowledging the realities of recession and double-digit inflation in 1979. Coming clean on our economic prospects in this manner is an important first step in rebuilding credibility and confidence. Now the task is to capitalize on this progress in both timely analysis and constructive candor to help steer the economy on a course of recession that is not too deep and inflation that is not too high. In praising the Administration for laying unpleasant economic facts on the 2ine, I do not mean explicitly to endorse its forecast. While not foreseeing a recession nearly as deep or sustained as the 1974-75 slide, I believe that the forces that have already been set in motion will make the 1979-80 recession longer and deeper than the Administration foresees. indeed, Lyle Gramley of the Council of Economic Advisers acknowledged last Friday that the mid-year forecast is relatively optimistc and that the odds on a deeper recession and higher unemployment are greater than the odds on a milder downturn. The prospect of a mild and brief recession went down the chute with OPEC's 60% oil price rise since December. Even on the optimistic assumption that the world price of oil will average about $20 a barrel the rest of this year, this would levy a crude oil 'tax" of about $28 billion on American consumers (a $7-plus price increase since December, multiplied by the 4 billion barrels of imports and decontrolled domestic output on which OPEC dictates the price). The CEA sees this reducing economic growth by two percentage points and adding 800,000 workers to the u-lemployment rolls by the end of 1980, as well as boosting U.S. inflation by two percentage points over this period. Just how this body-blow to the American economy will net out depends on several secondary reactions to the OPEC price boost. Some of the proceeds of the bigher prices will return to the U.S. income stream in the form of OPEC payments for additional imports, OPEC investments in this country, and the added dividends and investments of domestic producers of decontrolled oil. These offsets will be slow in coming and are highly unlikely to exceed one-third of the gross drag on By the time they appear, the combination of further OPEC price boosts and further decontrol of domestic oil will boost the 'gross oil drag to some the U.S. economy. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -3- Heller July 17, 1979 $42 billion by the end of 1980 (compared with the end of 1978). The "net oil drag' would thus come to about $30 billion by the end of next year. Further repercussions of the OPEC oil Srice boost on the U.S. economy will be felt through its impact on foreign economic developments and policies. Growth estimates for the ten major OECD countries other than the U.S. have already been lowered fromto 3.3% (real GNP growth) for 1979 and from 3.5% to 2.5% for 1980. And as foreigh central banks boost interest rates a. the inflationary and S.lance-of-payments impacts of the OPEC price increases, the resulting setback to the U.S. dollar may have a chilling effect on ..a policy. Even recognizing, then, that the 1979 economy has far less internal imbalances and speculative excesses and considerably more sustaining forces than in 1974, I now anticipate a more serious and prolonged recession than ea implied in the White House projections In broad perspective, it now appears that output in the U.S. economy will decline for three or four quarters, sliding from $1418 billion (in 1972 prices) in 1979-1 to about $1385 billion in 1980-1, a decline of While this is not a crash landing, it is not a soft landing either. It is less than half as severe a slide as in 1973-75, but still somewhat above previous post-war recessions. Given a lackluster first quarter this year and a slow second Quarter next year (in the absence of positive policy to offset the OPEC drag), this would imply a string of six quarters that are in the red or only slightly in the black. The implications of this forecast are an unemployment rate rising to perhaps 7-1/2% by the middle of next year and continuing to rise toward 8% by the end of 1980 unless corrective action is taken. Inflation With respect to inflation, the Administration ys forecast seems realistic in S rojecting a 10.6% rise in the Consumer Price Index from December 1978 to December 1979, dropping to a rate of just over 8% by the S.f 1980. With respect to anti- inflation policy, the key question is how much of the recent bulge in consumer prices will become embedded in wage settlements and hence into the underlying inflation -te in the economy. Thus far, with the aid of the much-maligned but by no means ineffective wage-price restraint proFram, increases in the average hourly earnings Index have'been drifting downward in spite of'some oui-Sized (and highly publicized) union settlements, as have the increases in prices of commodities other than food, fuel, and homes: https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis -4- Heller • _aly 17, 1979 At annual rates, in the twelve months ending in May 1979, average hourly earnings rose 7.6%, in the six months ending May, the rise was 7.5% in the three months ending in May, the rise was 5.8%. • The rise in consumer prices of commodities other than food, fuel, and homes was 6.3% over the twelve-months period, 6.0% for the six months, and 2.1% for the three months (an aberration caused by a big drop in used car prices). Meanwhile, the all-items index(including services) and all-commodities index were showing an increase from an 11% rate for twelve months to over 13-1/2% for the last three. Needless to say, one can readily lampoon such a comparison by noting that people can hardly live without food, shelter, and fuel. But that's not the point. In terms of anti-inflation policy measures, disentangling food, fuel, and housing prices from the rest drives home two major points. First, the great bulk of our increase in inflation in 1978-79 traces to factors that are largely outside the scope of voluntary price-wage restraints. And they would be largely beyond the reach of mandatory controls. Take food: trying to repeal the laws of nature by freezing beef and grain and other food prices simply won't work (as was amply demonstrated in 1974). Take fuel: OPEC prices would hardly be subject to U.S. controls. Take housing: the biggest part of this surge is in mortgage interest rates, not a proper subject of controls since interest rates are themselves an important instrument of monetary policy. Second, since the big jumps in food and fuel prices represent losses of real income to the urban worker, attempts to recoup them by bigger wage advances will (especially in the face of measly productivity growth) simply pass through as higher costs into higher prices. Since monetary-fiscal policy has so little impact on this - art of the inflation problem, the anxiety of policymakers over the fate of voluntary wage-price restraints is understandable. They represent our major, not to say our only, line of defense against a translation of the food-fuel-home price surge into a higher basic or underlying inflation rate. Fiscal-Monetary Policy Against this background of inflation and recession,what course should fiscalmonetary policy follow? More explicitly, what mid-course corrections in tax and budget policy would be appropriate to respond to the prospect of a more serious recession coupled with stubborn inflation? I am not suggesting that it is time to i„oess the panic button. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis But it is high time to press the planning button. The Heller -5- July 17, 1979 need to blunt the recessionary and inflationary impacts of the OPEC price boosts is of already clear. Within the next two to three months, a more definitive picture the nature and dimensions of those impacts will emerge, and the calls for prudent policies to counteract them will become much louder. Forthcoming budget resolutions will have to take these impacts into account. The most obvious move would be a sizable tax cut to counter the $25 to $35 rs. million of purchasing power being siphoned out of the pockets of American consume Just how much of the task of countering the OPEC oil drag and thus limiting the depth and duration of recession should be assigned to tax cuts depends partly on how much of the job will be undertaken by budget increases and by monetary policy and partly on the success of the White House and Congress in devising tax cuts that will couple the restoration of purchasing power with reductions in cost and price pressures. e With respect to budget spending, there will of course be an automatic increas in certain entitlement programs like unemployment compensation, food stamps, and triggered lobs programs. And the anti-spending mood of the country should not the deter the Congress from beefing up anti-recession jobs programs for youth and and the disadvantaged. But in the face of inflation, the threats to the dollar, public mood, it seems clear that such initiatives will be limited even in an Le-ction year. There are some who want to put fiscal policy on "automatic pilot" and rely primarily on monetary easing to cope with the OPECdented induced recession. But this seems to give too little weight to (a) the unprece White House and Federal Reserve pledge last November 1 to manage domestic policies What shout monetary policy? with an eye on the dollar, (b) the greater vulnerability of the dollar today than during previous recessions, and (c) the fact that foreign central banks react to the OPEC price hikes and the consequent exchange-rate and inflation problems by boosting interest rates. Since a near-10% inflation rate between the fourth es cuarters of 1978 and 1979 now seems more likely for the 10 major OECD countri rate (other than the United States) in contrast with an expected 7% inflation only three months ago, such boosts are already in train -- last week's action by the Bundesbank in Germany is a case in point. In the light of these constraints, the Federal Reserve has a good deal less freedom to ease money and lower interest rates as an offset to downdrafts in the This is not to say that the Fed is immobilized as a factor in countering domestic recession. Surely, even in terms of its pledge to countries domestic economy. abroad, it has to strike a balance between letting the economy slide so far that https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis ly 17, 1979 -6-- Heller our trading partners find their markets for exports severely curbed and yet holding firmly enough to avoid a run on the dollar. Just where this compromise is supposed to be struck is a matter of gravest concern to this Committee and other Congressional authorities dealing with budget policy. A vital part of your budget planning process will be to maintain the closest coordination with Federal Reserve authorities in order to work out a rational allocation of anti-recession and anti-inflation responsibilities in the light of unfolding economic events. The Tax Cut This brings us back to the tax cut. Although it is difficult to pin down precise numbers at this stage of the game, a tax cut in the neighborhood of $30 billion (just over 1% of next year's GNP) seems like a reasonable tentative target in the light of the economic outlook and constraints on other policies. Although the economy could use a tax cut sooner than January 1, I doubt that the focusing of national opinion and policy, coupled with the realities of the budget process, make it realistic to consider an effective date earlier than January 1, 1980. But even that date will require all deliberate speed in formulating plans, embodying them in budget resolutions, and preferably, in holding hearings later in the year by way of preparation for quick enactment early in 1980. Needless to say, this calls for a sharp temporary detour from the straight and narrow path to a balanced budget. But the recession has already knocked us off that path. And a tax cut to limit the length and depth of the recession will put us back on that track faster than would a policy of inaction. One should recall that it was in considerable part the unwillingness to recognize recession and react to it in 1974 that pernitted the federal deficit to reach a record height of $66 billion in fiscal 1976 (equivalent to a staggering $103 billion deficit in terms of 1980 GNP). It is also worth keeping in mind that fiscal policy is already on a restrictive course as a result of budgetary belt-tightening, payroll tax increases ($10 billion in 1979-30 and a whopping $15 billion in 1981), and the inflation tax," which boosts income tax revenues by some $8 billion a year as inflation pumps money income into higher tax brackets. The suggested $30 billion tax cut would not reverse the direction of fiscal policy but would be aimed squarely at offsetting $30 billion OPEC drag. In other words, it would not be a pump-up tax cut, but an offset tax cut. The economic and fiscal situation in 1979-80 offers an almost ideal opportunity to structure a tax cut in ways that will aid both the short-run and the long-run h -lttle against inflation. It is not too hard to devise a program in which every https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Heller July 17, 1979 -7- dollar of the tax cut would contribute to reduction of cost and price pressures and/ or an increase in productive incentives. The major candidates for playing the dual role of pro-jobs and anti-inflation are payroll tax cuts, tax reductions conditioned wage moderation (sucn as real wage insurance), and more liberal depreciation. One can think of other measures, such as partial buy-outs of state sales or excise taxes (which operate directly on the consumer price index), but not within the time horizon of early anti-recession action. The payroll tax provides an ideal vehicle for the projected dual-purpose tax out. Granted, any payroll tax cuts or postponements will have to be consistent with maintaining the integrity of,and confidence in the commitments of the social But surely this can be done by such devices as transferring health , insurance to general revenue financing or, as a less desirable alternative, providin7 tax credits for payroll taxes against income tax liabilities, The transfer of security system. health insurance financing would involve something like $22 billion a year of payroll taxes. This would be particularly appropriate since the size of health benefit payments is not related to the size of contributions. It is a shift that would make good sense both as short-run tax policy and long-run social policy. It is worth reminding ourselves of the multiple benefits of cutting payroll taxes, presumably equally on employers and employees. Every dollar of payroll tax cut for employers is a dollar cut in business costs and price pressures (most of which eventually land on the backs of workers). And every dollar of payroll tax cut on employees is an increase in take-home pay that can be offered as part of the particular Price for accepting more restrained wage increases. The latter point has relevance to the vital need for sustaining a successful voluntary wage-price restraint program in the face of an inflation that will be largely a cost-push phenomenon in 1980. Beyond this, the payroll tax is a particularly fitting response to the OPEC price increase because that increase hits the lower income groups disproportionately In short, hard through the rise in gasoline and heating oil prices in particular. the payroll tex cuts are ideally suited to serve as an anti-inflationary offset to OPEC oil drag. A second important anti-inflationary component of the tax cut would be a jumps revised form of wage insurance. This year, it ran into a buzz saw of price in oil, food, and home building. Next year it could be introduced in an environment of high but receding inflationary pressures. In the face of wage -ealities, both the wage-price guidelines and the wage insurance standards would have to be modified, perhaps calling for income tax credits to complying wage https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Heller - -^ 7 v 17, 1079 arners if the consumer pric- index rose by more than 8% (instead of the 7% in this year's proposal). And to ensure that it would not bust the budget by becoming an expensive open-ended entitlement program if new inflationary breakouts occurred, Congress could limit the cost by applying the co-insurance principle -that is compensating for a large part but not all of the price erosion -- and by putting a cap after three points of inflation above the norm. Apart from the fear that it might be too expensive, there are some who might question whether this is really a first step toward income tax indexing. To counter this point, it is important to recognize wage insurance as an instrument of ueL;e2 restraint, an incentive to comply with the wage guidelines, not as a form of indexing. Wage insurance i designed to induce unions and workers to join the battle against inflation_ not to enable them to live with it by indexing them against it. The point is to deter inflation, not accommodate it. By adopting real wage insurance, the Congress would make an important contribution to economic damage control. By this, I mean simply that the biggest threat to our inflation control program in the next 18 months is that the explosive increases in food and energy prices will get built into wage settlements. If these price increases •-- which largely reflect real income loss,s -- spill over into ; boosts in wages, the fight to contain the basic or underlying inflat ion rate n this country will be lost. But if government could strike a bargain or form a locial compact with labor by offering a meaningful quid pro QUO of wage insurance oupled with boosts in take-home pay through payroll tax cuts; the anti-i nflation program would be immeasurably strengthened. On the side of business incentives, it is clear that the time has come for !lore generous depreciation allowances. A significant easing of such allowances (but lot going as far as the 10-5-3 plan, which would cost $30 billion a year by 1984) is very much in order. Last year, the Congress provided a major tax reduction for capital gains. _hereby improving the atmosphere for investment. Next year, it should act to ,mprove the odds at the focal point of investment decisions namely deprec iation llowances that would cut the effective cost of every capital outlay by businesses. As one reflects on these specific proposals for structuring the tax cut . ne point on timing becomes very clear while the payroll tax cut and accelerated apreciation would have an immediate impact in 1980, the first payments under the cal wage insurance plan would not be made until 1981. Given the huge -jump in ayroll taxes in 1981, it seems likely that Congress will want to take a two-year -Jective in any event in its tax actions. Such a perspective would be implic it https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Heller -9- July 17, 1979 in the proposed structure of tax cuts. Recently, Vice President Mondale aptly noted that most of the tough economic problems we face involve solutions that inevitably front-loa d pain and back-load pleasure. ° Surely, that is true of the energy problem and the use of economic slack and slowdown to cope with the inflation problem. But a tax cut, properly structured, can be both front-loaded and back-loaded with pleasure. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 23, 1979 Dear Larold: When I get Hein and Baldwin together, I'll begin to think I'm not all bad--and that's dangerous! Thanks. Sincerely, Paul A. Volcker Mr. Harold H. Helm Honorary Director Chemical Bank 277 Park Avenue New York, New York 10017 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis „ CFEMICALBANC 277 Park Avenue New York, NY 10017 1979 RUG 20 E.8 Harold H. Helm Honorary Director , • August 17, 1979 The Hon. Paul A. Volcker Chairman Federal Reserve Board Washington, D. C. Re: Montclair Times - Montclair, New Jersey In my note of congratulations to you last week, I mentioned that the Montclair Times had phoned me regarding a story about you as they are st proud of your having once lived there (behind the red gate)._t•ii thought you would be interested in seeing it. I already admire the way you are assuming your new responsibilities. Keep up the good work! You might be interested to know that yesterday, Mary and I went to Princeton to have lunch with Bob and Margaret Goheen. They return today to India where Bob is thoroughly enjoying his post there. He told me how much he enjoyed the opportunity of serving with you, along with Cy Vance and Clif Wharton on the Rockefeller Foundation Board. What an illustrious group! Sincerely yours, HHH/ah W4' t Removal Notice 7KHLWHPLGHQWLILHGEHORZKDVEHHQUHPRYHGLQDFFRUGDQFHZLWK)5$6(5 VSROLF\RQKDQGOLQJ VHQVLWLYHLQIRUPDWLRQLQGLJLWL]DWLRQSURMHFWVGXHWR copyright protections. ŝƚĂƚŝŽŶ/ŶĨŽƌŵĂƚŝŽŶ Document type: article Pages Removed: 1, 4 Author(s): Harry W. Goas Title: Local Federal Reserve Appointment Date: Journal: Montclair Times Volume: URL: Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 16, 1979 Dear Harold: I resent anyone writing from a fishing vacation—that's where I should be: But I hope Oast "fishing frustrations" are at least a training ground for this job. little patience and a little hope help. Many thanks for your good wishes. Sincerely, Paul A. Volcker Mr. Harold H. Helm Honorary Director Chemical Bank 277 Park Avenue New York, New York 10017 PAV:tb https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1 CIEMICALBAW 277 Park Avenue New York, NY 10017 •.•! !! 1979mr, i 3 r" 55 Harold•H. Fielm Honorary Director r!:- FirJ August 9, 1979 The Hon. Paul A. Volcker Chairman, Federal Reserve Board Washington, D. C. Dear Paul: Having just returned from a fishing vacation in Canada, I hasten to write and extend congratulations on your appointment and confirmation as Chairman of the Federal Reserve Board. This is, of course, one of the most important posts in our government and especially at this point in time. You might be interested to know that the Montclair Times,our home-town newspaper, asked me for a comment about you and I immediately responded, "He has every qualification to fill this post admirably and courageously. I am sure that Montclair has every reason to be proud of When this article comes out, I will send you a copy as a matter of interest. In the meatnime, Paul, please accept my heartiest congrautlaitons and here's hoping very much that you will be given a "free" hand. Sincerely yours 1 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 23, 1979 Dear Dick: All I can say about this job is that I learned at the feet of the masters! Thanks for writing and hope with me for the best. Best regards. Sincerely, Paul A. Volcker Mr. Richard Helms https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis RICHARD HELMS July 25, 1979 • Dear Paul: Warmest and heartiest congratulations! The Stock Market has given you a big send-off today, which is more than can be said about its reaction to other recent events. The country will be well served with you at the head of the Federal Reserve system, and that after all is what really counts. As a triend of Bill Martin and Arthur Burns, may I say without sounding gratuitous that you are a worthy successor. Good luck! With warm regards, L.10 4' 111 - Cordially, Richard helms r-$ The Honorable Paul A. Volcker President Federal Reserve Bank of New York New York, New York 10045 C .1 V r:: D JUL3 0 1979 ............................................ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 6, 1979 Dear Mr. Herman: Many thanks for your note. I can only try my best. Sincerely, Paul A. Volcker Mr. Jonathan M. Herman https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis July 26, 1979 Mr. Paul A. Volcker President Federal Reserve Bank of New York 90 William Street New York, New York Dear Mr. Volcker: Although I am sure that congratulations have been pouring into your office from all points on the globe, including other circles at Proskauer Rose Goetz & Mendelsohn, I want to take this opportunity to add my own personal congratulations and best wishes for a successful term as Chairman of the Federal Reserve Bank of New York. Sincerely, Jonathan M. Her an JMH:mgs Ria:CEIVED JUL 3 0 1979 P. A. V. ANSWERED ATTENDED https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 4, 1979 Dear Dr. Herrhausen. / appreciate your note and the best wishes of you and your colleagues at the Deutsche Bank. We can only try to do our lest. Sincerely, Paul A. Volcker Dr. Alfred Herrhausen GERMANY https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis DR. ALFRED HERRHAUSEN July 26, 1979 Dear Mr. Volcker, I have just heard with much pleasure of your appointment to the chairmanship of the Federal Reserve Board on which I would like to congratulate you very much. This is certainly another milestone in an eminent public career and eloquent testimony of the confidence that the US Government places in your professional abilities. You have my and my colleagues' very best wishes for every success in your new responsibilities which are of vital importance not only for the economic wellbeing of the US but also of the free world in its entirety. With best regards, Mr. Paul Volcker Chairman of the Board of Governors of the Federal Reserve System Washington, D.C. *vkplo4-1444 1 4 t/4/ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 4 August 6, 1979 Dear Jim: I appreciate both the note and the problems we all face, and I know I'll need help. Sincerely, Paul A. Volcker Mr. James H. Higgins Chairman of the Board Mellon Bank N.A. Mellon Square Pittsburgh, Pennsylvania 15230 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Mellon Bank N.A. Mellon Square Pittsburgh, Pennsylvania 15230 July 25, 1979 JAMES H. HIGGINS CHAIRMAN OF THE BOARD Dear Paul: e The welcome news has just come over the wir Fed, of your nomination to be Chairman of the l you how and I would be remiss if I did not tel and I absolutely delighted I am at the news, d with know that your appointment will be greete equal acclaim both at home and abroad. I wish you every success in dealing with the country intractable problems which confront our can in its monetary and fiscal affairs, and you the be sure that you will have the support of banking industry. With warmest regards, Most sincerely, Mr. Paul A. Volcker, President Federal Reserve Bank of New York New York, New York 10045 ECEIV ED JUL 3 1 1979 P. A. V. . ..... .. ANSWERED ... ........ ...................., ATTENDED alf ......•••-• •••••••• ............................. FEDERAL RESERVE BANK OF NEW YORK NEW YORK, N.Y.I0045 AREA CODE 212 791-6173 PAUL A. VOLCKER PRESIDENT August 1, 1979 Dear Dick: Even more to the point, we'll need "good luck"! Thanks so much for the message. Sincerely, ... aa,c Paul A. Volcker Mr. Richard Hill Chairman The First National Bank of Boston Boston, Massachusetts •r• •••••............... . ..................................................... https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • Telegram WI.' • western union Nee's, NYE 056(2041)(1- 022733A 206)PD 07/25/79 2041 ICS IPMN0NC NYK 719 ICS IPM31NC /1-027g 1C206010 07/25/79 TL X BOST ONBK BSN D SUSPECTED DUPLICATE 77 PD BOSTON MA PMS MR PAUL A VOLCKER PRESIDENT RECEIVED FEDERAL RESERVE BANK OF NEW YORK 33 LIBERTY STREET JUL 26 1979 NEW YORK NEW YORK P. A. V. ANSWERED ATTENDED ta% F.1 201 ;TR5.H4 NII( GOODNESS s DICK HILL CHAIRMAN THE FIRST NAIL BANK OF BOSTON MM NNNIN SF-1201 (R5-69 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis • .1 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 16, 1979 Dear Bob: Thanks for the note--one benefit of this is hearing from old friends and associates. only try my best. Best wishes, Paul A. Volcker Mr. Robert F. Hinkley Vice President Merchants National Bank & Trust Company One Merchants Plaza Indianapolis, Indiana 46204 AV;jr I can MERCHANTS NATIONAL BANK & TRUST COMPANY August 8, 1979 —1 Li=1 --4 (.0 3=11 Cr) 414‘, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Mr. Paul Voelker Federal Reserve Board Chairman Board of Governors of Federal Reserve System 20th Street and Constitution Avenue, N. W. Washington, D. C. 20551 Dear Paul, Your appointment as Federal Reserve Board Chairman is a breath of fresh air. Your knowledge of monetary affairs and the role of the dollar internationally are unquestioned. Everyone I have spoken with here in the Midwest feels confident that you will contribute substantially to correcting many of the economic problems we are faced with today. Also your intention to keep the Fed independent is well received. Warmest regards, Robert F. Hinkley Vice President RFH/mlb P. S. - It's been a long time since our days at Chase. ONE MERCHANTS PLAZA, INDIANAPOLIS, INDIANA 46204 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 15, 1979 Dear Ruth: s, and the In this job, you take your chance r. I'll try to bronco is appropriately in mid-ai an insouciant air! hang on, but I doubt with such -- and the Happened to have a "report" on you ffrey. Both sounded Fund -- a few weeks ago from Geo encouraging. ative effort. Thanks so much for the note and cre All the best. Sincerely, Paul A. Votcker Ms. Ruth !Hirsch PAV:ccm https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis klAit6u/J ,.44A('a)g ktal 1PctA,41 4JoirmAvt. curtei--61-fto 4,1,1 bs-it GutVA-0-2 Avue- t(-t A.AAe alAta ict7q https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 8, 1979 Dr. Dieter Hiss President LandeszentralBank in Berlin LeibinzstraBe 9-10 1000 Berlin 12 Fernsprecher 34 04 338 GERMANY Dear Dieter: I much appreciate your note, particularly from one whose path has been so similar to my own. And I know you share my feeling that central banks had better, as we say, "hang together' or we will hang separately! Regards, Sincerely, Paul A. Volcker DR. DIETER HISS PRASIDENT DER LeibnizstraBeI11LIs 1000 Berlin 12 Fernsprecher 34 04 338 LANDESZENTRALBANK IN BERLIN — Hauptverwaltung der Deutschen Bundesbank — https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis July 27, 1979 Air Mail The Honorable Paul A. Volcker Chairman of the Board of Governors of the Federal Reserve System Washington D.C. 20551 Dear Mr. Volcker, to your high appointment I should like to send my congratulations and very best wishes for success. I am sure that the problems in the international network of trade, money and finance will never be big enough to surmount your intellectual and political capabilities and physical health. Cooperation across the atlantic will in the future remain as important as it has been in the past. Warm regards, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 7, 1979 Dear Frank: Many thanks for the note. my best. I'll try Meanwhile, keep the Council going: Best regards. Sincerely, Paul A. Volcker Mr. Frank W. Hoch Brown Brothers Harriman & Company 59 Wall Street New York, New York 10005 MV;jrg BROWN BROTHERS HARRIMAN https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 8c CO. BUSINESS ESTABLISHED 1818 59 WALL STREET, NEW YORK,N.Y 10005 CABLE ADDRESS"BROWNSBANK-NEW YORK" PRIVATE BANKERS (212) 483-1818 July 25, 1979 Mr. Paul A. Volcker President Federal Reserve Bank of New York 33 Liberty Street New York, New York 10045 Dear Paul: Congratulations on your selection to became Chairman of the Board of Governors. As far as your qualifications are concerned, there could never be any question about your consideration, but then, of course, there is the political dimension. You have already had the satisfaction of seeing a positive market reaction in the marketplace, and I am sure we will all not be disappointed. You and Miller ought to make a very effective tandem. My biggest wish is that between you, you manage to reverse the trend toward messier and more confusing conditions in the world of banking and credit. Very warm personal regards and every good wish for you in the fulfillment of a crucial task. Sincerely yours, L.. Frank W. Hoch https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis September 12, 1979 Dear Frank: However belatedly, many thanks for your note on my appointment. You will understand that the problems are just beginning. But the challenge was irresistible--and let me know when you think we are going off the track. Best regards. Sincerely, Paul A. Volcker Mr. Frank J. Hoenemeyer Executive Vice President The Prudential Insurance Company of America Predential Plaza Newark, New Jersey 07101 PAV:sep https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The Prudential Insurance Company of Amerii.._ Prudential Plaza. Newark. New Jersey 07101 Frank J. Hoenemeyer Executive Vice President Auguzt 3, 1979 Dean Pawe: Congtatweationz on yo Wt nomination. It iz the bezt thing that'z happened to the 6inanciae wontd in a tong, tong time. Fon you zake, az wett az the countty'z, I wizh you evety zuccezz. Bat nega)(24. Since;Lay, Mt. Paul A. Votcket Ptesident Fedetat Rezetve Bank o6 New Yank Fedetat Rezetve P. 0. Station New Yank, New Yonk 10045 August 7, 1979 Dear Bud: You were nice to write. All I can do is try my best. Sincerely, Paul A. Volcker Mr. Jerome H. Holland PAV:smk https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 4 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 1 ()Hand icqE7.0172Ed7.J./ July 27, 1979 Dear Paul: Just a note to say congratulations on your appointment as Chairman of the Federal Reserve Board. I join your many friends and admirers and extend best wishes for a successful tenure. Because of your unique background of experiences, I am confident that you will bring new horizons of leadership to this important office. Sincerely, Jerome H. Holland Mr. Paul A. Volcker Chairman Designate Federal Reserve Board 33 Liberty Street New York, New York 10045 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 8, 1979 Mr. Robert C. Holland President Committee for Economic Development 1700 K Street, N.W. Washington, D. C. 20006 Dear Bob: I appreciate both the condolences and the help in the form of the policy statements. They were both on the point (even if I can't claim, yet, to have absorbed all the lower one). The regulatory thing has fast turned into a nightmare, even in the Fed. Hope to see you soon. All the best to you both. Sincerely, Paul A. Volcker COMMITTEE FOR ECONOMIC DEVELOPMENT,' https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis K Street, N.W., Washington, D.C. 20006 • 202 296-5860 ROBERT C. HOLLAND, President Congratulations and condolences! I think your appointment to the Chairmanship is the best thing that could happen to the dollar. I personally, and CED organizationally, will be trying to help any way that we can. What CED has to offer for openers are two relevant policy studies we are just in process of releasing: ) a cost-effective (we think) tax program to promote innovation, supported by a strong cI nsensus of high-technology CEO's and the heads of major research universities (see pages 6-9 and the last page of the enclosed summary of our conclusions on technology IIlicy); (2) a comprehensive program to discipline government invI lvement in the economy, which on pages 116-117, 121 and 133 describes how it would apply to the independent agencies, including the Fed. The shape of the latter draws a bit on your and my conversations about the Congressional resolution calling for periodic Fed testimony on monetary targets and performance. I think what we advocate will be basically good for the Fed--I hope you will reach the same conclusion. Best regards, E1VED Mr. Paul A. Volcker President Federal Reserve Bank of New York New York, New York 10045 Enclosures JUL 3 0 1979 ANSWERED ATTENDED t.MIIMMA MLION1111, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis September 7, 1979 Dear Jim: Many thanks for the note and nice words. We do indeed have some common concerns. I suspect our problems are just beginning -- but some of them can be cured by staying in touch. Sincerely, Paul A. Volcker Mr. James A. Hollensteiner Staff Vice President United States League of Savings Associations 111 East Wacker Drive Chicago, Illinois 60601 PAV:slw UNITED STATES LEAGUE of SAVINGS ASSOCIATIONS er https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 111 EAST WACKER DR./CHICAGO, ILLINOIS 60601 / TEL. (312) 644-3100 JAMES A. HOLLENSTEINER Staff Vice President August 29, 1979 Mr. Paul Volcker, Chairman Federal Reserve Board of Governors 20th Street and Constitution Avenue, N.W. Washington, D.C. 20551 Dear Paul: Just a note to let you know that yours truly and the U.S. League couldn't be more pleased with your appointment. From my very biased Republican point of view, this is one of the best appointments made thus far by President Carter. Since the years we worked together when you were at the Treasury I have often mentioned to a lot of people that what this country needs is a few more public servants like Paul Volcker. I take my hat off to you for dedication to the public good and at the expense of your private pocketbook. Hopefully you don't have to wait until you get to heaven before you receive your just rewards! We will be looking forward to working closely with you in the months ahead, as quite obviously there are a number of issues that are of common concern. Any time that we at the League can be of service, don't hesitate to let us know. Sincerely, /(_ • -Ja90s A. Hollensteiner 0'aff Vice President JAH/elm THE AMERICAN HOME: THE SAFEGUARD OF AMERICAN LIBERTIES August 17, 1979 Dear C.C.: The note is both welcome and unnecessary. you soon. Sincerely, Paul A. Volcker Mr. C. C. Hope, Jr. President-Elect American Bankers Association 1120 Connecticut Avenue, N.W. 20036 Washington, D.C. PAV:pg 1 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis See AMERICAN BANKERS ASSOCIATION r•• I 1120 Connecticut Avenue, N.W. Washington, D.C. 20036 • • ••• 1979 RUG 15 • 28 PRESIDENT-ELECT C. C. Hope, Jr. Vice Chairman of the.Boarci First Union National Bank Charlotte, North Carolina 28288 August 13, 1979 The Honorable Paul A. Volcker Chairman, Board of Governors Federal Reserve System Washington, D. C. 20551 Dear Paul: My sincere congratulations to you upon your Appointment as Chairman of the Board of Governors of the Federal Reserve System. This Appointment must be one of the highlights of your long and distinguished career. I know you will do an outstanding job in this new position and I wish you the very best as you assume this new office. I was quite honored to be invited to be present for your swearing in last week. I look forward to working with you in the days and months ahead. If I may ever be of assistance to you in anyway, I would welcome an opportunity to be called upon. Sincerely, Ok a.e. C. C. Hope, Jr. A https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis sA, v:441 ov. ALwaik--4P-7 14ruzsi* 4e 40,4) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 23, 1979 Mr. John E. Horne John E. Horne and Associates 1101 Connecticut Avenue, N.W. Suite 1100 20036 Washington, D.C. Dear John: Many thanks for your note -- however belated my response. Expect to see you in Washington. Sincerely, Paul A. Volcker PAV:pg https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 202/826-2424 JOBasTil HORNE AND ASSOCIATES SUITE 1100 • 1101 CONNECTICUT AVE.. N. W. • WASHINGTON. D. C. 20036 July 27, 1979 Mr. Paul A. Volcker President New York Federal Reserve Bank 33 Liberty Street 10045 New York, New York Dear Paul: address you With much pride and satisfaction I will soon e and belief as Chairman. As you know, it has been my desir t that posifor several years that eventually you would accep tion. However, No doubt it is a sacrifice for you to do so. non-Communist world it is good for the Country and indeed the that you will do so. selection. The President could not have made a better I wish you much success and satisfaction. Very sincerely, t-Jvt_ k of' hn E. Horne P ) (N'I° RECEIVED 1979 P. A. V. ANSWERED ATTENDED TO.,„,_ Jal• J. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 9, 1979 Dear Mr. Treasurer: Many thanks for the message. See you in Belgrade. Sincerely, Paul A. Volcker The Honorable John Howard Treasurer Embassy of Australia c/o Office of the Minister 1601 Massachusetts Avenue Washington, D. C. 20036 OFFICE OF THE MINISTER (ECONOMIC) 1601 MASSACHUSETTS AVE WASHINGTON, D. C. 20036 TELEPHONE: (202) 797-3000 TELEGRAPHIC ADDRESS: AUSTEMBA TELEX: W. U. 692621 EMBASSY OF AUSTRALIA IN REPLY QUOTE https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis 6 August, 1979 Mr. P.A. Volcker Chairman Federal Reserve Board of Governors Federal Reserve Board Building 20th Street & Constitution Ave N.W. 20551 WASHINGTON, D.C. Dear Mr. Volcker The Australian Treasurer, the Hon. John Howard, M.P. has asked me to convey the following message to you: "Warm congratulations on your appointment to the position of Chairman of the Federal Reserve Board. I look forward to seeing you at the forthcoming annual meetings of the IMF and World Bank in Belgrade. Yours sincerely John Howard Treasurer." Yours sincerely ir/v aen R.M. BEETHAM Minister (Economic) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 7, 1979 Dear Curtis: appreciate the note—which reminds me I must stop this cigar business I have enough problers without that: Sincerely, Paul A. Volcker Mr. Curtis J. Voxter Curtis J. Hoxter Incorporated 745 Fifth Avenue New York, new York 10022 CURTIS J. HOXTER INCORPORATED 745 FIFTH AVENUE NEW YORK, NEW YORK 10022 TELEPHONE PLAZA CABLE ADDRESS -CURTHOXTER NEW YORK" 1-2850 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis July 26, 1979 Dear Paul: From one cigar smoker to another - with your style of leisure in the halls of the Fed, there will once again be style in Washington. My prejudice does overwhelm me in considering this the great victory in the nation's capital. The best of everything. in New York. We shall miss you very much Best regards. 1 y, rtis J oxte Mr. Paul Volcker President Federal Reserve Bank of New York 33 Liberty Street New York, N. Y. 10005 RECEIVED JUL 3 1 1979 P.A.V. ANSWERED ATTENDED TO,„ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 7, 1979 Dear Bill: I'm still "hopeful for the best" learned at the feet of a master. Many thanks for writing. Best regards. Sincerely, Paul A. Volcker Mr. William B. Hummer 175 West Jackson Boulevard Chicago, Illinois 60604 PAV:ak A Dial long distance toll-free 800-621-4477 800-972-5566 (Illinois) Local calls 431-1700 Wayne Hummer & Co._ 175 West Jackson Boulevard • Chicago, Illinois 60604 July 31, 1979 Partners Wayne Hummer. George E Barnes Harry A Balfm George R Becker William B Hummer Philip Wayne Hummel Harry Flagg Baum F G.rzrz.' Schcettler John D Carroll Robert H Chase William A Rogers Robert F Kahlteldt Philip M Burro https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The Honorable Adlai Stevenson The United States Senate Washington, D. C. 20510 Dear Adlai: News accounts of the promotion of Paul Volcker as Chairman of the Federal Reserve of the Board of Governors have noted that this change in position involves a reduction in compensation of $42, 500. It seems to me that this is an unnecessary and inequitable sacrifice to ask of any high level federal government appointee. Also, the entire compensation structure of the Board of Governors should be reexamined, so that individuals like Bob Holland of Illinois are not forced to resign as Governors in order to educate their children and support their family on an adequate basis. With best regards, Sincerely yours, William B. Hummer 1,vbh:dem cc: Mr. Paul Volcker Members New York, American and Midwest Stock Exchanges ••••••••••••••••••••••••.m....•••••••••••m•O•••••••••O.1•.OM.MMP!......••••••••.'•••••••••••ra.1•••••It.". https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis WILLIAM HUMMER 17'5 WEST JACKSON BOULEVARD CHICAGO,ILLINOIS 60604 July 26, 1979 Mr. Paul Volcker President Federal Reserve Bank of New York New York, New York 10045 Dear Paul: The positive reaction of the markets to your appointment makes words meaningless. This is some of the best news to hit Chicago since the Cubs won the pennant in 1945. Mr. Martin told me after his reappointment in 1966 that "we'll hope for the best." The Middle West is doing just that in mid-1979, and, at the International Monetary Conference, I perceived strong sentiment that the 1980s will bring restoration of sustained economic progress and stability. Good luck! Sincerely yours, RECEIVED AUG 2 1979 P. A. V. ANSWERED ATTENDED .... https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis WILLIAM B. lirameimmil IT5 WEST JACKSON B017MIVARD CHICAGO,ILLINOIS 60604 July 26, 1979 Honorable Charles H. Percy United States Senate Senate Office Building Washington, D. C. 20510 Dear Chuck: News accounts about the appointment of Paul A. Volcker as Chairman of the Federal Reserve have called attention to a $42,500 reduction in salary that is involved in leaving Presidency of the Federal Reserve Bank in New York to accept this position. We understand the background and reasons for the disparity between the salaries of Federal Reserve Board members and District Bank Presidents. Also, it is commendable for the federal government to show leadership in restraining increases in compensation in these difficult times. Nevertheless, the present salary structure of Federal Reserve_ officials needs studybyC:rmarpqq_ Thr, Bnard carrrint be compared with any other department or agency in its responsibilities and requirements for certain professional talents. Our own Bob Holland, from Illinois, resigned as a member of the Federal Reserve Board some years ago because he could not support his family adequately, and educate his children, on the compensation he was receiving. There are other examples. What I am therefore suggesting is that legislation be considered to bring up-to-date compensation levels of Federal Reserve Board members and senior staff to a more realistic and acceptable basis, particularly given the acceleration of the cost of living in recent years, which has not been offset by an adjustment as would be the case with any private business. Best regards, Sincerely yours, bcc: Mr. Paul Volcker Removal Notice 7KHLWHPLGHQWLILHGEHORZKDVEHHQUHPRYHGLQDFFRUGDQFHZLWK)5$6(5 VSROLF\RQKDQGOLQJ VHQVLWLYHLQIRUPDWLRQLQGLJLWL]DWLRQSURMHFWVGXHWR copyright protections. ŝƚĂƚŝŽŶ/ŶĨŽƌŵĂƚŝŽŶ Document type: article Pages Removed: Author(s): Alan D. Mutter Title: Volcker Selection Wins Cheers Date: July 26, 1979 Journal: The Chicago Sun-Times Volume: URL: 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: article Pages Removed: Author(s): [Associated Press] Title: Knows Washington, Markets Date: July 26, 1979 Journal: The Chicago Sun-Times Volume: URL: Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 16, 1979 Dear Rich: Many thanks for the note and enclosure. I really regret I have to officially leave the Council--the place is small enough to have an impact, but the work is important. Keep it going--you're doing a great job. All the best. Sincerely, Paul A. Volcker Mr. Richard M. Hunt President The American Council on Germany 630 Fifth Avenue New York, New York 10019 PAV:tb THE AMERICAN COUNCIL ON GERMANY 680 FIFTH AVENUE NEW YORK, N.Y. 10019 (212)397-0076 August 9, 1979 HON. JOHN J. McCLOY CHAIRMAN RICHARD M HUNT PRESIDENT WALTER EBERSTADT TREASURER JOSEPH KASKELL COUNSEL The Honorable Paul A. Volcker President Federal Reserve Bank of New York 33 Liberty Street New York, New York DAVID KLEIN EXECUTIVE DIRECTOR Dear Paul: SARA ANN FAGIN SECRETARY I just wanted you to know how pleased I was to know that you are now the Chairman of the Federal Reserve Board. I think the President has made a superb appointment and I was especially happy to see your quick endorsement by the Congress and the press. Even most of my colleagues at Harvard have applauded your appointment (see the enclosed Harvard Summer Crimson) and I read the typically acid and partisan words of J.K. Galbraith as a mild form of praise for a fiscal conservative like yourself. I hope we will continue to see you on various occasions of the American Council. With best wishes, Sincerely, Richard M. Hunt Enclosure a/s krteV 1(41 C i-NUG 131979 AA* II1ALtt t(aAATIP P. A. V. ...... 1,11SWERED ATTENDED TO.'.................. 4tuit Joseph Guido Goldman I Gen Andrew Goodpaster / Frank Hoch / Dr. Richard M. Hunt / Board of Directors: John Diebold / Walter Eberstadt I Donna R. Ecton / Hon. Robert Ellsworth / Or . Chailes Hon. / Rielly E. John / Olmstead J. Cecil / Kaskell / Lane Kirkland / David Klein / Hon- John J. mcCloy / John McCloy II / Hon. George C. McGhee / Elizabeth Midgley Rodney E. Willoughby E. Saltzman I Hon. Sargent Shriver / Joseph E. Slater / Hon. Paul A. Volcker / Eric M. Warburg / Frederick D. Wilkinson. Jr. / Hart / Sen. Charles McC. Mathias / Rep. Henry Reuss Gary Sen. Findley A. Paul Rep. / Cohen S. William Advisory Committee: Rep. John B. Anderson / Rep. Don Bonker Sen Sen. Donald W. Riegle. Jr. / Sen. Adlai E. Stevenson, Ill / Rep. Samuel Stratton / Sen. Paul A. Tsongas https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 9, 1979 Mr. Oakley Hunter Chairman of the Board and President Federal National Mortgage Association 3900 Wisconsin Avenue, N.W. Washington, D. C. 20016 Dear Oakley: I appreciate the note. Invite me: Sincerely, Paul A. Volcker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis FEDERAL NATIONAL MORTGAGE ASSOCIATION PTstsolook OAKLEY HlAdER CHAIRMAN ORTHE BOARD AND PRESIDENT August 2, 1979 Dear Paul: It goes without saying that I am pleased and delighted with your appointment. The F.B.I. contacted me and I reported that as far as I knew you were still respectable. We are now in our new offices, and as soon as you have settled down we want you to come and visit us and have lunch. We've done quite a remarkable job of urban rehabilitation, so to speak. All the best, The Honorable Paul Volcker Chairman The Federal Reserve Board Washington, DC 20551 3900 WISCONSIN AVENUE, NW. • WASHINGTON, D.C. 20016 • (202) 537-7070 a Home Phone kte-litc g2-‘Ce) RUSH Personal & Confidential & Immediate. Your Excellency, - Most respectfully and sincertiy I beg to submit to you in good faith the following for your immediate attention, help and justice to save a family from disaster and destruction. I am an immigrant P.3.1 to the USA from Pakistan since 1969, and I am a member of the Association of MA yixecutivesiNew York: I am 6- q.slisfrE3Tligr witIC-totar=outtwer,Ltynine ,ears banking an fi5i-e222 exchg5T7701-TeriCE=TUFNisor, daicer and Manager including an=len years inking experience as Letter ei Credit Checker and I belong to an honest and educated respectable family. I have also completed forty-seven credits out of fifty-three credits/ including prerequisites,of the M.B.A. degree course and will get the M.B.A. degree from Manhattan College, New York after completing six more credits very shortly. Inspite of the above qualifications, experience, hard work, honesty and loyalty I am being persecuted,continuously victimized and discriminated against, and holding a Clerical position as a Checker in a Bank in New York; this has resulted in great financial hardship, loans, difficulties and great financial torture and agony to me and to my dependents and to my College going boys. Therefore most humbly request you (in the name of hum ap_rights, honesty, fa.i.rpla democracy ajiljusfice "417377to please introdu6r-6f-reCOMmen me to any . Banl d=7777awhization anywhere in the world for a suitable position in accordance with my 29 years experience and qualifications in banking 4-foreign exchange. S. am convinced on the basis of my Personal experience and -- an sinclehandea gi Et6t11 i 15 Wili hapepO 'n me' ritsy -616ne ithout contind our attention, help, introduction ap41,Tor 6=En_y suort, your Sigis assist:an-ce will save an honest and loyal family from disaster and will allow me to educate my children properly. 4ilat f- ui-nr sffaTa-ha-wia. DETAILS. I REQUEST FOR INTERVIEW ALSO TO GIVE With best regards. /0 4-Ze_ / delnAZ91-4 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis At,1 4. 1'oie_4zs Your Loyal1 ervant PIA614A Syed A.R. Hussaini frO- 4 AiggIWIlt1;:4-A .LISMAYit0;" " iiteMdiegMAJA,44.:;44w - American Enterprise Institute for Public Policy Research 1150 Seventeenth Street, N.VV.,'Washington, D.C. 20036 (202)862-5800 Arthur F. Burns https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis February 27, 1979 Mr. Syed Hussaini Dear Mr. Hussaini I have your letter of recent date, but I regret to say that I see no way in which I can help you. My suggestion to you is that you write to Mr. David Rockefeller about your problem; he is a kind man and, being Chairman of the Chase Bank, he may see fit to intercede in your behalf. Sincerely, , iNtio 4tlid /19k /pi_o& A44, AVkiNg https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis FEDERAL RESERVE BANK OF NEW YORK NEW YORK. N. Y. 10045 AREA CODE 212 791-6173 PAUL A. VOLCKER PREsIDENT August 6, 1979 Dear Mr. Hutchinson: I appreciate your note and the point you make. I welcome your cooperation. Sincerely, pide,e/t Paul A. Volcker Mr. Jchn J. Hutchinson President National Association of Federal Credit Unions P.O. Box 3769 Washington, D.C. 20007 -JIIIIIIILNAFCU National Association of Federal Credit Unions P.O. Box 3769 Washington, D.C. 20007 703/522-4770 July 31, 1979 Mr. Paul A. Volcker President Federal Reserve Bank of New York 10045 New York, NY Dear Mr. Volcker: On behalf of the National Association of Federal Credit Unions, the only national organization exclusively serving federally chartered credit unions, I want to congratulate you on your selection as Chairman of the Board of Governors of the Federal Reserve System. I would like on behalf of credit unions to reemphasize the need for the Federal Reserve to work with all depository institutions in securing our common goals of monetary stability, an efficient and equitable payments mechanism, and an end to runaway inflation. I pledge that NAFCU will cooperate in every way with you to secure these goals. Sincerely yours, John J. Hhtchinson President JJH:jf https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis RECEIVED AUG 3 1979 P. A. V. ANSWERED ATTENDED TO,,,....... .............. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis K FEDERAL RESERVE BANK OF NEW YOR NEW YORK.N.Y.I0045 AREA CODE 212 791-6173 PAUL A. VOLCKER PR E SIDE NT August 2, 1979 Dear David: Many thanks for your warm words. I share the hope and expectation of an enhanced spirit of financial cooperation bewteen our countries. Sincerely, ea" Paul A. Volcker Mr. David Ibarra Secretary Finance and Public Credit Government of Mexico Mexico City, Mexico DF C ) I Lle divvy Lis 1 1 _ b 2-) 1 ir-- World Communications Inc, II j. •.UI : .± 1 . IL 1 L.J is' (.; i•-•-•ti., OzJ..- L,1 .i :1„; • tadA4 1 firaq o.wAtAkt • _ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis S. /14.1 ;6.1 't/ — I I,iS FieLft U1 '4k ; frt1 rivi. V'U LA.; ki ....., . , ...,,...i.,.....; :........ .._; V ...I i L. ;. ..... I. .; :--: .- . J.:11 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis I i . ... ..)i 1,.." .:.; '' .1 i ., ... .1 , „ -' . .i. ‘;' !..' . .i. ..... t 1. I L .:' • i .. - 7 ..-'-.i.... . ,,"; L-- I. . ,.....; . Li j..: il Z....i i...) .:1.1.'• J t.; %.: • • ,t' :i. L....j....,1 i ;,.': '-., ,..)«'..:., 1 '-:--1. 1 .i. t.; ...., 'i CI i-'. i:. A ...;:'. •L' ;C../1- I :i 1.S CHAIRMAN OF THE BOARD OF GOVERNORS •o • -11 • -4 4 "S. . '2• ig• rt's •..c https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis FEDERAL RESERVE SYSTEM i— • ce) • .1.. WASHINGTON, D. C. 20551 4) • , <v: August 24, 1979 Dear Andre: You say no need to acknowledge, but I want you to know how much I appreciated your note of congratulations. Thanks so much for writing, and I look forward to hearing from you from time-to-time. is the great threat. Sincerely, etai, Paul A. Volcker Mr. Yves-Andre Istel Isolation https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis YVES-ANDRE ISTEL TELEPHONE July 25, 1979 Dear Paul, I wanted to send a note of warm congratulations on your new appointment. I think we all realize that you are doing it in the national interest and are thus doubly appreciative of the fact that you will be holding such an important position. I look forward to being in touch from time to time and hope that you will not hesitate to call on me if I can ever be of help or use in your new function. Best personal regards, r)_ P.S. No need to acknowledge. The Honorable Paul A. Volcker President Federal Reserve Bank of New York 33 Liberty Street New York, New York 10005 RECEIVED JUL 27 1979 P. A. V. ANSWERED ATTENDED TO, . https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis August 9, 1979 Mr. Yu A. Ivanov Bank for Foreign Trade of the USSR 3/5, Kopievski Lane, Moscow USSR Dear Mr. Ivanov: Many thanks for your note on my appointment. I too, believe we have much to gain from mutual contacts between our institutions, and I hope you will let me know of any specific thoughts in that connection. Yours sincerely, Paul A. Volcker https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis BAHK AJUI BHEWHEll TOPFOBJ1H CCCP nPED,CED,ATEjlb [IPA BJIEHHA 103016 MocKna, K-16, Konbencithfi nep., 3/5 August, OT BOAPA 1979 N2 ri- LTETAL. 1979 nun -7 r In: 37 Ha OFFICE Dear Mr. Volcker, I an really delighted to learn that you have been appointed Chairman of the Board of Governors of the Federal Reserve System. In this connection I want to join my personal congratulations to scores of greetings from all over the world you are sure to receive these days. I am of the opinion that the long experience of our cooperation would ensure wider contacts leading to mutual understanding and to the search of constructive decisions for our closer collaboration. I would like to express my sincere hope that your activities in the new position will ocd-tr't '3 to further strengthening of the relations between our Institutions for the benefit of our countries. Kindly accept my sincerest good wishes. IA 0 11A/tm Yours truly, cr avtl- 04- eoP w 10 Yu.A.Ivanov BANK FOR FOREIGN TRADE OF Kopievski Lane, THE USSR Vloscolv Mr.Paul A.Volcker - Chairman of the Board of Governors FEDERAL RESERVE SYSTEM 21st and Constitution Ave,N.W. WASHINGTON, D.C. 20551 USA