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Conversation 014-010

TapeTape 14StartWednesday, November 10, 1971 at 1:31 PMEndWednesday, November 10, 1971 at 1:33 PMTape start time00:03:41Tape end time00:05:16ParticipantsNixon, Richard M. (President);  White House operatorRecording deviceWhite House Telephone
AI Summary

President Nixon consulted with Federal Reserve Chairman Arthur Burns regarding an upcoming meeting with Congressman Wright Patman concerning national economic policy and interest rates. The President informed Burns of a planned reduction in the discount rate, intending to use this move as leverage to discourage Patman from pursuing mandatory legislative controls on interest rates. Nixon ultimately decided that Burns should not attend the meeting, opting for a one-on-one session to better manage the political rapport with Patman.

Arthur F. BurnsWright PatmanDiscount rateInterest ratesMonetary policyEconomic regulation
AudioNARA Description

On November 10, 1971, President Richard M. Nixon and the White House operator talked on the telephone from 1:31 pm to 1:33 pm. The White House Telephone taping system captured this recording, which is known as Conversation 014-010 of the White House Tapes.

Nixon Library Finding Aid
Conversation No. 14-10

Date: November 10, 1971
Time: 1:31 pm - 1:33 pm
Location: White House Telephone

The President talked with the White House operator.

     Arthur F. Burns

The President talked with Burns.

[See Conversation No. 299-3]

     The President's trip to Chicago

     National economy
          -Reduction in discount rate
                -The President's forthcoming meeting with Wright Patman
                      -Interest rates
          -The President's forthcoming meeting with Patman
                -Burns’ presence
                -Pauline (Tucker) Patman
Transcript (AI-Generated)

This transcript was generated automatically by AI and has not been reviewed for accuracy. Do not cite this transcript as authoritative. Consult the Finding Aid above for verified information.

Hello.
Dr. Burns.
Yeah.
Yeah.
Hello, Arthur.
Yeah.
How are you, Mr. President?
Hi.
How are you?
Fine.
Did you have a good trip?
Oh, yeah.
I just got back from Chicago.
I know.
Yeah.
Look, I want you to know that we are reducing the discount rate today.
Oh, I see.
And that will be announced around 4 o'clock.
Yeah.
Right up to the market.
Right.
Right.
And this may help you when you talk to Mr. Patman.
Right, right.
The interest rates are moving and here is further evidence and that the market is working well and if he now tries to stabilize things by the legislative mandatory route,
then lenders are going to become more cautious, and they will not move interest rates down.
It can only harm.
And, of course, you can tell him when it's true, hell, you're eager to have interest rates come down, and you're with him completely on the objective.
I sent you some notes through my letter.
Yes, I got that.
Yeah, yeah, I know, I know.
And I'm going to get at this thing, and I was just wondering...
I don't think you ought to be with me when I see him.
I wondered.
I'm just thinking.
I think it's better.
I know.
It compliments him more if I see him.
I think it would be better.
I know.
And remember his new wife, Pauline.
Pauline.
How beautiful she is.
Okay.
Right.
So forth and so on.
Yeah.
Okay.
All right.
All right, Arthur.
Thank you for calling.
Not at all.
Bye.
Bye.
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