by Prins, Nomi
34. “Businessmen,” 2, April 25, 1962, JFK Library, at www.jfklibrary.org/Asset-Viewer/Archives/JFKPOF-096–008.aspx.
35. Gibson, Battling Wall Street.
36. The other members of the council were Roger Blough and Leonard McCollum.
37. Arthur M. Schlesinger Jr., Robert Kennedy and His Times (New York, NY: Houghton Mifflin, First Mariner Books edition, 2002), 225.
38. Burton Crane, “Record Decline in Dollar Value,” New York Times, June 3, 1962.
39. “The Day of the Bear,” Time, June 8, 1962.
40. “Council of Economic Advisers (CEA), May 1962: 1–5,” JFK Library, at www.jfklibrary.org/Asset-Viewer/Archives/JFKPOF-074–005.aspx.
41. Ibid.
42. Ibid., 16–31.
43. “Dow Jones Industrial Average (1960–1980 Daily),” stock charts, at http://stockcharts.com/freecharts/historical/djia19601980.html.
44. Richard E. Mooney, “Kennedy Studies Economic Policy,” New York Times, June 30, 1961.
45. “A Businessman’s Letter,” Life, July 6, 1962.
46. John F. Kennedy, “Letter to David Rockefeller on the Balance of Payments Question,” July 6, 1962, posted online by Gerhard Peters and John T. Woolley, American Presidency Project, at www.presidency.ucsb.edu/ws/?pid=8759.
47. Financial Policy Meeting, JFK Appointment Index, July 13, 1962, JFK Library.
48. “Businessmen,” 4–5, JFK Library, at http://www.jfklibrary.org/Asset-Viewer/Archives/JFKPOF-096–008.aspx.
49. “Thomas Lamont, Banker, 68, Dead,” New York Times, April 11, 1967.
50. “The Man at the Top,” Time, September 7, 1962.
51. National Security Archive, “The Cuban Missile Crisis, 1962: The 40th Anniversary,” George Washington University, at www.gwu.edu/~nsarchiv/nsa/cuba_mis_cri/photos.htm.
52. Telephone Recordings: Dictation Belt 30, October 22, 1962, JFK Library, at www.jfklibrary.org/Asset-Viewer/Archives/JFKPOF-TPH-30.aspx.
53. Letter from Chairman Khrushchev, October 28, 1962, JFK Library, at http://microsites.jfklibrary.org/cmc/oct28/doc1.html.
54. Ibid.
55. Walter Isaacson and Evan Thomas, The Wise Men: Six Friends and the World They Made (New York, NY: Simon & Schuster, 1986), 730.
56. RFK had congratulated McCloy on February 17, 1961, for joining his brother’s administration and promised “to extend [McCloy] the services of the Department of Justice, especially the Office of Legal Counsel, should the need for such services arise.”
57. Bird, The Chairman, 541.
58. Several months later, McCloy was informed he would receive a Medal of Freedom from JFK at a ceremony scheduled for December 6, 1963. But on November 22, 1963, shortly after McCloy finished having breakfast with Eisenhower, JFK was shot. McCloy immediately sent his condolences to LBJ, who ultimately presented him with the medal.
59. John F. Kennedy, “Annual Message to the Congress on the State of the Union,” January 14, 1963, posted online by Gerhard Peters and John T. Woolley, American Presidency Project, at www.presidency.ucsb.edu/ws/index.php?pid=9138.
60. “Question and Answer Period at the American Bankers Association Symposium on Economic Growth, February 25, 1963,” JFK Library, at http://www.jfklibrary.org/Asset-Viewer/Archives/JFKWHA-165–006.aspx.
61. “David Rockefeller Offers a Plan of Business Advice on Latin America,” New York Times, April 24, 1963.
62. Sampson, The Money Lenders, 139.
63. Recorded Conversation 25A.1: Kennedy and C. Douglas Dillon, July 31, 1963, JFK Library, at www.jfklibrary.org/Asset-Viewer/Archives/JFKPOF-TPH-25A.aspx.
64. Zweig, Wriston, 157.
65. Ibid., 57.
66. Ibid., 87.
67. Office of the White House Press Secretary, President Johnson’s Archives, John Macy Files, Folder: Wriston, Walter B., October 2, 1963, LBJ Library.
68. When the interest equalization tax finally took effect on September 2, 1964, President Johnson had watered it down considerably as per the bankers’ demands.
69. “David Rockefeller Joins Protest on Cut by House in Latin Aid,” New York Times, October 12, 1963.
70. “Remarks at Amherst College upon Receiving an Honorary Degree,” October 26, 1963, JFK Library.
71. “Statement of the Honorable Douglas Dillon, Secretary of the Treasury, Before the Joint Economic Committee,” July 8, 1963, in US National Economy, 1916–1981: Unpublished Documentary Collections from the Treasury Department, Part 4: Kennedy-Johnson Administration (1961–1969), microfilm (Frederick, MD: University Publications of America), Item 0525.
72. Zweig, Wriston, 159.
73. Walter Wriston, “No Turning Back,” The Twilight of Sovereignty and the Information Standard, Tufts Digital Library, at http://dl.tufts.edu/view_text.jsp?urn=tufts:central:dca:UA069:UA069.005.DO.00243&chapter=c1s2.
74. Sam Dawson, “Experts Confident Drastic Action Unlikely in Threat to Reserves,” Associated Press, October 3, 1963.
75. November 22, 1963, Treasury Department Folder, LBJ Library.
76. December 20, 1963, White House Confidential Files, Thomas S. Gates File, LBJ Library.
77. John M. Lee, “National and Commodities Markets Shaken; Federal Reserve Acts to Avert Panic,” New York Times, November 23, 1963.
78. “Congressional Probe Asked in Presidential Assassination,” Associated Press, November 25, 1963.
79. “Joseph Kennedy Watches Son’s Funeral at Home, Hyannisport, Massachusetts,” UPI, November 26, 1963.
80. Drew Pearson, “Kennedy . . . Man of Destiny,” Sarasota Journal, November 26, 1963.
81. Edward Cowan, “Young Banker in Foreign-Service: Wriston Is at Helm of National City Units Abroad,” New York Times, November 24, 1963.
82. Ibid.
83. Daily Diary Collection, C. Douglas Dillon, LBJ Library.
84. Letter from David Rockefeller, November 29, 1963, White House Confidential Files, Name File: David Rockefeller, LBJ Library.
85. Letter to David Rockefeller, December 11, 1963, LBJ Library.
86. David Rockefeller memo to President Johnson, December 11, 1963, White House Confidential Files, Name File: David Rockefeller, LBJ Library.
Chapter 12. The Mid- to Late 1960s: Progressive Policies and Bankers’ Economy
1. “Blue Chips Lead Dow Average to All-Time High,” Associated Press, December 5, 1963.
2. “Market Makes Big Comeback,” Associated Press, November 27, 1963.
3. “State of Business: Banish Your Fears,” Time, December 13, 1963.
4. First National City Bank, Monthly Economic Letter, January 1964, White House Central Files (WHCF), Box 104: First National City Bank, LBJ Library.
5. “Business: A Surprisingly Good Year,” Time, December 27, 1963.
6. “The 1920s Economy: A Statistical Portrait,” San Francisco State University College of Behavioral and Social Sciences.
7. “Debt Growth by Sector,” Federal Reserve Board, at www.federalreserve.gov/releases/z1/19960912/z1r-2.pdf.
8. “President Johnson’s Address Before Congress,” November 27, 1963, LBJ Presidential Library, at www.lbjlib.utexas.edu/johnson/kennedy/Joint%20Congress%20Speech/speech.htm.
9. “A Surprisingly Good Year,” Time.
10. Dillon had also served in government for nearly a decade even before Kennedy appointed him, including in the Eisenhower administration as ambassador to France, undersecretary of state for economic affairs, and undersecretary of state.
11. Transcript, C. Douglas Dillon Oral History Interview (I) with Paige Mulholland, June 29, 1969, LBJ Library.
12. Ibid.
13. Ibid.
14. Memorandum for the President from Robert E. Kintner, August 11, 1966, LBJ Library.
15. Letter from John McCone, January 9, 1964, White House Confidential Files, Name File: John J. McCloy, LBJ Library.
16. Bird, The Chairman, 550.
17. Warren Report, Summary, 18, at www.aarclibrary.org/publib/jfk/wc/wr/html/WCReport_0021b.htm.
18. Resignation letter from John J. McCloy, January 20, 1965, John Macy Files, Box 374, Folder: McCloy, John J., LBJ Library. All ties were not erased following McCloy’s resignation. Johnson eventually engaged him once more for what he was best at—dealing with Germany. On October 11, 1966, Johnson appointed McCloy as the US representative to the trilateral conversations of the United States, the Federal German Republic, and Britain. His purpose would be “to undertake a searching reappraisal of the threat to security and . . . of the forces required to maintain adequate deterrence and defense in Central Europe. Statement by the President on Tripartite Talks, October 11, 1966, Office of the White House Press Secretary, John Macy Files, Box 374, Folder: McCloy, John J., LBJ Library.
19. “Debate Widens on Trade with Communists,” New York Times, March 12, 1964.
20. Rockefeller, Memoirs, 226.
21. Ibid., 230.
22. Letter to David Rockefeller, August 24, 1964, White House Confidential Files, Names File: David Rockefeller, LBJ Library.
23. President Johnson’s Message to Congress, August 5, 1964, Senate Committee on Foreign Relations, 90th Congress, 1st Session, Background Information Relating to Southeast Asia and Vietnam (3rd revised ed.) (Washington, DC: US Government Printing Office, July 1967), 120–122.
24. Vietnam Summary, JFK Library, at www.jfklibrary.org/JFK/JFK-in-History/Vietnam.aspx.
25. Gulf of Tonkin, 1964: Perspectives from the Lyndon Johnson and National Military Command Center Tapes, Miller Center, Presidential Recordings Program, by Marc Selverstone and David Coleman, at http://whitehousetapes.net/exhibit/gulf-tonkin-1964-perspectives-lyndon-johnson-and-national-military-command-center-tapes.
26. May 19, 1965; May 24, 1965; June 10, 1965, Alpha Files, Folder: Weinberg, Sidney, LBJ Library.
27. Ibid. The folder has White House event invitations to Weinberg spanning Johnson’s presidency, about as many as David Rockefeller among the bankers, beginning on July 16, 1964.
28. Files: John Macy, Box 629, Weinberg, Sidney, LBJ Library.
29. Letter to Sidney Weinberg, September 18, 1964, Alpha Files, Folder: Weinberg, Sidney, LBJ Library.
30. Letter from Weinberg to Jack Valenti, October 9, 1964, Alpha Files, Folder: Weinberg, Sidney, LBJ Library.
31. Edward T. Folliard, “LBJ’s Vision of the ‘Great Society,’” St. Petersburg Times, November 10, 1964.
32. On August 23, 1968, Johnson appointed Weinberg to a public advisory committee on US trade policy with David Rockefeller, Rudolph Peterson, and thirty-eight others. In July 1969, Johnson thanked Weinberg for his “consistent efforts in helping to move the tax surcharge and expense reduction legislation through the Congress. The Revenue and Expenditure Control Act of 1968 will work to extend the unprecedented prosperity, which Americans have been enjoying for the past seven years.” Alpha files, Folder: Weinberg, Sidney, LBJ Library Archives.
33. Public Papers of the Presidents of the United States: Lyndon B. Johnson, 1965 (Washington, DC: Government Printing Office, 1965), vol. I, entry 27, 71–74.
34. US Census Bureau, “Historical Poverty Tables—People,” Table 3, at www.census.gov/hhes/www/poverty/data/historical/people.html.
35. Invitation, February 16, 1965, White House Confidential Files, Subject File: Chase Manhattan Bank, LBJ Library.
36. Memo for the President from John Macy, Re: Advisory Committee on Balance of Payments, February 23, 1965, John Macy files, Box 629, Folder: Weinberg, Sidney, LBJ Library.
37. Letter to Rockefeller, February 18, 1954, White House Confidential Files, Folder: David Rockefeller, LBJ Library.
38. Ibid., March 30, 1965.
39. Ibid., November 30, 1965.
40. Letter to Thomas S. Gates, March 3, 1965, White House Confidential Files, Name File: Thomas S. Gates, LBJ Library. Gates’s file is fairly thin, but all evidence is of a warm, respectful relationship. Gates served on the National Advisory for Selective Service in 1966, and Johnson wrote of his August 1966 address on Business and Government before the Edison Electric Institution as a great speech and one of rare perception.
41. Thomas S. Gates, note to Johnson, August, 3, 1967, White House Confidential Files, Name File: Thomas S. Gates, LBJ Library.
42. Mike Manatos, memorandum for Johnson, March 18, 1963, White House Confidential Files, Name File: David Rockefeller, LBJ Library.
43. Memo to President Johnson from Douglas Dillon, December 29, 1964, John Macy Files, Box 494, Folder: David Rockefeller, LBJ Library.
44. Document WH6503.10, LBJ Library.
45. Phone call with Henry Fowler, March 18, 1965, 7120 tape conversation, LBJ Library.
46. Phone call with George Moore, March 18, 1965, 7122 tape conversation, LBJ Library.
47. March 22, 1965, White House Confidential Files, EX FI 2 Box 13 (Banks and Banking), LBJ Library.
48. Letter to George Champion, March 26, 1965, White House Confidential File, Name File: Champion D-G, Box 168, LBJ Library.
49. March 26, 1965, Alpha Files: Folder: Weinberg, Sidney, LBJ Library.
50. Letter to George Champion, June 16, 1965, White House Confidential File, Name File: Champion D-G, Box 168, LBJ Library.
51. “This Day in Truman History: July 30, 1965, President Lyndon B. Johnson Signs Medicare Bill,” Truman Library Website, at www.trumanlibrary.org/anniversaries/medicarebill.htm.
52. Letter to Jack Valenti, May 19, 1964, Business–Economics 2–4, Folder: Monopoly-Antimonopoly, November 22, 1963, to July 8, 1965, LBJ Library.
53. Robert Caro, The Years of Lyndon B. Johnson: The Passage of Power (New York, NY: Vintage, 2013), 523–24.
54. Ibid., 525.
55. For Marvin Watson, July 2, 1965, White House Confidential Files, Folder: Hauge, LBJ Library.
56. July 9, 1965, to November 12, 1966, Folder: Business-Economics 2–4, Monopoly-Antimonopoly, LBJ Library.
57. Ibid., November 13, 1966, to March 15, 1967.
58. Ibid., March 16, 1967, to June 30, 1968.
59. Letter to Rockefeller, September 18, 1965, White House Confidential Files, Alpha Files: David Rockefeller, LBJ Library.
60. Gibson, Battling Wall Street, 77.
61. Memo for Walt Rostow, Subject: Latin America: Progress over the Past Two Years, June 24, 1966, National Security Files, Box 1, Folder: Bowdler Memos [2 of 2], LBJ Library.
62. October 31, 1966, Papers of Lyndon Baines Johnson, National Security Files, Name File, Box 1, Folder: Bowdler Memos [1 of 2], LBJ Library. See also Leroy F. Aarons, “RFK Would Cut Latin Aid,” Washington Post, October 31, 1966.
63. Letter from George Moore, August 25, 1965, White House Confidential Files, Name File: George Moore S., Box 538 (First National City), LBJ Library.
64. “Statement by the President upon Signing the Tax Adjustment Act of 1966,” American Presidency Project, at www.presidency.ucsb.edu/ws/index.php?pid=27496.
65. Memo to Johnson, January 25, 1966, WHCF, Name File: David Rockefeller, LBJ Library.
66. James Carter, Inventing Vietnam: The United States and State Building, 1954–1968 (Cambridge University Press, 2008).
67. Robert Buzzanco, “Ruling Class Anti-Imperialism? The Military and Wall Street Confront the Vietnam War,” University of Houston Conference, Oxford University, April 2011 (revised October 2011).
68. Lyndon B. Johnson, “Letter to the President of the Senate and to the Speaker of the House Transmitting Bill Encouraging the Substitution of Private for Public Credit,” April 20, 1966, American Presidency Project, at www.presidency.ucsb.edu/ws/index.php?pid=27551&st=participation&st1=sales#axzz1p7nEd8na.
69. Memo from Robert E. Kintner, Subject: Business Support for the President, July 6, 1966, WHCF, LBJ Library.
70. Internal Memo to Johnson, September 16, 1967, WHCF, Name File: Sidney Weinberg, LBJ Library.
71. February 8, 1965; June 3, 1966; July 5, 1967, John Macy Files, Folder: Wriston, Walter B., LBJ Library.
72. Zweig, Wriston, 266
73. “Banking Timeline,” Walter B. Wriston Arch
ives, at http://dca.lib.tufts.edu/features/wriston/about/bankingtimeline.html#footnote52.
74. “Interview: Walter Wriston,” Frontline (PBS), November 23, 2004, at www.pbs.org/wgbh/pages/frontline/shows/credit/interviews/wriston.html.
75. Transcript, Henry H. Fowler Oral History Interview III, July 31, 1969, by David G. McComb, LBJ Library.
76. Buzzanco, “Ruling Class Anti-Imperialism?”
77. Address by Walter B. Wriston, January 17, 1968, Fowler Papers, Box 82, Folder: Domestic Economy: Gold, 1968 [1 of 2], LBJ Library.
78. H. Erich Heinemann, “Bankers Fear a Crisis,” New York Times, May 24, 1968.
79. Board of Governors of the Federal Reserve System, Flow of Funds Accounts of the United States: Annual Flows and Outstandings, 1955–1964 (Washington, DC: 2012), at www.federalreserve.gov/releases/z1/Current/annuals/a1955–1964.pdf. See also 1965–1974, at www.federalreserve.gov/releases/z1/Current/annuals/a1965–1974.pdf.
80. John Brooks, The Go-Go Years: The Drama and Crashing Finale of Wall Street’s Bullish 1960s (Hoboken, NJ: Wiley, 1998), 3–4.
81. H. Erich Heinemann, “Peak Profits Raising Salaries of Bank Chiefs, Survey Finds,” New York Times, March 24, 1969.
Chapter 13. The Early to Mid-1970s: Corruption, Gold, Oil, and Bankruptcies
1. Walter Wriston, testimony given at the US Senate Banking and Currency Committee, Washington, DC, May 26, 1970, at http://hdl.handle.net/10427/36018.
2. The Penn Central Failure and the Role of Financial Institutions; Staff Report, Ninety-second Congress, First Session (Washington, DC: US Government Printing Office, 1972), 289.
3. Rush Loving, The Men Who Loved Trains: The Story of Men Who Battled Greed to Save an Ailing Industry (Bloomington, IN: Indiana University Press, 2006), 96.
4. Ibid., 348.
5. “Penn Central Gets Pentagon Loan Guaranty,” St. Petersburg Times, June 11, 1970, at http://tinyurl.com/73h6vdh.
6. Brian Laverty, “Book Review: When Giants Stumble: Classic Blunders and How to Avoid Them by Robert Sobel,” American Journal of Business 15, no. 1 (Spring 2000), at www.bsu.edu/mcobwin/ajb/?p=296.
7. Alfred Broaddus, “Financial Innovation in the United States—Background, Current Status and Prospects,” Federal Reserve Bank of Richmond, Economic Review, January/February 1985, at www.richmondfed.org/publications/research/economic_review/1985/er710101.cfm.
