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Chicago Mercantile Exchange 12/10/91 [OA 8331] [1]
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administrative marker by the George Bush Presidential
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George H.W. Bush Presidential Records
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Chicago Mercantile Exchange 12/10/91 [OA 8331] [1]
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26
22
1
3
4 December 1991
MEMORANDUM FOR TONY SNOW
MICHELLE NIX
FROM:
JENNIFER GROSSMAN
SUBJECT:
CHICAGO'S MERCANTILE EXCHANGE
BACKGROUND
On Tuesday, December 10th POTUS will visit Chicago's
Mercantile Exchange. He arrives at roughly 12:30 and proceeds with
a tour of the trading floor, mix-and-mingling with the traders,
clerks (there's an average of about 4,000 people on floor every
day). We're looking for a spontaneous, business as usual kind of
atmosphere.
SPEECH: POTUS will go to an amphitheater style room to deliver
remarks, which are expected to be around 15 mins (?). Jack Sander,
Chairman of the Exchange will intro POTUS. I've got his card.
Around 400 or so will attend -- it's still uncertain whether
they'll simply be traders and Exchange types, or if we'll try for
a broader mix of Chicago business leaders (call Jeff Vogt).
Given the expanding international nature of risk management
trading, global marketplace and domestic/foreign financial nexus
themes would be extremely appropriate here. Several world leaders,
including Salinas, Hawke, and others have visited the Exchange -
- their speeches might be good to hit up for a string of free
market quotes. Other visitors: Colin Powell earlier this year,
sundry Congressmen, and Reagan in '88. (If his speech isn't in
PRESDOCs, I've got his office # in Ca.)
ATMOSPHERE: A kinetic energy, a seeming chaos, and a whole
lotta money. Maybe some metaphors about the Merc as a mirror of
"the sheer ingenuity of a market that collects and distributes the
wisdoms of millions of people, all pursuing their destinies in
different ways." Buy and sell hand signals, company hand language,
shouting, running, men, men, men -- it's a kick.
COLOR
--Merc traders raised money for gifts for soldiers in Gulf.
--During the '87 crash, the Merc was also hit. Traders began
selling, selling, hysteria began to take hold. Then, one old
trader (now in his mid 90's) walked to the center of the pit, and
with a calm determination, began buying, buying, buying. (A little
tale of heroism, call the Public Affairs contact for details).
--Clerks wear yellow jackets, Merc Staff -- light blue. Traders
have the option of wearing the traditional red, but most wear their
company uniform jacket.
note on Sander: was with POTUS nine months ago; Sander got Tony
Zale out of hospital (Alzheimer's) and POTUS gave Zale a medal.
Sander's saying: "Free Markets for Free Men."
Sander says POTUS is going to get a tremendous reception.
Historically, only one person -- Mohammed Ali -- got the kind of
enthusiastic welcome Sander expects POTUS to receive.
-- There's paper on the floor everywhere, each day it's swept away.
Sander calls it "the debris and residue of the day's trading."
Maybe there's some kind of twist -- "A Thousand Points of Paper, "
"the paper trail, " "more paper than a Gulf War ticker tape parade. "
gee whiz facts to be had on the number/length of phone lines.
--55 trillion a year in trade
the risk management trade was spawned here in Chicago -- beat
some drums about: We're the leader, it's truly American, etc.
-Sander: "Time zones are blurring, borders are fading, the free
market will be the beacon in the dark."
NOTE: Michelle, see brochures, press kit. I've got some
appropriate quotes on file I'd be happy to share.
DECEMBER 4, 1991
MEMORANDUM FOR TONY SNOW
FROM:
MICHELE NIX
SUBJECT:
CHICAGO MERCANTILE EXCHANGE
Here's some preliminary info. See Jennifer's notes for scene
setting, color. Merc is faxing me more info today.
Dave Prosperi does not work at Merc; he works at the Chicago
Board of Trade. I spoke with his counterpart at Merc, Andy
Yemma, V. Pres of Communications at Merc.
Before addressing the Exchange, the Pres will tour the trading
floor. He will receive a red jacket, which will probably have
"Zapata" printed on it. Attached will also be a badge with the
word "Pres."
The Pres will address 400-500 people from the Upper Trading
Floor. The audience will be seated in the Main Trading Floor,
which usually accommodates approximately 5,000 people at one
time. Approximately 200-300 people will be members of the
exchange -- all wearing their jackets -- many different colors.
The rest of the audience will include CEOs from leading
corporations in the Chicago area -- also the mayor, Sen.
Rostenkowski, and other Chicago politicos.
THE EXCHANGE
The building is 8 years old. This is the 4th building they've
had. Their old building is a couple blocks away. One block from
the building is the Sears Tower.
Monday, Dec. 9, Merc is celebrating the 10th anniversary of the
3-Month Euro Dollar Futures Contract. (Yawn) They will be
bringing in the media and having a big party for this on Monday.
This is the leading futures contract in the world -- used by
commercial banks to hedge short-term interest rate exposure
[enabling banks to handle volatile interest rates] and is one of
the self-corrective measures allowed in free markets.
The Merc is 1 of 4 major exchanges in the Chicago area and thus
Chicago is fast becoming known as a financial services center.
They are the world leader in futures trading. Although the
Merc's market share has decreased over the years from 90% to 50%,
their volume has continued to grow.
For the past 3 years, they have the highest seat value than any
exchange in the world. Their membership runs at approximately
half a million a seat -- greater than the NYSE. There are
roughly 2,700 memberships. Their growth really surged in 1971,
after the Treasury Dept. allowed futures contracts on foreign
currency exchange rates.
The Merc is best known for its SNP 500 index future, which is
used by pension and mutual fund managers to curb risk. The Merc
likes to refer to themselves as leaders in risk management -- and
a mention of this would please the members.
Several of their consultants and former board members are Nobel
Laureates for Economics -- including Merton Miller, who shared
the prize with 2 others in 1990. The University of Chicago,
whose Graduate Business School has a rep for producing Nobel
Prize winners in economics or for hosting them as faculty, is
well-respected by the senior staff at Merc and is a close tie
with the Exchange.
OFFICERS
These three will be with Pres on the Upper Trading Floor.
Chairman: John F. Sandner -- Pres can refer to him as "Jack." "
Merc is sending bio. A couple things: Sandner was a Golden
Gloves Boxer. [JOKE] On Oct. 16, 1990, POTUS awarded the
Presidential Citizen's Medal to Tony Zale -- a former boxing
champion and a mentor and trainer to Sandner his youth. Sandner
lead the cause for Zale's recognition. Sandner and POTUS met at
this event. Sandner is also a graduate of Notre Dame -- Irish
football season joke here.
Sandner likes to use the phrase -- "Free markets for free
men. "
President: Bill J. Brodsky. His predecessor was Clayton
Yeutter. JOKE
Chairman Emeritus: Leo Melamed. Was the principle behind their
growth surge in 1971. Very well thought of.
Week Ending Friday, September 27, 1991
Remarks at the Annual National
you work up a little more enthusiasm?"
onvention of the United States
And you saw it today. But he's doing a
ispanic Chamber of Commerce in
great job for us as Secretary of Housing and
Chicago, Illinois
Urban Development. His concept, our con-
September 20, 1991
cept, of tenant management and home
ownership offers really hope to millions.
Thank you very much. And I really want
But then, Jack and all our administration
to thank you for that warm reception here.
believe in the greatest and most visionary
First, may I salute two Secretaries of my
of American ideals, the ideal of real equali-
Cabinet, Secretary Lujan, who many of you
ty, ensuring that people can go as far as
have known over the years, is with us today;
their abilities and their hard work will take
and also Secretary Sam Skinner, who just
them.
came in with us from California, a son of
Five centuries ago, men crossed the great
avchuk-
Chicago in a sense, and doing a great job as
ocean and brought Hispanic America into
Secretary of Transportation.
being. Ever since then, we have called the
May I also thank the Governor of the
combination of European and American
ns-1344
State, Jim Edgar; and the mayor of this
peoples on these vast lands not a new terri-
great city, Mayor Daley, for greeting me at
tory, not a new colony, not a new settle-
the airport here and welcoming us to Illi-
ment. We've called it a new world.
nois and to Chicago. And this is, as I view it,
Hispanic America arose out of risk and
-1345
certainly not a partisan gathering, and I
romance. Several forces fed its growth:
think their both showing up together, side-
transoceanic trade, the movement and min-
46
-1322
by-side, was a manifestation of that. [Laugh-
gling of peoples, the grand enterprise of
ter]
discovery and development. On September
20, this very date, but in 1519, Magellan
But may I thank José, José Niño, who just
and his party set sail from Spain to sail
introduced me, your very able president;
around the globe. Next month we begin a
abe Aguirre, the outgoing chairman. And
year of commemoration leading to the
Vank you all, ladies and gentleman, for,
500th anniversary of Columbus' daring jour-
355
once again, that very warm welcome. Let
eases-1354
me congratulate my fellow Texan, Delia
ney.
We must not think of these achievements
uncements-
Reyes, your newly elected chair. And
warmest greetings to the many dignitaries
as somehow antique and irrelevant. Fron-
ate-1354
that are here.
tiers don't close when men settle the wil-
derness, when they build cities and factories
I'm here a little later than originally
and schools. Subtle but braver adventures
scheduled. Would you believe we experi-
confront advanced civilizations: the adven-
enced a slight flight delay? [Laughter] I
tures of creating families, educating chil-
know it happens all the time. We had to
dren, knowing that no matter how hard or
circle the city while Michael Jordan prac-
how comfortable our circumstances, we
ticed takeoffs and landings out here.
must make our world better. In the life of
[Laughter] And there's a second reason, too,
the Americas, in our mission of discovery
if I may be candid. I know you've just heard
and development, 1492 was only yesterday.
Jack Kemp speak, and I thought you'd want
How true this is in the case of commerce.
to catch your breath for a little bit. [Laugh-
Voyagers charted the trade routes of the
ter]
ittee of the Federal
Americas centuries ago, but we've only now
23607; 1 CFR Part
If you're still feeling winded, it's my fault.
begun to explore their full potential.
It goes back to our first Cabinet meeting,
Your convention theme sings with this
intendent of Docu-
and I asked Jack, "Can't you generate, can't
spirit: "Launching New Partnerships."
ton, DC 20402. The
its will be furnished
per year ($96.00 for
for $68.75 per year,
Government Printe
1319
e for a single copy
ation of material
ential Documents.
Sept. 20 / Administration of George Bush, 1991
America's more than 400,000 Hispanic-
quadrupled. Exports of iron and steel,
owned firms provide new jobs and generate
which were running a $12-million defi
new wealth. In 1987, the latest date for
just 4 years ago, now are achieving a $30
these statistics, our Hispanic-owned busi-
million surplus. And this rise in exports cre-
nesses pumped nearly $25 billion into our
ated almost 300,000 jobs in the United
Sta
economy and created half a million jobs.
States. Each additional $1 billion in exports
You believe in yourselves, in your abili-
will translate into nearly 20,000 American
on
ties, your determination, your excellence.
ent
jobs.
Because you believe in yourselves, you
por
helped our administration get congressional
But these reforms, it's not a one-way
fre
approval to extend our Fast Track proce-
street, these reforms have helped Mexico, a
dures for trade negotiations. Armed with
classic win-win situation, if you will. Fidel
bli
that powerful tool-and as you heard this
Velazquez Sanchez, the head of the Mexi-
da
morning from an able team from three
can Labor Confederation, recognizes that
thi
countries-we are negotiating a North
increased trade will create new jobs,
wh
American free trade agreement.
indeed, new industries in Mexico, and he
de
I might say that Mexico, under President
strongly supports the trade agreement.
spl
Salinas, has been a powerful leader and ally.
What's good for Hispanic America will be
And I would also say that relationships be-
good for the United States. And with open
a
tween Mexico and the United States have
trade, by the year 2000, United States firms
mc
never in history been better. And that is in
will be doing a robust business with dynam-
rie
the best interests of the United States of
ic economy of 100 million Mexican consum-
ed
America. When we complete that accord,
ers.
ou
and I'm confident we will, we'll build a free
The prospects seem equally exciting
spl
south of Mexico, too. We've heard a lot
in
trade zone that ranges from the Yukon to
the Yucatan, "a market of 360, get the
about the Mexican free trade agreement.
ca
figure, 360 million consumers and a present
We've heard about the negotiations. They
annual output of $6 trillion.
are our friendly neighbors on the borde
og
When we seal the free trade agreement,
and we ought to-parenthetically I mig
Hispanic-owned firms in the United States
say, we should never just take those frien
will enjoy strong natural advantages. Bonds
for granted, whether it be to our north or
be
of family, language, understanding the cul-
to our south. We are blessed by peaceful
ou
ture, already cherished in the families rep-
borders. But we're already advancing cre-
gr
resented here today, all of these will gain
ative plans now to reduce debt, boost in-
no
value as business assets.
vestment, and increase trade. We've now
be
Because you believe in yourselves, you
signed framework trade liberalization
on
also have supported our Enterprise for the
agreements involving 28 countries in the
m
Americas Initiative, aiming to establish a
hemisphere. So, it's not just Mexico. But we
ar
network of expanded trade, investment,
need your help.
and cooperation from Hudson Bay to the
Congress still has failed to give us debt
als
Straits of Magellan.
reduction authority and funding and to give
lie
The North American free trade agree-
us the ability to contribute to the Multilat-
ca
ment and the Enterprise for the Americas
eral Investment Fund. This would help
SC
Initiative incorporate the great lesson of our
stimulate investment and build stable de-
th
age: trade and enterprise can build wealth
mocracies within our hemisphere. So
re
and preserve freedom. Protectionism and
please, speak out in support of the Enter-
m
Government control only create poverty
prise for the Americas Initiative. And join
tic
and backwardness, and yes, a denial of free-
me in urging Congress to pass the legisla-
pt
dom.
tion to put it into full effect. Enterprise for
Consider the case of Mexico. Since 1986,
the Americas is not a slogan. It will
se
when Mexico joined the GATT and
strengthen democracy and freedom in
sh
dropped tariff rates from 100 percent, 100
those friendly countries south of the Rio
percent, to little more than 10 percent, U.S.
Grande, and it will be good for America
exports to Mexico have more than doubled.
exports, and that means it will be good
Exports of automobiles and auto parts have
American jobs.
er
1320
Administration of George Bush, 1991 / Sept. 20
d steel,
Our efforts to expand U.S. exports will
leaders to help reinvent American educa-
1 defi
another boost when my friend, José
tion.
a
$30
artinoz, becomes Director of the United
To further this goal, I have announced
orts cre-
States Trade and Development Program.
the membership of the President's Advisory
United
And of course, one more event will dem-
Commission on Educational Excellence for
1 exports
onstrate to one and all that we really have
Hispanic Americans. Chicago's own Andrés
American
entered into a new era of freedom and op-
Bande, CEO of Ameritech International,
portunity. I'm speaking of Cuba's becoming
will chair the panel, and its work will play a
free and democratic.
one-way
major role in unleashing the America 2000
Mexico, a
Today we hear the creaking and crum-
revolution in education.
vill. Fidel
bling of that Castro dictatorship. And the
I understand Andres is here today, and
the Mexi-
day is coming. I'm absolutely convinced of
I'd like him to stand up, right there. Thank
nizes that
this, sooner than Castro dares to believe,
you for undertaking this. This is important
lew jobs,
when the people of Cuba will reclaim their
work he's about to be engaged in. And I
o, and he
destiny and rejoin the Western Hemi-
know, on his behalf, I'd like to solicit your
sphere's family of free nations.
nent.
ideas and your full cooperation.
And if we want to make our hemisphere
ica will be
Let me close with a few comments on a
a neighborhood of peoples, we must do
with open
more than lift economic and political bar-
concept we talked about earlier, develop-
tates firms
riers. Our administration also has promoted
ment. It's a term of art, of course, in inter-
ith dynam-
national economics. We tend to use "devel-
educational and cultural exchanges between
in consum-
our country and our neighbors in the hemi-
oping country" as a sort of fuzzy euphe-
sphere. As in commerce, the natural leaders
mism for "poverty," for a nation short on
y exciting
material or financial wealth.
in this enterprise will be Hispanic Ameri-
eard a lot
But when we use the term "develop-
cans.
You see, something more than mere ge-
ment" in this way, we forget its deeper
tions. They
ography unites us. Common cultural roots
meaning. Isn't the United States-must it
liberalization agreement. We've boost north peaceful I borde frien mig
the
able us all to seek a shared destiny for
not be still "developing"? For all our
lly
hemisphere, for ourselves.
present wealth, can we afford to become
hose
And I want to thank the Hispanic Cham-
static or stagnant? And if we're not giving
ur or
ber of Commerce for its endorsement of
our children a moral and intellectual inher-
by
our America 2000 education strategy. I am
itance as good as our parents gave us, are
vancing cre-
grateful for your initiatives to teach eco-
we a "developed" society?
ot, in-
nomics and entrepreneurship to our kids,
I think again of the explorers on our con-
now
beginning in the kindergarten. And now, if
tinent five centuries ago. Some were wise,
only someone could do the same for econo-
some were foolish. And we remember the
itries in the
mists, I think we'd be in pretty good shape
effort wasted in trying to find the imaginary
xico. But we
around here. [Laughter]
Seven Cities of Gold. And those adventur-
America 2000, like our economic propos-
ers were not just looking in the wrong
give us debt
als, begins with an article of faith: We be-
place; they were searching for the wrong
g and to give
lieve that parents care about their children,
treasure. The treasure was, and is, in men
the Multilat-
care about education, and can help find
and women, in "human resources," in mind
would help
schools that will help their children reach
and muscle and soul. And these, not un-
Id stable de-
their potential. So, we want to expand pa-
earned bonanzas, build civilizations.
nisphere. So
rental choice so that parents will have as
Our work never ends. That's the key to
of the Enter-
much choice in the crucial matter of educa-
life's excitement. In these hopeful times, as
tive. And join
tion as they now have when they wish to
we tear down economic barriers and liber-
SS the legisla-
purchase peanut butter.
ate ourselves from ideological confines, we
Enterprise for
And if we want to make the most of our-
must continue supplying our own sons and
ogan. It will
selves, we must invite competition and
our own daughters with the values, the fun-
freedom in
show just how well we can do.
damentals, of a good society. Together, I
th of the Rio
America 2000 will enable Hispanic com-
know that we shall.
for America
unities to draw upon their natural
You know, the longer I'm in the White
ill be good
ssngths and values. And it will enable par-
House and privileged to serve as President
ents, teachers, and yes, church and business
of the United States, and the more Barbara
1321
G
Sept. 20 / Administration of George Bush, 1991
P
Sl
and I discuss these enormous problems that
Proclamation 6337-National Hispanic
OF
Mayor Daley confronts in his excellent way
Heritage Month, 1991
every day, or Jim Edgar, the Governor of
Wi
September 20, 1991
this State, confronts in his very effective
way as Governor, the more we contemplate
By the President of the United States
OF
those problems and the more I look at this
of America
Pe
great country of ours that I'm privileged to
lead at this point in history, and I must say
A Proclamation
it's a very exciting point, the more Barbara
When we speak of our Hispanic heritage,
and I conclude that family is absolutely es-
we speak of more than one particular set of
sential to our success. We have got to stay
customs and traditions. Indeed, the Hispan
involved, we have got to stay fundamentally
ic American heritage can be traced back to
involved. And when I speak to this group,
many different lands-to places as far-flung
it's almost like preaching to the choir be-
as Cuba, Mexico, Spain, and Peru. Never
cause I think if you exemplify one of the
theless, Americans of Spanish and Latin
prime values and principles that this group
American descent share a great sense of
and, indeed, Hispanic American culture all
pride in the deep cultural and historical ties
across our country exemplifies, is love of
that exist between them.
family and its faith and its conviction about
Rich and varied, the Hispanic American
our great country, the freest and fairest on
heritage is as old as the story of America
the face of the Earth.
itself. Daring Spanish navigators who ex-
So, thank you very much for letting me
plored the New World nearly half a millen-
come by and visit this highly successful con-
nium ago were the first Europeans to estab-
lish settlements in what is now United
vention. And let me tell you that it's a great
joy to be back with you again. And may
States territory. In fact, by 1565-almost
God bless our great country. Thank you
half a century before British colonists
very very much.
landed at Jamestown-the Spanish had
tablished a permanent settlement at Say
Augustine, Florida. Traders and missionaries
followed in the wake of explorers such as
Note: The President spoke at 1:45 p.m. at
Coronado, Ponce de León, and Álvar
the Hyatt Regency Hotel. In his remarks, he
Núñez Cabeza de Vaca, helping to open the
referred to Secretary of the Interior Manuel
American Southwest to further settlement
Lujan, Jr.; Secretary of Transportation
and development.
Samuel K. Skinner; Governor James Edgar
Making use of the land's resources
of Illinois; Richard M. Daley, mayor of Chi-
through farming, ranching, and mining,
cago; José Niño, president and chief execu-
Spanish peoples shaped much of the West-
tive officer of the United States Hispanic
ern frontier. Thriving communities took
Chamber of Commerce; Gabriel E. Aguirre,
root around many Spanish missions, and
former chairman of the board of the His-
today cities such as San Diego, Los Angeles,
panic Chamber of Commerce; Delia Reyes,
San Antonio, and Santa Fe continue to bear
chairman; Michael Jordan, member of the
evidence of their celebrated past. However,
Chicago Bulls basketball team; Secretary of
over the years, Hispanic Americans have
Housing and Urban Development Jack
made vital contributions in communities
Kemp; President Salinas de Gortari of
across the country and in virtually every
Mexico; Fidel Velazquez Sanchez, union
field of endeavor.
leader of the Mexican Labor Confederation;
Today Hispanic Americans are our Na-
José E. Martinez, Director of the Trade and
tion's fastest growing minority. The number
Development Program; President Fidel
of Hispanics in this country grew by 53 per-
Castro Ruz of Cuba; and Andrés Bande,
cent during the past decade, up from 14.6-
CEO of Ameritech International. These re-
million to 22.4 million. This means that HICi
marks were not received in time for publi-
panics now constitute about 9 percer³
cation in the appropriate issue.
our population.
et.)
1322
Administration of Ronald Reagan, 1988 / Sept. 30
are parts or
make up stories, jokes, and tell them among
on, jump. Go over the fall." And he did.
d. And inci
themselves, which reveals they've got a
And my man went down the rocks around
iance to see
great sense of humor, but also a little cyni-
the fall to see if he could be of help. And
ung people
cism about their way of life. And just as I
there he was down there wringing out his
n proud of
was coming home from the Moscow
nything I've
summit, I got another new one that was
shirt. And he said, "When he told you to
handed to me. This is their story, this is the
jump and go over the falls, why did you do
S, more im-
way they treat it, and it shows a little differ-
that?" He said, "I got a wife and three
ence between two systems.
kids." [Laughter]
crucial mat-
Ladies and
The story has it that I and Gorbachev are
So, thank you all, and God bless you all.
), I wonder
in his limousine. And I had the head of our
ve believed
Secret Service unit, and he had his chief
Note: The President spoke at 12:49 p.m. at
t hopes and
security man with him. And we were sight-
Wozniak's Casino. He was introduced by
true?
seeing. And we got out to where there was
Gov. James R. Thompson. In his opening
happened
a waterfall. And we got out of the car to
remarks, he referred to the late Aloysius
agined 8 or
look at the waterfall. And the Secretary
Mazewski and his wife, Florence, who was
a President
General Gorbachev said to my man, "Go
seated beside the President. He also referred
e an oppor
ahead, jump. Go over the fall." And my
to Representative Jack Davis; Stanley Woz-
nonths ago,
man said, "I've got a wife and three kids."
niak, owner of the casino; and Mr. Woz-
podium at
So he turned to his own man and said, "Go
niak's mother, Theresa.
I the young
about the
edom? And
I have been
Remarks at a Republican Party Fundraiser in Chicago, Illinois
get all the
September 30, 1988
SO they had
Id come to
the Young
Thank you very much. And, Jim, I thank
34, Sweetness itself, Walter Payton. Let me
you for that introduction. And thank you,
tell you something about that town: It ain't
we have
Mike Galvin and Dick Morrow. And I'd like
no Second City!
generations
to say hello to Congresswoman Lynn
Of course, it's not exactly the same place
moment of
Martin, who happens to be the Congress-
it was in the old days. I remember hearing
y. So, let us
woman where my hometown is-or was.
about a fellow who was assigned to be a
the Ameri-
And my valued friend and old colleague,
precinct watcher on election day here. He
te: the fate
Howard Baker. And again, a special thank
saw a fellow walk in and vote and walk out.
vision of a
you to Jim Thompson for that marvelous
And then the same fellow came in again,
il future of
introduction. Jim, you're a great guy and an
only this time with a different hat on-
ildren and
even greater Governor and a man who
[laughter]-and voted. And then he came
gives new meaning to an old phrase-be-
in again, only this time with a different
ime for a
cause unlike some Governors, Jim, you took
sport coat on, and voted. And the first
emen, let's
the Pledge. [Laughter]
fellow went up to the precinct captain and
hange. We
Now, they tell me I'm standing right in
said, "Hey, I think that man voted three
e going to
front of the pork bellies pit here. [Laughter]
times already." And the precinct captain
gress if you
That's funny, I never knew Congress spent
said, "Three times? That's impossible. He's
November
time in Washington-or in Chicago, I
not even dead yet." [Laughter]
ight at the
should say. [Laughter] They spend time in
Seriously, it's a great pleasure to be here
e horses in
Washington-and spend it and spend it.
on the floor of the Merc because this is a
e to switch
[Laughter] Actually, I might have to revise
place devoted to the future. And believe
e direction
my opinion of Congress if that were true,
me, when you've had as much past as I
because anyone with half a brain knows
have, you just love the future. [Laughter]
mitting to
that this is one of the world's great towns. A
Just think, only a few hours ago traders and
ave discov-
city that's home to Saul Bellow and Allan
brokers were waving their arms, screaming
viet Union
Bloom and Ernie Banks and yes, Number
themselves hoarse, betting on the future.
1255
Sept. 30 / Administration of Ronald Reagan, 1988
Come to think of it, they were a lot like the
change. We began the change 8 years ago.
But we didn
crowd in New Orleans during and after one
Now, let me talk a little bit about that
work ourselves
of the finest speeches I've ever heard, given
change: We're in the 70th straight month of
encouraging tl
by one of the finest men I've ever known, a
economic recovery. We've been dedicated
manding nothi
fellow by the name of George Bush.
to slashing taxes and liberating the Ameri-
cellence isn't ju
Some people want to talk this year about
can economy from the regulations and con-
ophy that says,
competence. Well, I say, fine, let's talk
fiscations of the "malaise" years. When we
cause that is W
about competence. I just happen to think
came into office, families everywhere were
can." Excellen
that the youngest flier in the Navy with 58
reeling from tax rates that were sapping
going to get it!
combat missions, the Texas wildcatter who
this nation's initiative. We took that money
We've gone
made his own way in the world, the Repub-
out of the grasping hands of the Washing-
system, appoir
lican Congressman from Houston, the chair-
ton bureaucrats and put it back in the wal-
who respect th
man of the Republican Party, the de facto
lets of the people from whom they confis-
meaning of th
Ambassador to China, the Ambassador to
cated it in the first place: the working men
crime has falle
the United Nations, the Director of the
and women of America.
cause we put
Central Intelligence Agency, and the Vice
President of the United States has it just
But you know, I have to interrupt myself
Make a false II
right here with just a little anecdote from
hear is the cl
about wrapped up in the competence de-
my previous days as Governor of California.
shut.
partment. We've all seen what a brilliant
job he's done in the past, and I can promise
I came into a situation there as Governor
We've gone
you he's going to do an even better job in
that was about the same as I came into in
fenses. We're
Washington a few years ago. But the differ-
world. Our Ai
the future.
ence between the two parties is evidence of
America is at
Looking ahead to the future is something
this. We began to have surpluses, and about
allies stood fir
George Bush has in common with the
people who work on this floor. It's also
the fourth surplus was the biggest. And
siles pointing
something he has in common with all of
each time that we had a surplus, we gave it
Asia. And Mr.
you and with the Republican Party as a
back to the people by way of the tax
He did busines
system. Well, this fourth one was big
business; and V
whole. You know, it used to be that being a
Republican in Cook County was a little bit
enough, and each time I would have to-I'd
America has
find out first that we were going to have a
distance in the
like being Elliot Ness in "The Untouch-
ables"|laughter]-outnumbered in a big
surplus so that I could go public and tell the
has faded of
people what we were going to do with it.
policy crises th
way. But more and more Chicagoans are
dent Bush anc
beginning to realize that if you want to go
I had a Democratic legislature, and then
with a future of opportunity, economic
they couldn't quite take on the people after
so many thing
growth, and peace through strength, there's
they'd heard that I was giving them back
right after Mr
do the cancan.
only one place to turn: the party of Abra
the money. [Laughter] And this particular
Yes, let's tak
ham Lincoln, the Republican Party.
day, a leader-Democratic leader in the
senate-stormed into my office and hit my
years before (
But I'm delighted to see so many new
to Washington
faces in this room, a sign of the change in
desk. And he said, "Mr. President, giving
Republican fortunes in Cook County. And
that money back to the people is an unnec-
Nicaragua, ano
Ambassador to
of course, there are two fellows here who
essary expenditure of public funds."
by Communis
really have seen the light, men of vision
[Laughter] I think that kind of sums up the
invaded by So
and tenacity, Jim O'Grady and Ed Vrdo-
difference between our two philosophies.
what was going
lyak. They saw the light and came aboard,
The result has been astounding. In the
The misery
which is fine by me. It's no secret I used to
past years, we've seen an explosion of hard
by adding the
be a Democrat before I saw the light, too.
work and innovation across this country,
unemployment
Only when I saw the light, I had to ask
people putting their shoulders to the wheel
ed in the 1976
Tom Edison, "What in heck is that thing,
and shifting their entrepreneurial energies
candidate Ca
anyway?" [Laughter]
into overdrive. And now more Americans
against Jerry F
George and our party look to the future-
are at work today, an amazing 62.7 percent
misery index
a future of continued growth, a future of
of all-this is what is considered to be the
has a right to
expanded opportunity, a future of peace. I
potential employment pool-of all Ameri-
misery index
hear some people say it's time for a change.
cans, male and female, from age 16 and up.
1976. In 1980
Well, ladies and gentlemen: We are the
And 62.7 percent of that group have jobs.
misery index,
1256
Administration of Ronald Reagan, 1988 / Sept. 30
e 8 years ago.
But we didn't stop there. We've gone to
was now 21 percent.
bit about that
work ourselves on the educational system,
8
Well, today it's less than 10 percent, and
night month of
encouraging the return to basics and de-
it's been shrinking faster than Walter
een dedicated
manding nothing less than excellence. Ex-
Hudson, the 1,200-pound man in New York
ig the Ameri-
cellence isn't just a good grade: It's a philos-
who just lost 700 pounds. Now, if only we
tions and con-
ophy that says, "You must do your best be-
could get Congress to follow Walter's exam-
ars. When we
cause that is what it means to be an Ameri-
ple. Maybe you didn't hear me a moment
rywhere were
can." Excellence-that's our goal, and we're
ago. He's that 1,200-pounder who's lost 700
were sapping
going to get it!
pounds-if we could get Congress to follow
k that money
We've gone to work on our judicial
Walter's example and cut the fat out of
the Washing-
system, appointing serious-minded judges
their diet. I think we ought to put them on
ck in the wal-
who respect the Constitution and know the
a diet, a diet called the line-item veto and
n they confis-
meaning of the word punishment. Violent
the balanced budget amendment. Now, you
working men
crime has fallen significantly since 1981 be-
know when I'm talking about the Congress
cause we put America's crooks on notice:
this way, present company is excepted-
errupt myself
Make a false move, and the next sound you
[laughter]-and a lot of her kind that are
necdote from
hear is the clang of a jail cell slamming
there on our side.
of California.
shut.
Well, back in 1979, Americans were wait-
as Governor
We've gone to work on our nation's de-
came into in
fenses. We're once again respected in the
ing in lines a mile long to buy gasoline. And
But the differ-
world. Our Armed Forces are strong, and
a President went on television that year to
America is at peace. We and our NATO
blame it all on the American people, telling
is evidence of
allies stood firm in the face of Soviet mis-
them it was all their fault. They were suf-
es, and about
siles pointing at the heart of Europe and
fering from some kind of malaise. Well, it
biggest. And
IS, we gave it
Asia. And Mr. Gorbachev got the message.
wasn't the American people: It was the
of the tax
He did business because he knew we meant
guys in Washington who had the malaise.
ne was big
business; and we still mean business!
And come 1980, those guys felt the winds
coming in off the lake, and those winds
have to-I'd
America has traveled such a remarkable
ng to have a
distance in the last 8 years that the memory
blew them all the way back to Georgia.
C and tell the
has faded of the economic and foreign
Today we have peace and prosperity, and
0 do with it.
policy crises that we faced when Vice Presi-
the liberals are trying to pretend those eco-
dent Bush and I took office. The last time
nomic and foreign policy nightmares they
re, and then
people after
so many things went wrong all at once was
gave us never happened. They're singing
g them back
right after Mrs. O'Leary's cow decided to
the same song they sang back then, and it
his particular
do the cancan. [Laughter]
sure isn't, "Don't Worry, Be Happy."
Yes, let's take a little journey back to the
[Laughter] It's more like, "Please Worry, Be
ader in the
years before George Bush and I were sent
Miserable [Laughter]
and hit my
to Washington. In just one year, 1979, Iran,
You can hardly blame them for trying to
ident, giving
Nicaragua, and Grenada were all lost. Our
convince the country that good news is ac-
is an unnec-
»lic funds."
Ambassador to Afghanistan was murdered
tually bad news. After all, what issues do
by Communist gunmen, and that country
they have to run on? Take defense-they
sums up the
invaded by Soviet troops. And add to that
opposed rebuilding our military defenses.
losophies.
what was going on at home.
They opposed the deployment of the mis-
ding. In the
The misery index-which you determine
siles in Europe to counter the Soviet threat.
sion of hard
by adding the rate of inflation to the rate of
They opposed the liberation of Grenada.
his country,
unemployment. And that had been invent-
They opposed the raid on terrorist Libya.
to the wheel
ed in the 1976 election, and it was used by
They oppose our policy of helping freedom
rial energies
candidate Carter-or President Carter
fighters advance the cause of liberty around
e Americans
against Jerry Ford. He used this because the
the world. George and I did all those things,
62.7 percent
misery index was 13.4, and he said no one
and I'll tell you proudly right now: We'd
d to be the
has a right to ask to be President with a
both do every single one of them over
all Ameri-
misery index that big. Well, that was in
again.
e 16 and up.
1976. In 1980 they never mentioned the
Well, now they're trying to get elected,
, have jobs.
misery index, after their 4 years, because it
and so they say the Nation's defenses are
1257
Sept. 30 / Administration of Ronald Reagan, 1988
safe with us. Well, ladies and gentlemen,
decided which department they should go
send the Chi
I've been Commander in Chief for almost 8
to and initialed them and sent them on.
Well, on No
years now, and I've studied their record
And one day a classified paper came to his
people will b
and their positions. And based on my re
desk marked "secret." And he initialed it
liberal bears
search, I'm going forth with a message for
and sent it on. In 24 hours it came back to
And why? Be
the American people: When they talk about
him with a memorandum attached that
bullish on An
a strong defense, I don't buy it.
said; "You weren't supposed to see this.
So, let us
They oppose the death penalty, even for
Erase your initials and initial the erasure."
sages and o
a crack dealer with a machinegun who
[Laughter] Well, now the liberals are talk-
woman, and
murders a police officer in the line of duty.
and across thi
ing about fiscal responsibility and how
George and I fought to protect the noble
that a vote fo
they pay America's debts. Well, once
men and women who protect us, and that
again, we've got to go out to the American
for prosperit
means the death penalty for these vicious
future.
people with a message: Don't look to a big
killers. If you ask me, there are no Ameri-
And I think
spender to pay America's bills.
cans braver and no citizens more precious
long. I just W
There's a solution to the spending crisis.
than the men and women who guard us:
you not only
That solution is so simple only a liberal
our State and local police.
also for what
could miss it. [Laughter] We just have to
But the liberals, like their flagship, the
you all.
spend less. But big spending is as seductive
ACLU-laughter]-often seem to concern
themselves with the rights of criminals and
as anabolic steroids, and it's time the big
forget about the rights of the citizens those
spenders were disqualified. We can accom-
criminals prey upon. But now they want to
plish that by giving George Bush what he
needs to do the job: a new Congress, a
Message t
get elected, and so they claim they re tough
on crime. Well, I've examined that record,
better Congress, a Republican Congress.
September
and we've all got to go out and tell the
And people in this area can help get the job
American people: When they say they re
done by reelecting a terrific first-term Con-
To the Congr
tough on crime, don't you believe it.
gressman from the Fourth District. He's got
In accorda
The liberals opposed our tax cuts, our tax
a tough race, but he's a tough-as-nails guy:
Control Act
reform efforts, our economic program that
Jack Davis. Send him back there.
deferrals of 1
slashed interest rates in half and put Amer-
We're working hard to solve the drug
$2,024,171,27
ica back to work. Now they say they want
crisis in this country, but we're facing some
The defen
to help the American middle class. And
resistance. Guess where? With the liberals
Appropriatec
what they're planning to do for the Ameri-
on Capitol Hill, that's where. The House has
partments of
can middle class is to tax them. Well, the
passed a drug bill with a lot of good and
Health and ]
traders on this floor would understand what
tough provisions. But now that bill is stalled
and Transpor
they're doing, and it's a message we all
in the Senate. I tell you this: If the Senate
have to bring to our fellow Americans: The
were controlled by Republicans today, we'd
liberals are selling the middle class short.
already have signed into law that drug bill,
The liberals have been slashing away at
and dealers and users everywhere would
Informal ]
our nation's defenses while passing budget-
know this country stands united behind two
busting bills through Congress- $87 billion
powerful words: zero tolerance
September
here, $23 billion there; and as Everett Dirk-
What it all comes down to is a clash of
sen might have said, pretty soon you're talk-
principles, of values, of visions. The liberals
The Presid
ing about real money. [Laughter] Every
look at this country and see problems, woes,
here. I had ]
time they see a problem, they think a big
gloom and doom. And you know, that's the
of the dog-:
government program run by bureaucrats in
kind of thinking that can turn into a self-
gressional bu
Washington is the solution-the same bu-
fulfilling prophecy. We look at this country,
hoped to ret
reaucrats who do so much to stifle individ-
and we see expanded opportunities, a glori-
the required
ual initiative and economic growth.
ous future, a future in which this nation is
they re not a
I brought with me to Washington a little
strong, protected by land and sea and air
have to stay
memory of what I had learned about a gen-
and, yes, space-courtesy of the Strategic
bills will be
tleman who had a job in Washington. He
Defense Initiative. We look to the future
sat at a certain place, and documents and
and see a nation healthy, a nation strong, a
bills and so forth came to his desk. And he
nation at peace. I know all of you want to
1258
Administration of Ronald Reagan, 1988 / Sept. 30
they should go
send the Chicago Bears to the Super Bowl.
Note: The President spoke at 7 p.m. on the
sent them on.
Well, on November 8th, the American
trading floor of the Chicago Mercantile Ex-
per came to his
people will be sending the gloom-and-doom
change. He was introduced by Gov. James
he initialed it
liberal bears into hibernation. [Laughter]
R. Thompson. In his opening remarks, the
it came back to
And why? Because they know that we are
attached that
bullish on America.
President referred to Michael Galvin, Illi-
ed to see this.
So, let us go then. Let's bring our mes-
nois Bush/Quayle campaign finance chair-
sages and our optimism to every man,
man; Richard Morrow, chairman of the re-
al the erasure."
berals are talk-
woman, and child across this great State
ception; Howard H. Baker, Jr., former Chief
and across this great nation. Let them know
of Staff to the President; writers Saul
ility and how
ts. Well, once
that a vote for us is a vote for peace, a vote
Bellow and Allan Bloom; former Chicago
) the American
for prosperity, and, yes, a vote for the
Cubs baseball player Ernie Banks; and Chi-
't look to a big
future.
cago Bears football player Walter J. Payton.
S.
And I think I've kept you from dinner too
The President also referred to James
spending crisis.
long. I just want to say a thank you to all of
O'Grady, Cook County sheriff, and Edward
only a liberal
you not only for your warm reception but
R. Vrdolyak, Republican candidate for
'e just have to
also for what you're doing. And God bless
Cook County Circuit Court clerk.
is as seductive
you all.
S time the big
We can accom-
Bush what he
W Congress, a
Message to the Congress Reporting Budget Deferrals
ican Congress.
September 30, 1988
elp get the job
first-term Con-
istrict. He's got
To the Congress of the United States:
The details of these deferrals are con-
gh-as-nails guy:
In accordance with the Impoundment
tained in the attached report.
Control Act of 1974, I herewith report 10
ere.
olve the drug
deferrals of budget authority now totalling
RONALD REAGAN
$2,024,171,278.
re facing some
The White House,
ith the liberals
The deferrals affect programs in Funds
September 30, 1988.
The House has
Appropriated to the President, and the De-
it of good and
partments of Agriculture, Defense, Energy,
Note: The attachment detailing the defer-
at bill is stalled
Health and Human Services, Justice, State,
rals was printed in the "Federal Register"
: If the Senate
and Transportation.
of October 14.
ins today, we'd
that drug bill,
ywhere would
ted behind two
Informal Exchange With Reporters
ce.
September 30, 1988
0 is a clash of
IS. The liberals
The President. I have a short statement
roblems, woes,
sign. So, goodnight, and pleasant dreams.
here. I had hoped that we'd mark the end
now, that's the
Q. Do you think you'll be able to sign
of the dog-ate-my-homework era of con-
rn into a self-
them all by tomorrow?
it this country,
gressional budgetry, but it was not to be. I'd
Q. Are you disappointed?
unities, a glori-
hoped to return tonight to sign the last of
The President. Yes.
1 this nation is
the required 13 appropriations bills, but
d sea and air
they're not all here. So, Congress is going to
the Strategic
have to stay and work so that all remaining
Note: The exchange began at 10:48 p.m. on
to the future
bills will be complete and in a form I can
the South Lawn of the White House.
ation strong, a
of you want to
bluow
1259
Fact Check Copy
(Snow/Nix)
Mercl
Draft One
December 6, 1991
PRESIDENTIAL REMARKS: CHICAGO MERCANTILE EXCHANGE AUDITORIUM
CHICAGO MERCANTILE EXCHANGE
Advance
TUESDAY, DECEMBER 10, 1991
[TIME]
[Introductory acknowledgments]
I really enjoyed the tour downstairs, but I've also been
looking forward to spending a few moments in this room. Here on
the upper floor -- the futures market of the future -- we can
peek into the next Century. Soon, probably sooner than you
expect, this so-called overflow area will be as packed and busy
as the trading pits below.
The Merc has become a bellweather of the future because it
never lost the pioneering spirit of its founders. You defied the
doomsayers when you moved out of your traditional market and
pioneered risk-pool management through the Exchange Trust. You
CEOech Penual
Report
established the first financial futures market, the International
ANY
1972
Monetary Market. You saw an international marketplace and
established overseas offices before most exchanges even thought
of setting up domestic branches. You invented Eurodollar Futures
a decade ago -- I know you celebrated its tenth anniversary
yesterday, and you should be proud. \\ My point is: The future
begins here -- every day.
Andy
Vemma
It's great to be here with Leo Melamed who, I suppose, you
CME
call the father of the Future. Now, you all know of Leo's
professional accomplishments, but Leo never left his imagination
2
at the office. As many of you know, he also has written
prodigiously. My favorite book was his science fiction thriller,
CMB Andy Bio
The Tenth Planet. [I hear he has a new sequel, Cousins.] I
thought The Tenth Planet was about Capitol Hill. But alas, not
even Commander Kyro can bring peace to the Beltway.
Banus
Capyo Book Book
Now, we have to impress some of my friends in Washington
with your importance. When politicians talk about the economy,
they sometimes sound as if they're talking about another planet.
An economy does not run just on money. An economy lives and
breathes ideas and information. A Leo Melamed can reshape an
entire world -- without being noticed in Washington.
Entrepreneurs like the men and women who trade in the pits
here, the farmers who work the fields by day and the computers by
night, arbitrageurs in London and investors the world over --
these real human beings swap ideas, information, dreams and
dares. They fire an economy. Their energy drives us forward as
a civilization.
A government that doesn't understand the gritty human
fundamentals of business cannot understand how to help an economy
Section Admins1
grow. Ten years ago, you stood beside us as the Reagan-Bush
administration took on the old wisdom that government could solve
everything, and that business could flourish regardless of what
burdens Washington heaped upon it. We slashed taxes, peeled away
regulations, restrained spending -- and unleashed the longest
peacetime economic expansion in our national history. While
3
others may have sat back to enjoy their new prosperity, you
forged ahead.
You have stood with my Administration, as we have worked to
create the conditions for a more vibrant economy. I have asked
Congress for three years to pass a series of growth initiatives -
- job initiatives. We believe, as you do, in free markets for
free people.
We have promoted straightforward measures to invigorate the
economy, such as a cut in the capital gains tax, banking reform,
letting first-time homebuyers use IRAs for purchasing homes, a
permanent tax credit for research and development, and so on.
We've also pushed other initiatives that have great impact on our
economy now and in the future -- a revolution in American
education, a tough crime package, tort reform, health care
reforms.
Although both parties will feel tempted to engage in
partisan warfare when Congress reconvenes, I will call upon
Democrats and Republicans to lay partisanship aside long enough
to pass a very strong, very clear growth package. Three years
ago I warned that we can't take growth for granted, and I asked
for growth initiatives. Now, no one takes growth for granted. I
won't rest until we in Washington do everything we can to free up
the economy, create new jobs and opportunities.
With your help we will build the future of our dreams.
Thank you, may God bless you and the United States of America.
#
#
#
#
cBoT -- 2 minutes. POTUS speaks at 9:25 a.m. He goes up ladder
(5 rung ladder to platform at top of soybean pit) and speaks from
pulpit. After remarks Pres will go down ladder to floor and ring
bell at 9:30 a.m. to begin trading.
Roundtable (no remarks)
Merc. -- Pres will tour trading floor (no remarks). Then a
roundtable (15 business leaders). Then: Remarks in auditorium
(4-500 people). [Brief remarks -- 5 to 7 recommended]
ACKNOWLEDGEMENTS
cBoT -- Billy O'Connor (Chairman) on stage with Pres. On floor (at
bottom of ladder) will be Tom Donovan (Pres.) ; In staff viewing
area on the floor will be Gov. Thompson (does sit on board of
cBoT), Gov. Edgar and Mayor Daley; Secretary Madigan. Also on
floor, 2 members of Illinois Farm Bureau -- Pres. John White and
VPres Enid Schlipf
Advance: While Donovan will be at the bottom of the ladder,
the remaining person listed above will be hard to spot with 1200
people around.
Merc -- Jack Sandner (Chairman), Bill Brodsky (Pres -- transplanted
New Yorker and Wall Streeter; Leo Melamed [Ma-LAH-med]
(Chairman Emeritus); Rep. Cardiss Collins and Dan Rostenkowski
In audience will be Gov. Thompson and (no need to mention?) Cook
County State's Attorney Jack O'Malley and U. S. Attorney Fred
Foreman
cBoT -- 2 minutes. POTUS speaks at 9:25 a.m. He goes up ladder
(5 rung ladder to platform at top of soybean pit) and speaks from
pulpit. After remarks Pres will go. down ladder to floor and ring
bell at 9:30 a.m. to begin trading.
Roundtable (no remarks)
Merc. -- Pres will tour trading floor (no remarks). Then a
roundtable (15 business leaders). Then: Remarks in auditorium
(4-500 people). [Brief remarks -- 5 to 7 recommended]
ACKNOWLEDGEMENTS
cBoT -- Billy O'Connor (Chairman) on stage with Pres. On floor
will be Tom Donovan (Pres.) ; Gov. Edgar and Mayor Daley; Secretary
Madigan. Also on floor, 2 members of Illinois Farm Bureau -- Pres.
John White and VPres Enid Schlits
Merc -- Jack Sandner (Chairman), Bill Brodsky (Pres -- transplanted
Nwe Yorker and Wall Streeter; Leo Melamed [Ma-LAH-med]
(Chairman Emeritus) ; Rep. Cardiss Collins and Dan Rostenkowski
In audience with be Former Gov. Thompson and (no need to mention?)
Cook County State's Attorney Jack O'Malley and U. S. Attorney Fred
Foreman
(Snow/Nix)
Merc
Draft Two
December 6, 1991
PRESIDENTIAL REMARKS: CHICAGO MERCANTILE EXCHANGE AUDITORIUM
CHICAGO MERCANTILE EXCHANGE
TUESDAY, DECEMBER 10, 1991
[TIME] 12:00 p.m.
Thank you, Jack [Sandner]. Bill Brodsky -- you've come from
Wall Street to Chicago, where the real action takes place. Leo
pronunciation
Melamed, the Babe Ruth of the exchange. It's also nice to see
members of Congress -- Cardiss Collins and Dan Rostenkowski.
Former Gov. Jim Thompson, greetings. And to all the other
officials and dignitaries here, welcome and thanks for your
hospitality today.
It's great to be back in Chicago. As you know, I recently
brought a new chief of staff to the White House. When John
Sununu resigned, I looked to the Windy City for help -- for
another sound manager, communicator and consummate politician.
While Mike Ditka was busy with other responsibilities -- Sam
Skinner makes a great addition to the White House. 11
I'd like to thank all of you for letting me visit the most
vigorous trading floor on earth. 11 I have seen the future --
and it uses hand signals. 11 At least for now. 11
I really enjoyed the tour downstairs, but I've also been
looking forward to spending a few moments in this room. Here on
the upper floor -- the futures market of the future -- we can
peek into the next Century. Soon, probably sooner than you
2
expect, this so-called overflow area will be as packed and busy
as the trading pits below.
The Merc has become a bellweather of the future because it
never lost the inventive spirit of its founders. You defied the
doomsayers when you moved out of your role and pioneered risk-
pool management through the Exchange Trust. You established the
first financial futures market, the International Monetary
Market. You saw an international marketplace and established
overseas offices before most exchanges even thought of setting up
domestic branches. You created Eurodollar Futures a decade ago -
- I know you celebrated its tenth anniversary yesterday, and you
should be proud. 11 In many ways, the future takes shape here -
- every day.
It's great to be here with Leo Melamed whom, I suppose, you
call the father of the Future. Now, you all know of Leo's
professional accomplishments, but Leo never left his imagination
at the office. As many of you know, he also has written
prodigiously. My favorite book was his science fiction thriller,
The Tenth Planet. [I hear he has a new sequel, titled Cousins.]
I thought The Tenth Planet was about Capitol Hill. But alas, not
even Commander Kyro can bring peace to the Beltway. 11
I know Dan Rostenkowski and Cardiss Collins understand your
importance, but we must impress some of their colleagues on
Capital Hill with your importance. When politicians talk about
the economy, they sometimes sound as if they're talking about
another planet. An economy does not run just on money. An
3
economy lives and breathes ideas and information. A Leo Melamed
can reshape an entire world -- without being noticed in
Washington.
Entrepreneurs like the men and women who trade in the pits
here, the farmers who work the fields by day and the computers by
night, arbitrageurs in London and investors the world over --
these real human beings swap ideas, information, dreams and
dares. They fire an economy. Their energy drives our nation
forward.
A government that doesn't understand the gritty human
fundamentals of business cannot understand how to help an economy
grow. Ten years ago, you stood with us as the Reagan-Bush
administration took on the old wisdom that government could solve
everything, and that business could flourish regardless of what
burdens Washington heaped upon it. We slashed taxes, peeled away
regulations, restrained spending -- and unleashed the longest
peacetime economic expansion in our national history. While
others may have sat back to enjoy their new prosperity, you
forged ahead.
You have stood with my Administration, as we have worked to
create the conditions for a more vibrant economy. I have asked
Congress for three years to pass a series of growth initiatives -
- job initiatives. We believe, as you do, in free markets for
free people.
We have promoted straightforward measures to invigorate the
economy, such as a cut in the capital gains tax, banking reform,
4
letting first-time homebuyers use IRAs for purchasing homes, a
permanent tax credit for research and development, and so on.
We've also pushed other initiatives that have great impact on our
economy now and in the future -- a revolution in American
education, a tough crime package, tort reform, health care
reforms, and recently -- a transportation bill that will create
jobs and provide much-needed repair for our roads and bridges.
Although both political parties will feel tempted to engage
in partisan warfare when Congress reconvenes, I will call upon
Democrats and Republicans to lay partisanship aside long enough
to pass a very strong, very clear growth package. Three years
ago I warned that we can't take growth for granted, and I asked
for growth initiatives. Now, no one takes growth for granted. I
won't rest until we in Washington do everything we can to free up
the economy, create new jobs and opportunities.
As we look to get our economy booming, and as we look toward
a new Century, I can't think of a better place to be than the
Merc. Years ago, Carl Sandburg described this city as Hog
Butcher for the world. That was the Chicago of another era,
another world. Today, Chicago serves as the pork bellies future
-- the currencies future -- the future, period -- of an
international marketplace. So thanks again. Thanks for this
great jacket. Now, go out and help us shape a great American
future. 11
With your help we will build the future of our dreams.
Thank you, may God bless you and the United States of America.
#
#
#
#
NOT
tact Check copy
cancelled
(Snow/Nix)
Merc2
December 6, 1991
Draft One
PRESIDENTIAL REMARKS: CHICAGO MERCANTILE EXCHANGE TRADING FLOOR Advance
CHICAGO MERCANTILE EXCHANGE
TUESDAY, DECEMBER 10, 1991
12:45 P.M.
Andy Juma
CECCME
Thank you, Jack [Sandner]. [introductory acknowledgments].
CME
It's great to be back in Chicago. As you know, I recently
brought a new chief of staff to the White House. When John
Sununu resigned, I looked to the Windy City for help -- for
another sound manager, communicator and consummate politician.
While Mike Ditka was busy with other responsibilities -- Sam
Aniouncement
SPK2
Skinner makes a great addition to my Administration. 11
Press Dec5 corf
[joke]
I'd like to thank all of you for letting me visit the most
vigorous trading floor on earth. 11 I have seen the future --
and it uses hand signals. 11
At a time when many people fret about competitiveness and
sluggish economic growth, the Merc puts on a show of old-
fashioned American ingenuity. From the days of the Chicago
CMEekgroundoR
Produce Exchange to now, you have served the needs of the economy
of your time, while building the economy of the future --
creating new products, pioneering new markets, serving as the
risk manager for a changing, complex economy.
Think of this place as Capitalism Central. People from all
over the world trade here, and you generate a greater dollar-
2
volume in transactions than any exchange on earth. So let me
say: Your courage, foresight, ingenuity and enterprise capture
the finest aspects of our national character. As a nation of
explorers, dreamers, entrepreneurs, and doers, we have helped
reshape the world.
I know many people in America have felt the pain of a
recession and the frustration of a sluggish recovery -- but the
CME
Sheet
Merc plows on -- you still sell the priciest seats in the
Fact
&
exchange business, and your trade volume jumped a heartening 4.1
Predease
percent in the last year.
You know that we live in an international marketplace, and
that we can't build an economy of the future if we feel content
to stay at home. Mankind has learned repeatedly this century
that protectionism breeds poverty and isolationism invites war.
Since the end of World War II, the United States has enjoyed
greater prosperity and security than ever before because we
remained engaged -- in trade, in security, in the world around
us.
I get criticized for working on foreign policy, but
virtually everything we do overseas has an impact on the American
Calender
workplace. I'll visit Asia in several weeks, and I'll work
toward opening new markets for American businesses and opening
the way for new jobs here in the United States. And I'll meet
this weekend with a man who graced your floor earlier this year,
spolling
President Carlos Salinas of Mexico. A North American Free Trade
TCME
3
Agreement can foster prosperity throughout our hemisphere, and
I'm determined to make it happen as soon as possible.
You provide an inspiration and an example for an America
engaged in the international marketplace. The Merc works
Annual
actively with leaders all over the world -- I especially like
Vaclav Havel's wearing your "Future of Freedom" sweatshirt.
CEO't
ceech Sandner
Nations struggling to explore freedom's promise look your way for
guidance and hope -- because, as Jack Sandner has said -- you're
CEO
the best at what you do.
As we look to get our economy booming, and as we look toward
a new Century, I can't think of a better place to be than the
Merc. Years ago, Carl Sandburg described this city as Hog
CME Backgraindere
Butcher for the world. That was the Chicago of another era,
another world. Today, Chicago serves as the pork bellies future Backgounder
CME
-- the currencies future -- the future, period -- of an
international marketplace. So thanks again. Thanks for this
great jacket. Now, go out and create a future for us all. 11
May God bless you and the United States of America.
#
#
#
#
(Nix/Nix)
Merc
December 6, 1991
Draft One
PRESIDENTIAL REMARKS: CHICAGO MERCANTILE EXCHANGE
MAIN TRADING FLOOR
December 10, 1991
X:XX P.M.
[Thank you, Jack. Other acknowledgements.] And thanks for
the jacket. JOKE.//
I'll try to keep my gestures to a minimum. I don't want to
accidentally trade anything.//
It's great to be here in the pits. Barbara gets upset with
me if I throw one piece on paper on the floor. There's more
paper on the floor here than.
//
I'm glad to be here on the floor of the Merc. Your efforts
here are what lead us to an optimistic future. And I share your
vision. This administration is bullish on the future just as you
are.
You've worked very hard to forge American opportunities in
the international marketplace. And you've been very successful -
- not only in advancing your own opportunities, but in giving way
to economic opportunities for this country.
We all know that economic growth is sluggish. But what's
important is not to give way to the siren wailing of liberals on
Capitol Hill. Their standing still when the rest of this country
wants to get moving. And if they'd pass the series of growth
initiatives I sent three years ago, we'd be moving.
Thank you all. Stay bullish on America. God bless you all.
(Snow/Nix)
Merc
November 5, 1991
Draft Five
PRESIDENTIAL REMARKS: CHICAGO MERCANTILE EXCHANGE
Advance
CHICAGO MERCANTILE EXCHANGE
NOVEMBER 10, 1991
12:45 P.M.
Thank you, Jack [Sandner]. [introductory acknowledgments].
It's great to be back in Chicago. As you know, I recently
brought a new chief of staff to the White House. When John
the
Sununu resigned, I looked immediately to A Windy City for help --
changed
for someone who fits my kinder-gentler philosophy, who
understands politics, who can get the job done. While Mike Ditka
had other things on his mind -- Sam Skinner makes a great
addition to Administration. 11
[joke]
I'd like to thank all of you for letting me visit the most
vigorous trading floor on earth. 11 I have seen the future --
and it uses hand signals. 11
Actually, here on the upper floor -- the futures market of
the future -- we can peek into the next Century. Soon, probably
sooner than you expect, this so-called overflow area will be as
packed and busy as the trading pits below.
At a time when many people fret about competitiveness and
sluggish economic growth, the Merc puts on a show of old-
fashioned American ingenuity. From the days of the Chicago
Produce Exchange to now, you have served the needs of the economy
2
of your time, while building the economy of the future --
creating new products, pioneering new markets, serving as the
risk manager for a changing, complex economy.
You pioneered risk-pool management through the Exchange
Trust. You established the first financial futures market, with
the International Monetary Market. You saw an international
marketplace and established overseas offices before most
exchanges even thought of the possibility. You invented
Eurodollar Futures a decade ago -- I know you celebrated the
tenth anniversary of that innovation yesterday, and you should be
proud. The future begins here -- every day.
Think of this place as Capitalism Central. You have made it
possible for people all over the world to trade here, and you
generate a greater dollar-volume in transactions than any
exchange on earth. I would list your other innovations, but I
have just ten minutes to speak.
So let me say: Your courage, foresight, ingenuity and
enterprise capture the finest aspects of our national character.
As a nation of explorers, dreamers, entrepreneurs, and doers, we
gronunciates
have helped reshape the world.
[Me-LAH-med]
It's great to be here with Leo Melamed who, I suppose, you
call the father of the Future. Now, you all know of Leo's
professional accomplishments, but Leo never left his imagination
at the office. As many of you know, he also has written
prodigiously. My favorite book was his science fiction classic,
Mere.
3
The Tenth Planet. I bought it because I thought it was about
Capitol Hill.
When politicians talk about the economy, they sometimes
sound as if they're talking about another planet. An economy
does not run just on money. An economy lives and breathes ideas
and information. A Leo Melamed can reshape an entire world --
without being noticed in Washington. Entrepreneurs like the men
and women who trade in the pits here, the farmers who work the
fields by day and the computers by night, the investors the world
over -- these real human beings swap ideas, information, dreams
and dares. They fire an economy. Their energy drives us forward
as a civilization.
A government that doesn't understand the gritty human
fundamentals of business cannot understand how to help an economy
grow. Ten years ago, you stood beside us as the Reagan-Bush
administration took on the old wisdom that government could solve
everything, and that business could flourish regardless of what
burdens Washington heaped upon it. We slashed taxes, peeled away
regulations, restrained spending -- and unleashed the longest
peacetime economic expansion in our national history. While
others may have sat back to enjoy their new prosperity, you
forged ahead.
I know many people in America have felt the pain of a
recession and the frustration of a sluggish recovery -- but the
Merc plows on -- you still sell the priciest seats in the
4
exchange business, and your trade volume jumped a heartening 4.1
percent in the last year.
You have stood with my Administration, as we have worked to
create the conditions for a more vibrant economy. I have asked
Congress for three years to pass a series of growth initiatives -
- job initiatives. We believe, as you do, in free markets for
free people.
We have promoted straightforward measures to invigorate the
economy, such as a cut in the capital gains tax, banking reform,
letting first-time homebuyers use IRAs for purchasing homes, a
permanent tax credit for research and development, and so on.
We've also pushed other initiatives that have great impact on our
economy now and in the future -- a revolution in American
education, a tough crime package, tort reform, health care
reforms.
Although both parties will feel tempted to engage in
partisan warfare when Congress reconvenes, I will call upon
Democrats and Republicans to lay partisanship aside long enough
to pass a very strong, very clear growth package. Three years
ago I warned that we can't take growth for granted, and I asked
for growth initiatives. Now, no one takes growth for granted --
and I won't rest until we get down to doing the business the
people elected us to do.
You know that we live in an international marketplace, and
that we can't build an economy of the future if we feel content
to stay at home. Mankind has learned repeatedly this century
5
that protectionism breeds poverty and isolationism invites war.
Since the end of World War II, the United States has enjoyed
greater prosperity and security than ever before because we
remained engaged -- in trade, in security, in the world around
us.
I get criticized for working on foreign policy, but
virtually everything we do overseas has an impact on the American
workplace. I'll visit Asia in several weeks, and I'll work
toward opening new markets for American businesses and opening
the way for new jobs here in the United States.
You provide and inspiration and an example. The Merc works
actively with leaders all over the world -- I especially like
Vaclav Havel's wearing your "Future of Freedom" sweatshirt.
Merc
Nations struggling to explore freedom's promise look your way for
guidance and hope -- because, as Jack Sandner has said -- you're
the best at what you do.
As we look to get our economy booming, and as we look toward
a new Century, I can't think of a better place to be than the
Merc. Years ago, Carl Sandburg described this city as Hog
Mere
Butcher for the world. That was the Chicago of another era,
another world. Today, Chicago serves as the pork bellies future
-- the currencies future -- the future, period -- of an
international marketplace. So thanks again. Thanks for this
great jacket. Now, go out and create a future for us all. 11
May God bless you and the United States of America.
#
#
#
#
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Speech by CME CEO
REMARKS TO CHICAGO FUTURES INDUSTRY ASSOCIATION LUNCHEON
by
John F. "Jack" Sandner
Chairman, Chicago Mercantile Exchange
June 13, 1991
*****
A short time ago, an interesting photo of Vaclav Havel crossed my
desk. The photo, which appeared in Expression, the international magazine
of American Express, was a full page shot of the president of Czechoslovakla
wearing one of our Chicago Mercantile Exchange "Future of Freedom"
sweatshirts-one of a batch of sweatshirts that had been designed exclusively
for the 1990 FIA Boca Raton Convention.
Naturally I was pleased, just as Bill Smithburg of Quaker is undoubtedly
pleased, when, at the end of one of those crucial football games, the players
douse their victorious coach with the Gatorade bucket. And, of course, how
pleased must American Express's own Jim Robinson have been when that
shot of an amused President Bush handing over his American Express Card,
for identification purposes, to a skeptical youngster found its way onto virtually
every front page in America?
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But the sweatshirt incident, while it was a happy coincidence, was by
no means a fluke. Not symbolically at least. Because it's no accident that
we are increasingly coming into contact with influential leaders hailing from
a variety of world capitals. We're the best at what we do.
We all know about the stockyards, and most of us know about Carl
Sandburg's poem, Chicago. For much of this century, Chicago was, as
Sandburg put it, "Hog butcher for the world," with the world's greatest
stockyards, the Union Stockyards, founded and developed Philip Armour, the
meat packing baron, in 1865. Later those stockyards would be immortalized
in song (My Kind of Town, sung by Frank Sinatra and written by Sammy
Cahn).
Time eventually caught up with the stockyards. By 1971 they were
closed. Fortunately, when a door is closed, a window is frequently opened.
For Chicago, such a window was the financial futures revolution, started at
the Merc in 1972.
Almost 20 years later, the Chicago Mercantile Exchange is "Risk
manager for the world," a "must-stop" on the itineraries of a host of world
leaders.
2
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The former president of China, LI Xlannian was here in 1985. In 1988
it was then Prime Minister John Hawke of Australia and, later, our own
President Ronald Reagan. More recently, in April, President Carlos Salinas
de Gortari of Mexico was here. Then, a month later, It was General Colin
Powell, the chairman of the Joint Chiefs of Staff.
President Salinas, stumping at the time for free trade, received a
particularly warm and boisterous welcome. It was, I told him, that much more
impressive because as far as I could remember, the only person ever
accorded a bigger welcome was Muhammad Ali.
Salinas, incidentally, was equally complimentary. He talked about the
egalitarianism on the floor. He cited the eagerness on the faces of the
traders. He talked about the floor as a meritocracy, where anyone can make
it-anyone, that is, who's willing to work hard, who's willing to put in long
hours, who's willing to assume the risks.
That's the attraction. That's what draws Salinas. That's what
impresses Havel, Vice President Guillermo Ford of Panama, Leonld Abalkin
3
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of the Soviet Union and a variety of leaders in Hungary and
elsewhere-leaders that we have conferred with in the past?
They are intent on creating and fostering real and permanent economic
growth. They are privatizing what had been nationalized. They are letting
the magic of the free markets work. "Free Markets for Free Men," as 1 have
long said. They have come to realize that if their people will ultimately be the
muscle by which this coonomic growth is achieved, then deep, broad and
efficient capital markets, for securities and futures, will ho the lungs. And
fortunately, because of all we have put into place here, particularly in the past
two decades, futures markets to them mean "Chicago-style" futures markets.
The CME. The Global Village for Risk Management.
And why not? Without a doubt, most of the financial futures innovations
that have occurred since 1972, and which have since sparked the Industry's
incredible spurt of growth, were home grown. Today, the Chicago exchanges
are the biggest. In terms of open Interest, and in the notional value thereof,
the CME's Eurodollar futures contract, set to celebrate its 10th birthday on
December 9 of this year, is the largest, by far, in the world.
4
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As Futures and Options World wrote in its 1991 Directory and Review,
"The Chicago exchanges continue to dominate the scene." We are the
acknowledged leaders in futures and options trading. We are the Risk
Management Capital of the World.
What has this all meant for the Chicago? A 1989 report issued by the
Chicago Risk Management Center Committee states:
The Chicago exchanges and related businesses have brought
thousands of jobs to the area, billions of dollars in deposits to
Chicago banks, and worldwide prestige to the city in the last 15
years. In 1986 (the most recent year for which statistics are
available) exchanges and member firms alone provided direct
employment for 33,000 individuals. Total direct and related
employment for that year was pegged at 110,000 jobs. Nearly $1
billion in exchange related spending was generated by the
exchange community and average daily deposits in local banks
were $4 billion. In major expansion projects undertaken in recent
years, Chicago's exchanges have invested over $400 million in
new buildings, technology and trading floors.
5
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The other important point made in the study-one that bodes well for
the future-is that we are an exporter of expertise and technology. The study
maintained that during the last ten years, exchanges modeled after ours were
established in London, Tokyo, Sydney, Paris, Singapore, Sao Paulo,
Switzerland and other financial centers.
Since that report, we have redoubled our efforts in this area. if in the
past, much of that exchange development had been along the "imitation Is
the best form of flattery" line, now we are Intentionally exporting technology
and expertise.
Last fali, en route to London for our annual marketing symposlum,
officials from the Board of Trade and the CME traveled to Budapest and
Moscow to sign letters of intent to provide technical assistance to newly
established exchanges. More recently, as you may have read in the Tribune
(Saturday June 10) or the Financial Times (Thursday June 13) we at the
Merc have positioned ourselves to where we are on the verge of launching
a venture with the government of Panama to help them transform their
fledgling Bolsa de Valores into a regional Latin American financial exchange.
6
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Incidentally, when Panama developed as a regional banking center in
this century, it did so for much the same reason as Chicago in the last
century. Our role as a regional finance center grew from the railroads and
Great Lakes. Likewise, Panama's role grew from the commerce and finance
generated by the Panama Canal. Also critical, of course, in Panama's
development as a regional banking center was and is the fact that the U.S.
dollar is the country's official currency.
Recently 1 met with Guillermo "Billy" Ford, Panama's vice-president, In
Washington. While there, we hammered out the details on what we expect
to be a three-phase program to assist that country in building and running a
Latin American securities and futures exchange. Our hope is that this
exchange will be up and running by the mld-1990s, and that it may trade
such innovative products as futures on third-world debt paper and/or a freight
index.
I'd like to say a few words about Billy Ford. He is best known today
as the leader of the opposition to Manuel Noriega, the deposed dictator.
Though many of you will not remember him by name, you will, perhaps,
recall the cover photo on Time magazine of a bloodied Billy Ford being
7
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beaten by Noriega's thugs. Before all that, during the late 1960s, he was
instrumental in developing Panama's banking center.
The good sense that he has displayed throughout his public career is
what convinces him today that the next logical step for Panama's economy,
which is largely service-driven, is development of a broad, liquid exchange
trading regional financial instruments and commodities.
This Panama project puts our longstanding plan into action.
Recognizing that, today, our clientele is worldwide, that our scale is global,
this new function, as an ambassador for free enterprise and risk
management, will only serve to benefit our membership in the coming years.
You see, we may be "dominant" today, but there are no guarantees for the
future. Which is as it should be.
In fact, the same Futures and Options World directory I mentioned
earlier also noted that the "real attractions" in the list of the top ten
exchanges are LIFFE, the London International Financial Futures Exchange
and TIFFE, the Tokyo International Futures Exchange. In the case of the
former, a 43 percent increase In 1990 took that exchange's volume past 34
8
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million. Meanwhile, the latter, "after its first full year's trading, wont straight
into the number ten spot."
We are addressing that compatition in a several Important ways. To
us, staying competitive means cutting costs, which we have during the past
year. It also means pushing ahead technologically, in order to streamline the
trading process and make the trading floor more efficient. Finally,
competitiveness means vigilance in terms of Washington-the 800-pound
gorilla of our Industry.
Well!
Beginning in reverse order, I will now briefly address each of these
points.
In April, the Senate finally passed a CFTC reauthorization bill. Looking
back on this grueling process which is not quite over (though we're now
probably 85 percent of the way) I'm reminded of what Bismarck, the great
German statesman, once said. He remarked that the law is not really very
different from sausage in terms of how It is made. Therefore, he suggested,
the true lovers of either sausage or the law would be best advised to stay
away from the processing plant.
9
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I do love the law. Unfortunately, staying away from the processing
plant, Capitol Hill, has not been an option for me. We fought for this
legislation beginning in the 101st Congress only to see it stalled in the
Senate. This winter, shortly after the 102nd Congress was sworn in, we
renewed the fight. While the House of Representatives moved fairly quickly,
the Senate held out until April, when, by a 90-8 vote, they finally passed their
version of a reauthorization bill.
To be sure, the securities Industry did come up with an 11th hour
amendment that would have permitted the originators of hybrid financial
products to choose whether to list their creations on futures or equities
markets. That amendment, Incidentally, would have also given the SEC
authority over swaps and IPs, the so-called stock Index participations.
Fortunately, because of the efforts of the CME, the Board of Trade, other
exchanges, the FIA, the NFA, the Farm Bureau and so on we were able to
push that amendment aside by a 65-33 vote.
As it is now written, the Senate bill retains the CFTC as the regulator
of all futures, including stock index futures. The Federal Reserve Board did
gain oversight of margins on stock index futures, but day-to-day margin
setting will stay right where it ought to be: with the exchanges.
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Next, the members of the House and Senate will convene a conference
committee to iron out differences in the two bills. We are told that this
committee will begin deliberations in July or August. Once a single bill is
hammered out. Both houses are expected to approve it and send it to the
President for his signature.
heeking
this
As for other Washington issues, we continue to marshall all of our
persuasive skills in order to discourage a small but persistent group from
levying a transaction tax. Unfortunately, while these proposals never quite
die, we all know that when other countries are eliminating such fees and
taxes, it makes no sense to implement them here. At any rate, I am certain
that this issue will continue to demand a great deal of our attention.
Meanwhile, in this era when competitiveness is paramount, cost-cutting
and efficiency are facts of life. For this reason, the CME trimmed $10 million
from its 1991 budget before the year even started.
Also, with a little prodding from our members perhaps, but knowing It
was the right thing to do all the same, we put a new clearing-fee schedule
into effect in March. Actually, as many of you know, we had put a new
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schedule into effect in January. However, due to objections to the original
plan, the Board appointed an ad hoc committee to get input from members
who raised the objections and to then make new recommendations.
Ultimately, we moved to reduce the futures fee for upstairs traders from
20 cents per side to 7 cents per side. We also reduced the options fee
charged to lessees and clearing-member employees from 14 cents per side
to 10 cents.
As for technology, work continues on our joint Board of Trade-CME
AUDIT project. The three prototypes of this hand-held electronic trading card,
built by Spectrix, Texas Instruments and Synerdyne respectively, are being
tested sequentially. Initial testing has been completed on the Spectrix
prototype. Therefore, while the hand-held program Is being fine tuned, we
are making the preparations that will be necessary for testing in our
Deutschemark pit, which is where each of the prototypes will in turn be
subjected to live-fire beginning around mid-July.
Incidentally, we anticipate that they will be phased in for trading once
the testing cycle is concluded. Initially, then, AUDIT terminals will be used
only an hour or two per day.
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Then, of course, there's GLOBEX, which, you must remember, is simply
light years beyond anything else. Certainly the Gulf War served as only the
latest reminder as to just how crucial the ability to hedge in real time has
become. As Barrons's wrote back In early August, well before any shots had
been fired by the U.S. and its allies:
Nowhere, but perhaps on the battle lines of the Middle East, was
the atmosphere more unnerving than in the world futures markets.
Unnerving? Yes. But despite this, world futures markets performed
smoothly and efficiently. And this without GLOBEX. Once GLOBEX
becomes operational, it will usher In an era of unprecedented efficiency. A
fact which may not be lost even on the New York Stock Exchange.
Sometime in 1991, GLOBEX will become operational. When it does,
between the CME and the cBoT, GLOBEX will include over 50 percent of
the world's volume in futures and options. It is an unbeatable combination,
and we believe it will draw as a magnet all the exchanges that count, as (we
are delighted to note) it has MATIF. Since our agreement with the CBOT,
we have been approached by literally every exchange in the world.
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As for deploying GLOBEX, naturally we're eager. But our first priority
is to get it right. And frankly, we'd rather have Reuters take all the time it
needs for complete system testing, because once we hit the start button on
day one, there'll be no more testing and no turning back.
We may have initially underestimated the consequences of this
undertaking. But in the scheme of things, considering how much we will
move the world for the next 50 to 100 years, I figure, what's the rush? We
are light years ahead of everyone else.
AUDIT and GLOBEX are just two examples of our new spirit of
cooperation with the Board of Trade. By now, virtually everyone associated
with our industry in this town knows about the Common Goals committee that
we have established with the Board of Trade.
Again, in terms of competitiveness, consolidation of certain functions
with the Board of Trade would give all concerned badly needed economies
of scale. But all this will take time, because, in important respects, the
CBOT and the CME are fundamentally different. For example, while we will
try to unify clearing, because it makes sense for members of both exchanges,
that process promises to be a long one. The Board has a not-for-profit
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clearing house, ours is very much a part of the CME revenue stream. We
have, however, begun to coordinate marketing functions. On that score, the
recent Tokyo international finance symposium (which was, incidentally, a huge
success) was a joint CME-CBOT effort.
In closing let me assure all of you who are allied with the exchanges
that we are aware of your problems. Therefore, just as you must, we pledge
to continue to run our exchange In a sound and prudent manner. And we
further pledge to communicate just as effectively as we possibly can. And
never for a minute forget that paramount in our thoughts is this: We will
maintain Chicago's role as the risk management capital of the world.
Thank you.
15
CHICAGO MERCANTILE EXCHANGE
JOHN F. SANDNER
CHAIRMAN
BOARD OF GOVERNORS
John F. (Jack) Sandner is serving a record seventh term as Chairman of the Board of
Governors of the Chicago Mercantile Exchange, having most recently been elected to a
one-year term in January 1991. He was first elected chairman in 1980 and served for three
consecutive terms through 1982, followed by three years as the Board-appointed Legislative
Liaison. He was re-elected Chairman in 1986 and served through 1988. In 1989 and 1990
he served in the post of Senior Policy Advisor. Under CME rules, a Chairman is limited
to three consecutive one-year terms.
Mr. Sandner joined the CME as a member in 1971. Since then he has served on and been
Chairman of numerous committees, including the International Steering Committee,
Strategic Planning Committee, Financial Instruments Steering Committee, Agricultural
Steering Committee, Building Improvement and Real Estate and Special Real Estate
Planning Committees, Political Action Committee, Arbitration, Business Conduct, Floor
Facilities and Operation, Rules, Live Cattle, Feeder Cattle and Probable Cause committees.
Mr. Sandner is president and chief operating officer of Rufenacht, Bromagen & Hertz, Inc.
(RB&H, Inc.), a position he has held since January 1978.
Born November 3, 1941, the Chicago native graduated valedictorian from high school and
received his undergraduate Bachelor of Arts degree in 1965 from Southern Illinois
University. He earned a Doctor of Jurisprudence degree from the University of Notre
Dame in 1968. The Law School awarded him the Dean Clarence Manion Award and he
won the 3-year Moot Court Competition the same year. He was admitted to the Illinois
Bar in 1968.
Mr. Sandner formerly was a trial attorney with Lane and Monday, and currently is a
member of the American Arbitration Association. He has been admitted to practice before
the Supreme Court of the United States, the U.S. Court of Appeals, the U.S. District Court
and the Supreme Court of Illinois.
In addition to serving as a CME Governor since 1977, Mr. Sandner is on the University of
Notre Dame Law Advisory Council (1988 to present), the Board of Directors of Notre
Dame Law Association (1984 to present) and the Board of Directors of the National
Futures Association (1982 to present), where he also has served as Chairman of the Central
Region Business Conduct Committee for nine years. In addition, in 1980 he was appointed
to the Illinois Secretary of State's Commodities Advisory Committee. He is a founding
member of the Board of Directors of the International Press Center -- Chicago.
Mr. Sandner is married and has six children.
07/91
30 South Wacker Drive Chicago, Illinois 60606 312/930-1000
LONDON
NEW YORK
WASHINGTON, DC
TOKYO
CHICAGO MERCANTILE EXCHANGE
WILLIAM J. BRODSKY
PRESIDENT AND CHIEF EXECUTIVE OFFICER
William J. Brodsky joined the Chicago Mercantile Exchange on September 7, 1982 as
Executive Vice President and Chief Operating Officer. On June 1, 1985, he succeeded
Clayton Yeutter as President and Chief Executive Officer.
Prior to joining the CME, Mr. Brodsky was with the American Stock Exchange from
1974 to 1982 and held the title of Executive Vice President for Operations between
1979 and 1982. From 1968 to 1974, Mr. Brodsky was an attorney with the New York
investment banking and securities brokerage firm of Model, Roland and Company.
Mr. Brodsky received an A.B. degree from Syracuse University in 1965 and a J.D.
degree from the Syracuse University College of Law in 1968. He is a member of the
bar in New York and Illinois.
At Syracuse University, Mr. Brodsky serves on its Board of Trustees, the Endowment
Committee and the Board of Visitors of its College of Law.
Currently, he is a Board Member of the Chicago Council on Foreign Relations, J. L.
Kellogg Graduate School of Management Advisory Council, and the Chicago
Association of Commerce and Industry. He is a member of the Commercial Club of
Chicago and The Economic Club of Chicago.
He also serves on the boards of the Japan American Society of Chicago, the Swiss
Commodities, Futures and Options Association, and the International Futures and
Commodities Institute in Geneva.
02/91
30 South Wacker Drive Chicago, Illinois 60606 312/930-1000
LONDON
NEW YORK
WASHINGTON, DC
TOKYO
Dec 5, 1991
Tony --
How has recession affected trade volumes and seat prices? -- Per
convo with Merc "Not much. Actually, we're about 5% ahead of last
year's trade volume. Seat prices haven't been hurt. We had a
record of a half a million a couple of years ago; now it's about
425,000." SEE FAX FROM MERC
I lied, I lied, I lied. I talked to Jennifer about what they saw
on the advance trip and she said the room they saw was away and
above the Main Trading Floor. I called Merc to verify and he said
they've decided to set up riser seats in a half moon in the main
room of the Upper Trading Floor. (The upper floor was constructed
for anticipated growth.) And according to Jen there is nothing
spectacular about this room. She said it's very convention-like.
I guess what he can do for descriptive color is refer back to his
tour -- what I just saw down there, what I just heard down there,
what I just felt down there
SENT BY:CME-PUBLIC AFFAIRS
:12- 5-91 :12:11PM ; CME-PUBLIC AFFAIRS-
912024566218;# 1/ 4
CHICAGO MERCANTILE EXCHANGE
91 NOV 4 P12: 37
TELEFAX MESSAGE
TO:
rhichelle Nix - WHITE House
FROM:
JOE WHELAN - Communications
DATE:
12/5
2N
pages will follow this cover page.
Please call (312) 930-3436 if there are any problems with this
transmission.
NOTES: In light of our conversation re:-
volume, seat prices, I thought the
attached would be helpful. Sur Pats most
recent full CME sent sale, on 11/27 ,
was for $ 445,000.
30 South Wacker Drive Chicago, Illinois 60606 312/930-1000
LONDON
NEW YORK
WASHINGTON, DC
TOKYO
SENT BY:CME-PUBLIC AFFAIRS
:12- 5-91 :12:12PM ; CME-PUBLIC AFFAIRS-
912024566218;# 2/ 4
NEWS
RELEASE
CHICAGO MERCANTILE EXCHANGE
CONTACT:
Andrew Yemma
(312)930-3434
Fax
(312)930-3439
FOR IMMEDIATE RELEASE
CME SETS ALL-TIME MONTHLY VOLUME RECORDS
IN OPTIONS, DEUTSCHEMARK FUTURES
CHICAGO, December 2, 1991 -- The Chicago Mercantile Exchange (CME) set all-
time monthly volume records in total options and Deutschemark futures volume in the month
of November. Total Exchange volume, at 9,429,926 futures and options traded, climbed 5.7
percent above November 1991 levels and set a record for the month.
For the January-November period, total Exchange volume, at 99,147,847, was up 4.1
percent from the same period in 1990.
With 2,091,512 total options traded in November, the CME set an all-time monthly
record. Options volume strength was supported by heavy trading in the equity, currency and
interest rate products. All-time monthly records were set in Eurodollar calls at 478,720,
Deutschemark calls at 353,689 and total Deutschemark options at 621,593.
November monthly records were set in total currency options, up 18.7 percent at
965,288, and in total interest rate options, up 9.8 percent at 830,576 from year ago.
Deutschemark futures set an all-time monthly mark with 1,065,263 contracts exchanged.
November monthly marks were set in Eurodollar futures with 3,300,821 contracts traded.
Additionally, the International Monetary Market and Index and Options Market hit new
November monthly highs with 5,750,222 futures and 3,149,525 futures and options traded,
respectively.
Two of the Exchange's neophyte futures contracts, One Month LIBOR and Nikkei 225
stock index, continued to make strong showings. With 30,130 contracts changing hands in
November, the Nikkei 225 futures set a new all-time monthly mark. One Month LIBOR futures
set a November monthly mark with 40,467 contracts traded. LIBOR futures set an all-time
monthly record in October with 56,779 contracts exchanged.
Propelled by record open interest in Eurodollar futures and options, the CME
surpassed the 3 million total exchange open interest mark in November. On November 21, total
exchange open interest hit the 3,005,558 level and by month's end was 3,086,864 positions.
Leading the way in open interest were Eurodollar futures and options which became
the first contract in the world to exceed the one million mark on November 1. By month's end,
open interest was 1,084,373 positions, up 49.7 percent from 1990 levels. Total Eurodollar
options open interest closed November with 696,135 positions, up 25.3 percent from October
and up 42.4 percent from 1991.
91-132
###
30 South Wacker Drive Chicago, Illinois 60606 312/930-1000
LONDON
NEW YORK
WASHINGTON.DC
TOKYO
SENT BY CME-PUBLIC AFFAIRS
:12- 5-91 :12:13PM
;
CME-PUBLIC AFFAIRS-
912024566218; 3/ 4
NEWS
RELEASE
CHICAGO MERCANTILE EXCHANGE
Contact: Andrew Yemma (312) 930-3434
FAX (312) 930-3439
FOR IMMEDIATE RELEASE
CME OPEN INTEREST EXCEEDS 3 MILLION;
HIGHEST OF ANY EXCHANGE IN THE WORLD
CHICAGO, November 22, 1991 - Open interest, the best measure of the
commercial risk management use of futures and options, exceeded 3 million positions today
at the Chicago Mercantile Exchange, the world's leading futures and options exchange.
At the close of business on Thursday, Nov. 21, total exchange open interest rose to
3,005,558 positions, nearly twice that of any other futures exchange in the world. The
number included a record 1,724,809 futures and a record 1,280,749 options positions. In
dollar terms, today's open interest would be valued at approximately $2 trillion.
Open interest records were also broken in the 3-month Eurodollar futures contract,
with 1,082,863 positions outstanding, as well as Eurodollar puts, at 387,340 (total Eurodollar
options, including puts and calls, stood at 655,699 open positions). On Nov. 1, the
Eurodollar contract became the first futures contract in the world to break 1 million in
open interest. Measured in dollar terms, at $1 million in underlying value per contract, the
Eurodollar open interest represents more than $1 trillion in underlying bank deposits and
loans under risk management.
"To achieve such a significant milestone of business activity twice in one month is
nothing short of astounding," said CME Chairman John F. Sandner. "By all measures, the
Chicago Mercantile Exchange is now the undisputed leader in financial risk management
services worldwide."
CME President and CEO William J. Brodsky added: "With the uncertainty in
today's economy, domestically and internationally, businesses around the globe are
increasing their risk management capabilities. They realize how valuable our products and
services can be."
Open interest is the number of futures and options positions outstanding at the end
of a business day. Because more than 90 percent of the exchange's customers are
institutional investors utilizing futures and options for risk management services, a high
level of open interest represents a high level of commercial usage. High open interest is
also a leading indicator of liquidity, or the ability to buy or sell at or near the desired price.
In contrast to today's open interest record, the CME had 2,453,104 open positions
on the comparable date in 1990.
At the Chicago Board of Trade, runner-up to the CME in the financial risk
management business, open interest stood at 1,733,318 today.
91-128
# # #
30 South Wacker Drive Chicago, Illínois 60606 312/930-1000
LONDON
NEW YORK
WASHINGTON. DC
TOKYO
SENT BY:CME-PUBLIC AFFAIRS
;12- 5-91 :12:15PM ; CME-PUBLIC AFFAIRS-
912024566218:# 4/ 4
The growth in the number of CME clearing members over the
last ten years, shows the increase in the participation
of foreign firms and banks.
BREAKDOWN OF CME CLEARING MEMBERS
Clearing
North
Bank
Year
Members
American
European
Asian
Related
1991
90
66
12
12
27
1980
78
76
2
0
2
The value of a CME membership in 1972 was $87,000. The
value of that same membership today, (through splits,
rights issued, etc...) is around $1.2 million.
CME seat prices, which are currently at $425,000, are the
highest in the U.S. CME seat prices have been higher
than the NYSE and cBoT for the past two years.
CURRENT SEAT PRICES *
Current
Exchange
Last Sale
Date
Bid
Ask
CME
$425,000
4/11/91
$425,000
$545,000
NYSE
$410,000
4/11/91
$360,000
$440,000
cBoT
$365,000
4/25/91
$340,000
$379,000
NYMEX
$305,000
4/11/91
$300,000
$325,000
CBOE
$255,100
4/30/91
$265,000
$295,000
AMEX
$120,000
4/11/91
$100,000
$125,000
COMEX
$ 70,000
4/30/91
$ 71,000
$ 79,500
CSCE
$ 55,000
4/29/91
$ 60,000
$ 75,000
NYCE
$ 48,000
4/30/91
$ 46,000
$ 50,000
* Prices quoted as of May 1, 1991, for full memberships only.
6