Ask the Scholar
Document scope · 1 page
Scholar
Ask about this object, its catalog metadata, its source description, or the page inventory.
For page-specific OCR and visual context, open one of the page chats.
Scholar Source Context
Document identity
localId
4526188
label
Breakfast Meeting, National Shoe Retailers Association, March 24, 1969
core
doc
dtoType
document
citationUrl
pageCount
1
Source metadata
id
4526188
sourceUrl
contentType
document
title
Breakfast Meeting, National Shoe Retailers Association, March 24, 1969
citationUrl
collections
Gerald R. Ford Congressional Papers
Speeches
subjects
Federal budget
Inflation (Finance)
Taxation
iiifBase
thumbnailUrl
largeImageUrl
imageCount
1
hasImages
yes
source
import
hasTranscription
no
Source extras
naId
4526188
coverageEndDate
logicalDate
1969-03-31
month
3
year
1969
coverageStartDate
logicalDate
1969-03-01
month
3
year
1969
levelOfDescription
fileUnit
recordType
description
ocrSource
nara-archive
Single page context
seq
1
pageIndex
0
type
document
url
mediaId
85571d52017e32ea
ocrText
The original documents are located in Box D26, folder "Breakfast Meeting, National Shoe
Retailers Association, March 24, 1969" of the Ford Congressional Papers: Press Secretary
and Speech File at the Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. The Council donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
BREAKFAST
FONTIUS
NATIONAL SHOE
DINNER MEETING OF THE
€
P.M.
RETAILERS ASS'N
FRIDAY, MARCH 14, 1969. MARCH 24,1969 8a.m, MONDAY Tight down
THE Sepan
MANSFIED Ha.V.I
BUSINESS MANAGEMENT AND THE
WASHINGTON GOVERNMENT PROCESS"
THIS MORNING
TONIGHT I AM GOING TO DISCUSS WITH
YOU A TOPIC WITH THE IMPOSING TITLE,
"BUSINESS MANAGEMENT AND THE WASHINGTON
GOVERNMENT PROCESS." "
APROPOS OF THAT SUBJECT, I WOULD
LIKE TO COMMENT ON THE WIDELY HELD THEORY
THAT THERE IS A DIRECT CORRELATION BETWEEN
THE STATE OF THE ECONOMY AND THE LENGTH OF
WOMEN'S SKIRTS.
THE THEORY IS THAT THE HEMLINE
OF WOMEN'S SKIRTS RISES IN GOOD TIMES -- AS
THEY SAY, "THINGS ARE LOOKING UP" -- AND
THE HEMLINE FALLS IN BAD TIMES.
FORD & LIBRARY GERALD
Digitized from Box D26 of the Ford Congressional Papers: Press Secretary and Speech File at the Gerald R. Ford Presidential Library
-2-
IN 1927, FOR INSTANCE, WE HAD REAL
GOOD TIMES
AND THAT WAS THE YEAR THAT
GIRLS WHO BLUSH EASILY WERE AFRAID TO SIT
DOWN.
IN 1929, WHEN THE STOCK MARKET
DROPPED INTO THE CELLAR, AND BANKERS,
STOCKBROKERS AND INVESTORS BEGAN DROPPING OUT
OF HOTEL WINDOWS, HEMLINES ON SKIRTS FELL
TOO. THE OUTLOOK THEN WAS REALLY DEPRESSING.
NOW WE ARE EXPERIENCING A BOOM,
BUT IT IS AN UNHEALTHY BOOM BECAUSE IT IS
RIDING ON A WAVE OF INFLATION THAT BEGAN
THREE YEARS AGO. SO TODAY SKIRTS ARE VERY
SHORT. IN FACT, THERE ARE THREE CATEGORIES
OF SHORT SKIRTS -- MINI SKIRTS, MICRO-MINI
SKIRTS AND "DONT-BEND-OVER."
WHILE THE INFLATIONARY SPIRAL WAS
BUILDING, THE GOVERNMENT IN WASHINGTON KEPT
GETTING BIGGER AND BIGGER.
TODAY THE FEDERAL GOVERNMENT IS
-3-
BIG BUSINESS. IT'S NOT DICTATING THE LENGTH
OF WOMEN'S HEMLINES, BUT IT CERTAINLY HAS
A LOT TO SAY ABOUT THE STATE OF THE ECONOMY.
THE NATIONAL ADMINISTRATION
EXERCISES TREMENDOUS POWER OVER THE ECONOMY.
HOW THIS POWER IS USED DEPENDS PRETTY MUCH
ON THE MAN IN THE WHITE HOUSE.
WE ALSO HAVE ANOTHER INSTRUMENT
OF ECONOMIC POLICY WHICH CAN AND SOMETIMES
DOES OPERATE SOMEWHAT INDEPENDENTLY OF THE
WHITE HOUSE. I AM SPEAKING NOW OF THE
FEDERAL RESERVE BOARD.
IN THE MONTHS AHEAD BOTH THE
PRESIDENT AND THE FEDERAL RESERVE BOARD WILL
BE TAKING ACTIONS OF TREMENDOUS IMPORT TO
BUSINESS THE AMERICAN PEOPLE IN GENERAL, AND TO
FINANCIAL EXECUTIVES IN PARTICULAR.
THIS MORNING
TONIGHT I WILL TALK WITH YOU ABOUT
TAXES, THE MANAGEMENT OF THE TAX DOLLAR
FORD
LIBRA
AND NEW EMPHASIS IN WASHINGTON ON EFFICIENCY
-4-
IN GOVERNMENT.
THIS IS A MOST APPROPRIATE TIME
TO BE DISCUSSING TAXES. IT IS INCOME TAX
TIME -- A TIME WHEN MANY AMERICANS ARE
COMPLAINING ABOUT HIGH TAXES.
THE INTERNAL REVENUE SERVICE FINDS
THAT THE COMPLAINANTS FALL INTO TWO GENERAL
CATEGORIES -- MEN AND WOMEN.
SERIOUSLY, WHAT WE ARE UP AGAINST
IN WASHINGTON RIGHT NOW IS THE NEED TO
STRETCH THE TAX DOLLAR AND TO BRING INFLATION
UNDER CONTROL WITHOUT A SUBSTANTIAL INCREASE
IN UNEMPLOYMENT.
IN TRYING TO STRETCH THE TAX
DOLLAR, THE NIXON ADMINISTRATION WILL BE
EMPLOYING MANY OF THE TECHNIQUES USED IN
BUSINESS -- BECAUSE WHAT WE ARE FACED WITH
IN WASHINGTON IS A COST-PRICE SQUEEZE IN
GOVERNMENT.
1
THE NIXON ADMINISTRATION HAS
/
-5-
EMBARKED ON A CAMPAIGN TO INCREASE FEDERAL
GOVERNMENT EFFICIENCY AND TO IMPROVE
FEDERAL-STATE-AND-LOCAL RELATIONS. THIS IS
NOT BEING DONE ONLY IN THE INTEREST OF
SAVING TAX DOLLARS. IT IS ALSO VITAL BECAUSE
HOW: WELL THE NIXON ADMINISTRATION DOES IN
MANAGING OUR FINANCIAL RESOURCES WILL
DETERMINE TO A LARGE DEGREE HOW SUCCESSFUL
WE ARE IN SOLVING MANY OF OUR DOMESTIC
PROBLEMS.
WE STILL HAVE THE SAME PROBLEMS
WITH WHICH THE PREVIOUS ADMINISTRATION
WRESTLED. THE CHANGE IN ADMINISTRATIONS
DIDN'T CHANGE THE PROBLEMS. THE WAR IN
VIETNAM, INFLATION, AND THE WHOLE GAMUT OF
PROBLEMS THAT HAVE PRODUCED THE URBAN CRISIS
STILL CRY OUT FOR SOLUTION.
IT WILL TAKE MORE THAN MONEY TO
SOLVE THIS NATION'S PROBLEMS, BUT THE BEST
POSSIBLE USE OF TAX DOLLARS FIGURES IN THE
-6-
ULTIMATE SOLUTION.
1
AND SO THE NIXON ADMINISTRATION
IS GOING OVER FORMER PRESIDENT JOHNSON'S
FISCAL 1970 BUDGET ITEM BY ITEM AND LINE
BY LINE. AT THE SAME TIME THE PRESIDENT HAS
DIRECTED DEPARTMENT AND AGENCY HEADS TO TAG
LOW PRIORITY FUNCTIONS AND PROGRAMS FOR
PHASEOUT AND HAS DIRECTED HIS CHIEF
COUNSELLOR, DR. ARTHUR BURNS, TO FORMULATE
LEGISLATION IMPLEMENTING NIXON CAMPAIGN
PROMISES.
THERE IS A DEFINITE SHIFT IN
DIRECTION SHAPING UP IN WASHINGTON. THE FORM
AND SIZE AND SHAPE OF THESE NEW POLICIES CAN
ONLY BE SKETCHED IN BROAD OUTLINE BECAUSE
IT TAKES TIME TO FLESH IN THE DETAILS.
THE SALIENT FEATURES OF THE NEW
ADMINISTRATION ARE THAT IT IS BUSINESS-LIKE,
IT IS ENGAGED IN A REAPPRAISAL OF DOMESTIC
AND FOREIGN POLICY WHICH WILL PRODUCE
-7-
SUBSTANTIAL CHANGES IN MONTHS AND YEARS TO
COME, IT IS INTERESTED IN PERFORMANCE AND
NOT PROMISES, IT SEEKS TO RE-ORDER OUR
PRIORITIES, IT HOPES TO ENLIST STATE AND
LOCAL GOVERNMENTS AND THE PRIVATE SECTOR AS
ENTHUSIASTIC PARTNERS IN SOLVING THE PEOPLE'S
PROBLEMS.
ONE IMPORTANT ASPECT OF THE CURRENT
REAPPRAISAL, FOR INSTANCE, IS THAT THE
DEFENSE AND STATE DEPARTMENTS ARE SCANNING
OUR MILITARY SPENDING, MANPOWER COMMITMENTS
AND OUR BASES OVERSEAS WITH A VIEW TO
ELIMINATING EXPENDITURES THAT CAN NO LONGER
BE JUSTIFIED.
OTHER ACTIONS TO IMPROVE FEDERAL
GOVERNMENT EFFICIENCY INCLUDE A SHIFTING OF
THE JOB CORPS PROGRAM TO THE LABOR DEPARTMENT,
AND THE HEAD START, COMPREHENSIVE HEALTH
CENTERS AND FOSTER GRANDPARENTS PROGRAMS
TO THE HEALTH-EDUCATION-AND-WELFARE DEPARTMENT.
-8-
Now
HAS JUST BEEN GIVEN
MEANTIME THE PRESIDENT IS SEEKING
AUTHORITY TO REORGANIZE THE EXECUTIVE BRANCH
OF THE FEDERAL GOVERNMENT, A POWER FIRST
GIVEN TO PRESIDENT TRUMAN AND THEN TO EACH
OF HIS SUCCESSORS.
WHATEVER ACTION IS TAKEN TO RESHAPE
OUR FOREIGN AND DOMESTIC POLICIES CLOSER TO
PRESENT-DAY NEEDS AND DESIRES, IT IS VITAL
TO OUR SUCCESS AS A NATION AND A PEOPLE THAT
WE HALT THE STEADY AND RAPID EROSION OF THE
DOLLAR.
INFLATION IS AN UNDERLYING PROBLEM
FOR EVERY AMERICAN -- A PRESENT WEAKNESS
IN OUR ECONOMY WHICH MUST BE CHECKED IF WE
ARE NOT ULTIMATELY TO FACE DOOM AND DISASTER.
LAST YEAR WE EXPERIENCED THE WORST
CASE OF INFLATION IN 17 YEARS. INTEREST
RATES ON GOVERNMENT SECURITIES HAVE SPIRALED
TO THE HIGHEST POINT SINCE THE CIVIL WAR. FORD
THE PRIME RATE FOR BORROWING HAS CLIMBED
LIBRARY
-9-
TO AN HISTORIC HIGH. AND INFLATION
PSYCHOLOGY -- A BELIEF BY PEOPLE THAT
PRICES WILL CONTINUE TO GO UP AND UP AND
UP -- THAT PSYCHOLOGY STILL PREVAILS.
AS PRESIDENT NIXON HAS SAID: "IF
INFLATION IS ALLOWED TO GET OUT OF HAND,
THERE HAS TO BE A BUST AND THEN UNEMPLOYMENT
COMES."
THIS MEANS WE HAVE TO BRING
INFLATION UNDER CONTROL, BUT DO IT BY
SLOWING
DOWN THE ECONOMIC MACHINE
AND NOT BY STALLING IT OR THROWING IT INTO
REVERSE.
PRESIDENT NIXON WILL RELY ON
FISCAL AND MONETARY POLICY IN FIGHTING
INFLATION. HE WILL NOT EMPLOY WAGE-AND-PRICE
GUIDELINES -- A DEVICE WHICH IN THE PAST
WAS APPLIED UNEQUALLY AND UNFAIRLY AS REGARDS
LABOR AND MANAGEMENT, AND AS REGARDS ONE
INDUSTRY OR ANOTHER.
-10-
UNDER PRESENT CIRCUMSTANCES I THINK
THERE IS LITTLE QUESTION THAT PRESIDENT
JOHNSON'S 10 PER CENT INCOME TAX SURCHARGE
WILL HAVE TO BE CONTINUED FOR ANOTHER YEAR
BEYOND JUNE 30.
TO MAKE THE FIGHT AGAINST INFLATION
MORE EFFECTIVE, WE NEED AT LEAST TWO FEDERAL
SURPLUSES BACK TO BACK. WE NEED TO WIND UP
IN THE BLACK NOT ONLY THIS FISCAL YEAR BUT
NEXT.
IT WOULD SEEM IMPOSSIBLE TO ACHIEVE
A SURPLUS IN FISCAL 1970 WITHOUT THE REVENUE
WHICH WOULD FLOW FROM A CONTINUED SURTAX.
PRESIDENT NIXON WANTS TO GET RID
OF THE SURTAX AS SOON AS POSSIBLE, AND SO
DO 1.
BUT IF THE CONGRESS WERE TO ALLOW
THE SURTAX TO EXPIRE AS OF JUNE 30 AND THE
FEDERAL GOVERNMENT THEREFORE INCURRED
PERHAPS A $9 BILLION DEFICIT IN FISCAL 1970,
-11-
THE BATTLE AGAINST INFLATION WOULD BE LOST
AND THE AMERICAN PEOPLE WOULD BE THE LOSERS.
LOOKING AT THE SITUATION
AFFIRMATIVELY, THE NIXON ADMINISTRATION, THE
91st CONGRESS AND THE FEDERAL RESERVE BOARD
HAVE IT WITHIN THEIR POWER GRADUALLY TO
BRING INFLATION UNDER CONTROL. AND THEIR
EFFORTS DESERVE THE SUPPORT OF THE AMERICAN
PEOPLE BECAUSE IN THE LONG TERM THE PEOPLE
WILL BENEFIT.
THE PRICE TREND DOES NOT YET
REFLECT OFFICIAL EFFORTS TO SLOW DOWN THE
BOOM BUT IT SOON WILL.
WE NOW HAVE FISCAL RESTRAINT FROM
THE COMBINED EFFECT OF THE SURCHARGE AND THE
SOCIAL SECURITY TAX INCREASE WHICH TOOK
EFFECT LAST JANUARY 1. THIS WILL BE
REINFORCED BY MONETARY RESTRAINT FLOWING
FROM CURRENT FEDERAL RESERVE BOARD POLICIES.
GRADUALLY THIS COMBINATION OF
-12-
FISCAL AND MONETARY RESTRAINT WILL BRING US
BACK TO RELATIVE PRICE STABILITY.
MEANTIME, HOWEVER, WE WILL HAVE
MANY MONTHS OF TIGHT MONEY AND HIGH INTEREST
RATES. THIS IS THE PENALTY FOR IRRESPONSIBLE
FEDERAL FISCAL POLICIES IN RECENT YEARS.
THE SLOWDOWN IS UNDER WAY.
FEDERAL SPENDING IS LEVELLING OFF.
THE SURTAX WILL HAVE AN IMPACT ON
CONSUMER SPENDING AS INDIVIDUALS MAKE OUT
THEIR INCOME TAX RETURNS AND MAIL INTO THE
TREASURY THE EXTRA TAXES THAT ARE OWED.
THE RATE OF SAVINGS DEPOSITS AT
BANKS, SAVINGS AND LOAN INSTITUTIONS AND
MUTUAL SAVINGS BANKS HAS FALLEN OFF.
COMMERCIAL BANKS ARE FINDING IT
DIFFICULT TO GET CASH TO LEND.
SO THE RESTRAINTS ARE IN PLACE AND
THEY ARE BEGINNING TO WORK. WHAT WE MUST DO
NOW IS TO GRIN AND BEAR IT AND BE EVER
-13-
WATCHFUL TO SEE THAT WE LOOSEN THE
RESTRAINTS ONLY WHEN THE INFLATIONARY DANGERS
HAVE BEEN OVERCOME.
FOR INSTANCE, FEDERAL RESERVE
BOARD CHAIRMAN WILLIAM McCHESNEY MARTIN
READILY ADMITS THAT THE BOARD EASED UP TOO
QUICKLY ON CREDIT IN 1967 AND AGAIN DURING
THE LAST HALF OF 1968.
AND, CITING A RECOGNIZED FACT AND
NOT SPEAKING CRITICALLY, WE ALL KNOW THAT
THE JOHNSON ADMINISTRATION WAITED AT LEAST
A YEAR TOO LONG BEFORE STARTING TO FIGHT
INFLATION.
NOW YOU CAN EXPECT THE NIXON
ADMINISTRATION, THE CONGRESS AND THE FEDERAL
RESERVE BOARD TO KEEP THE LID ON FOR AS LONG
AS IS NECESSARY TO BRING INFLATION UNDER
CONTROL.
IT WON'T BE EASY, AND IT WON'T BE
PAINLESS. BUT I FEEL SURE THE AMERICAN
-14-
PEOPLE WILL COOPERATE WHEN THEY BECOME
CONVINCED IT IS THE RIGHT COURSE OF ACTION.
IT WOULD HAVE BEEN FAR EASIER, OF COURSE,
THREE YEARS AGO WHEN THE FORCES OF INFLATION
FIRST BEGAN GATHERING MOMENTUM. NOW, IT IS
TOUGH.
THE FEDERAL RESERVE BOARD IS
SEEKING TO ACCOMPLISH CREDIT SLOWDOWN WITHOUT
LARGE-SCALE DISLOCATION OF SAVING AND LENDING
PATTERNS -- SO-CALLED "DIS-INTERMEDIATION."
IT APPEARS THAT SO FAR THEY HAVE
BEEN SUCCESSFUL. AND IT SHOULD BE NOTED THAT
WITHOUT LARGE-SCALE DIS-INTERMEDIATION THERE
CAN BE NO CREDIT CRISIS. NOT EVEN A HARD
CRUNCH
UNDER A STRATEGY WHICH COMBINES
A BUDGET SURPLUS WITH NON-INFLATIONARY
MODERATE INCREASES IN THE MONEY SUPPLY THERE
NEED BE NO CRISIS LN OUR MONEY MARKETS. ON
THE CONTRARY, INTEREST RATES SHOULD DECLINE
-15-
AFTER A TIME.
AS FOR INFLATION, THE RATE OF
CONSUMER PRICE INCREASES SHOULD DECREASE TO
ABOUT 3.5 PER CENT IN 1969, AS COMPARED WITH
4.8 IN 1968. AND IT SHOULD DROP FURTHER TO
ABOUT 2.5 PER CENT IN 1970 WITHOUT A RISE IN
UNEMPLOYMENT ABOVE 4 PER CENT, POSSIBLY AND
HOPEFULLY LESS.
HERE'S WELCOME NEWS FOR MANY
AMERICAN INVESTORS: THE NIXON ADMINISTRATION
WILL MAKE A START THIS YEAR ON ENDING
GOVERNMENT CONTROLS OVER INVESTMENT ABROAD.
THE ADMINISTRATION PLANS TO EXEMPT
MANY HUNDREDS OF RELATIVELY SMALL COMPANIES
FROM CONTROLS OVER DIRECT FOREIGN INVESTMENT,
AND SOME FORM OF RELIEF FOR LARGE
CORPORATIONS ALSO IS SHAPING UP.
THIS MORNING
WHAT WE HAVE TALKED OF HERE
ARE ALL COMMON SENSE ACTIONS -- NOTHING
DONE WITHOUT PLANNING AND FORETHOUGHT AND
-16-
CAREFUL CONSIDERATION OF THE CONSEQUENCES.
THE NIXON ADMINISTRATION IS A
PRAGMATIC ADMINISTRATION, A COOL AND
THOUGHTFUL ADMINISTRATION.
THIS, I THINK, WILL BE THE
HALLMARK OF THE NIXON ADMINISTRATION. COMMON
SENSE.
CALMNESS.
A GREAT SENSE OF FAIRNESS
AND STABILITY.
COMMON SENSE CAN BRING US GREAT
ACHIEVEMENTS. IT MAY EVEN CONFOUND OUR
ENEMIES. FOR AS RALPH WALDO EMERSON ONCE
WROTE: "NOTHING ASTONISHES MEN SO MUCH AS
COMMON SENSE AND PLAIN DEALING."
AS A NATION AND A PEOPLE WE ARE
FACED WITH GREAT PROBLEMS AT THIS POINT IN
OUR HISTORY.
LET US APPROACH THEM WITH THE
CALMNESS OF SPIRIT AND THE QUIETNESS OF
VOICE WITH WHICH RICHARD NIXON SPOKE TO THE
AMERICAN PEOPLE ON THE DAY HE ASSUMED THE
-17-
TERRIBLE BURDENS OF THE PRESIDENCY.
WITH THE CHANGE IN THE PRESIDENCY
HAS COME A GREAT OPPORTUNITY TO MEET AND
RESOLVE MANY OF OUR PROBLEMS.
IN AN ATTITUDE OF CALM AND CONFIDENCE
THE NEW ADMINISTRATION IS PROVIDING THE
LEADERSHIP WE NEED TO TURN THIS COUNTRY IN A
NEW DIRECTION -- TO USE THE DYNAMIC THRUST
OF THE FREE ENTERPRISE SYSTEM IN A FRESH
ATTACK ON AMERICA'S ILLS.
WITH THE SUPPORT OF THE PEOPLE,
PRESIDENT NIXON CAN BE SUCCESSFUL IN
STEERING AMERICA TOWARD NEW GREATNESS. BUT
HE NEEDS YOUR HELP -- THE HELP OF EVERY MAN
AND WOMAN IN THIS ROOM AND THE HELP OF
DEDICATED CITIZENS THROUGHOUT OUR WONDERFUL
LAND.
SO LET US ACCEPT THE CHALLENGE --
ACCEPT IT WITH CLEAR VISION AND CLEAR HEADS.
LET US SEIZE THE OPPORTUNITY WITH STOUT
-18-
HEARTS AND A DETERMINATION THAT WE WILL MOVE
FORWARD TOGETHER AS A PEOPLE.
LET US TAKE AS OUR MOTTO THE WISE
WORDS OF THE GREEK PHILOSOPHER PLUTARCH WHO
SAID: "MANY THINGS WHICH CANNOT BE OVERCOME
WHEN THEY ARE TAKEN TOGETHER, YIELD
THEMSELVES WHEN TAKEN LITTLE BY LITTLE."
TOGETHER WE SHALL PERSEVERE, AND
TOGETHER WE SHALL PREVAIL. FOR FAITH IS THE
TALISMAN OF GREATNESS FOR AMERICA, AND AMERICA
IS STRONG IN FAITH.
-- END --