Thursday, April 22, 1971 - 8:23pm - 8:25pm
Richard Nixon, John Connally
White House Telephone


President Nixon: Hello?
Operator: Mr. President, I have [Treasury] Secretary [John B.] Connally asking to speak with you.
President Nixon: Fine.
Operator: All right. There you are.
President Nixon: Hello?
John Connally: Mr. President, I'm sorry to bother you.
President Nixon: It's all right. Fine.
Connally: I'm sure you've been told, but the Chase raised their prime rate this afternoon.
President Nixon: Raised it?
Connally: Yes, sir. From five-and-a-quarter to five-and-a-half. And I put out a statement right on the heels of it the minute I heard it. I just said I'm extremely disappointed.
President Nixon: Good.
Connally: That I knew of nothing—I didn't, I have no knowledge that the loan demand had reached such proportions that an increase in the prime rate was justified.
President Nixon: Good. Good. Good. Good.
Connally: And in addition, I've got [lobbyist] Charlie Walker calling on the West Coast. He's talked to [Chairman Ernest C.] Arbuckle of Wells Fargo. He's talking to [President Leslie C.] Peacock of Crocker-Citizens.
President Nixon: Good.
Connally: And there's a good chance that Peacock, who is under [former Crocker-Citizens President Emmet?] Solomon out there, you know—
President Nixon: Yes.
Connally: —at Crocker-Citizens, will issue a statement saying “We're not about to raise our prime rate. We're tired just following like sheep the eastern banking institutions.”
President Nixon: Good.
Connally: “And we're prepared to loan money at five and a quarter percent so long as we've got a dime left. We're not about to raise our prime rate.”
President Nixon: Good. Good.
Connally: I don't know whether they'll do it. We're trying to promote this type of [recovery?].
President Nixon: Well, your statement, though, is good. The fact that we're against this sort of thing is just good to say it.
Connally: Well, I just thought I ought to tell you, because I didn't know when you might—
President Nixon: That's all right.
Connally: —get caught on the phone or something. But I—
President Nixon: Don't worry. I'm for it. I'm for it. All the way.
Connally: All right, sir. Sorry to bother you.
President Nixon: [Laughs] It's all right. Thank you.
Connally: All right, sir.

Original tape courtesy of the Nixon Library. This transcript is a working draft. Please let us know if you find important errors.