Tag Archives: Richard Nixon

High Point of Modern International Economic Diplomacy

Ed Conway, The Summit: Bretton Woods 1944,

J.M. Keynes and the Reshaping of the Global Economy 

               During the first three weeks of July 1944, as World War II raged on the far sides of the Atlantic and Pacific oceans, 730 delegates from 44 countries gathered at the Mount Washington Hotel in Northern New Hampshire for what has come to be known as the Bretton Woods conference. The conference’s objective was audacious: create a new and more stable framework for the post-World War II monetary order, with the hope of avoiding future economic upheavals like the Great Depression of the 1930s.   To this end, the delegates reconsidered and in many cases rewrote some of the most basic rules of international finance and global capitalism, such as how money should flow between sovereign states, how exchange rates should interact, and how central banks should set interest rates. The conference took place at the venerable but aging Mount Washington Hotel, in an area informally known as Bretton Woods, not far from Mount Washington itself, Eastern United States’ highest peak.

In The Summit, Bretton Woods, 1944: J.M. Keynes and the Reshaping of the Global Economy, Ed Conway, formerly economics editor for Britain’s Daily Telegraph and Sunday Telegraph and presently economics editor for Sky News, provides new and fascinating detail about the conference. The word “summit” in his title carries a triple sense: it refers to Mount Washington and to the term that came into use in the following decade for a meeting of international leaders. But Conway also contends that the Bretton Woods conference now appears to have been another sort of summit. The conference marked the “only time countries ever came together to remold the world’s monetary system” (p.xx).  It stands in history as the “very highest point of modern international economic diplomacy” (p.xxv).

Conway differentiates his work from others on Bretton Woods by focusing on the interactions among the delegates and the “sheer human drama” (p.xxii) of the event.  As the sub-title indicates, British economist John Maynard Keynes is forefront among these delegates. Conway could have added to his subtitle the lesser-known Harry Dexter White, Chief International Economist at the US Treasury Department and Deputy to Treasury Secretary Henry Morgenthau, the head of the US delegation and formal president of the conference.  White’s name in the subtitle would have underscored that this book is a story about  the relationship between the two men who assumed de facto leadership of the conference. But the book is also a story about the uneasy relationship at Bretton Woods between the United States and the United Kingdom, the conference’s two lead delegations.

Although allies in the fight against Nazi Germany, the two countries were far from allies at Bretton Woods.  Great Britain, one of the world’s most indebted nations, came to the conference unable to pay for its own defense in the war against Nazi Germany and unable to protect and preserve its vast worldwide empire.  It was utterly outmatched at Bretton Woods by an already dominant United States, its principal creditor, which had little interest in providing debt relief to Britain or helping it maintain an empire. Even the force of Keynes’ dominating personality was insufficient to give Britain much more than a supplicant’s role at Bretton Woods.

Conway’s book also constitutes a useful and understandable historical overview of the international monetary order from pre-World War I days up to Bretton Woods and beyond.  The overview revolves around the gold standard as a basis for international currency exchanges and attempts over the years to find workable alternatives. Bretton Woods produced such an alternative, a standard pegged to the United States dollar — which, paradoxically, was itself tied to the price of gold.  Bretton Woods also produced two key institutions, the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development, now known as the World Bank, designed to provide stability to the new economic order. But the Bretton Woods dollar standard remained in effect only until 1971, when US President Richard Nixon severed by presidential fiat the link between the dollar and gold, allowing currency values to float, as they had done in the 1930s.  In Conway’s view, the demise of Bretton Woods is to be regretted.

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          Keynes was a legendary figure when he arrived at Bretton Woods in July 1944, a “genuine international celebrity, the only household name at Bretton Woods” (p.xv). Educated at Kings College, Cambridge, a member of the faculty of that august institution, and a peer in Britain’s House of Lords, Keynes was also a highly skilled writer and journalist, as well as a fearsome debater.  As a young man, he  established his reputation  with a famous critique of the 1919 Versailles Treaty, The Economic Consequences of the Peace, a tract that predicted with eerie accuracy the breakdown of the financial order that the post World War I treaty envisioned, based upon imposition of punitive reparations upon Germany. Although Keynes dazzled fellow delegates at Bretton Woods with his rhetorical brilliance, he was given to outlandish and provocative statements that hardly helped the bonhomie of the conference.   He suffered a heart attack toward the end of the conference and died less than two years later.

White was a contrast to Keynes in just about every way. He came from a modest first generation Jewish immigrant family from Boston and had to scramble for his education. Unusual for the time, in his 30s White earned an undergraduate degree from Stanford after having spent the better portion of a decade as a social worker. White had a dour personality, with none of Keynes’ flamboyance. Then there were the physical differences.   Keynes stood about six feet six inches tall (approximately 2.0 meters), whereas White was at least a foot smaller (approximately 1.7 meters). But if Keynes was the marquee star of the Bretton Woods because of his personality and reputation, White was its driving force because he represented the United States, undisputedly the conference’s driving force.

By the time of the Bretton Woods conference, however, White was also unduly familiar with Russian intelligence services. Although Conway hesitates to slap the “spy” label on him, there is little doubt that White provided a hefty amount of information to the Soviets, both at the conference and outside its confines. Of course, much of the “information sharing” took place during World War II, when the Soviet Union was allied with Britain and the United States in the fight against Nazi Germany and such sharing was seen in a different light than in the subsequent Cold War era.  One possibility, Conway speculates, was that White was “merely carrying out his own, personal form of diplomacy – unaware that the Soviets were construing this as espionage” (p.159; the Soviet Union attended the conference but did not join the international mechanisms which the conference established).

The reality, Conway concludes, is that we will “never know for certain whether White knowingly betrayed his country by passing information to the Soviets” (p.362).   Critically, there is “no evidence that White’s Soviet activities undermined the Bretton Woods agreement itself” (p.163;). White died in 1948, four years after the conference, and the FBI’s case against him became moot. From that point onward, the question whether White was a spy for the Soviet Union became one almost exclusively for historians, a question that today remains unresolved (ironically, after White’s death, young Congressman Richard Nixon remained just about the only public official still interested in White’s case; when Nixon became president two decades later, he terminated the Bretton Woods financial standards White had helped create).

The conference itself begins at about the book’s halfway point. Prior to his account of its deliberations, Conway shows how the gold standard operated and the search for workable alternatives. In the period up to World War I, the world’s powers guaranteed that they could redeem their currency for its value in gold. The World War I belligerents went off the gold standard so they could print the currency needed to pay for their war costs, causing hyperinflation, as the supply of money overwhelmed the demand.  In the 1920s, countries gradually resorted back to the gold standard.

But the stock market crash of 1929 and ensuing depression prompted countries to again abandon the gold standard. In the 1930s, what Conway terms a “gold exchange standard” prevailed, in which governments undertook competitive devaluations of their currency. President Franklin Roosevelt, for example, used a “primitive scheme” to set the dollar “where he wanted it – which meant as low against the [British] pound as possible” (p.83).  The competitive devaluations and floating rates of the 1930s led to restrictive trade policies, discouraged trade and investment, and encouraged destabilizing speculation, all of which many economists linked to the devastating war that broke out across the globe at the end of the decade.

Bretton Woods sought to eliminate these disruptions for the post-war world by crafting an international monetary system based upon cooperation among the world’s sovereign states. The conference was preceded by nearly two years of negotiations between the Treasury Departments of Great Britain and the United States — essentially exchanges between Keynes and White, each with a plan on how a new international monetary order should operate. Both were “determined to use the conference to safeguard their own economies” (p.18). Keynes wanted to protect not only the British Empire but also London’s place as the center of international finance. White saw little need to protect the empire and foresaw New York as the world’s new economic hub.  He also wanted to locate the two institutions that Bretton Woods would create, the IMF and World Bank, in the United States, whereas Keynes hoped that at least one would be located either in Britain or on the European continent. White and the Americans would win on these and almost all other points of difference.

But Keynes and White shared a broad general vision that Bretton Woods should produce a system designed to do away with the worst effects of both the gold standard and the interwar years of instability and depression.   There needed to be something in between the rigidity associated with the gold standard on the one hand and free-floating currencies, which were “associated with dangerous flows of ‘hot money’ and inescapable lurches in exchange rates” (p.124), on the other. To White and the American delegation, “Bretton Woods needed to look as similar as possible to the gold standard: politicians’ hands should be tied to prevent them from inflating away their debts. It was essential to avoid the threat of the competitive devaluations that had wreaked such havoc in the 1930s” (p.171).  For Keynes and his colleagues, “Bretton Woods should be about ensuring stable world trade – without the rigidity of the gold standard” (p.171).

The British and American delegations met in Atlantic City in June 1944 in an attempt to narrow their differences before travelling to Northern New Hampshire, where the floor would be opened to the conference’s additional delegations.  Much of what happened at Bretton Woods was confined to the business pages of the newspapers, with attention focused on the war effort and President Roosevelt’s re-election bid for a fourth presidential term.  This suited White, who “wanted the conference to look as uncontroversial, technical and boring as possible” (p.203).  The conference was split into three main parts. White chaired Commission I, dealing with the IMF, while Keynes chaired Commission II, whose focus was the World Bank.  Each commission divided into multiple committees and sub-committees.  Commission III, whose formal title was “Other Means of International Cooperation,” was in Conway’s view essentially a “toxic waste dump into which White and Keynes could jettison some of the summit’s trickier issues” (p.216).

The core principle to emerge from the Bretton Woods deliberations was that the world’s currencies, rather than being tied directly to gold or allowed to float, would be pegged to the US dollar which, in turn, was tied to gold at a value of $35 per ounce. Keynes and White anticipated that fixing currencies against the dollar would ensure that:

international trade was protected for exchange rate risk. Nations would determine their own interest rates for purely domestic economic reasons, whereas under the gold standard, rates had been set primarily in order to keep the country’s gold stocks at an acceptable level. Countries would be allowed to devalue their currency if they became uncompetitive – but they would have to notify the International Monetary Fund in advance: this element of international co-ordination was intended to guard against a repeat of the 1930s spiral of competitive devaluation (p.369).

 

The IMF’s primary purpose under the Bretton Woods framework was to provide relief in balance of payments crises such as those of the 1930s, when countries in deficit were unable to borrow and exporting countries failed to find markets for their goods. “Rather than leaving the market to its own devices – the laissez-faire strategy discredited in the Depression – the Fund would be able to step in and lend countries money, crucially in whichever currency they most needed. So as to avoid the threat of competitive devaluations, the Fund would also arbitrate whether a country could devalue its exchange rate” (p.169).

One of the most sensitive issues in structuring the IMF involved the contributions that each country was required to pay into the Fund, termed “quotas.” When short of reserves, each member state would be entitled to borrow needed foreign currency in amounts determined by the size of its quota.  Most countries wanted to contribute more rather than less, both as a matter of national pride and as a means to gain future leverage with the Fund. Heated quota battles ensued “both publicly in the conference rooms and privately in the hotel corridors, until the very end of the proceedings” (p.222-23), with the United States ultimately determining quota amounts according to a process most delegations considered opaque and secretive.

The World Bank, almost an afterthought at the conference, was to have the power to finance reconstruction in Europe and elsewhere after the war.  But the Marshall Plan, an “extraordinary program of aid devoted to shoring up Europe’s economy” (p.357), upended Bretton Woods’ visions for both institutions for nearly a decade.  It was the Marshall Plan that rebuilt Europe in the post-war years, not the IMF or the World Bank. The Fund’s main role in its initial years, Conway notes, was to funnel money to member countries “as a stop-gap before their Marshall Plan aid arrived” (p.357),

When Harry Truman became President in April 1945 after Roosevelt’s death, he replaced Roosevelt’s Treasury Secretary Henry Morgenthau, White’s boss, with future Supreme Court justice Fred Vinson. Never a fan of White, Vinson diminished his role at Treasury and White left the department in 1947. He died the following year, in August 1948 at age 55.  Although the August 1945 change in British Prime Ministers from Winston Churchill to Clement Atlee did not undermine Keynes to the same extent, his deteriorating health diminished his role after Bretton Woods as well. Keynes died in April 1946 at age 62, shortly after returning to Britain from the inaugural IMF meeting in Savannah, Georgia, his last encounter with White.

Throughout the 1950s, the US dollar assumed a “new degree of hegemony,” becoming “formally equivalent to gold. So when they sought to bolster their foreign exchange reserves to protect them from future crises, foreign governments built up large reserves of dollars” (p.374). But with more dollars in the world economy, the United States found it increasingly difficult to convert them back into gold at the official exchange rate of $35 per ounce.  When Richard Nixon became president in 1969, the United States held $10.5 billion in gold, but foreign governments had $40 billion in dollar reserves, and foreign investors and corporations held another $30 billion. The world’s monetary system had become, once again, an “inverted pyramid of paper money perched on a static stack of gold” and Bretton Woods was “buckling so badly it seemed almost certain to collapse” (p.377).

In a single secluded weekend in 1971 at the Presidential retreat at Camp David, Maryland, Nixon’s advisors fashioned a plan to “close the gold window”: the United States would no longer provide gold to official foreign holders of dollars and instead would impose “aggressive new surcharges and taxes on imports intended to push other countries into revaluing their own currencies” (p.381).  When Nixon agreed to his advisors’ proposal,  the Bretton Woods system, which had “begun with fanfare, an unprecedented series of conferences and the deepest investigation in history into the state of macro-economics” ended overnight, “without almost anyone realizing it” (p.385). The era of fixed exchange rates was over, with currency values henceforth to be determined by “what traders and investors thought they were worth” (p.392).  Since 1971, the world’s monetary system has operated on what Conway describes as an “ad hoc basis, with no particular sense of the direction in which to follow” (p.401).

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            In his epilogue, Conway cites a 2011 Bank of England study that showed that between 1948 and the early 1970s, the world enjoyed a “period of economic growth and stability that has never been rivaled – before or since” (p.388).  In Bretton Woods member states during this period “life expectancy climbed swiftly higher, inequality fell, and social welfare systems were constructed which, for the time being at least, seemed eminently affordable” (p.388).  The “imperfect” and “short-lived” (p.406) system which Keynes and White fashioned at Bretton Woods may not be the full explanation for these developments but it surely contributed.  In the messy world of international economics, that system has “come to represent something hopeful, something closer to perfection” (p.408).  The two men at the center of this captivating story came to Bretton Woods intent upon repairing the world’s economic system and replacing it with something better — something that might avert future economic depressions and the resort to war to settle differences.  “For a time,” Conway concludes, “they succeeded” (p.408).

Thomas H. Peebles

La Châtaigneraie, France

March 8, 2017

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Filed under British History, European History, History, United States History, World History

Blithe Optimist

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Rick Perlstein, The Invisible Bridge:

The Fall of Nixon and the Rise of Reagan

     Rick Perlstein has spent his career studying American conservatism in the second half of the 20th century and its capture of the modern Republican Party. His first major work, Before the Storm: Barry Goldwater and the Unmaking of the American Consensus, was an incisive and entertaining study of Senator Barry Goldwater’s 1964 Republican Party nomination for the presidency and his landslide loss that year to President Lyndon Johnson. He followed with Nixonland: The Rise of a President and the Fracturing of America, a description of the nation at the time of Richard Nixon’s landslide 1972 victory over Senator George McGovern  — a nation divided by a cultural war between “mutually recriminating cultural sophisticates on the one hand and the plain, earnest ‘Silent Majority’ on the other” (p.xix). Now, in The Invisible Bridge: The Fall of Nixon and the Rise of Reagan, Perlstein dives into American politics between 1973 and 1976, beginning with Nixon’s second term and ending with the failed bid of the book’s central character, Ronald Reagan, for  the 1976 Republican Party presidential nomination.

     The years 1973 to 1976 included the Watergate affair that ended the Nixon presidency in 1974; the ultra-divisive issue of America’s engagement in Vietnam, which ended in an American withdrawal from that conflict in 1975; and the aftershocks from the cultural transformations often referred to as “the Sixties.” It was a time, Perlstein writes, when America “suffered more wounds to its ideal of itself than at just about any other time in its history” (p.xiii). 1976 was also the bi-centennial year of the signing of the Declaration of Independence, which the nation approached with trepidation. Many feared, as Perlstein puts it, that celebration of the nation’s 200 year anniversary would serve the “malign ideological purpose of dissuading a nation from a desperately needed reckoning with the sins of its past” (p.712).

     Perlstein begins by quoting advice Nikita Khrushchev purportedly provided to Richard Nixon: “If the people believe there’s an imaginary river out there, you don’t tell them there’s no river there. You build an imaginary bridge over the imaginary river.” Perlstein does not return to Khrushchev’s advice and, as I ploughed through his book, I realized that I had not grasped how the notion of an “invisible bridge” fits into his lengthy (804 pages!) narrative. More on that below. There’s no mystery, however, about Perlstein’s sub-title “The Fall of Nixon and the Rise of Reagan.”

     About one third of the book addresses Nixon’s fall in the Watergate affair and another third recounts Reagan’s rise to challenge President Gerald Ford for the 1976 Republican Party presidential nomination, including the year’s presidential primaries and the maneuvering of the Ford and Reagan presidential campaigns at the Republican National Convention that summer. The remaining third consists of biographical background on Reagan and his evolution from a New Deal liberal to a conservative Republican; an examination of the forces that were at work in the early 1970s to mobilize conservatives after Goldwater’s disastrous 1964 defeat; and Perlstein’s efforts to describe the American cultural landscape in the 1970s and capture the national mood, through a dazzling litany of vignettes and anecdotes. At times, it seems that Perlstein has seen every film that came to theatres in the first half of the decade; watched every television program from the era; and read every small and mid-size town newspaper.

     Perlstein describes his work as a “sort of biography of Ronald Reagan – of Ronald Reagan, rescuer” (p.xv) — rescuer, presumably, of the American psyche from the cultural convulsions of the Sixties and the traumas of Watergate and Vietnam that had shaken America’s confidence to the core. Perlstein considers Reagan to have been a gifted politician who exuded a “blithe optimism in the face of what others called chaos” (p.xvi), with an uncanny ability to simplify complex questions, often through stories that could be described as homespun or hokey, depending upon one’s perspective. Reagan was an “athlete of the imagination,” Perlstein writes, who was “simply awesome” at “turning complexity and confusion and doubt into simplicity and stout-heartedness and certainty” (p.48). This power was a key to “what made others feel so good in his presence, what made them so eager and willing to follow him – what made him a leader. But it was why, simultaneously, he was such a controversial leader” (p.xv).   Many regarded Reagan’s blithe optimism as the work of a “phony and a hustler” (p.xv). At bottom, Reagan was a divider and not a uniter, Perlstein argues, and “understanding the precise ways that opinions about him divided Americans . . . better helps us to understand our political order of battle today: how Americans divide themselves from one another” (p.xvi).

* * *

     In a series of biographical digressions, Perlstein demonstrates how Reagan’s blithe mid-western optimism served as the foundation for a long conversion to political conservatism.  Perlstein begins with Reagan’s upbringing in Illinois, his education at Illinois’ Eureka College, and his early years as a sportscaster in Iowa. Reagan left the mid-west in 1937 for Hollywood and a career in films, arriving in California as a “hemophiliac, bleeding heart liberal” (p.339). But, during his Hollywood years, Reagan came to see Communist Party infiltration of the film industry as a menace to the industry’s existence. He was convinced that Communist actors and producers had mastered the subtle art of making the free enterprise system look bad and thereby were undermining the American way of life.   Reagan became an informant for the FBI on the extent of Communist infiltration of Hollywood, a “warrior in a struggle of good versus evil – a battle for the soul of the world” (p.358), as Perlstein puts it. Reagan further came to resent the extent of taxation and viewed the IRS as a public enemy second only to Communists.

     Yet, Reagan remained a liberal Democrat through the 1940s. In 1948, he worked for President Truman’s re-election and introduced Minneapolis mayor Hubert Humphrey to a national radio audience. In 1952, Reagan supported Republican Dwight Eisenhower’s bid for the presidency. His journey toward the conservative end of the spectrum was probably completed when he became host in 1954 of General Electric’s “GE Theatre,” a mainstay of early American television. One of America’s corporate giants, GE’s self-image was of a family that functioned in frictionless harmony, with the interests of labor and management miraculously aligned. GE episodes, Perlstein writes, were the “perfect expression” of the 1950s faith that nothing “need ever remain in friction in the nation God had ordained to benevolently bestride the world” (p.395). Reagan and his blithe optimism proved to be a perfect fit with GE Theatre’s mission of promoting its brand of Americanism, based on low taxes, unchallenged managerial control, and freedom from government regulatory interference.

     In the 1960 presidential campaign, Reagan depicted the progressive reforms which Democratic nominee John Kennedy advocated as being inspired by Karl Marx and Adolf Hitler. Richard Nixon, Kennedy’s rival, noted Reagan’s evolution and directed his staff to use Reagan as a speaker “whenever possible. He used to be a liberal” (p.374). By 1964, Reagan had become a highly visible backer of Barry Goldwater’s presidential quest, delivering a memorable speech in support of the candidate at the Republican National Convention. Reagan went on to be elected twice as governor of California, in 1967 and 1971.

     While governor, Reagan consistently argued for less government.  Our highest national priority, he contended at a national governors’ conference in 1973, should be to “halt the trend toward bigger, more expensive government at all levels before it is too late . . . We as citizens will either master government as our servant or ultimately it will master us” (p.160). Almost alone among conservatives, Reagan projected an image of a “pleasant man who understands why people are angry” (p.604), as one commentator put it. He gained fame if not notoriety during his tenure as governor for his hard line opposition to student protesters, particularly at the University of California’s Berkeley campus, attracting scores of working class Democrats who had never previously voted for a Republican. “Part of what made Berkeley [student unrest] such a powerful issue for traditionally Democratic voters was class resentment – something Ronald Reagan understood in his bones” (p.83).

     Early in Reagan’s second term as California’s governor, on June 17, 1972, four burglars were caught attempting to break into the Democratic national headquarters in Washington’s Watergate office and apartment complex. Throughout the ensuing investigation, Reagan seemed indifferent to what Time Magazine termed “probably the most pervasive instance of top-level misconduct in [American] history” (p.77).

* * *

     Watergate to Reagan was part of the usual atmosphere of campaigning, not much more than a prank.  Upon first learning about the break-in, he quipped that the Democrats should be happy that someone considered their documents worth reading. Throughout the investigation into corruption that implicated the White House, Reagan maintained a stubborn “Christian charity to a a fallen political comrade” (p.249). The individuals involved, he argued, were “not criminals at heart” (p.81). He told conservative commentators Rowland Evans and Robert Novak that he found “no evidence of criminal activity” in Watergate, which was why Nixon’s detractors were training their fire on “vague areas like morality and so forth” (p.249-50). Alone among political leaders, Reagan insisted that Watergate “said nothing important about the American character” (p.xiv).

     Thus, few were surprised when Reagan supported President Gerald Ford’s widely unpopular presidential pardon of Nixon for any crimes he might have committed related to Watergate, issued one month after Nixon’s resignation. Nixon had already suffered “punishment beyond anything any of us could imagine” (p.271), Reagan argued. Ford’s pardon of Nixon dissipated the high level of support that he had enjoyed since assuming the presidency, sending his public approval ratings from near record highs to near new lows. Democrats gained a nearly 2-1 advantage in the House of Representatives in the 1974 mid-term elections and Reagan’s party “seemed near to death” (p.329).

     As Ford’s popularity waned, Reagan saw an opportunity to challenge the sitting president. He announced his candidacy in November 1975. Reagan said he was running against what he termed a “buddy system” in Washington, an incestuous network of legislators, bureaucrats, and lobbyists which:

functions for its own benefit – increasingly insensitive to the needs of the American worker, who supports it with his taxes. . . I don’t believe for one moment that four more years of business as usual in Washington is the answer to our problems, and I don’t believe the American people believe it, either (p.547).

With Reagan’s bid for the 1976 Republican nomination, Perlstein’s narrative reaches its climatic conclusion.

* * *

     The New York Times dismissed the presidential bid as an “amusing but frivolous Reagan fantasy” and wondered how Reagan could be “taken so seriously by the news media” (p.546). Harper’s termed Reagan the “Candidate from Disneyland” (p.602), labeling him “Nixon without the savvy or self pity. . . That he should be regarded as a serious candidate for President is a shame and embarrassment” (p.602). Commentator Garry Wills responded to Reagan’s charge that the media was treating him unfairly by conceding that it was indeed “unfair to expect accuracy or depth” from Reagan (p.602). But, as Perlstein points out, these comments revealed “more about their authors than they did about the candidate and his political prospects” (p.602), reflecting what he terms elsewhere the “myopia of pundits, who so frequently fail to notice the very cultural ground shifting beneath their feet” (p.xv).

     1976 proved to be the last year either party determined its nominee at the convention itself, rather than in advance. Reagan went into the convention in Kansas City as the most serious threat to an incumbent president since Theodore Roosevelt had challenged William Howard Taft for the Republican Party nomination in 1912. His support in the primaries and at the convention benefitted from a conservative movement that had come together to nominate Barry Goldwater in 1964, a committed “army that could lose a battle, suck it up, and then regroup to fight a thousand battles more” (p.451) — “long memoried elephants” (p.308), Perlstein terms them elsewhere.

     In the years since the Goldwater nomination, evangelical Christians had become more political, moving from the margins to the mainstream of the conservative movement. Evangelical Christians were behind an effort to have America declared officially a “Christian nation.” Judicially-imposed busing of school students to achieve greater racial balance in public schools precipitated a torrent of opposition in cities as diverse as Boston, Massachusetts and Louisville, Kentucky – the Boston opposition organization was known as ROAR, Restore our Alienated Rights. Perlstein also traces the conservative reaction to the Supreme Court’s 1973 Roe v. Wade decision, which recognized a constitutional right to abortion. The 1976 Republican party platform for the first time recommended a Human Rights amendment to the constitution to reverse the decision.

     Activist Phyllis Schlafly, who died just weeks ago, led a movement to derail the proposed Equal Rights Amendment, intended to establish gender equality as a constitutional mandate. Schafly’s efforts contributed to stopping the proposed amendment at a time when approval of only three additional states would have officially adopted the amendment as part of the federal constitution (“Don’t Let Satan Have Its Way – Stop the ERA” was the opposition slogan, as well as Perlstein’s title for a chapter on the subject). Internationally, conservatives opposed the Ford administration’s intention to relinquish to Panama control of the Panama Canal; and the policy of détente toward the Soviet Union which both the Nixon and Ford administrations pursued.

     Enabling the long-memoried elephants was Richard Viguerie, a little known master of new technologies for fund-raising and grass roots get-out-the-vote campaigns. Conservative opinion writers like Patrick Buchanan, former Nixon White House Communications Director, and George Will also enjoyed expanded newspaper coverage. A fledgling conservative think tank based in Washington, the Heritage Foundation, became a repository for combining conservative thinking and action. The Heritage Foundation assisted a campaign in West Virginia to purge school textbooks of “secular humanism.”

     With the contest for delegates nearly even as the convention approached, Reagan needed the support of conservatives for causes like these. But Reagan also realized that limited support from centrist delegates could prove to be his margin of difference. In a bid to attract such delegates, especially from the crucial Pennsylvania delegation, Reagan promised in advance of the convention to name Pennsylvania Senator Richard Schweiker as his running mate. Schweiker came from the moderate wing of the party, with a high rating from the AFL-CIO. But the move backfired, infuriating conservatives — North Carolina Senator Jesse Helms in particular — with few moderate delegates switching to Reagan.   Then, Reagan’s supporters proposed a change to the convention’s rules that would have required Ford to announce his running mate prior to the presidential balloting, forcing Ford to anger either the moderate or conservative faction of the party. Ford supporters rejected the proposal, which lost on the full floor after a close vote.

     The 150 delegates of the Mississippi delegation proved to be crucial in determining the outcome of the convention’s balloting. When the Mississippi delegation cast its lot with Ford, the president had a sufficient number of delegates to win the nomination on the first ballot, 1187 votes to 1070 for Reagan. Ford selected Kansas Senator Robert Dole as his running mate, after Vice President Nelson Rockefeller, whom conservatives detested, announced the previous fall that he did not wish to be a candidate for Vice President. Anxious to achieve party unity, Ford invited Reagan to join him on the platform following his acceptance speech. Reagan gave an eloquent impromptu speech that many thought overshadowed Ford’s own acceptance address.

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     Perlstein includes a short, epilogue-like summation to the climatic Kansas City convention: Ford went on to lose to Democratic governor from Georgia Jimmy Carter in a close 1976 general election and Reagan emerged as the undisputed leader of his party’s conservative wing. But as the book ended, I found myself still asking how the notion of an “invisible bridge” fits into this saga. My best guess is that the notion is tied to Perlstein’s description of Reagan as a “rescuer.”  Reagan’s failed presidential campaign was a journey across a great divide – over an invisible bridge.

     On the one side were Watergate, the Vietnam War, repercussions from the Sixties and, for conservatives, Goldwater’s humiliating 1964 defeat. On the other side was the promise of an unsullied way forward.  Reagan’s soothing cult of optimism offered Americans a message that could allow them to again view themselves and their country positively.  There were no sins that Reagan’s America need atone for. Usually dour and gloomy conservatives — Perlstein’s “long memoried elephants” — also saw in Reagan’s buoyant   message the discernible path to power that had eluded them in 1964.. But, as Perlstein will likely underscore in a subsequent volume, many still doubted whether the blithe optimist had the temperament or the intellect to be president, while others suspected that his upbeat brand of conservatism could no more be sold to the country-at-large than the Goldwater brand in 1964.

Thomas H. Peebles

La Châtaigneraie, France

October 2, 2016

 

 

 

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Filed under American Politics, American Society, Biography

Tantalizing Look

Garry Wills, Outside Looking In:

Adventures of an Observer

Outside-Looking-in-Wills-Garry

       Garry Wills has always been a fascinating yet little known figure for me.  His writing is breathtakingly wide-ranging, from themes on antiquity and the Bible to modern American politics and presidents.  I have enjoyed some but not all of his writing — much is quite abstract and way over my head.  I knew that Wills was a strong Catholic whose Catholicism has influenced his world view and his writings.  I also knew that he had an early stint at William F. Buckley’s National Review, America’s foremost conservative publication, yet today is closely associated with the liberal and progressive point of view.  These factors make Wills a figure I was eager to learn more about.

       “Outside Looking In: Adventures of an Observer” fulfills that learning function only partially, leaving much of the Garry Wills story tantalizingly untold.  Wills describes himself as both “incurably Catholic” (p.6) and also highly conventional,  “incurably . . . square — middle class, never bohemian or avant-garde” (p.6).  As someone “so colorless,” Wills indicates, “I am not interesting in myself, but I have been able to meet many interesting people and observe fascinating events, partly by being unobtrusive” (p.7).   Wills’ book, a series of short vignettes about his experiences and the people he has met, seeks to share what he has been able to observe, looking in from the outside.

       Wills’ introduction, entitled “A Bookworm’s Confession,” is about as close as he comes to autobiography.  Here, Wills describes his early upbringing, which centered, to his father’s chagrin, around books and his affinity for reading.  When he was in grade school, his father promised him money if he could go a week without reading.  Wills accepted his father’s offer, then “used the money to buy a new book” (p.3).  As a teenager, Wills was sneaking away to read books in the way many of his age were sneaking away to smoke cigarettes.  In boarding school, he read in the john at night, the “only place where lights were kept on” (p.3).  While working in a clothing store, he read Shakespeare in the warehouse during his breaks.

       Wills’ first and second substantive chapters are about the Civil Rights campaigns in the early 1960s and the death of Martin Luther King.  There is a chapter on Studs Turkel, one of Wills’ favorites; another on Wills’ mercurial father, Jack.  Wills also enjoys films and there is a chapter entitled simply “Movies.”  Wills’ story about how he met his wife Natalie is practically the stuff of a detective novel.  Wills explains with much gusto how he tracked down an erudite flight attendant he had met by chance on a plane trip.  He is still married to this woman some 50 years later and, as he tells it, she is not only his spouse but also his intellectual alter ego.

       Wills traveled with Richard Nixon’s 1968 campaign, and came close enough to see Nixon’s “omnidirectional mistrust” which would later “blossom into the break-ins and spying that brought Nixon down” (p.106).  Wills also traveled with the Carter campaign in 1976.  He was impressed with the way the deeply religious candidate kept his religion out of his campaign.  “So far from injecting religion into politics, Carter had the historical Baptist belief in a separation of church and state” (p.111-12).  He further considers Carter to have had the “most successful ex-presidency of all time” (p.113-114), becoming a “voice of conscience in all nations, not just in ours” (p.114).

       When Wills interviewed President George H.W. Bush, the subject naturally turned to books.  Bush indicated that he had been particularly impressed with Catcher in the Rye while a student at Phillips Exeter Academy.  Wills notes in his book – but presumably not to the President – that Catcher in the Rye was first published in 1951, whereas Bush had graduated from Exeter in 1942.  “He was so devoid of personal reading memories,” Wills writes, that he “must have remembered his sons’ talk of the novel when they were in prep school” (p.142).

       Wills met Bill Clinton when the man from Hope was first running for president and Wills was working on an analysis of Saint Augustine’s Confessions.  Wills interviewed Clinton and asked the candidate what book had made the greatest impression on him.  Aware of Wills’ Saint Augustine project, Clinton predictably came up with a title designed to curry Wills’ favor, Marcus Aurelius’ Mediations.  After his election, a cheap paperback of the Mediations came out with a banner indicating it was the newly elected President’s favorite book.  Wills saw immediately the irony in Clinton’s choice of an ascetical treatise that severely “condemns any yielding to sexual indulgence” (p.120).

       William Buckley is the subject of Wills’ penultimate chapter.  But, in a broader sense, Buckley is a dominating presence throughout this book.   Wills was on a flight to attend a Buckley party when he met his wife, for example.  Buckley was a formative mentor for Wills, a warm but mischievous fellow, capable of much kindness.  Wills speculates that Buckley was drawn to him because of his Catholicism – Buckley too was “incurably Catholic” (p.153).  Early in his National Review stint, Wills became Buckley’s informal advisor on Catholic matters.

       In 1957, Buckley published a much-maligned editorial, “Why the South Must Prevail,” in which he defended segregation because whites were the “advanced race” and the “claims of civilization superseded those of universal suffrage” (p.157).  Wills argued vehemently with Buckley on these positions and Buckley’s biographer credits Wills with convincing Buckley to moderate his views and distance himself and the National Review from Southern segregationists.  But, Wills argues, Buckley also put distance between his brand of conservatism and the “anti-Semitism of the Liberty Lobby, the fanaticism of the John Birch Society, the glorification of selfishness by Ayn Rand [and] . . . the paranoia and conspiratorialism of the neocons” (p.158-59).  In each of these cases, “some right-wingers tried to cut off donations to The National Review, but Bill stood his ground” (p.159).  In Wills’ view, one of Buckley’s most significant contributions to American conservatism was to elevate the discourse in American politics, “making civil debate possible between responsible liberals and conservatives” (p.159).

       Wills and Buckley were estranged for more than 30 years, driven apart by the “convulsions of the sixties and their aftermath” (p.164).  Wills became a vehement critic of the Vietnam War, whereas Buckley maintained his hard-line support for the American war effort.  The final break between the two men came when Buckley refused to publish an essay in the National Review in which Wills argued that there was “no conservative rationale for our ruinous engagement in Vietnam.”  As a consequence, over the next 30 years, “communication between us was at first minimal, and then non-existent “ (p.164).  For a while, the Review ran a “Wills Watch” documenting Wills’ liberal heresies.  There was some reconnection and reconciliation between the two men in the years immediately preceding Buckley’s death in 2008, although Wills does not recount any meeting.

       While the episodes in this book provide some insight into one of America’s most versatile and formidable contemporary thinkers, readers like me who want to see up close the inner Wills will find the book only partially satisfying.  We remain thoroughly unconvinced by his self-description as “uninteresting” and can only hope that at some subsequent time he will open a little wider the window into his prodigious mind.

Thomas H. Peebles

Rockville, Maryland

December 16, 2012

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