University of Virginia Library

Texas Democrat Connally
Replaces Treasury Secretary

Treasury Secretary David M. Kennedy
was shoved aside yesterday when
President Richard Nixon announced at a
White House Press Conference the
appointment of John B. Connally as Mr.
Kennedy's replacement.

Mr. Kennedy told President Nixon last
month he was willing to resign if the
President needed someone to take the
blame for rising unemployment and
continuing inflation.

Treasury sources, who confirmed the
report of the Nixon-Kennedy meeting,
said the President declined to accept the
secretary's resignation at that time and on that
basis.

But when President Nixon announced the
appointment of the former Texas Governor as
Mr. Kennedy's replacement, it became apparent
that the offer was accepted after all, even
though Mr. Kennedy will stay in the
administration.

Mr. Kennedy, who will now work with
Secretary of State William P. Rogers, was
praised for his two years at the Treasury by the
President who said Mr. Kennedy would keep his
Cabinet status in his new job.

Reporters were not allowed to ask questions
at the White House and Mr. Kennedy himself
offered the only hint that he was being moved
downstairs.

"I wanted to go fishing a little," he said
lightly.

Mr. Connally served on Lyndon Johnson's
staff from 1939 to 1941 when the former
President was a member of the House. He
served in the Navy during World War II and
rejoined Mr. Johnson on his Senate staff in
1949.

President John Kennedy selected Mr.
Connally to serve as Navy Secretary and he
kept the job for a year before winning election
as Texas governor in 1962.

Mr. Connally, who suffered grave wounds in
the gunfire that killed President Kennedy,
bowed out as governor after three terms. Since
then, as a member of a prestigious law firm, Mr.
Connally has served on the boards of directors
of several Southwestern companies.

President Nixon said, however, that Mr.
Connally's three terms as governor gave him
special qualifications for his new job; although
he was not a banker. The President said Mr.
Connally should be particularly helpful as the
administration moved towards sharing some tax
revenue with the states.

Mr. Connally told President Nixon, "I
accepted this position on the basis you felt I
had some ability, some talent to give to this
country. I could not agree more that these are
troublesome times."

Although a leading Democrat, Mr. Connally
is a conservative. Jules Witcover wrote in his
book, "The Resurrection of Richard Nixon"
that Mr. Connally secretly helped raise money
for President Nixon's 1968 campaign.