C. Douglas Dillon

C. Douglas Dillon
James C. Dunn
Succeeded by	Amory Houghton
Personal details
Born	Clarence Douglass Dillon (1909-08-21)August 21, 1909 Geneva, Switzerland
Died	January 10, 2003(2003-01-10) (aged 93) New York City, New York, U.S.
Political party	Republican
Spouses	Phyllis Chess Ellsworth ​ ​ (m. 1931; died 1982)​ Susan Sage ​ ​ (m. 1983)​
Children	2, including Joan
Parent(s)	Clarence Dillon Anne McEldin (née Douglass)
Education	Groton School
Alma mater	Harvard College (BA)
Signature
Military service
Allegiance	United States
Branch/service	United States Navy
Rank	Lieutenant commander[1]
Battles/wars	World War II
[2]

Clarence Douglas Dillon (born Clarence Douglass Dillon; August 21, 1909 – January 10, 2003) was an American diplomat and politician, who served as

In 1961, John F. Kennedy, appointed Republican Dillon Treasury Secretary. Dillon remained Treasury Secretary under President Lyndon B. Johnson until 1965. According to Richard Dean Burns and Joseph M. Siracusa, Dillon's leadership of the economic policy team, exerted significant conservative influence on the overall direction of the administration. He effectively convinced the president that the nation's main economic challenge was the balance of payments deficit, leading to the adoption of a moderate approach and the dismissal of more radical liberal solutions to domestic issues. President Kennedy's choice of Dillon as Secretary of the Treasury reflected a deep concern about the balance of payments deficit and the resulting "gold drain." By choosing Dillon, a Wall Street figure with strong Republican connections and a reputation for advocating sound monetary policies, Kennedy aimed to reassure the financial community, which was apprehensive about the potential loose monetary policies of the incoming Democratic administration. According to Theodore Sorensen, the president's choice was primarily influenced by the need to maintain global confidence in the dollar and prevent a massive conversion of dollars into gold. Kennedy shared Dillon's moderately conservative economic perspectives at the time of his appointment, and Dillon enjoyed close access to the president throughout his presidency. He was one of the few political associates who socialized with Kennedy as well. The emphasis placed by Kennedy and Dillon on addressing the balance of payments issue had a substantial impact on the administration's overall economic policy, steering it toward conservatism. The growing annual deficits in dollar payments had led to a significant accumulation of dollars in the hands of foreign banks and governments. The recurring loss of confidence in the value of the dollar prompted foreign holders to exchange their dollars for American gold, which had a fixed value relative to the dollar. This "gold drain" raised concerns within the financial community and remained a prominent issue during both the Kennedy and Johnson administrations. In an effort to stabilize the status of the dollar and halt the outflow of gold, the Kennedy administration avoided economic measures that could potentially increase inflation and undermine foreign confidence in the dollar. During the initial years of Kennedy's presidency, Dillon's success in prioritizing the payments deficit prevented more aggressive fiscal and monetary interventions in the economy or increased spending on social programs.^[8]

On tariff policy, Dillon proposed the fifth round of tariff negotiations under the

Dillon supervised the development of a reform package. He made a case before Congress to withhold taxes on interest and dividend income. The goal was to combat widespread tax evasion. Additionally, he advocated for the closure of loopholes utilized by foreign "tax haven" corporations and businessmen who deducted entertainment expenses. Although Congress rejected most of the administration's reform program during the summer of 1962, Dillon nevertheless endorsed the final package because it included a 7 percent investment tax credit.^[10]

Kennedy also made use of Dillon's diplomatic skills. He was made the leader of the American delegation dispatched to Punta del Este, Uruguay, in August 1961 to commence the Alliance for Progress. Dillon committed the U.S. to provide $20 billion in low-interest loans over the next decade to enhance the living conditions in Latin America. He endorsed the "revolution of rising expectations" and aimed to convert it into a "revolution of rising satisfactions." Additionally, Dillon served on the National Security Council and actively participated in the intense discussions surrounding the Cuban Missile Crisis in October 1962.^[10][11]

Philanthropy

A close friend of

He received the Medal of Freedom in 1989.

Personal life

On March 10, 1931, Dillon married the former Phyllis Chess Ellsworth (1910–1982)

• Phyllis Ellsworth Dillon Collins
• Joan Douglas Dillon (b. 1935), former president of French Bordeaux wine company Domaine Clarence Dillon.

In 1983, the widowed Dillon married the former Susan "Suzzie" Slater (1917–2019). She had first been married to Theodore "Ted" Sheldon Bassett (1911–1983) in 1939 (div.). In 1949 she married British entertainer Jack Buchanan (1891–1957). In 1961 she wed DeWitt Linn Sage (1905–1982), who again left her a widow.

Dillon died of natural causes on January 10, 2003, at the

Through his daughter Joan's first marriage, he was a grandfather of Joan Dillon Moseley (b. 1954), and through her second marriage to Prince Charles of Luxembourg,^[15] he was a grandfather to Princess Charlotte (b. 1967) and Prince Robert (b. 1968) followed. After Prince Charles' death in 1977, Joan married Philippe, 8th duc de Mouchy in 1978, without further issue.^[16]

In fiction

In the

See also

• List of U.S. political appointments that crossed party lines
• Rockefeller Foundation
• Metropolitan Museum

References

Notes

Sources