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L July £Sr« &• F. Baytelt, Fiscal Assistant S«erot&ry* tfreaeu ry S I 5 # P« C« Dear Mr. Bartoltt I $m attaching for your Infonmtion a ocpj of the Chainaan*« l e t t e r addr«t»»d to 8ser«rtary Saydttr' and Ing the rooonBMiidatlons of th© &3»«ufciY© GoEmitt«s of the oral Open Haricot Blehard ! Chief* (roporttra^ont Finanoe Attachuwnt B&MtBT 11, Honorable John W» Snyder, Secretary of the Treasury, Washington, D# C« Dear Jotet Is response to Mr# Bartelt% 8 inquiry regarding our views on the August 1 certificate issue* the &eeeutive Comlttee of the Federal Open Market CoHEtittee reeosraends that i t be refunded in full into certificates maturing within eleven months and bearing a coupon rate of *?/& per cent. fhis reooaaeisidation i s baaed on the eongiderations expressed to you by Mr. Sproul and isytelf i s oar recent diseuseion and restated in our jaemorandum transmitted to you on July 1* As dersloped in that asemorandum, issuance of an eleven soenths certificate at this tiice weald be a step towards consolidation of the eleven outstanding certificate issues into a smaller number and thereby penait raising the certificate rate gradually while minimlsii^ the effteet of the risiag rate upon the price of outstanding certificate®* Beginning this program now paves tb© way for refunding the Septesdbe>r saaturities of treasury notes which represents the cnac ef the inssediate problem. Siseerely yours, Signed) Um $• Eeeles* Ghairwas, federal Open Market Committee,
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