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Deer Hoary? la accordance with our telephone of j®ut®T&frjt t tm simdla^ y<m as you reqiwdted, an excerpt from of the Op^n ftirket Can^ittMi seetDE Homiiiy, March 30* With, r^far^ace to the m®on& point, w© ^otild be glacl t I kaMrf to tM^tvMM ufttll the TrecBury at any ti^e toy solsetlns a mitteo to study th@ question &n& s.aka a port, or hf saj other proeedt^re that prefer. Slneerely Hozioratole xi Secretary of the Trea«tsryt EXCERPT ZROS MDltCSb OF OPBi MASKS COMMITTEE JESTING- OF ISDllDAY, MABCS 20, 1939. Mr. Harrison moved that the Chairman, either by telephone or personally, advise the Secretary of the Treasury in reply to his question that (1) the Federal Open Market Committee does not regard the present as a proper time for a reduction in the System open market account by the sale of bonds and that, in flow of the change in circumstances that has occurred since hie question was presented, the Committee assumes that the Secretary i3 of the same opinion as indicated by the cancelation of an outstanding order hj the Treasury to the Federal Reserve Bank of York to sell $10,000,000 of bonds for the account of trusts administered by the Treasury, and (2) that the Committee still feels that the eontinning and. fundamental problem involved is one of excess reserves, that it is a serious one, and that inasmuch as the Secretary of the Treasury expressed the opinion that the primary responsibility for initiating action with respect to excess reserves rests upon the Federal Reserve System, the Federal Open Market CoBoaittee v;ould suggest that representatives of the System consult vdth the Treasury with & view to determining if a long range attack can be made on that problem. 7" ^? Mr. Harrison moved that the Chairman, either by telephone or personally, advise the Secretary of the Treasury in reply to his question that (l) the Federal Open Market Committee does not regard the present as a proper time for a reduction in the System open market account by the sale of bonds and that, in view of the change in circumstances that has occurred since his question was presented, the Committee assumes that the Secretary is of the same opinion as indicated by the cancelation of an outstanding order by the Treasury to the Federal Reserve Bank of New York to sell 110,000,000 of bonds for the account of trusts administered by the Treasury, and (2) that the Committee still feels that the continuing and fundamental problem involved is one of excess reserves, that it is a serious one, and that inasmuch as the Secretary of the Treasury expressed the opinion that the primary responsibility for initiating action with respect to excess reserves rests upon the Federal Reserve System, the Federal Open Market Committee would suggest that representatives of the System consult with the Treasury with a view to determining if a long range attack can be made on that problem. vu i) ' x -s«t*-ar /yW
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