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BDARD DF GOVERNORS
OF THE

FEDERAL RESERVE SYSTEM

-Office C o r r e s p o n d e n c e
To

Chairman Eccles

Frntn

Mr. Knapp

pate July ?, 1947
Subject: NAC Staff Committee approval of
letter to Secretary Snyder to the International Bank

The National Advisozy Council Staff Committee approved this afternoon a letter to be written by Secretary Snyder to the International Bank
incorporating our proposal for the International Bank's providing full and
current information on its stabilization operations in its own securities
to the Federal Reserve Bank of New York. The only change in the letter
was suggested by Mr. Murphy of the Treasury Department who asked that the
Federal Reserve Bank of New York receive this information in its capacity
"as agent for the Federal Open Market Committee and as fiscal agent for the
U.S. Treasury". I felt I had no grounds for opposing this amendment.
I believe, however, that we should keep this incident in mind in
connection with the next matter relating to the International Bank's dealings in U.S. Government securities. It is possible that the Treasury Department may again propose an amendment which would require approval for such
transactions to be giveiPthe Federal Reserve Bank of New York acting not
only as agent for the Federal Open Market Committee, but also as fiscal
agent for the Treasury. I assume that you would be opposed to any such
amendment, but I shall discuss the matter with you again before we proceed
with any paper on this next subject.
The paper concerning the International Bankfs operations in its
own securities will be presented to the National Advisory Council for approval
next Tuesday.