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3 X-7321 FEDERAL RESERVE BOARD STATEMENT FOR THE PRESS. For p u b l i c a t i o n i n Morning Papers, F r i d a y , January 6 , 1933. The Open Market P o l i c y Conference of the Federal Reserve System, w i t h r e p r e s e n t a t i v e s from a l l of the t w e l v e Federal r e s e r v e banks i n attendance, concluded i t s meetings w i t h the Federal Reserve Board today. The s e s s i o n s of the Conference were devoted to a review of economic, "business, f i n a n c i a l and banking c o n d i t i o n s i n each of t h e t w e l v e Federal r e s e r v e d i s t r i c t s and t o the economic and f i n a n c i a l s i t u a t i o n i n t h e country as a whole. P a r t i c u l a r r e f e r e n c e was made i n t h e d i s c u s s i o n s t o the workings and e f f e c t s of the open market p o l i c y thus f a r pursued by the Federal Reserve System during the course of the economic d e p r e s s i o n . Consideration was a l s o g i v e n t o t h e a t t i t u d e of the System i n a d j u s t i n g i t s o p e r a t i o n s t o c o n d i t i o n s and needs as they may change and d e v e l o p . The f i r s t and immediate o b j e c t i v e of t h e open market p o l i c y was t o c o n t r i b u t e f a c t o r s of s a f e t y and s t a b i l i t y i n meeting t h e f o r c e s of d e f l a t i o n . The l a r g e r o b j e c t i v e s of the System's open market p o l i c y , to a s s i s t and a c c e l e r a t e t h e f o r c e s of economic r e c o v e r y , are now assuming importance. With t h i s purpose i n mind, the Conference has decided t h a t t h e r e should be no change i n the System's p o l i c y intended t o maintain a s u b s t a n t i a l amount of e x c e s s member bank r e s e r v e s , the continuance of which i s deemed d e s i r a b l e i n present c o n d i t i o n s . Adjustments i n t h e System's h o l d i n g s i n t h e open market account w i l l be i n accordance w i t h t h i s p o l i c y .
@FedFRASER