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FEDERAL RESERVE BANK
OF NEW YORK

r Circular No. 3 4 6 9 *
1
L
June 29, 1949
J

OPEN MARKET POLICY

To all Banking Institutions, and Others Concerned,
in the Second Federal Reserve District:

For your information, we quote below from a statement released
for publication June 28, 1949, by the Federal Open Market Committee
of the Federal Reserve System:
The Federal Open Market Committee, after consultation with the TreasĀ­
ury, announced today that with a view to increasing the supply of funds
available in the market to meet the needs of commerce, business, and agriculĀ­
ture it will be the policy of the Committee to direct purchases, sales, and
exchanges of Government securities by the Federal Reserve Banks with
primary regard to the general business and credit situation. The policy of
maintaining orderly conditions in the Government security market, and the
confidence of investors in Government bonds will be continued. Under
present conditions the maintenance of a relatively fixed pattern of rates has
the undesirable effect of absorbing reserves from the market at a time when
the availability of credit should be increased.

Additional copies of this circular will be furnished upon request.




A

llan

S proul,

President.


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102