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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 Treas 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 agricul 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.