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Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority E .6 . IBSfe MINUTES OF THE MEETING OF THE OPEN MARKET INVESTMENT COMMITTEE HEID IN WASHINGTON, SATURDAY, MARCH 20, 1926 Present: / '■ / * c ' Governor Strong, Chairman. Governors Harding, Norris, Fancher and Me Dougal. Mr* Harrison, Secretary pro tern. The meeting was called to order by Governor Strong at 11:00 o'clock a* ra. APPOINTMENT OF A SECRETARY PRO TEM. Upon request of Governor Strong, Mr* Harrison was appointed secretary pro tem. REPORT OF CHAIRMAN. The Chairman submitted his report dated March 19 to the committee for their consideration. Before acting upon the report, business conditions through out the several districts were discussed in some d etail. The opinion was ex pressed that while production seems s t i l l active, nevertheless there are some evidences of a recession in sales to the ultimate consumer, certainly evidences of caution and hesitation, which might result in accumulating inventories, lower ing of prices, and some unemployment, unless sentiment is changed before the process continues too long. I t was the unanimous opinion of the committee that other than to replace March 15 maturities, no action should be taken, at least un til after March 23, when the Treasury pays off $121,000,000 of Third Liberty bonds, and when readjustments after the usual quarter day movement w i ll have been completed. It was f e lt that u n til that time it w i ll be d iffic u lt to judge the normal trend of the money market. With a slight verbal amendment, the report of the Chairman was approved by the committee and adopted as their report to the Governors Conference. PUCE OF FUTURE MEETINGS OF COMMITTEE. The Chairman reported to the committee the Federal Reserve Board’ s Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority E .6 . l&Sto 2 le tte r of March 9, 1926, a copy of which had previously been mailed to each member, advising of the action taken by the Federal Reserve Board on March 9, to the effect “that Washington be designated as the future regular meeting place of the Open Market Investment Committee, except when the committee is authorized by the Board to meet elsewhere." After f u l l discussion, it was VOTED to be the sense of the committee, who were serving at the re- quest of the Federal Reserve Board in order to cooperate voluntarily in an orderly System policy respecting the purchase and sale of b i lls and securities, that they are anxious now, as in the past, to arrange meetings of the committee to suit the convenience of a l l concerned and at such places as might be most consistent with the purposes to be accomplished by each meeting, and that, there fore, a resolution of the Board fixing Washington as the regular meeting place of the committee, except when the committee is authorized by the Board to meet elsewhere, is in the opinion of the committee unnecessary in a l l the circum stances and an inadvisable restriction upon the freedom of the committee, after consultation with the Federal Reserve Board, to hold meetings at such places as might best suit conditions The meeting adjo' at 12:00 o’ clock noon to meet with the Federal Reserve Board* George L. Harrison Secretary pro tem. Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED Authority E .6 . r-> MINUTES OF JOINT MEETING OF OPEN MARKET INVESTMENT COMMITTEE ^ x J AND FEDERAL RESERVE BOARD HELD IN WASHINGTON, Z> O J, & + SATURDAY MARCH 20, 1926* ^2 1 v ' _/ ^ / a*i - -cx_ L 3j Present: 1 ^ Governor Strong, Chairman Governors Harding, Norris, Fancher and McDougal* Governor Crissinger and Messrs* P latt, Hamlin, M iller, James, Cunningham, Wyatt, Eddy, McClelland and Goldenweiser* Mr* Harrison, Secretary pro tem* The meeting was called to order by Governor Strong at 12:00 o’ clock noon* Governor Strong reported to the Federal Reserve Board the action of the Open Market Investment Committee with respect to the Board1s letter of March 9, 1926,Jadvising the Chairman of the committee that in future its regular meeting place would be in Washington, except when the committee is authorized by the Board to meet elsewhere*^ Individual members of the Board expressed their opinion regarding the procedure outlined in the le tte r, and Governor Strong then stated to the Board that no meeting of the Open Market Investment Committee had ever been held without previous advice to and conference with the Federal Reserve Board about the meeting, that the Open Market Investment Committee would always be glad to meet in Washington when asked to do so, but that they did not want to be denied the right to meet elsewhere when conditions make it advisable. At this point Mr. James and Mr* M iller le ft the meeting, and after further informal discussion the meeting adjourned at 1:00 o*clock p. m* to re convene at 2:30 o*clock p* m. The joint meeting of the Open Market Investment Committee with the Federal Reserve Board reconvened at 2:30 o’ clock p* m* on Saturday, March 20, 1926. The secretary of the Open Market Investment Committee read to the conference the report which the Open Market Investment Committee had adopted fo r Submission to the Governors Conference on Monday, March 22, 1926, http://fraser.stlouisfed.org/ O w . V Federal Reserve Bank of St. Louis / 5 -3 2 1 , - I ■w Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority E .6 . a After a discussion of business conditions, particularly in their relation to the committee’ s statement about reports of business hesitation and the possible need for further purchases of securities in the event that the very near future might show further evidence of a business recession, Governor Strong asked for a discussion of the question of future procedure, pointing jut that the situation would be much clearer in a short time - possibly a matter of days only. Individual members of the Federal Reserve Board expressed their agree ment with the recommendation of the committee relative to the replacement of March 15 m aturities, but no formal action was taken with respect either to that or to the suggestion as to possible future purchases. The committee adjourned at 4:00 o*clock p. m. in order to permit Professor Sprague to address the Federal Reserve Board and those members of the Governors Conference who were present at that time. George L. Harrison Secretary pro tan
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