View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.


reserve bank

Dallas, Texas, June 2 9 ,1 9 4 9

To A ll Member Banks
in the Eleventh Federal Reserve D istrict:

The following statement by the Federal Open Market Committee o f the
Federal Reserve System has been given to the press fo r immediate release:
“ The Federal Open Market Committee, after consultation with
the Treasury, announced today that with a view to increasing the
supply o f funds available in the market to meet the needs of com­
merce, business, and agriculture, it will be the policy o f the Com­
mittee to direct purchases, sales, and exchanges o f government
securities by the Federal Reserve Banks with primary regard to
the general business and credit situation. The policy o f maintaining
orderly conditions in the government security market and the con­
fidence o f investors in government bonds will be continued. Under
present conditions the maintenance o f a relatively fixed pattern o f
rates has the undesirable effect of absorbing reserves from the mar­
ket at a time when the availability o f credit should be increased.”

V ery truly yours,

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (