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A meeting of the executive committee of the Federal Open Market
Committee was held in

the offices of the Board of Governors of the Fed

eral Reserve System in Washington on Friday, April 22, 1938, at 1:20 p.m.
PRESENT:

Mr.
Mr.
Mr.
Mr.

Eccles, Chairman
Harrison, Vice Chairman
Szymczak
Davis

Mr. Sinclair
Messrs. McKee, Ransom, Draper, Newton,
Schaller and Peyton, Members of the
Federal Open Market Committee

Mr. Morrill, Secretary
Mr. Wyatt, General Counsel

Mr. Goldenweiser, Economist
Mr. Dreibelbis, Assistant General Counsel
Mr. Thurston, Special Assistant to the
Chairman of the Board of Governors of
the Federal Reserve System

It was agreed that the authority granted to the Federal Reserve
Bank of New York to replace maturing securities and to make shifts of
securities in the system open market account pending further action by
the executive committee should be renewed at this time subject to the
limitations laid down in

the resolutions adopted by the Federal Open

Market Committee at its meeting today.
Upon motion duly made and seconded, and by

unanimous vote, the executive committee directed
the Federal Reserve Bank of New York until other
wise directed by the executive committee,
(1) To replace maturing securities in the
system open market account by purchases of like
amounts of Treasury bills or Treasury notes matur
ing within two years, provided such purchases can
be made without paying a premium above a no-yield
basis;

(2)

To make such other shifts of securities

in the account (which may be accomplished when
desirable through replacement of maturing securi
ties) as may be necessary in the practical
administration of the account, up to an aggregate

4/22/38

-2of $200,000,000 of purchases and a like amount of
sales or redemptions, provided that the total
amount of bonds held in the account be not reduced;
(3) To increase or decrease temporarily the
amount of securities in the account between weekly
statement dates by not more than $50,000,000 when
necessary in making replacements or shifts pur
suant to the above provisions of this resolution,
provided that the amount of securities in the account
as of any weekly statement date shall not be changed
from that of the preceding weekly statement date ex
cept pursuant to the other provisions of this reso
lution; and
Upon approval by a majority of the members
(4)
of the executive committee, which may be obtained
by telephone, telegraph, or mail, to make such other
shifts or such purchases or sales (which would
include authority to allow maturities to run off
without replacement) for the account as may be found
to be desirable within the limits of the authority
granted to the executive committee by the Federal
Open Market Committee.

Thereupon the meeting adjourned.

Secretary,

Approved:
Chairman.