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The meeting of the executive committee of the Federal Open Market Committee was reconvened in the offices of the Board of Gov ernors of the Federal Reserve System in Washington on Monday, August 3, 1942, at 6:30 p.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Szymczak Draper Alfred H. Williams Gilbert (alternate for Mr. Sproul) Mr. Morrill, Secretary Mr. Carpenter, Assistant Secretary Mr. John H. Williams, Associate Economist Mr. Wyatt, General Counsel Mr. Dreibelbis, Assistant General Counsel Mr. Rouse, Manager of the System Open Market Account Mr. Piser, Chief, Government Securities Section, Division of Research and Sta tistics of the Board of Governors Mr. Leedy, member of the Federal Open Market Committee The direction issued to the Federal Reserve Bank of New York at the meeting of the executive committee on June 22, 1942, was read, and, upon motion duly made and seconded, and by unanimous vote, it was decided that the authority to the Bank to execute transactions for the System account should be renewed in the same form. There upon, upon motion duly made and seconded, the following telegram to the Federal Re serve Bank of New York was approved by unanimous vote: "At the meeting of the executive committee of the Fed eral Open Market Committee on August 3 the committee directed the Federal Reserve Bank of New York, until otherwise di rected by the executive committee, "(1 ) To make such purchases, sales, or exchanges (in cluding replacement of maturing securities and allowing maturities to run off without replacement) for the System account, either in the open market or directly from, to, or 8/3/42 -2 "with the Treasury, as may be necessary in the practical ad ministration of the account or for the purpose of maintaining about the present general level of prices and yields of Gov ernment securities, of maintaining an adequate supply of funds in the market, or of granting temporary acccmodation to the Treasury; provided (a) that the total amount of securities in the account at the close of August 3, 1942, shall not be in creased or decreased by more than $200,000,000 (exclusive of special short-term certificates of indebtedness purchased for the temporary accommodation of the Treasury), (b) that the a mount of such short-term certificates in the account at any one time shall not exceed $300,000,000, and (c) that this paragraph shall not limit the amount of Treasury bills pur chased pursuant to the direction of the Federal Open Market Committee issued under date of April 30, 1942, or the re demption of such bills; and "(2) Upon approval by a majority of the members of the executive committee, which may be obtained by telephone, telegraph, or mail, to make such other purchases, sales, or exchanges 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. Chairman.
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