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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 Federal Reserve System in Washington on Friday, December 12, 1941, at 10:10 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Sproul, Vice Chairman Ransom McKee Leach Mr. Mr. Mr. Mr. Mr. Mr. Mr. Morrill, Secretary Carpenter, Assistant Secretary Wyatt, General Counsel Goldenweiser, Economist Williams, Associate Economist Dreibelbis, Assistant General Counsel Piser, Senior Economist in the Division of Research and Statistics of the Board of Governors Messrs. Szymczak, Draper, Fleming, Davis, and Peyton, members of the Federal Open Market Committee Mr. Clayton, Assistant to Chairman Eccles Upon motion duly made and seconded, and by unanimous vote, the minutes of the meeting of the executive committee of the Federal Open Market Committee held on November 24, 1941, were approved. There were distributed copies of a report prepared at the Federal Reserve Bank of New York of open market operations covering the period from September 24 to December 6, 1941, inclusive, as well as copies of a supplementary report prepared at the Bank covering the period from December 8 to December 10, 1941, inclusive. Mr. Sproul reported the transactions that were effected for the System account 12/12/41 -2 yesterday and discussed the important points referred to in the two written reports. The transactions effected in the System account for the purpose of exercising a stabilizing influence in the market since the outbreak of war with Japan on December 7, 1941, included purchases of $45,270,000 of the new bonds of 1967-72 and 1951-55, $12,370,000 of Treasury bills of which $2,000,000 had been resold, and $13,700,000 of shifts. Upon motion duly made and seconded, and by unanimous vote, the transactions in the System account during the period from November 24 to December 11, 1941, both dates inclusive, were approved, ratified, and confirmed. Chairman Eccles stated that after a review on December 8, 1941, of conditions in the Government securities market resulting from the entry of the United States into the war, the members of the executive committee felt that it was desirable to authorize the Federal Reserve Bank of New York to make purchases or sales of securities for the System account to the total amount of the authority which had been granted to the executive committee at the last meeting of the Federal Open Market Committee, and that, accordingly, approval was given by the members of the executive committee to a change in paragraph (2) of the resolution adopted at the meeting of the executive committee on November 24, 1941, to authorize the Bank to make such outright purchases or sales for the System account as might be necessary for the purpose of exercising an influence toward maintaining orderly market conditions, provided that 12/12/41 the total amount of securities in the account be not increased or de creased by more than $200,000,000. Upon motion duly made and seconded, and by unanimous vote, this action of the members of the executive committee was approved, ratified, and confirmed. Thereupon the meeting recessed to reconvene following the meeting of the Federal Open Market Committee. Secretary. Approved: Chairman.
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