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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 Gover nors of the Federal Reserve System in Washington on Friday, December 12, 1941, at 4:45 p.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Sproul, Vice Chairman Ransom McKee Leach Mr. Morrill, Secretary Mr. Carpenter, Assistant Secretary Mr. Wyatt, General Counsel Mr. Goldenweiser, Economist Mr. Williams, Associate Economist Mr. Dreibelbis, Assistant General Counsel Mr. 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 There was unanimous agreement that, because of continued uncer tainty with respect to the amount of support that might be required in the Government securities market, the authority of the New York Bank to effect transactions for the System account as enlarged by the action of the members of the executive committee on December 8, 1941, should be continued, and that the limit of $100,000,000 on the amount by which total bonds in the account could be increased or decreased by means of shifts should be removed. Thereupon, upon motion duly made and seconded, and by unanimous vote, the execu tive committee directed the Federal Reserve 12/12/41 Bank of New York, until otherwise directed by the executive committee, (1) To make such shifts of securities in the account (which may be accomplished when desirable through replacement of matur ing securities) as may be necessary in the practical administration of the account or for the purpose of exercising an influence toward maintaining orderly market conditions, up to an aggregate of $200,000,000 of pur chases and a like amount of sales or redemp tions; (2) To make such outright purchases or sales for the System account as may be necessary for the purpose of exercising an influence toward maintaining orderly market conditions, provided that the total amount of securities in the account be not increased or decreased through operations under this paragraph by more than $200,000,000; and Upon approval by a majority of the (3) members of the executive committee, which may be obtained by telephone, telegraph, or mail, to make such other shifts or such pur chases or sales (which would include authority to allow maturities to run off without re placement) for the account as may be found to be desirable within the limits of the au thority granted to the executive committee by the Federal Open Market Committee. Thereupon the meeting adjourned. Secretary. Approved: Chairman.
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