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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 Tuesday, Sep
tember 19, 1939, at 2:35 p.m.


Eccles, Chairman
Harrison, Vice Chairman

Messrs. Ransom and Davis, Members of
the Federal Open Market Committee
Mr. Morrill, Secretary
Mr. Carpenter, Assistant Secretary of
the Federal Open Market Committee
Mr. Sproul, Manager of the System
Open Market Account
Mr. Thurston, Special Assistant to the
Chairman of the Board of Governors
Mr. Piser, Senior Economist in the
Division of Research and Statistics
of the Board of Governors
Consideration was given to the details of the resolution to
be adopted covering instructions to be given to the New York Bank
until the next meeting of the executive committee in the light of
the discussions of the full Committee and the resolutions adopted
by it.
Upon motion duly made and seconded,
and by unanimous vote, the executive com
mittee directed the Federal Reserve Bank
of New York until otherwise directed by
the executive committee,
(1) To allow Treasury bills in the
System open market account to mature with
out replacement;
(2) To make such shifts of securities
in the account (which may be accomplished
when desirable through replacement of

maturing securities) as may be necessary
in the practical administration of the ac
count, up to an aggregate of $200,000,000
of purchases and a like amount of sales or
redemptions, provided that in making such
shifts the total amount of bonds held in
the account be not increased or decreased
by more than $100,000,000;
(3) 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 in
creased nor decreased by more than
$150,000,000; and
(4) 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 shifts or such pur
chases or sales (which would include author
ity to allow maturities to run off without
replacement) 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 of the executive committee was adjourned.