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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. PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Harrison, Vice Chairman McKee Draper Leach 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 9/19/39 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. Secretary.
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