View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

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 Monday, November 6,
1939,

at 10:00 a.m.
PRESENT:

Mr.
Mr.
Mr.
Mr.
Mr.

Eccles, Chairman
Harrison, Vice Chairman
McKee
Draper
Leach
Messrs. Ransom, Szymczak and Davis,
Members of the Federal Open Market
Committee
Mr.
Mr.
Mr.
Mr.

Morrill, Secretary
Carpenter, Assistant Secretary
Goldenweiser, Economist
Piser, Senior Economist in the
Division of Research and Statistics
of the Board of Governors

Mr. Rouse, Assistant Vice President of
the Federal Reserve Bank of New York
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
September 18-19, 1939, were approved.
Mr. Rouse submitted and reviewed briefly a report of the
transactions which had been effected in

the System account since

the previous meeting of the executive committee and there was a
brief discussion of the report.
Upon motion duly made and seconded,
and by unanimous vote, the transactions
in the System open market account for the
period since that covered by similar ac
tion at the meeting of the executive com
mittee on September 18, to and including
November 4, 1939, were approved, ratified
and confirmed.

-2-

11/6/39

There ensued a discussion of the instructions to be given to
the Federal Reserve Bank of New York to execute transactions in the
System open market account and of the procedure to be followed by the
New York bank in carrying out the instructions.
At the conclusion of the discussion, upon motion
duly made and seconded, and by unanimous vote, the
executive committee 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 without replacement;
(2)
To make such shifts of securities in the ac
count (which may be accomplished when desirable through
replacement of maturing securities) as may be necessary
in the practical administration of the account, 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 ao
count 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 increased or decreased
through operations under this paragraph by more than

$100,000,000; and
Upon approval by a majority of the members of
(4)
the executive committee, which may be obtained by tele
phone, telegraph, or mail, to make such other shifts or
such purchases or sales (which would include authority
to allow maturities to run off without replacement) for
the account as may be found to be desirable within the
limits of the authority granted to the executive com
mittee by the Federal Open Market Committee.

Thereupon the meeting adjourned.

Secretary.
Approved:
Chairman.