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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 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.