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Twenty-Sixth ANNUAL REPORT of the BOARD OF GOVERNORS of the FEDERAL RESERVE SYSTEM COVERING OPERATIONS THE YEAR 1939 FOR 74 ANNUAL REPORT OF BOARD OF GOVERNORS This action was taken in the light of the unsettled conditions existing in our markets at the time which had resulted from the war in Europe and it was agreed that the executive committee should be given more flexible authority to execute transactions in the System account for the purpose of exercising an influence toward maintaining orderly market conditions. 1939 Members present: Mr. Eccles, Chairman; Mr. Harrison, Vice Chair man; Mr. Szymczak, Mr. McKee, Mr. Ransom, Mr. Davis, Mr. Draper, Mr. Fleming, Mr. Leach, Mr. Martin, Mr. Hamilton. MEETING ON DECEMBER 13, Authority to Effect Transactions in the System Open Market Account. Upon motion duly made and seconded, the following resolution was adopted by unanimous vote: "That the executive committee be directed until otherwise directed by the Federal Open Market Committee to arrange for such trans actions for the System open market account (including purchases, sales, exchanges, replacement of maturing securities, and letting maturities run off without replacement) as in its judgment from time to time may be necessary for the purpose of exercising an influence toward maintaining orderly market conditions; provided that the aggregate amount of securities held in the account at the close of this date shall not be increased nor decreased by more than $500, 000,000." This action resulted in the renewal of the authority granted to the executive committee at the meeting of the Federal Open Market Com mittee on September 18, 1939, and was taken for substantially the same reasons as prompted the granting of the earlier authority.
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