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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 Wednesday, December 18, 1940, at 11:00 a.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Harrison, Vice Chairman Szymczak Sinclair Draper (alternate for Mr. Davis) Mr. Carpenter, Assistant Secretary Mr. Wyatt, General Counsel Mr. Rouse, Manager of the System Open Market Account Messrs. McKee, Parker, Schaller, and Day, Members of the Federal Open Market Com mittee Messrs. Young, Fleming, Leach, Martin, and Peyton, Alternate Members of the Federal Open Market Committee Messrs. Hamilton and Gilbert, Presidents of the Federal Reserve Banks of Kansas City and Dallas, respectively Mr. Kimball, Secretary of the Conference of Presidents Mr. Clayton, Assistant to the Chairman of the Board of Governors Mr. Bethea, Assistant Secretary of the Board of Governors Chairman Eccles said that Mr. Davis was attending a meeting of the National Defense Advisory Commission and for that reason could not be present at this meeting. Upon motion duly made and seconded, and by unanimous vote, the minutes of the 12/18/40 -2meeting of the executive committee of the Federal Open Market Committee held on No vember 1, 1940, were approved. Reference was made to action taken by members of the executive committee of the Federal Open Market Committee on November 15, under the authority of paragraph numbered 3 of the resolution adopted at the meeting of the committee on November 1, 1940, in authorizing the Fed eral Reserve Bank of New York, when market conditions permitted, to make such outright sales of securities from the System open market ac count as might be effected without adversely affecting the market, pro vided that the total amount of securities in the account be not de creased through operations under paragraph numbered 2 of the resolution adopted at the meeting of the committee on November 1 by more than $100,000,000 in addition to the authority already granted by that para graph. It was stated that the additional authority was granted for the reason that through November 14 the bank had sold ties under the November 1 authorization and it $86,200,000 of securi was believed that the additional authority to make sales from the account was justified in the light of the prevailing market conditions. Upon motion duly made and seconded, and by unanimous vote, the action of the members of the executive committee in granting the additional authority to the New York Bank was approved, ratified, and confirmed. Reference was made to the weekly reports of operations in the System account which had been submitted to the members of the committee -3 12/18/40 by the Federal Reserve Bank of New York, including the report for the period ended December 11, 1940, and it no transactions in was stated that there had been the account since that date. 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 taken by the executive committee on November 1, 1940, to and including December 17, 1940, were approved, ratified, and con firmed. Thereupon the meeting recessed to reconvene following the meet ing of the Federal Open Market Committee. Assistant Secretary. Approved: Chairman.
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