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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, PRESENT: Mr. Mr. Mr. Mr. Mr. December 8, 1952, at 12:20 p.m. Martin, Chairman Sproul, Vice Chairman Leach Robertson, Alternate Vardaman Mr. Mr. Mr. Mr. Mr. Mr. Riefler, Secretary Thurston, Assistant Secretary Vest, General Counsel Thomas, Economist Young, Associate Economist Rouse, Manager, System Open Market Account Mr. Sherman, Assistant Secretary, Board of Governors Mr. Youngdahl, Assistant Director, Division of Research and Statistics, Board of Governors Mr. Willis, Assistant Secretary, 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 held on November 25, 1952, were approved. Upon motion duly made and seconded, and by unanimous vote the transactions in the System open market account for the period November 25, 1952, to December 7, 1952, inclusive, were approved, ratified, and con firmed. In response to a question from Chairman Martin, Mr. Rouse stated that no change in the limitations made in the general direction to be issued to the Federal Reserve Bank of New York with respect to trans actions in the System account appeared to be necessary at this time. 12/8/52 -2Thereupon, upon motion duly made and seconded, the executive committee voted unanimousy to direct the Federal Reserve Bank of New York until otherwise directed by the executive committee: (1) To make such purchases, sales, or exchanges (in cluding replacement of maturing securities and allowing maturities to run off without replacement) for the System account in the open market or, in the case of maturing securities, by direct exchange with the Treasury, as may be necessary in the light of current and prospective economic conditions and the general credit situation of the country, with a view to exercising restraint upon inflationary de velopments, to maintaining orderly conditions in the Govern ment security market, to relating the supply of funds in the market to the needs of commerce and business, and to the practical administration of the account; provided that the total amount of securities in the System account (including commitments for the purchase or sale of securities for the account) at the close of this date shall not be increased or decreased by more than $1 billion; (2) To purchase direct from the Treasury for the account of the Federal Reserve Bank of New York (with discretion, in cases where it seems desirable, to issue participations to one or more Federal Reserve Banks) such amounts of special short term certificates of indebtedness as may be necessary from time to time for the temporary accommodation of the Treasury; provided that the total amount of such certificates held at any one time by the Federal Reserve Banks shall not exceed in the aggregate $1 billion. It was agreed that the next meeting of the executive committee would be held at 10:30 a.m. on Tuesday, December 23, 1952, Thereupon, the meeting adjourned. Secretary
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