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m Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED Authority IQ t^ T ' :' ■L.. 3 3 3 . 1-**--/ oohfideotial - SUBJECT TO MINDT1S OF TEH. MUTING OF THE ixecutiv! a m i m m of a m F1DIRAL Of®N MARKET CCMITTSI HELD AT WASHINGTON, D. < * 3 FEBRUAFY 26^1936. v fc The meeting was called to order at 10:05 a. m., there bei^g present Governor Harrison, chairman, 8nd Governors Young, Fleming, Seay, Sohaller, and Deputy Governor? Burgess, secretary. Tfre report of operations was distributed and after discussion was accepted and ordered filed. There followed a discussion of maturities of holdings in the System Account is March and April, and the effect of these on the distribution of maturities in the account and on earnings* was also discussion of the facts that the provisions of the Banking Act of 1935 for a new open market com mittee become effective on March first, but that it would probably be impossible to organize the committee for some days thereafter, and that in the meantime some action with respect to the Treasury offering to be announced on March 2 should be taken promptly by the Reserve System*^ Governor Harrison said he had discussed the matter with Governor levies and that they had agreed that it would be desirable for the committee to continue to act until the organization of the new committee* The committee were unanimously of the opinion that if, in connection with March financing, the Treasury offers securities in exchange for Treasury notes maturing April 15, the $132,386,000 of these notes in System Account should be sold in the market and replaced to the extent of about $50,000,000 with Treasury bonds, and the balance with Treasury notes or bills. 3 / / / / 3 (o / It was Reproduced from the Unclassified I Declassified Holdings of the National Archives 2 understood, however, that in view of prospective changes in the organization of the open market committee this proposal would be submitted to the Board of Governors of the Federal Reserve System and carried through only if they were in agreement# There followed a brief discussion of the Treasury financing program* At 10:55 the meeting adjourned to the Treasury. The meeting reconvened at the Treasury at 11 o'clock, there being present in addition to thf1 committee Secretary Morgenthau, Chairman Eccles, Dr. Viner, and Messrs. Bell, Haas, and Upham* There ensued an informal discussion of various proposals as to Treasury March financing* The meeting adjourned at 12:15 p. m* W. Randolph Burgess, Secretary*