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The meeting of the executive committee of the Federal Open Mar
ket Committee was reconvened in the offices of the Board of Governors
of the Federal Reserve System in Washington on Tuesday, March 1, 1938,
at 1:00 p.m.

PRESENT:

Mr.
Mr.
Mr.
Mr.
Mr.

Eccles, Chairman
Harrison, Vice Chairman
Szymczak
Davis
Sinclair
Mr. Morrill, Secretary
Mr. Carpenter, Assistant Secretary of the
Federal Open Market Committee
Mr. Goldenweiser, Economist
Mr. Williams, Associate Economist
Mr. Wyatt, General Counsel
Mr. Burgess, Manager of the System Open
Market Account

Upon motion duly made and seconded, and
by unanimous vote, Mr. Harrison was elected
Vice Chairman of the executive committee of
the Federal Open Market Committee to serve
until the election of his successor at the
first meeting of the committee after February
28, 1939.
Reference was made to the fact that approximately $87,000,000
of notes in the account which will mature on March 15, 1938, will have
to be replaced by new securities, and it

was agreed that the authority

usually granted to the Federal Reserve Bank of New York to make shifts
of securities in the System open market account, pending further action
by the executive committee,

should be increased at this time.

Upon motion duly made and seconded, and
by unanimous vote, the executive committee
directed the Federal Reserve Bank of New York

3/1/38
until otherwise directed by the executive com
mittee,
(1) To replace maturing securities in the
System open market account by purchases of like
amounts of Treasury bills or Treasury notes ma
turing within two years;
(2) To make such other shifts of securities
in the account (which may be accomplished when
desirable through replacement of maturing se
curities) 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;
(3) To increase or decrease temporarily
the amount of securities in the account between
weekly statement dates by not more than
25
,000,000 when necessary in making replace

ments or shifts pursuant to the above provi
sions of this resolution, provided that the
amount of securities in the account as of any
weekly statement date shall not be changed

from that of the preceding weekly statement
date except in accordance with the following
clause of this resolution; and
(4) Upon approval by a majority of the
members of the executive committee, which may
be obtained by telephone, 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 comittee by the Federal Open
Market Committee.

Thereupon the meeting adjourned.

Secretary.