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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 Thursday, on PRESENT: Mr. Mr. Mr. Mr. Mr. February 8, 1951, at 12:45 p.m. McCabe, Chairman Sproul, Vice Chairman Eccles Evans C. S. Young Mr. Carpenter, Secretary Mr. Vest, General Counsel Mr. Thomas, Economist Mr. Rouse, Manager, Account System Open Market Mr. Thurston. Assistant to the Board of Governors Mr. Riefler, Assistant to the Chairman, Board of Governors Mr. Sherman, Assistant Secretary, Board of Governors Mr. R. A. Young, Director, Division of Research and Statistics, Board of Governors Mr. Youngdahl, Chief, Government Finance Section, Division of Research and Statistics, Board of Governors Upon motion duly made and seconded, the executive committee voted unanimously to direct the Federal Reserve Bank of New York, until otherwise directed by the executive committee: (1) To make such purchases, sales, or exchanges (including replacement of maturing securities and allowingmaturities to run off without replacement) for the System account, either in the open market or directly from, to, or 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 developments, to maintaining orderly conditions in the Government 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 -2 2/8/51 account at the close of this day shall not be increased or de creased by more than $1 billion exclusive of special short-term certificates of indebtedness purchased for the temporary accommodation of the Treasury pursuant to paragraph (2) of this direction; (2) To purchase direct from the Treasury for the System open market account such amounts of special short-term certifi cates 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 in the account at any one time shall not exceed $750 million. In taking this action it was under stood that the limitations contained in the direction include commitments for purchases and sales of securities for the System account. It was agreed that in accordance with the understanding at the meeting of the full Committee, a meeting of the executive committee would be held at 2:30 p.m. on Wednesday, February 14, 1951. Thereupon the meeting adjourned. Secretary.