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The meeting of the executive committee of the Federal Open Market Committee was reconvened in the offices of the Board of Gover nors of the Federal Reserve System in Washington on Monday, June 28, 1943, at 5:15 p.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Sproul, Vice Chairman Ransom Evans Paddock Mr. Morrill, Secretary Mr. Carpenter, Assistant Secretary Mr. Wyatt, General Counsel Messrs. Piser and Kennedy, Chief and As sistant Chief, respectively, of the Government Securities Section, Divi sion of Research and Statistics of the Board of Governors Mr. Miller, Assistant Vice President of the Federal Reserve Bank of New York The statement was made that in the period between the present and the next Treasury financing campaign the Treasury would draw down the funds held in war loan accounts which would increase substantially the required reserves of member banks, and that, while it was expected that the bulk of additional reserve funds needed by the banks would be supplied by sales of bills to the Reserve Banks under the repurchase option, the New York Bank should have increased authority to meet this situation as well as any unforeseen contingency that might arise. Thereupon, upon motion duly made and seconded, and by unanimous vote, the executive committee directed 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 6/28/43 -2securities and allowing maturities 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 practical administration of the account, or for the purpose of maintaining about the present general level of prices and yields of Government securities, or of maintaining an adequate supply of funds in the market; provided (a) that the total amount of securities in the account at the close of June 28, 1943, shall not be in creased or decreased by more than $500,000,000 (exclusive of special short-term certificates of indebtedness purchased for the temporary ac commodation of the Treasury pursuant to para graph (2) of this direction), and (b) that this paragraph shall not limit the amount of Treasury bills purchased pursuant to the directions of the Federal Open Market Committee issued under dates of March 2 and June 28, 1943, or the re demption of such bills; To purchase direct from the Treasury (2) for the System open market account such amounts of special short-term certificates of indebted ness as may be necessary from time to time for the temporary accommodation of the Treasury; pro vided that the total amount of such certificates held in the account at any one time shall not exceed $500,000,000; and (3) 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 purchases, sales, or exchanges for the account as may be found to be desirable within the limits of the authority granted to the executive committee by the Federal Open Market Committee. In taking this action it was un derstood that the limitations contained in the direction included commitments for purchases or sales of securities for the System account. 6/28/43 -3 Thereupon the meeting adjourned. Secretary. Chairman,
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