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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 Governors of the Federal Reserve System in Washington on Wednesday, June 9, 1937, at 4:45 p.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Harrison, Vice Chairman Broderick McKee Sinclair Messrs. Ransom, Davis, Szymczak, Martin and Day, Members of the Federal Open Market Committee Mr. Mr. Mr. Mr. Mr. Morrill, Secretary Wyatt, General Counsel Goldenweiser, Economist Williams, Associate Economist Burgess, Manager of the System Open Market Account Mr. Carpenter, Assistant Secretary of the Board of Governors of the Federal Reserve System Mr. Thurston, Special Assistant to the Chairman of the Board of Governors of the Federal Reserve System It was suggested that the directions given to the Federal Reserve Bank of New York at the meeting on June 2, 1937, to execute transactions in the System open market account be renewed in somewhat different form which would state more clearly the authority granted. Upon motion duly made and seconded, and by unanimous vote, the executive committee directed the Federal Reserve Bank of New York, until the ad journment of the next meeting of the executive com mittee and superseding all previous directions and authorizations, 6/9/37 (1) To replace maturing securities in the System open market account by purchases of like amounts of Treasury bills or Treasury notes maturing within two years; (2) To make such shifts of securities in the ac count (which may be accomplished when desirable through replacement of maturing securities) as may be neces sary in the practical administration of the account, up to an aggregate of $100,000,000 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 replacements or shifts pursuant to the above provisions 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 fol lowing clause of this resolution; and (4) Upon approval by a majority of the members of the executive committee, which may be obtained by tele phone, telegraph, or mail, to make such other shifts of such purchases or sales (which would include author ity 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 com mittee by the Federal Open Market Committee. An understanding was reached that Mr. Goldenweiser, with the assistance of Mr. Smead, the Board of Governors, Chief of the Division of Bank Operations of would begin immediately to assemble material for the executive committee to consider in connection with the preparation of a report to the full Committee on a plan for purchases of Treasury bills by the Federal reserve banks, which the Federal Open Market Com mittee at its meeting today had requested the executive committee to submit for consideration prior to the meeting of the full Committee to be held on August 5, 1937, that Mr. Williams would also develop 6/9/37 -3 date on the historical aspects of the proposal for use in tion of the report, and that Mr. the prepara Burgess would consider various market aspects of the matter. Chairman Eccles advised the members of the executive committee of a call for a meeting of the committee in Washington on Tuesday, June 15, 1937, at 2:30 p.m. for the purpose of studying the Treasury bill program prior to a discussion with the Secretary of the Treasury on June 16, 1937. Thereupon the meeting adjourned. Secretary. Approved: Chairman.
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