View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

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.


Eccles, Chairman
Harrison, Vice Chairman
Messrs. Ransom, Davis, Szymczak, Martin
and Day, Members of the Federal Open
Market Committee

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
Mr. Thurston, Special Assistant to the
Chairman of the Board of Governors of the
Federal Reserve System

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

(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
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



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.