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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 Fed eral Reserve System on Friday, March 1, 1946, at 3:30 p.m. PRESENT: Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Sproul, Vice Chairman Draper Evans Leach Mr. Morrill, Secretary Mr. Carpenter, Assistant Secretary Mr. Rouse, Manager of the System Open Market Account Mr. Connell, General Assistant, Office of the Secretary Messrs. Piser and Kennedy, Chief and Assistant Chief, respectively, of the Government Securities Section, Division of Research and Statistics of the Board of Governors. Upon motion duly made and seconded, and by unanimous vote, Mr. Sproul was re-elected Vice Chairman of the executive committee to serve until the election of his successor at the first meeting of the executive committee after February 28, 1947. 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 com mittee, (1) To make such purchases,sales, or exchanges (includ ing replacement of maturing securities 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; pro vided (a) that the total amount of securities in the account at the close of this date shall not be increased or decreased by 3/1/46 more than $500,000,000 [exclusive of bills purchased outright in the market on a discount basis at the rate of 3/8 per cent per annum and bills redeemed at maturity, and special short term certificates of indebtedness purchased for the temporary accommodation of the Treasury pursuant to paragraph (2) of this direction], and (b) that this paragraph shall not limit the amount of Treasury bills purchased pursuant to the direc tion of the Federal Open Market Committee issued under date of March 1, 1945, or the redemption of such bills; (2) To purchase direct from the Treasury for the System open market account such amounts of special short-term certif icates 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 $750,000,000; and (3) Upon approval by a majority of the members of the ex ecutive committee, which may be obtained by telephone, tele graph, or mail, to make such other purchases, sales or ex changes 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 under stood that the limitations contained in the direction included commitments for purchases or sales of securities for the System account. Thereupon the meeting adjourned. Secretary.