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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 in Washington on Monday, March 2, 1942, at 4:30 p.m.
PRESENT:

Mr.
Mr.
Mr.
Mr.
Mr.

Eccles, Chairman
Sproul, Vice Chairman
Szymczak
Draper
Alfred H. Williams

Mr. Morrill, Secretary
Mr. Carpenter, Assistant Secretary
Mr. Goldenweiser, Economist
Mr. Rouse, Manager of the System Open
Market Account
Mr. Piser, Chief, Government Securities
Section, Division of Research and
Statistics of the Board of Governors
Messrs. C. S. Young, Leedy, and Gilbert,
members of the Federal Open Market
Committee
Messrs. Paddock and Day, alternate members
of the Federal Open Market Committee
Mr. Leach, President of the Federal Reserve
Bank of Richmond

Upon motion duly made and seconded,
and by unanimous vote, Mr. Sproul was re
elected Vice Chairman of the executive com
mittee of the Federal Open Market Committee
to serve until the election of his successor
at the first meeting of the Federal Open Mar
ket Committee after March 1, 1943.
Mr.

Sproul stated that there had been no change in the situa

tion since the last meeting of the executive committee that would require
a change in the authority of the Federal Reserve Bank of New York to
execute transactions in the System open market account and that a re
newal of the resolution adopted at the previous meeting would be adequate

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-2-

to meet any situation that could reasonably be anticipated at this time,
it being understood that if additional authority were needed it could
be granted by the members of the executive committee under the authority
of the last paragraph of the resolution.
Thereupon, upon motion duly made and
seconded, and by unanimous vote, the execu
tive committee directed the Federal Reserve
Bank of New York, until otherwise directed
by the executive committee,
(1) To make such shifts of securities
in the account (which may be accomplished when
desirable through replacement of maturing se
curities) as may be necessary in the practical
administration of the account or for the pur
pose of exercising an influence toward main
taining orderly market conditions, up to an
aggregate of $200,000,000 of purchases and a
like amount of sales or redemptions;
(2) To make such outright purchases or
sales for the System account as may be neces
sary for the purpose of exercising an influence
toward maintaining orderly market conditions,
provided that the total amount of securities
in the account be not increased or decreased
through operations under this paragraph by
more than $200,000,000; 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 shifts or such purchases
or sales (which would include authority to al
low 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 committee by the Federal Open
Market Committee.

3/2/42

Thereupon the meeting adjourned.

Secretary.

Approved: