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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 Gov ernors of the Federal Reserve System in Washington on Wednesday, March 20, 1940, at 3:45 p.m. PRESENT: Mr. Eccles, Chairman Mr. Harrison, Vice Chairman Mr. Szymczak Mr. Davis Mr. Sinclair Mr. Morrill, Secretary Mr. Carpenter, Assistant Secretary Mr. Wyatt, General Counsel Mr. Goldenweiser, Economist Mr. Williams, Associate Economist Mr. Rouse, Manager of the System Open Market Account Mr. Thurston, Special Assistant to the Chairman of the Board of Governors Mr. Piser, Senior Economist in the Division of Research and Statistics of the Board of Governors Upon motion duly made and seconded, and by unanimous vote, Mr. Harrison was elected Vice Chairman of the executive committee of the Federal Open Market Com mittee to serve until the first meeting of the Federal Open Market Committee after March 1, 1941. Upon motion duly made and seconded, and by unanimous vote, the executive com mittee 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 matur ing securities) as may be necessary in the practical administration of the account or for the purpose of exercising an influence toward maintaining orderly market conditions, 3/20/40 -2up to an aggregate of $200,000,000 of pur chases and a like amount of sales or redemp tions, provided that in making such shifts the total amount of bonds held in the ac count be not increased nor decreased by more than $100,000,000; (2) To make such outright purchases or sales for the System account as may be neces sary for the purpose of exercising an influ ence toward maintaining orderly market condi tions, provided that the total amount of securities in the account be not increased or decreased through operations under this paragraph by more than $100,000,000; 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 allow maturities to run off without replace ment) 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. Thereupon the meeting adjourned. Secretary.
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