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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 oral Reserve System in Washington on Monday, PRESENT: May 25, 1936, at 6:25 p. m. Mr. Eccles, Chairman Mr. Szymczak Mr. Broderick (as alternate for Mr. Ransom) Mr. Harrison Mr. Fleming Mr. Mr. Mr. Mr. Mr. Morrill, Secretary Wyatt, General Counsel Goldenweiser, Economist Williams, Associate Economist Burgess, Manager of the System Open Market Account The question of renewing the authority which had been granted by the executive committee to the Federal Reserve Bank of New York at the meeting of the executive committee on March 19 was taken up for con sideration. In view of the fact that it had been found necessary since that meeting to increase from $25,000,000 to $55,000,000 the authority granted to the Federal Reserve Bank of New York to make shifts in matur ities of securities in the account into other Government securities, and in order to provide adequate flexibility without the necessity of call ing upon the Committee for additional authority, it was suggested that in taking action at this time this amount be increased to $50,000,000. Upon motion duly made and seconded and by unani mous vote, the executive committee granted authority to the Federal Reserve Bank of New York until the next meeting of the Federal Open Market Committee (1) to replace maturing securities in the System open mar ket account by the purchase of like amounts of bills or of notes maturing within two years, (2) to make shifts, up to an aggregate of $50,000,000, of securi ties in the account into other Government securities having maturities within a range of one year from 5/25/36 -2those of the securities sold, (3) upon approval by a majority of the members of the executive committee, which might be obtained by telephone, telegraph or mail, to make such other shifts as might be found to be desirable and advisable within the limits of the authority granted to the executive committee by the Federal Open Market Committee and (4) until June 15, 1936, to effect, with the approval of a majority of the members of the executive committee, which might be obtained by telephone, telegraph or mail, such reallotments of securities between the Federal reserve banks as may be advisable in accordance with the prac tice which it has followed under the formula and au thority of the Federal Open Market Committee as con stituted prior to March 1, 1936. Thereupon the meeting adjourned. Secretary. Approved: Chairman.
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