Full text of Federal Open Market Committee Meeting Minutes, Transcripts, and Other Documents : Meeting, May 28, 1935

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Reproduced from the Unclassified I Declassified Holdings of the National Archives

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MINUTES OF QHE JOINT MEETING OF THE
FSCBRAL OPEN MARKET COMMITTEE WITH THE
FEDERAL RESERVE BOARD
HELD AT WASHINGTON, D. C.
MAY 28, 1935

The meeting was called to order at 11:00 a. m., there being present the
following:
from the Federal Reserve Board
Governor Eccles, Chairman, Vice Governor Thomas,and
Messrs, Hamlin, Miller, James, Szymczak, O ’Connor, Clayton,
Morrill, Carpenter, and Goldenweiser.
From the Committee
Governors Young, Harrison, Norris, Fleming, Seay, Newton,
Schaller, Martin, Geery, Hamilton, McKinney, and
Deputy Governor Day,
Mr. Strater was also present.
Governor Harrison reported to the meeting the action of the committee at
its meeting the previous day, and explained that in connection with the motion
authorizing purchases or sales after telegraphic approval of the committee and
approval of the Federal Reserve Board, it was the unanimous opinion of the consulttee that no purchases or sales should be undertaken at the present time*
There ensued a general discussion of open market policy, in the course
of which question was raised concerning the position of the Federal Reserve Bank
of Chicago, and the correspondence between that bank and the Federal Reserve Board
was read.

Copies of this correspondence are attached to these minutes.
With respect to the distribution of government securities between

Federal reserve banks, Governor Harrison reported the discussions of the committee
on the preceding day and indicated that the various Federal reserve banks now
holding less than their pro rata.share were to explore the question of increasing
their holdings, and that some shift in securities would probably result*

In the

course of this discussion Governor Schaller asked Governor Eccles whether the
Federal Reserve Board approved the request of the Federal Reserve Bank of Chicago
that some of the other banks take over a portion of its holdings of government



Reproduced from the Unclassified I Declassified Holdings of the National Archives

2

securities.

Governor Eccles stated that the Board was not in a position to

force the banks to take any of Chicago’s holdings, but would have no objection
to their doing so,
There ensued further discussion of the policy to be pursued, at.the
conclusion of which there was unanimous agreement on the part of all those present
that no sales of government securities should be made at this time, but there was
agreement that the System should be prepared to act promptly when the time came
for a change in open market policy.




The meeting adjourned at one p. m.
George L. Harrison,
Chairman, Federal Open
Market Committee*