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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
PRESENT

Washington on April 4, 1937,
Mr.
Mr.
Mr.
Mr.
Mr.

at 6:35 p.m.

Eccles, Chairman
Harrison, Vice Chairman
Broderick
McKee
Sinclair
Messrs. Martin and Peyton, Members of
the Federal Open Market Committee
Mr.
Mr.
Mr.
Mr.
Mr.

Morrill, Secretary
Goldenweiser, Economist
Williams, Associate Economist
Wyatt, General Counsel
Burgess, Manager of the System Open
Market Account
Mr. Carpenter, Assistant Secretary of
the Board of Governors
Mr. Thurston, Special Assistant to the
Chairman of the Board of Governors
Upon motion by Mr. Broderick which was duly
seconded, and by unanimous vote, Mr. Harrison
was elected vice chairman of the executive com
mittee of the Federal Open Market Committee to
serve until March 1, 1938.
It

was suggested that the authority previously granted by the

executive committee to the Federal Reserve Bank of New York to replace
maturing securities, to make shifts of securities in
markct account and to permit fluctuations in

the System open

the account between state

ment dates, be renewed and that, in accordance with the resolution
adopted by the Federal Open Market Committee directing the purchase of
rot less than $25,000,000 of securities during the week beginning

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4/4/37
April 5, 1937,

the executive committee direct the New York bank to pur

chase $25,000,000 of Government securities during the week.
Upon motion duly made and seconded, and by unanimous
vote, the executive committee directed the Federal Reserve
Bank of New York, until the next meeting of the executive
committee, superseding all previous authorizations, (1) to
replace maturing securities in the System open market ac
count by purchases of like amounts of bills or of notes
aturing within two years, (2) to make such shifts of se
curities in the account as may be necessary in the proper
administration of the account, up to an aggregate of
$50,000,000, into other Government securities having
maturities within a range of one year from those of the
securities sold, (3) to make such other shifts (which may
be accomplished when desirable through replacement of ma
turing securities) of securities in the account as may be
necessary in the proper administration of the account, up
to an aggregate of $100,000,000, into other Government
securities having maturities which are not within a range
of one year from those of the securities sold, (4) upon
approval by a majority of the members of the executive
committee, which might be obtained by telephone, tele
graph 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, (5) to permit such
fluctuations, up to a limit at any one time of $25,000,000,
in the amount of holdings of Government securities in the
System open market account between weekly statement dates
as may be desirable for the practical administration of
the account in making shifts between and replacement of
securities pursuant to the authority granted by the exec
utive committee, and (6) to purchase during the week be
ginning April 5, 1937, Government securities in the ag
gregate amount of ;25,000,000.
The above action was taken with the understanding that the
executive committee would remain in Washington and would reconvene to
morrowto consider,

in the light of then existing conditions, what ad

ditional instructions should be given to the New York bank to conduct

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4/4/37

transactions in the System open market account.
Thereupon a recess was agreed upon with the understanding

that the meeting would be reconvened on April 5, 1937, at 10:15 a.m.

Secretary.

Approved:

Chairman.