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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 Friday, November 20, 1936, at
4:40 p.m.
PRESENT:

Mr.
Mr.
Mr.
Mr.

Eccles, Chairman
Szymczak
Ransom
Harrison

Mr. Fleming
Mr. Morrill, Secretary
Mr. Wyatt, General Counsel
Mr. Burgess, Manager of the System
Open Market Account
Mr. Carpenter, Assistant Secretary of
the Board of Governors
Attention was directed to the fact that, as the Federal Open
Market Committee had approved the recommendation of the executive
committee with respect to the readjustment of the participations of the
Federal reserve banks in the System Open Market Account as of January 1,
1937, it

would be necessary for the executive committee to direct the

Federal Reserve Bank of New York to make the readjustment.
Accordingly, upon motion duly made and
seconded and by unanimous vote, the Committee
directed the Federal Reserve Bank of New York
to make a readjustment as of January 1, 1937,
in the participations of the Federal reserve
banks in the System Open Market Account, using
the same plan as that followed in making the
readjustment on October 1, 1936; it being
understood that before it is actually made the
proposed readjustment will be submitted to all
Federal reserve banks and the Board for any
comments that they may desire to make.
In view of the authority granted by the Federal Open Market
Committee to the executive committee with respect to the administration

11/20/36
of the System Open Market Account,

consideration was also given to the

question what instructions should be given to the Federal Reserve Bank
of New York.

In this connection, Mr. Burgess called attention to the

System holdings of $92,00,000 of Treasury notes maturing on December

15, 1936, and $85,000,000 of Treasury notes maturing on February 15,
1937.
Upon motion duly made and seconded, and
by unanimous vote, the executive committee di
rected the Federal Reserve Bank of New York,

until the next meeting of the executive
committee, superseding all previous authori
zations, (1) to replace maturing securities
in the System Open Market Account by purchases
of like amounts of bills or of notes maturing
within two years, (2) to make such shifts of
securities 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 of securities
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 which are not within a range of
one year from those of the securities sold; pro
vided that the amount of bonds in the account
having maturities in excess of five years be not
reduced below $300,000,000, (4) 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 (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 executive
committee.

Thereupon the meeting adjourned.

Secretary.

Approved:


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102