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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 Federal
Reserve System in Washington on Wednesday, August 18, 1937, at 10:30 a.m.
PRESENT:

Mr.
Mr.
Mr.
Mr.
Mr.

Eccles, Chairman
Harrison, Vice Chairman
McKee
Ransom (alternate for Mr. Broderick)
Sinclair
Messrs. Davis and Szymczak, Members of
the Federal Open Market Committee
Mr.
Mr.
Mr.
Mr.

Morrill, Secretary
Wyatt, General Counsel
Dreibelbis, Assistant General Counsel
Carpenter, Assistant Secretary of the
Board of Governors of the Federal
Reserve System
Mr. Thurston, Special Assistant to the
Chairman of the Board of Governors of
the Federal Reserve System
Mr. Piser, Senior Economist in the Division
of Research and Statistics of the Board
of Governors of the Federal Reserve System

Upon motion duly made and seconded, and by
unanimous vote, the minutes of the meeting of
the executive committee of the Federal Open Mar
ket Committee held on July 6, 1937, were approved.
Mr. Harrison outlined briefly, for the information of the committee,
the transactions which had been effected by the Federal Reserve Bank of
New York in the System open market account since August 11,

1937, the date

of the most recent weekly report sent by the bank to the members of the
Federal Open Market Committee.
Upon motion duly made and seconded, and by
unanimous vote, the transactions in the account
since the period covered by similar action taken
by the executive committee at its meeting on uly
6, 1937, up to and including August 17, 1937, were
approved, ratified and confirmed.

8/18/37

-2Mr. Harrison stated that, under the authority granted by the execu

tive committee at its

meeting on July 6, 1937, the Federal Reserve Bank

of New York had replaced maturing securities in the System open market
account with other securities maturing within two years, and, in addition,
had made shifts of securities in

the account totaling $38,703,000.

There

ensued a discussion of the authority to be granted to the New York bank
with respect to further transactions in the account and of the actions
that might be taken to meet changes in the reserve position of member
banks and in

credit conditions generally.
Upon motion duly made and seconded, and by
unanimous vote, the executive committee directed
the Federal Reserve Bank of New York, until the
adjournment of the next meeting of the executive
committee and superseding all previous directions
and authorizations,
(1) To replace maturing securities in the
System open market account by purchases of like
amounts of Treasury bills or Treasury notes
maturing within two years;
(2) To make such shifts of securities in the
account (which may be accomplished when desirable
through replacement of maturing securities) as may
be necessary in the practical administration of the
account, up to an aggregate of $100,000,000 of pur
chases and a like amount of sales or redemptions;
(3) To increase or decrease temporarily the
amount of securities in the account between weekly
statement dates by not more than $25,000,000 when
necessary in making replacements or shifts pur
suant to the above provisions of this resolution,
provided that the amount of securities in the ac
count as of any weekly statement date shall not be
changed from that of the preceding weekly statement
date except in accordance with the following clause
of this resolution; and
(4) 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 in
clude authority to allow maturities to run off with
out replacement) for the account as may be found to

-3.

8/18/37

be desirable within the limits of the authority
granted to the executive committee by the Federal
Open Market Committee
In anticipation of a conference of the members of the executive
committee with the Secretary of the Treasury, to be held early in Septem
ber, 1937, in

connection with September 15 financing, there was a discus

sion of various phases of the Treasury financing program.
At the conclusion of the discussion the meeting adjourned.

Secretary.

Approved:
Chairman.