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A meeting of the Federal Open Market Committee was held Monday,
September 26, 1955, at 3:30 p.m.

This was a telephone conference meeting

and the location of each individual is indicated in parenthesis after his

name in the following list of those in attendance:


Sproul, Vice Chairman (New York)
Balderston (Chicago)
Earhart (Chicago)
Fulton (Chicago)
Irons (Chicago)
Leach (Chicago)
Mills (Washington)

Robertson (Washington)
Shepardson (Chicago)

Szymczak (Washington)

Mr. Vardaman (Washington)
Messrs. C. S. Young and Powell, Alternate Members
of the Federal Open Market Committee (Chicago)
Mr. Treiber, Alternate Member of the Federal Open
Market Committee (New York)
Mr. Williams, President, Federal Reserve Bank of
Philadelphia, and Mr. Leedy, President,
Federal Reserve Bank of Kansas City (Chicago)
Mr. Riefler, Secretary (Washington)
Mr. Vest, General Counsel (Washington)

Mr. Thomas, Economist (Washington)
Mr. Ralph A. Young, Associate Economist (Washington)
Mr. Rouse, Manager, System Open Market Account

Mr, Sherman, Assistant Secretary, Board of
Governors (Washington)
Mr. Miller, Chief, Government Finance Section,
Division of Research and Statistics, Board
of Governors (Washington)

Roosa, Assistant Vice President, Federal
Reserve Bank of New York (New York)


Arrangements for this meeting were made for the purpose of discuss

ing the potential economic effects of the President's illness over the past
week end and what, if

any, change should be made at this time in credit

Expressions of views were exchanged by individual members of the

Committee as to policy that should be pursued in the light of developments

the market today.
It was agreed unanimously that no
change be made in the existing general
program of restraint, excepting the elim
ination from it of the special instruction

given at the meeting on September 14, 1955,
that, in conducting operations in pursuit
of such policy, allowance for errors be on
the side of greater restraint.
The meeting adjourned at 4:10 p.m.
Secretary's note: A copy of notes
used during the telephone meeting by
Mr. Sproul in reporting to the Committee,
as its agent, has been placed in the files
of the Federal Open Market Committee,
sequent to the meeting, the Secretary re
ceived from Mr. Sproul the following tele
gram, copies of which were furnished to
the members of the Committee and other
Presidents who participated in the meeting:
"Figures I used in today's telephone conference were illus
trative of what maintaining degree of pressure existing before
last week's temporary easing might mean during period of
Treasury financing. Did not intend to suggest that we should
try to bring up average free reserves to minus $250 million for
statement week ending Wednesday, September 28th, since estima
ted average negative free reserves for four days of statement
week already elapsed may be around $400 million.
thing from psychological standpoint, however, is probably to
show some outright purchases to market tomorrow and in the
This would
later published figures for this statement week,
be in accord with general consensus of telephone meeting that



since there has been no change in fundamental economic situa
tion we should aim at maintaining about same degree of credit
pressure as existed before last week's temporary easing but
giving management of account sufficient leeway to counter
adverse psychological developments and removing from its
instructions the admonition to try to make errors on the side
of restraint."