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1051 A. meeting of the Board of Governors of the Federal Reserve SYstem was held in Washington on Monday, August 28, 1939, at 2:30 P. me PRESENT: Mr. Mr. Mr. Mr. Ransom, Vice Chairman Szymczak Davis Draper Mr. Morrill, Secretary Mr. Carpenter, Assistant Secretary Mr. Clayton, Assistant to the Chairman Mr. Thurston, Special Assistant to the Chairman ALSO PRESENT: Mr. Leach, Member of the Federal Open Market Committee Prior to this meeting there had been an informal conference Merabers of the Board at which discussion was had with respect to the action to be taken in connection with the purchase or sale of j the System open market account in view of the disturbedse IbIleign situation. Amemorandum of the discussions at the conference 11" been placed in the Board's files. At the conference Mr. Ransom stated that Chairman Eccles had With Mr. Thurston over the telephone at lunch time today and IvI°111d reach Washington at about five o'clock this afternoon. Mr. REtl1 s°11:1 also said that Mr. Eccles felt that if the statement relating t° the Dc)licY of the Federal Reserve banks with respect to advances to 4°4111emler banks secured by Government obligations at par were red to the press it would be more effective if the announcement " Were i n the form of a formal press statement. 1052 8/28/39 -2Suggestions were made as to the form this statement might take and it was agreed unanimously that at the appropriate time the statement could be released in the following form: "The Board of Governors of the Federal Reserve Sysannounces that in view of current developments in the international situation, the Federal Reserve banks are Prepared at this time to make advances to member and nonmember banks on Government obligations at par." Thereupon the meeting adjourned. -1(04;43-42,J. Secret ry. 413PrOire
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