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366 A meeting of the Federal Reserve Board with the Federal Open Market Committee was held in Washington on Tuesday, February 5, 1935, at 12:40 m. P. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Eccles, Governor Thomas, Vice Governor Hamlin Miller James Szymczak Mr. Morrill, Secretary Mr. Clayton, Assistant to the Governor Messrs. Harrison, Norris, Fleming, Seay, Newton, Schaller, Martin, Geery, Hamilton, McKinney and Calkins, Governors of the Federal Reserve Banks of. New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas and San Francisco. Mr. Paddock, Deputy Governor of the Federal Reserve Bank of Boston. Mr. Burgess, Secretary, Federal Open Market Committee. Governor Harrison stated that during the morning the Federal °Pe mp h d -1'4et Committee had held its first meeting of the year, that he been ex clats l'eaPpointed chairman, and Mr. Burgess secretary, and that an lve c ommittee had been appointed consisting of the Governors of thfpea. er*al Reserve Banks of Boston, New York, Cleveland, Richmond and Ch4 GQ; the only change in the membership of the committee being the the Governor of the Federal Reserve Bank of Richmond instead °Irern°r of the Federal Reserve Bank of Philadelphia. The reason t °I" this aome Flange) Governor Harrison stated, was that it was felt there "vlintege to be gained in rotating the members of the executive 367 2/5/35 -2- committee when it was possible to do so provided the members were "leiently accessible to Washington to insure expeditious meetings Whenever necessary. GOvernor Harrison said that the Federal Open Market Committee, Its meeting this morning, had ratified the action taken by the e:""ive committee at its meeting in Washington on January 251 19551 and e°411rmed by telegraphic communication with the other members of the tha gal Open Market Committee. He stated that the authority granted by action, which had been approved by the Federal Reserve Board, exPir this morning; that, accordingly, the Federal Open Market Committee corisidered what it should do for the immediate future; that it was felt th'et it the was almost impossible to determine upon any definite policy at Present time, but that the System should be prepared to act as cirellitietanees might develop; and that, therefore, the Federal Open Market Ntkittee had adopted the following resolution: to VOTED, Subject to the approVal of the Federal Reserve extetrd, and superseding Previous authorizations, that the shiL,Itive committee be authorized to buy, sell, or make between maturities of government securities up to zak 000,000 and be further authorized to buy, sell, or 04 .et shifts between maturities of an additional'Z25010001000 comm graPhie approval of a majority of the open market meet:'"'ee in case of emergency requiring action before a lng of the full committee could be arranged. GOIr ernor Harrison discussed briefly some of the considerations ttbcly led t0 the adoption by the Federal Open Market Committee of the e resolution. He then stated that there had been submitted to the e eb 8 of the Committee during its meeting a preliminary memorandum of 368 2/5/35 the —3— character usually presented at meetings of the Committee, and Mr. ;IhIrgess handed copies of the memorandum to the members of the Federal Reserve Board, Mr. Hamlin raised the question whether it was contemplated that the executive committee would communicate with the Governor of the Fedel:'411 Reserve Board before selling securities from the System account. Gov-vrlior Harrison replied that as a matter of practice the committee has tilma„ J8 followed the policy of keeping in close touch with the Governor or t.4( Board and that no change in the direction of the committee's "tivi+A " es had taken place without consulting the Governor. Governor Eccles commented that he had been in n7most daily conta-ct with Mr. Burgess, Secretary of the Federal Open Market Committee, Eitid C°°lidge, Under Secretary of the Treasury, in regard to the Qover 4ment bond market. He pointed out, however, that no change had ttiken Place in the total amount of securities held in the System 4ecc4nt si --nce he became Governor of the Federal Reserve Board. Pecier After further discussion, Governor Eccles announced that the el Reserve Board would meet at 2:30 p. m. this afternoon to conthe r esolution adopted by the Federal Open Market Committee and tilet at 31°C) P. m. the Board would be glad to meet again with the members (/r the p ederal Open Market Committee. He said that he had extended an t4einerab-cli to the Secretary of the Treasury to meet with the Board and ers Of the Federal Open Market Committee but that Mr. Morgenthau lltlablgo. 0 do so because of other matters of importance which would 369 2/5/35 'recto., rils attention during the afternoon, and that Mr. Coolidge would b 4180 e engaged in another meeting during the afternoon but would be able to meet with the Board and the members of the Federal Open Market e°Z2raittee at 4:00 P. m. Thereupon the meeting adjourned.
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