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61 A meeting of the Federal Reserve Board with the Federal Open Market Committee was held in Washington on Thursday, july 20, 1933, at 4:00 p.m. PRESENT: Black, Governor Hamlin Miller James ThamRs Szymczak Mr. O'Connor Mr. Mr. Mr. Mr. Mr. Morrill, Secretary Carpenter, Assistant Secretary Wyatt, General Counsel Smead, Chief of the Division of Bank Operations Mr. Goldenweiser, Director of the Division of Research and Statistics. Mr. Mr. Mr. ras. ALSO PRESENT: Governors Harrison, Fancher, Seay, Martin, Geery, Hamilton, McKinney and Calkins; Mr. Johns, Acting Governor of the Federal Reserve Bank of Atlanta; Mr. Paddock, Deputy Governor of the Federal Reserve Bank of Boston; Mr. Hutt, Deputy Governor of the Federal Reserve Bank of Philadelphia; Mr. McKay, Deputy Governor of the Federal Reserve Bank of Chicago. Mr. Burgess, Secretary of the Federal Open Market Committee. Governor Harrison stated that, following an informal suggestion made bY Governor Black, the Federal Open Market Committee had been duly organized meeting this morning, at which Governor Harrison was elected chairman, 6114 Deputy Governor Burgess, secretary. He also stated that the Federal °Pen Market Committee had appointed an executive coaaittee, consisting of the representatives from the Federal Reserve Banks of Boston, New York, Philadelphia, Cleveland and Chicago. Governor Harrison then referred to the tentative draft of regulati°113 Prepared by the Board's staff with regard to (1) open market operations 441alci (2) relations of Federal reserve banks with foreign banks and bankers, 7/20/63 -2- copies of which were forwarded to all Federal reserve banks under date of 3.1.11Y 14, 1933, and stated that the Committee had discussed the draft of regulation on open market operations and was prepared to make certain recommendations to the Federal Reserve Board with regard thereto, and that, following further discussion tomorrow of the draft of regulation on relations Of Federal reserve banks with foreign banks and bankers, the Committee 17ou1d submit to the Board any suggestions which it may have to make with l'egard to changes in the draft. Governor Harrison then outlined the Committee's suggestionsas to changes in the draft of regulation on open market operations. Among the suCCostions submitted by Governor Harrison was one that the reference in the Proposed regulation to a vice chairman be omitted as it was the feeling Of the Governors that there was no occasion for having a vice chairman e4cept in case of inability of the chairman to be present at a particular Meeting, at which time a chairman pro tempore might be elected by the raembers of the committee who were present. Governor Harrison stated that tor this reason a vice chairman had not been elected at the organization or the committee this morning. However, Mr. Tames pointed out that there WoUld no doubt be occasion from time to time for the Board to communicate with the committee and that, if the chairman were temporarily under disbility or on vacation, for example, there should be a vice chairman with Whonl the Board could communicate officially. After discussion of the C°MMittee's recomendations the Committee was advised that the Board would ecmaider the suggestions in connection with the adoption of the regulation ill its final form. 7/20/33 -3Iiiller then suggested that it would be desirable for the Board and the Committee to have a meeting at which reports could be presented by Mr. Goldenueiser, Director of the Board's Division of Research and Statistics and by the Chairman of the Federal Open Market Committee, on credit and bUsiness conditions from the standpoint of open market policy, following which the Committee could go into separate session and formulate its recommendations for presentation at a later meeting of the Committee with the Federal Reserve Board. After a brief discussion, it was agreed that, at the conclusion of its consideration of the draft of regulation with regard to relations of Federal reserve barks with foreign banks and bankers, the Federal Open Market Committee would meet with the Board tomorrow in accordance With the procedure suggested by Er. There were then distributed to the members of the Committee copies Of a memorandum on business and credit conditions, prepared by Er. GoldenWeiser under date of July 10, 1933. Governor Black then stated that, if agreeable to the other members or the Board and to the Federal Open Market Committee, he would arrange to have Dr. O. M. W. Sprague, Financial Executive Assistant to the Secretary of the Treasury, attend the preliminary meeting of the Board and the Committee tomorrow for the purpose of outlining the Treasury's financing program for the near future. Thereupon the meeting adjourned. 4111 ) roved: Governor.
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