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5841 A meetin Board was held in the office of the . of the I'ederal .eserve Federal ,eserve :)ard on :ed.lesday, June 22, 1027 at 11:30 a.m. 7).Z.,:a...]:172: The nairman Jove rno r C riss Lige r . :,:r. Hamlin :.:r. ::r. James ::r C unnin r;ham :r. Eddy, 3ecr3tary L.sst. 3ecretary qovernor Girissinger stated that the mooting had been called for the purpose ol discussing with ,1overnor3trong in further detail the matters referred to in his letters to the Board. of June 9th, 16th and 20th. The Board, with Governor 3trons.;, then made an extended review of 'resent and Prospective conditions. Gover-or 3tron- reuorted upon the money markets, at home and abroad, and on the gold and exchange ituation. During the discussion, it was bruudht out that if money rates should firm or rise it would be desirable to give relief to the situation through purchase Of securities in the open market. ' The opinion was expressed by some members of the 33oard that authority to the Open Market Investment Committee to make such purchases up to v100,000,000 already exists under the action taken by the Board on May 13th, as the .u;100,000,000 of securities purchased since that time to offset gold exported to the Bank of France should not be considered as having been purchased under the Board's authority referred to. This opinion was not concurred in by all members of the Board. Following the discussion, adoption of the following: r. Hamlin submitted and moved p"' ' ,After hearing a report upon home and abroad, and of the gold the Board authorize the Governor Open Market Investment Committee the money markets, at and exchange situation, of the 13oard to advise the that it does not consider lj 5'85 - 6/22/27 "the .100,0J0,030 of securities purchased by the Committee since :::ay 13, 1927 as 1ormin7 part of the authority granted to the Committee by the Board on that date." Hamlin's motion being pat by the Chair was carried, the members voting as follows: The Chairman, "aye" Governor Crissinger, Lr. Hamlin, "aye" James, "aye" "no" Cunningham, "no" L:iller stated that In explanation of his negative vote, his view :as alreak, in part, set out in the drafts of letters he had subitted for the conslderation of the 'oard as the basis of a re-21y to Jovernor Stroni;'s letters of dune 9th, 16th and 2Jth. re added, in further explanation, that open market purchases and. sales of securities for System acoeunt were becoming the :.eserve most imjortant operating instrumentality of the federal 3stem for influencing the credit situation and he thou:ht it very important, therefore, that the act 1011 of the Open :Iarkat Investment Committee should never cost upon inferential or implied authority, but that every considerable increase or dimunition of the System account should be considered as a separate matter by the Board, and made the subject of positive action. :ith regard to the presi)ective credit situation, said that he thought it not improbable that the later months of the year would show a tendency toward hardening of money rates. 3hou13. such prove to be the case he thought it would probably be advisable action for the Federal aeserve System, throueh open market purchases, to ease the credit situation; but he added that the true position of the money market has not yet disclosed itself and appropriate polio cannot be determined at this time. For these reasons, he sated, he vote resolution. o" on The meeting adjourned at 1:15 p.m. Sec re itpproved: Chairman. •
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