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1224 A meeting of the Federal Reserve Board was held in Washington on Sattuftdam May 25, 1935, at 10:45 a. m. PRESENT: Mr. Mr. Mr. Mr. Mr. Thomas, Vice Governor Hamlin Miller James Szymczak Mr. Mr. Mr. Mr. Mr. Morrill, Secretary Bethea, Assistant Secretary Carpenter, Assistant Secretary Clayton, Assistant to the Governor Goldenweiser, Director, Division of Research and Statistics Mr. Thomas, Assistant Director, Division of Research and Statistics Mr. Garfield, Research Assistant, Division of Research and Statistics Mr. Goldenweiser began an oral statement with regard to the Present business and credit situation. Reference in his remarks to the ill'ecilletion and distribution of automobiles occasioned a general discussion. olatllat subject led by Mr. James. Ti that connection, there was also a dieellasion of the meaning of section 204(b) of the proposed Banking Act t 1935 as contained in the bill passed by the House of Representatives °11 MaY 9, 1935, which provides that: "It shall be the duty of the Federal ileserve Board to exercise such powers as it possesses in such manner as to , h 0te c onditions conducive to business stability and to mitigate by itEl 4 4.11.f1uence unstabilizing fluctuations in the general level of production, 4, Prices, and employment, so far as may be possible within the scope °Iletary action and credit administration", and of the problems which '4°11id confront the Federal Reserve Board in performing the duties imposed 131r that section. 1225 5/25/35 0 During the discussion Messrs. Hamlin and Thomas left the room. Governor Eccles joined the meeting and requested suggestions from the membe_rs present as to the procedure that should be followed in connection -with the meeting of the Federal Open Market Committee to be held on Moil%) may 27, 19__ 65, and the meeting of the Governors' Conference which will follow. The matter was discussed and it was agreed that it would be desirable for the Federal Open Market Committee to finish its work before the Program of the Govelmors' Conference was taken up. The suggestion was also made that Mr. Goldenweiser should discuss the subject of excess erves of member banks, their relation to changes in reserve requireMents and discount rates, and their bearing upon the earnings of the Pecleral reserve banks, T4 th the Board and the Federal Open Market C°Millittee before the Committee considers what, if any, recommendation ah°111d be made by it. No definite conclusion as to procedure was decided 11P°4 and the matter was leftfor determination after the arrival of the ge‘ rermors e A Go 204(b) or whi vernor Eccles then left the room and the discussion of section Of the proposed Banking Act of 1935 was resumed, during the course h Lir. Thomas rejoined the meeting. aion the meeting adjourned. 413Aroveci: ice Governor. At the conclusion of the dis-
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