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HP Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority E .6 . 3 3 3 CONFIDENTIAL A meeting o f the Open Market Investment Committee was helcl at the Hotel Mayflower, Washington, at 3:30 p* m* on Sunday, A p ril 29, 1928. PRESENT: Deputy Governor Case, A cting Chairman* Governors Harding, N orris, Faneher and McDougal# Mr, H arrison, A cting S ecreta ry * Mr* Case d istrib u te d cop ies o f the formal rep ort o f the secretary to the committee dated A p ril 30* The committee thereupon discussed the p rin cip a l tra n sa ction s in the open market account since la s t November, as reviewed in the rep ort o f the se cre ta ry , and a fte r d iscu ssio n , i t was duly VOTED to approve and accept the r e p o r t. Mr* Case then d istrib u te d to the committee a prelim inary memorandum dated A p ril 27 reviewing the operation s in the account sin ce the la s t meeting o f the committee in th e ir r e la t io n to the money market and cre d it con d ition s g en era lly . A fter a d iscu ssio n o f the memorandum, togeth er with past and pros p ectiv e gold movements, the memorandum and i t s con clu sion s were agreed to by the committee, with a few minor amendments which were incorporated in the mem orandum* A fte r further con sideration the fo llo w in g rep ort was adopted, as the rep ort o f the committee: "The committee has considered the memorandum sub m itted by the chairman, and has c a r e fu lly reviewed the open market op eration s o f the system sin ce the la s t meeting o f the committee, in the lig h t o f the general c r e d it situ a tio n re ferred to in the memorandum. Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED Authority E .6.1235jo 2 ” In view o f th e f a c t t h a t i t now appears t h a t tho e x p a n sion in th e t o t a l volume o f bank c r e d i t , r e f e r r e d t o in i t s l a s t r e p o r t , has co n tin u e d a t what seen s t o be an unduly r a p id r a t e s in c e t h a t t im e , n o tw ith s ta n d in g th e s a le s o f s e c u r i t i e s made by th e com m ittee and th e r e c e n t in c r e a s e in th e d is c o u n t r a t e s o f some o f th e r e s e r v e b an k s, th e com m ittee now recommends th a t th e g e n e r a l p o l i c y a dopted a t i t s la s t m eetin g be co n tin u e d u n t i l i t s n e x t m e e tin g , w hich i t would e x p e c t t o h o ld s h o r t l y a f t e r th e m id d le o f June, u n le s s con d i t i o n s make an e a r l i e r m eetin g a d v is a b le * "The com m ittee would e x p e c t t o make such ohanges in th e open market a cco u n t as m ight be n e c e s s a r y t o c a r r y ou t th e p o l i c y recommended The m eeting a d jou rn ed at 6 p* n* G eorge L . H a r r is o n , A c tin g S e c r e t a r y ,
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