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------------------------------------------------------ w Reproduced from the Unclassified / Declassified Holdings of the National Archives d e c l a s s if ie d Authority E .6 . 12354, 3 3 V ^ -V ' COWppENmL ^ y / lt/ x g A jo in t meeting of the Open Market Investment Committee with the Federal Reserve Board and the Governors Conference was held in Washington a t 3x15 p , m. on Monday, A pril 30, 1928# PRESENT; Governor Young, Messrs, Hamlin, M ille r, McIntosh, Eddy and Parry, Governors Harding, N orris, Fancher, Seay, Black, McDougal, Biggs, Geery, B ailey, T alley and Calkins, and Deputy Governor Case# Mr* Harrison, A cting Secretary# ^A copy of the report of the Open Market Investment Committee dated A p ril 29 was presented to each member of the F e d e r a l R e s e r v e Boardf together with a copy of the formal rep ort of the secreta ry of the committee and a prelim inary memorandum prepared f o r the committee on money market and c r e d it con d ition s generally* Mr* Case reviewed the con d ition s re fe rre d to in the prelim inary memorandum and the reasons which prompted the committee’ s report, which ho explained had been submitted to and accepted by the Governors Conference th is morning# In d iscu ssin g the rep ort the question was raised as to whether the recommendation of the committee was intended to pave the way f o r fu rth e r rate increases* I t was•explained that while the a ctio n taken by the committee was not designed to cause a uniform discount rate of 4 l / 2 per cent throughout the Federal Reserve System, n evertheless i t might be necessary in any eVent f o r some of the other reserve banks to ra ise th e ir rates to that fig u r e la t e r on,** B efore the meeting adjourned Governor Young re fe rre d to the hear** ings b e fo re the Senate Committee on Banking and Currency r e la t iv e to the re so lu tio n concerning brokers* loans.and asked whether there i s any evidence in any of the d is t r i c t s that any member banks which are continuous borrowers from, the Federal reserve bank are lending money sim ultaneously on c a ll in New York# Each governor reported on con d ition s in h is d i s t r i c t and i t was the consensus of opinion that there is no such evidence a t the present time .....■— —— ......... _ _.. .................................................................... m 1uji 1 ■1lip Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority E .6 . 2 although there have been cases, of course, where a bank which had Surplus funds out on c a ll had to re s o r t to the Federal reserve bank f o r temporary loans or discounts to make good temporary or unexpected d e f i c i t s in reserves# I t a lso seemed to be the sense of the conference that i f a t any time i t should appear that a member bank is borrowing continuously from the Federal reserve bank in order to lend on c a ll, the reserve bank might properly take the matter up with the member bank with a view to co rre ctin g the p ra ctice* A fte r fu rth er d iscu ssion of the purposes and e f f e c t s of the open market p o lic ie s of the past year and th e ir re la tio n to the general cre d it situ a tio n , the meeting adjourned a t 5:45 p. m, with the understanding that the Federal Reserve Board would la t e r a ct in executive session upon the p o lic y recommended by the committee* George L* Harrison, A cting Secretary*
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