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Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority E . 6 . The meeting of the Open Market Investment Committee'with the Federal Reserve Board, called by the Board for December 1, 1925, was held in the office o f the Governor at 11:00 a*m* PRESENT: Governor Crissinger, jyir. Platt, Mr* Hamlin, Mr* M iller, Mr* James, Members of the Board, Governor Strong, Governor Harding, Governor Fancher, Mr. Hutt, Mr* McKay Members of the Committee Dr. Stewart, Mr* Noell* The subject submitted to the meeting for discussion was the following resolutions of the Federal Reserve Board: "That the Federal Reserve Board approves in general the report of the Open Market Committee dated November 2nd, but desires an immediate meeting o f the committee to consider whether changed conditions do not make a change in the open market policy of the Federal Reserve System desirable*” "That one of the matters to be referred to the Open Market Committee be the question of allowing December 15th maturities of Government securities to run o ff without replacement*” After thorough canvass of the System’ s open market policy, as well as the subject of rates of discount and b i l l rates, i t was the consensus of opinion that the Treasury certificates held in the System account, amounting to about ^38,000,000,maturing on December 15th, should be replaced by other maturities to be purchased by the Committee* The meeting adjourned at 1:00 o'clock to reconvene at 2:30# There were present at that time in the Board room the same members present at the morning session. The meeting formally approved the action taken informally at the morning conference* Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority E . 6 . IBSfe The balance of the session was devoted to a discussion of conditions bear / j/ f/ ing upon the discount rates of the System and especially of the Federal Reserve Bank of New York, I t was the consensus of opinion that i t would be better to await the turn of the year before the Federal Reserve Bank of New York made any rate advance, as at that time there was lik ely to be considerable liquidation and a large return flow of currency, with some easing of the money market, which might prove to be the appropriate time for sellin g some of the System’ s holdings of Government securities and for an increase in the New York discount rate. Dr. M iller expressed the view that the rate should be advanced to 4 per cent at once and Mr* P latt expressed the view that he would prefer to see i t ad vanced to 4^l/2 per cent. .JL) The meeting adjourned at 4:30 p.m. » (Signed) Benj. Strong, Chairman. Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority E .6 . U35k 'V* V' The meeting of the Open Market Investment Committee with t Federal Reserve Board, called by the Board fo r December 1, 1925, was held in the 0£fioe I *u * ^he Governor at HiOQ a* m. PRESENT: Governor Crissinger, Mr. P la tt, Mr. Hamlin, Mr. M ille r, Mr. James, Members of the Board. Governor Strong, Governor Harding, Governor Fancher, Mr. Hutt, Mr. McKay, Members of the Committee* Dr. Stewart, Mr. Noell* The subject submitted to the meeting for discussion was the follow ing resolutions of the Federal Reserve Board: uThat the Federal Reserve Board approves in general the report of the Open Market Committee dated November 2nd, but desires an immediate meeting of the committee to oonsider whether changed conditions do not make a change in the open market policy of the Federal Reserve System desirable.14 “That one of the matters to be referred to the Market Committee be the question of allowing December 15th maturities of Government securities to run o ff without re placement.’1 After thorough canvass of the System’ s open market policy, as w ell as the subject of rates of discount and b i l l rates, it was the consensus of opinion that the Treasury certificates held in the System account., amounting to about #38,000,000, maturing on December 15th, should be replaced by other maturities to be. purchased by the Committee* The meeting adjourned at 1:00 o’ clock to reconvene at 2:30. There were present at that time in the Board room the same members present at the morning session. r Reproduced from the Unclassified / Declassified Holdings of the National Archives DECLASSIFIED Authority E .6 . IBSfe 2 The meeting formally approved the action taken informally at the morning conference* The balance of the session was devoted to a discussion of conditions bearing upon the discount rates of the System and especially of the Federal Reserve Bank of New York* It m s the consensus of opinion that it would be better to await the turn of the year before the Federal Reserve Bank of New York made any rate advance, as at that time there was likely to be considerable liquidation and a large return flow of currency, with some easing of the money market, which might prove to be the appropriate time for sellin g some of the System’ s holdings of Government securities and for an increase in the New York discount rate* Dr. M iller expressed the view that the rate should be advanced to 4 per cent at once and Mr. Platt expressed the view that he would prefer to see it advanced to 4 l/2 per cent* The meeting adjourned at 4:30 p. m*
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