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A meeting of the Federal Reserve Board was held in the Office of the
Governor at 11? 00 a#m* on Wednesday, HovemberlS, 1924.
PRESENT:
PRESEOT ALSO:
!{/( > b V
(
Governor Crissinger
Er* Platt
Mr* Hamlin
Mr. M iller
Mr. Jamea
Mr. Ooiminglham
Mr, Eddy, Secretary.
Mr.
Er.
Mr.
Hr*
Mr.
Harding )
_
^
Strong }Members of Open Market Investment
Horris jOommittee for the Federal Reserve
Fanoher ) System*
KeDougal)
fhe Governor stated that the propose ©f the meeting was to consider the
following recommendations made by the Open Market Investment Committee for
Reserve System?
"1 .
fh a t th e com m ittee c o n t in u e t o make such tem p ora ry
s a le s and p u rc h a s e s from the s p e c i a l a cco u n t a s a re n e c e s s a r y
t o s t a b i l i ze money c o n d i t i o n s a t t a x p e r io d s *
2 # f h a t "iny p u r c h a s e s o f governm ent s e c u r i t i e s o r
a c c e p t a n c e s he d i s t r i b u t e d as r e c e n t l y on th e "b asis o f e s t i
m ates o f d e f i c i e n c i e s o f e a r n in g s o f th e tw e lv e r e s e r v e b a n k s.
3* 5That t h e com m ittee be a u th o r is e d b y th e G overn ors
C o n fe re n ce t o commence as soon a s p r a c t i c a b l e t o exchange
c e r t i f i c a t e s m a tu rin g a f t e r Decem ber 3 1 , 1925 f o r s h o r t e r
term c e r t i f i c a t e s .
4 * That a c t i o n on th e recom m endation o f th e A d v is o r y
C o u n c il r e l a t i v e t o th e p u rch a se o f f o r e i g n b i l l s be d e fe r r e d
u n t i l su ch tim e a s we may b e in a p o s i t i o n t o know more a bou t
th e developm en t o f c o n d it i o n s r e l a t i n g t o f o r e i g n e x ch a n g e s ;
and th a t th e System make no p u rc h a s e s o f such b i l l s u n t i l th a t
t im e.
.
#
5.
'fhat th e com m ittee b e g iv e n a u t h o r it y
(a )
t o r e p la c e th e ^65#000,0QQ o f Decem ber
m a t u r it ie s t o such e x te n t as may b e a d v is a b le in c o n s id e r a
t i o n o f m arket c o n d i t i o n s a t th a t t im e ; and
J b x £ k .~ " / / 5-/3-^
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Reproduced from the Unclassified I Declassified Holdings of the National Archives
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n (b) to o f f s e t the export o r earmarking o f gold
fo r fo re I'm account to such extent as may be advisable
in co n sid e ra tio n o f market co n d itio n s, but not to exceed
fL00f 000,000.
6 * ‘.That the committee be authorized to s e l l in v est
ments in the sp e cia l account in order to reduce that
account to the amount o f $500,000*000, as ra p id ly as money
con d itio n s make i t p r a c tic a b le * ”
!B iq fore g o in g recommendations o f the Open Ivarket Oommittee were
considered sep a ra tely and a l l o f them unanimously approved by the members
o f the Federal Reserve Board p re se n t.
I/r. Cunningham stated that he voted
in the a ffirm a tiv e on the recommendations, with the understanding that he
would not stand committed to approving o f the continuance o f the a u th o ritie s
granted the committee a ft e r Jam ary 1, 1925.
An tinder standing was reached between the Board and the members o f
the committee that a meeting o f the committee w il l be held some time during
December, 1924, on a date to be fix e d by the Governor and the Ghainnan o f
the Oommittee.
f he meeting adjourned at 1:05 p . m
fS) W alter L. Eddy
Secretary*
Approved:
(S) D. R. C rissin g er
Governor.
@FedFRASER