View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority E .6 . IBSfe

3 ^>3
MINUTES OF JOINT MEETING OF TH OPEN M
E
ARKET INVESTMENT COM ITTEE
M
AND TH FEDERAL RESERVE BOARD HELD IN W
E
ASHINGTON, FRIDAY. SEPTEM
BER 10f 1926
l/ to jx L

Present:
Governor C rissin ger
V ice Governor P la tt
Mr* Hamlin
Mr* James
Dr* M ille r
Mr* Cunningham
Mr* McIntosh s
Members of the Board
A cting Chairman Case
Governor Harding
Governor McDougal
Governor N orris
Mr* F . J* Zurlinden, Deputy Governor of the
Federal Reserve Bank of Cleveland,
representing Governor Fancher
Members of the Committee
Under Secretary of the Treasury Winston
Mr* Matteson, Secretary
Mr. Noel
Mr* Goldenweiser
Mr. McClelland
The meeting was c a lle d to order a t 11:00 o ’ clock a# m* by
Governor C rissinger*
On motion, i t was
VOTED to dispense with the reading of the minutes of
the la s t meeting of the Committee held on August 17, 1926.

The report of the Secretary with accompanying e x h ib its was presented*
The report of the Chairman of the Committee was presented and read
and there follow ed a f u l l d iscu ssion of the contents of the report and of the
c r e d it situ a tio n generally*

I t was the sense of the meeting that the recent

sale to the Treasury from the System Account of about ^40,000,000 Third L iberty
Loan bonds had served a usefu l purpose in making e f f e c t iv e the recent change in
the New York discount rate*

Mr* Goldenweiser pointed out that a sale of th is

character with i t s attendant c a lls by the Treasury on a l l depositary banks
tended to spread more evenly the discounts throughout the Federal Reserve System.




Reproduced from the Unclassified I Declassified Holdings of the National Archives

____

' ■

DECLASSIFIED
r-

Authority E . 6 . U3SJt

2

I t was the sense of the meeting that the open market account should
be maintained, f o r the present, at about the present le v e l, and upon motion,
duly seconded, the Committee
VOTED that the open market account should be maintained
fo r the present at $200,000,000 or thereabouts, with the understand­
ing that the Committee could, in i t s d is c r e tio n , increase or decrease
the account by not more than $50,000,000*
I t was a lso understood that in the event of further gold imports fo r the ac­
count of fo re ig n correspondents, we should continue to furnish them with secur­
i t i e s from the Special Account as h e re to fo re , thus o ffs e t t in g the e f f e c t of
the g old imports*
Mr* Winston re fe rre d b r i e f l y to the Treasury fin an cin g and stated
that there probably would be a temporary overdraft of approximately $200,000,000
on September 15 to be ca rried by the reserve banks, which would run f our or fiv e
days only*

In the same connection Mr, Case stated, that owing to the f a i r l y

heavy discounts at the New York bank i t would probably be unnecessary to s e ll
any considerable amount of Government s e c u r itie s to New York member banks over
the tax period*
Mr* Case reported on the co n d itio n of the fo re ig n accounts statin g
the changes which had occurred since the la s t meeting of the Committee*




On motion, the meeting adjourned at 1 p* m
*

(Signed)

W, B* Matteson
Secretary


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102