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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