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Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED Authority E . 6 . 12354, MINUTES OF THE MEETING OF THE OPEN Ma RKET INVESTMENT COMMITTEE FOR THE FEEERAL RESERVE SYSTEM HELD IN THE OFFICES OF THE FEEERAL RESERVE BOARD, SEPTEMBER 22, 1925 The following were present: Governors Strong, Harding, Fancher and McDougal Mr* Hutt, representing Governor Norris, and W. R. Burgess, Secretary pro tem The meeting was called to order by Governor Strong at 11 a. m. Reports were submitted by the chairman concerning' credit conditions and future program, by the secretary of the committee giving the data as to the detail o f operations, and by Mr, Case concerning operations with foreign banks of issue* After discussion i t was VOTED that these reports be adopted as submitted, including the recommendation in the secretary’ s report that during the balance o f the year additional purchases o f b i lls or securities be distributed among the banks in such manner as, firs t, to provide for the expenses and dividends o f each bank; and, second, to provide thereafter for estimated chargeoffs as completely as possible. There following a general discussion concerning credit conditions* At 11:45 the committee met with the Federal Reserve Board* The chairman presented the Committee reports to the Board and the action which had been taken, calling attention to that part o f the report which suggested that the present situation appeared to c a ll not for open market operations but careful consideration of the position o f the discount rate, which was outside o f the.province of the committee. jMFhere then ensued a discussion of credit conditions and discount policy* No action was taken and the only definite recommendation was made by Dr. M iller to the effect that it would be desirable to make sales from the special Reproduced from the Unclassified / Declassified Holdings of the National Archives w DECLASSIFIED Authority E . 6 . U35fe 2 i n v e s t me nt account and to New York discount r a t e . fo llo w these sa les s h o r tly by an increase in the Most o f those present a t the meeting were not in agreement with th is v ie w«““j The meeting adjourned at 1 :1 5 . W„ R. Burgess Secretary pro tem t-
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