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A meeting of the Federal Reserve Board with the Federal Open Market

Committee was held in Washington on Thursday, july 20, 1933, at 4:00 p.m.

PRESENT: Mr. Black, GovernorMr. HamlinMr. MillerMr. JamesMr. ThamRs

SzymczakMr. O'Connor

Mr. Morrill, SecretaryMr. Carpenter, Assistant Secretary

Mr. Wyatt, General Counselras. Smead, Chief of the Division of Bank

OperationsMr. Goldenweiser, Director of the Division

of Research and Statistics.

ALSO PRESENT: Governors Harrison, Fancher, Seay, Martin,Geery, Hamilton, McKinney and Calkins;Mr. Johns, Acting Governor of the Federal

Reserve Bank of Atlanta; Mr. Paddock,Deputy Governor of the Federal Reserve

Bank of Boston; Mr. Hutt, DeputyGovernor of the Federal Reserve Bankof Philadelphia; Mr. McKay, DeputyGovernor of the Federal Reserve Bankof Chicago.

Mr. Burgess, Secretary of the FederalOpen Market Committee.

Governor Harrison stated that, following an informal suggestion made

bY Governor Black, the Federal Open Market Committee had been duly organized

meeting this morning, at which Governor Harrison was elected chairman,

6114 Deputy Governor Burgess, secretary. He also stated that the Federal

°Pen Market Committee had appointed an executive coaaittee, consisting of

the representatives from the Federal Reserve Banks of Boston, New York,

Philadelphia, Cleveland and Chicago.

Governor Harrison then referred to the tentative draft of regula-

ti°113 Prepared by the Board's staff with regard to (1) open market operations

441alci (2) relations of Federal reserve banks with foreign banks and bankers,

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copies of which were forwarded to all Federal reserve banks under date of

3.1.11Y 14, 1933, and stated that the Committee had discussed the draft of

regulation on open market operations and was prepared to make certain

recommendations to the Federal Reserve Board with regard thereto, and that,

following further discussion tomorrow of the draft of regulation on relations

Of Federal reserve banks with foreign banks and bankers, the Committee

17ou1d submit to the Board any suggestions which it may have to make with

l'egard to changes in the draft.

Governor Harrison then outlined the Committee's suggestionsas to

changes in the draft of regulation on open market operations. Among the

suCCostions submitted by Governor Harrison was one that the reference in

the Proposed regulation to a vice chairman be omitted as it was the feeling

Of the Governors that there was no occasion for having a vice chairman

e4cept in case of inability of the chairman to be present at a particular

Meeting, at which time a chairman pro tempore might be elected by the

raembers of the committee who were present. Governor Harrison stated that

tor this reason a vice chairman had not been elected at the organization

or the committee this morning. However, Mr. Tames pointed out that there

WoUld no doubt be occasion from time to time for the Board to communicate

with the committee and that, if the chairman were temporarily under dis-

bility or on vacation, for example, there should be a vice chairman with

Whonl the Board could communicate officially. After discussion of the

C°MMittee's recomendations the Committee was advised that the Board would

ecmaider the suggestions in connection with the adoption of the regulation

ill its final form.

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Iiiller then suggested that it would be desirable for the Board

and the Committee to have a meeting at which reports could be presented by

Mr. Goldenueiser, Director of the Board's Division of Research and Statistics

and by the Chairman of the Federal Open Market Committee, on credit and

bUsiness conditions from the standpoint of open market policy, following

which the Committee could go into separate session and formulate its recom-

mendations for presentation at a later meeting of the Committee with the Fed-

eral Reserve Board. After a brief discussion, it was agreed that, at the

conclusion of its consideration of the draft of regulation with regard to

relations of Federal reserve barks with foreign banks and bankers, the Fed-

eral Open Market Committee would meet with the Board tomorrow in accordance

With the procedure suggested by Er.

There were then distributed to the members of the Committee copies

Of a memorandum on business and credit conditions, prepared by Er. Golden-

Weiser under date of July 10, 1933.

Governor Black then stated that, if agreeable to the other members

or the Board and to the Federal Open Market Committee, he would arrange to

have Dr. O. M. W. Sprague, Financial Executive Assistant to the Secretary of

the Treasury, attend the preliminary meeting of the Board and the Committee

tomorrow for the purpose of outlining the Treasury's financing program for

the near future.

4111)roved:

Thereupon the meeting adjourned.

Governor.

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