September 26, 1955 FOMC Minutes: Full Text
A meeting of the Federal Open Market Committee was held Monday, 1955, at 3:30 p.m. This was a telephone conference meeting September 26, and the location of each individual is indicated in parenthesis after his name in the following list of those in attendance: PRESENT: Mr. Sproul, Vice Chairman (New York) Mr. Balderston (Chicago) Mr. Earhart (Chicago) Mr. Fulton (Chicago) Mr. Irons (Chicago) Leach (Chicago) Mr. Mills (Washington) Mr. Robertson (Washington) Mr. Shepardson (Chicago) Mr. Szymczak (Washington) Mr. Vardaman (Washington) Mr. and Powell, Alternate Members Messrs. C. S. Young the Federal Open Market Committee (Chicago) of Member of the Federal Open Mr. Treiber, Alternate Market Committee (New York) Reserve Bank of President, Federal Mr. Williams, and Mr. Leedy, President, Philadelphia, Kansas City (Chicago) Reserve Bank of Federal Secretary (Washington) Mr. Riefler, Counsel (Washington) Mr. Vest, General Economist (Washington) Mr. Thomas, Economist (Washington) Mr. Ralph A. Young, Associate Open Market Account Manager, System Mr. Rouse, (Chicago) Board of Assistant Secretary, Mr, Sherman, Governors (Washington) Finance Section, Miller, Chief, Government Mr. Board and Statistics, of Research Division (Washington) of Governors Federal Vice President, Roosa, Assistant Mr. York (New York) Bank of New Reserve
Arrangements for this meeting were made for the purpose of discuss ing the potential economic effects of the President's illness over the past week end and what, if any, change should be made at this time in credit policy. Expressions of views were exchanged by individual members of the Committee as to policy that should be pursued in the light of developments in the market today. It was agreed unanimously that no change be made in the existing general program of restraint, excepting the elim ination from it of the special instruction given at the meeting on September 14, 1955, that, in conducting operations in pursuit of such policy, allowance for errors be on the side of greater restraint. The meeting adjourned at 4:10 p.m. Secretary's note: A copy of notes used during the telephone meeting by Mr. Sproul in reporting to the Committee, as its agent, has been placed in the files of the Federal Open Market Committee, Sub sequent to the meeting, the Secretary re ceived from Mr. Sproul the following tele gram, copies of which were furnished to the members of the Committee and other Presidents who participated in the meeting: "Figures I used in today's telephone conference were illus trative of what maintaining degree of pressure existing before last week's temporary easing might mean during period of Treasury financing. Did not intend to suggest that we should average free reserves to minus $250 million for try to bring up statement week ending Wednesday, September 28th, since estima negative free reserves for four days of statement ted average week already elapsed may be around $400 million. Important thing from psychological standpoint, however, is probably to tomorrow and in the outright purchases to market show some week, This would figures for this statement later published consensus of telephone meeting that be in accord with general
there has been no change in fundamental economic situa since tion we should aim at maintaining about same degree of credit pressure as existed before last week's temporary easing but giving management of account sufficient leeway to counter developments and removing from its adverse psychological to try to make errors on the side instructions the admonition of restraint." Secretary
Also: Record of Policy Actions