May 27, 1958 FOMC Minutes

FOMC minutes

made because a man had distinct qualifications or potentialities for the future and it would be useful to further the individual's training, for the President to request specifically that the individual be added to the list of persons granted access to Open Market Committee records. Chairman Martin commented that this would be in line with present procedure. In concluding remarks, Chairman Martin said it appeared on the basis of the discussion to be the consensus that the existing procedure should be retained and that any President wanting to increase the number of persons granted access to Open Market Committee records should follow the rule presently in effect. This contemplated, however, that the general problem of access to Open Market Committee records would continue to be discussed from time to time in order to determine what basis appeared most appropriate. Chairman Martin reported that Professor Lester Chandler, in his biography of former Governor Benjamin Strong which preparing was now in manuscript form, had been given access to open market had called attention to the minutes prior to 1929. Dr. Chandler certain excerpts from those minutes fact that he intended to include the question whether there would be in the biography and had raised he had told Dr. Chandler that Chairman Martin said any objection. that the whole Committee However, he felt he saw no objection. should be advised.

The members of the Committee indicated that they concurred in the position taken by Chairman Martin. Chairman Martin then called upon Mr. Hayes for a statement with respect to the proposal, previously discussed at the meeting of the Open Market Committee on April 15, 1958, to establish a standing money market committee composed of representatives from the New York Reserve Bank and the New York Clearing House Association banks to study, on a more or less continuous basis, technical problems of the money market. This would be in implementation of one of the minor suggestions contained in the report by the Clearing of the money market and the House Association on interrelationships securities market. Government further reference to certain this connection, and with In Chairman Martin stated that made at the April 15 meeting, comments of the Committee and he had checked the records since that meeting of New York had authority Federal Reserve Bank had confirmed that the suggestion in the steps to implement the the Committee to take from House report. Clearing had been asked to names of those who Hayes then read the Mr. that this would afford committee and noted serve on the technical banks but also from the Clearing House not only from representation He said that all financial community. of the New York other sectors and that it had accepted on the committee invited to serve of those and move forward. the committee to organize therefore proposed was

He was hopeful that the committee could make a useful contribution to the thinking on some of the problems of the money market. In answer to a question by Mr. Robertson, Mr. Hayes said that the exact role to be played by the committee was still somewhat nebulous, but that it was thought that this should be the kind of group that could meet with Mr. Rouse perhaps twice a year and discuss any phases of the money and securities markets on which the New York Bank felt that the committee could supply helpful information, advice, or comment. Conceivably, the Committee might also undertake certain studies if it seemed desirable. Mr. Robertson then inquired whether he was correct in thinking that the technical committee would have nothing to do with what the Open Market Committee's program was or might be, and Mr. Hayes stated that that was correct. In further discussion, it was made clear that the technical committee was being established by the Federal Reserve Bank of New York and that Mr. Rouse would be representing the New York Bank in dealing with the committee. stated that Mr. Riefler had been authorized Chairman Martin by the Board of Governors to go to London next month to testify Committee on the Working of the the Radcliffe Committee (the before of the invitation to System). He added that acceptance Monetary

testify had been cleared with the State and Treasury Departments. It was agreed that the next meeting of the Federal Open Market Committee would be held on Tuesday, June 17, 1958, at 10:00 a.m. Thereupon the meeting adjourned. Secretary