June 6, 1961 FOMC Minutes

FOMC minutes

for the calendar year 1960. Chairman Martin had suggested to Mr. Patman that, in the interest of orderly procedure, the latter write a letter requesting those minutes for the use of the Joint Economic Committee, indicating that he (Chairman Martin) would place such a letter, if received, before the Open Market Committee for consid eration. When Mr. Patman stated that he was not going to write such a letter and renewed his request, Chairman Martin had indicated that he would bring the oral request to the attention of the Open Market Committee at its meeting today. Chairman Martin commented, after reading a part of the transcript, that he would propose, if the Open Market Committee was agreeable, to advise Mr. Patman that the oral request had been discussed by the Open Market Committee and that it would be willing to consider furnishing the minutes for 1960 if Mr. Patman transmitted a formal request in writing. In reply to a question, the Chairman pointed out that since of the Joint Economic Committee, it seemed Mr. Patman was Chairman questionable whether any letter to him should specify that any formal request should be made on behalf of the Committee. whether a letter from the Chairman to Question was raised should be in terms that if the latter wrote a letter requesting Mr. Patman the minutes, they would be furnished, as opposed to saying that the willing to consider a formal request. However, in Committee would be

further discussion certain reservations were expressed about possible consequences, from the standpoint of the effective functioning of the Open Market Committee, of releasing minutes of relatively recent date in their full form. Some of these considerations, it was suggested, were of such a nature that, if explained, they might cause members of the Congress to be reluctant about pressing a request that the minutes be furnished. As a possible alternative to furnishing the 1960 minutes, the thought was expressed that the Committee might want to consider making public the minutes for some prior period. during this discussion indicated that at The comments made least some of the Committee members and other Presidents would like to to the matter in the light of any formal give further consideration request for the 1960 minutes that might be received. Accordingly, renewed his earlier suggestion as to the type of letter Chairman Martin that might be addressed by him to Congressman Patman. was made, and received favorably, that a letter The suggestion include the statement that if a formal request was to Mr. Patman might received, the Open Market Committee might want to consult the Chairmen of the Banking and Currency Committees before taking action on the existing between those Committees request in view of the relationships and the Federal Reserve System. it was agreed that any At the conclusion of the discussion, to Chairman Patman would be phrased letter sent by Chairman Martin

along the lines proposed by Chairman Martin, taking into account the additional suggestions made at this meeting, Chairman Martin then noted that there had been included on the agenda for today's meeting, pursuant to the understanding at the meet ing on May 9, consideration of the publication of the record of policy actions of the Open Market Committee more frequently than on an annual basis. He suggested that this item be held over, with the understanding would continue to consider the matter, and no that the Committee objection was indicated. regard, Mr. Hayes commented that there had been dis In this tributed to the members of the Committee prior to this meeting excerpts testimony before the Joint Economic Committee on June 1, 1961. from his These excerpts consisted of exchanges between Mr. Hayes and Congressman that Mr. Hayes pass along to the Reuss in which the latter requested Federal Open Market Committee for consideration the suggestion that the Committee publish its record of policy actions quarterly after a lag. Congressman Reuss also requested that Mr. Hayes suitable time the Open Market Committee the view that that Committee should pass on to of the majority of the Joint Economic Committee, adopt the suggestion the Joint Commitbee's report of January 1960, that "the as stated in .. abandon its inflexible portfolio policy Federal Reserve System . and, at least, weigh the desirability of changing its portfolio align Mr. Reuss made the further statement that if the Open Market ment."

did not adopt the suggestion of the majority of the Joint Committee tell the Joint Committee why it had not done so. Committee, it should said he was calling these portions of his testimony Mr. Hayes of the Open Market Committee in fulfillment of the to the attention replies he had made to Congressman Reuss. it was understood, pursuant to a suggestion After discussion, by Chairman Martin, that the portions of the transcript of the testi to which Mr. Hayes had referred would be appended mony on June 1, 1961, of this meeting. Accordingly, the excerpts from the to the minutes testimony are appended as attachment B. meeting of the Federal Open Market It was agreed that the next Committee would be held on Tuesday, June 20, 1961. Secretary