FOMC Minutes

Meeting of Federal Open Market Committee

July 9,

1973

MINUTES OF ACTIONS

A meeting of the Federal Open Market Committee was held on

Monday, July 9,

1973,

at 4:30 p.m.,

at the call of Chairman Burns.

This was a telephone conference meeting,

and each individual was

in Washington, D. C.,

except as otherwise indicated in parentheses

in the following list

of those participating:

PARTICIPATING:

Mr. Burns, Chairman

(New York)

Mr. Hayes, Vice Chairman

Mr. Brimmer

Mr. Daane

(St. Louis)

Mr. Francis

Mr. Holland

Mr. Mitchell

Mr. Morris

(Boston)

Mr. Sheehan

Mr. Clay, Alternate for Mr. Balles

Mr. Winn, Alternate for

(Cleveland)

Mr. Mayo

Mr.

Mr.

Mr.

Mr.

Mr.

Mr.

Broida, Secretary

Altmann, Assistant Secretary

O'Connell, General Counsel

Partee, Senior Economist

Bryant, Associate Economist

Coombs, Special Manager,

System Open Market

Account

(New York)

Mr. Bodner, Deputy Special Manager,

System Open Market

(New York)

Account

7/9/73

Mr. Coyne, Assistant to

the Board of Governors

Messrs. Gemmill and Pizer, Advisers,

Division of International Finance,

Board of Governors

Mr. Pardee, Assistant Vice President,

Federal Reserve Bank of

New York

(New York)

Mr. Balbach, International Economist,

Federal Reserve Bank of

St. Louis

(St. Louis)

Secretary's Note:

No actions were taken at this meeting.

However, following the meeting Chairman Burns, pursuant to an action

of the Committee on March 20, 1973, approved the following increases

in System swap lines, and the corresponding amendments to paragraph 2

of the authorization for foreign currency operations, effective July

10, 1973: $1 billion each in the lines with the central banks of

Canada, France, Germany, and Japan; $750 million in the line with the

Bank of Italy; $400 million each in the lines with the central banks

of Belgium and Switzerland; $250 million in the line with the BIS

providing for swaps of dollars against "other" European currencies;

and $200 million in the line with the Netherlands Bank.

Effective the

same date and pursuant to an action of the Committee on June 19, 1973,

the swap lines with the central banks of Austria, Denmark, Mexico, Norway

and Sweden were increased by $50 million each and paragraph 2 of the

authorization was correspondingly amended.

Accordingly, effective July

10, 1973, the table in paragraph 2 of the authorization for foreign

currency operations was amended to read as follows:

7/9/73

-3

Foreign bank

Austrian National Bank

National Bank of Belgium

Bank of Canada

National Bank of Denmark

Bank of England

Bank of France

German Federal Bank

Bank of Italy

Bank of Japan

Bank of Mexico

Netherlands Bank

Bank of Norway

Bank of Sweden

Swiss National Bank

Bank for International Settlements:

Dollars against Swiss francs

Dollars against other European

currencies

Amount of

arrangement

(millions of

dollars equivalent)

250

1,000

2,000

250

2,000

2,000

2,000

2,000

2,000

180

500

250

300

1,400

600

1,250

Secretary