Fed to Begin Trading Government Securities'
said yesterday its open market committee will begin buying and selling securities issued!, by federal agencies other tha the Treasury Department.</br></br>Rep. Wright Patman (I) Tex.), chairman of the Housjeh Banking and Currency Comr)i mittee, said the Fed decisioiji while belated, will be of assis ance to the housing, export and agriculture industries.</br></br>The Fed, on its part, said : was not making the move i order to support ÛÏindividu; sectors of the agency market, or to channel funds into i$ sues of particular agencies</br></br>Many government agencies such as the Federal Horna Loan Bank Board, issue note: and securities to finance activities such as making loans tc^ savings and loan associations^ Moves to broaden the market for these notes have received support from Congressione(' and industry sources.</br></br>The open market commit tee buys and sells government^' securities with a view to con^ trolling monetary aggregates. For example, when it wishes^ to contract the money supply, it directs the New York Federal Reserve Bank to sell se curities thus sopping up funds banks might otherwise lend.