CHAPTER XV
REMEDIES AND PREVENTIVES OF PANIC
WHAT measures were applied to alleviate the
stress of the panic?
What remedies were proposed to prevent its
repetition ?

Governmental and Banking Relief
To the reassurance afforded the nation by the
President’s conferences with business leaders, was
added the cut of $160,000,000 in income taxes,
passed by Congress on December 14th, at the suggestion
 of Secretary Mellon. This reduced the tax
by one per cent of the incomes of all individuals and
corporations taxes on incomes for the calendar year
1929. It was passed as a measure of reassurance to
business, as taking in earnest the statement by Secretary
 Mellon that: “The indications are that business
 profits, dividends, interest, and wage payments in
1929 will considerably exceed those of the year 1928.
Our estimates indicate that the government should
close both the fiscal years of 1930 and 1931 with a
surplus.”
The banks lent powerful support after the loans to
brokers by non-banking lenders declined during Octo-~9Q