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 sug- 
gestion 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 Sec- 
retary Mellon that: “The indications are that busi- 
ness 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- 
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