240 The Stock Market Crash—And After
lowered its discount rate to five per cent and a little
later to 414 per cent.
Thus “tight-money” conditions were obviated, and
a billion dollars of extra credit was provided, proving
 the strength and resourcefulness of the Federal
Reserve System.

Inquiry Concerning “Bear Raids”
Another measure of undoubted efficacy was the
New York Stock Exchange inquiry concerning evidence
 of “bear raids.” The exchange on November
13th called on members to report in detail about
stocks they had lent or borrowed on which there had
been a failure to deliver, with the exception of odd
lots. No explanation accompanied this action. Undoubtedly
 its purpose was to identify such “big bear
operators” as were, possibly, responsible for the
repeated attacks on the market. The very nature of
such an inquiry was deterrent in discouraging organized
 short-selling of the character that would further
 unbalance a panic-stricken market. The inquiry
was slightly retroactive, requiring information as of
the close of business November 12, 1929; it required
subsequent daily reports of changes involving failure
to deliver listed stocks that had been loaned or borrowed
 up to November 25th, when the daily questionnaire
 was abandoned. The decision to call for
this information was made at a time when stocks
were at their lowest point and seemed to be at the
mercy of bear raiders. Members of the voluntary
banking group that had met for several days in the