The Threat to Business 63 
group of the wealthiest class. The probable effect 
upon consumption and production would seem not 
to be great. 
But to the present holders of equity securities the 
income from their shares will go on as before. The 
shift in valuations compelled the former holders to 
sell when they would have liked to buy, because the 
real values were indicated by the continued income 
from stocks. Panic prices of stocks did not record 
the real valuation of them either by sellers or by 
buyers. They merely recorded distress selling. 
It should be remembered, also, that the majority 
of stock holdings were not concerned in the panic 
tradings, but remained where they were before the 
panic, namely, in strong-boxes. The owners of these 
holdings would not care whether the market had 
gone up or down, because they were not trading in 
securities ; they were relying upon the income of their 
stocks and were concerned only in the continuing cash 
dividends. 
Chief Danger That of Fear 
The chief danger, therefore, did not inhere in con- 
ditions at all. It was the danger of fear, panicky 
fear, which might be communicated from the stock 
market to business. “My only fear is the fear of 
fear” are the words of a courageous man. The 
measures taken under the leadership of President 
Hoover, therefore, were well calculated to allay 
fear. There was danger that business, out of the 
contagion of the stock panic, would refuse to make