Relief in Seven Years of Stable Money 191 
address broadcast on December 7, 1929, Lewis E. 
Pierson, formerly President of the United States 
Chamber of Commerce, said: 
“Quite apart from its control over currency and 
credit, the Reserve System has been a tower of 
strength to American finance through its advisory 
assistance to the banker in his individual problem. 
“While I am on the topic of the Reserve Board, 
let me say—and I have no hesitation in saying— 
that had it not been for the warning issued by the 
Board as long ago as last March, the recent stock 
panic would have been infinitely worse. Bear in 
mind that as a result of the stock crash loans amount- 
ing to $1,750,000,000 were liquidated almost over- 
night. If our financial institutions had not been in 
an impregnable position, this forced liquidation 
would have strewn the country with bank failures. 
What the country experienced in the dark days a 
month ago was but a zephyr to the whirlwind that 
would have struck us but for the advance warning 
of the Reserve Board. Our banks are sounder and 
stronger than ever before.” 
Menace of Gold Shortage 
It is by no means certain that the seven years of 
stable money will be followed by ‘equally stable con- 
ditions in future. On the contrary, there is now a 
threat of deflation which cannot be overlooked! 
The chief reason we have been able to stabilize money 
for seven years has been in our surplus gold reserve, 
constituting a slack which would be taken in or given