94 The Stock Market Crash—dAnd After 
ment, food products, household products, machinery, 
mining and smelting, miscellaneous manufacturing 
services, office and business equipment, oil producing 
and refining, paper and paper products, radios, 
phonograph and musical instruments, railroad equip- 
ment, department stores, shipping and shipbuilding, 
shoes, steel and iron, United States Steel, utilities 
operating companies and holding companies, and 
telephone and telegraph companies. 
As in the market climb of 1929, sO In its recession 
of September and October, the selective principle 
was still largely operative. It is shown in the rec- 
ords of my indexes of stock prices from the high of 
209.7 for industrials during the week ended Septem- 
ber 6th, based on the average of 1926 as 100. For 
the week ended November 1 sth, this index fell to 
130.1, equivalent to a decline of 38 per cent, while 
the extreme speculative stocks declined by so per 
cent. During this interval railroad stocks fell by 
26 per cent, while public utilities fell by 43 per cent 
in price. But during November the best stocks fell, 
and often because they were the best known, because 
bought on borrowed money. 
In the rebound upward during the month following 
November 15th, to and including the week ended 
December 13th, the first-grade investment industrials 
increased by 14 per cent; semi-speculative industrials 
increased by 11 per cent, while the third or specula- 
tive class increased by 1 3 per cent—showing intelli- 
gent selection at work favoring the high-grade 
investment stocks, but not so marked as between the 
speculative grades.