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 equipment,
 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 records
 of my indexes of stock prices from the high of
209.7 for industrials during the week ended September
 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 speculative
 class increased by 1 3 per cent—showing intelligent
 selection at work favoring the high-grade
investment stocks, but not so marked as between the
speculative grades.