Remedies and Preventives of Panic 247 
of this rule until the governing committee has deter- 
mined that there is a fair market. 
Proposed Safety Fund for Emergencies 
In place of an informal and voluntary committee 
of bankers acting unofficially, such as sustained the 
market in the initial stages of the panic of 1929, I 
am indebted to Mr. H. B. Meek, a Yale graduate 
student, for the suggestion of a safety fund to be 
used in such emergencies, accumulated over a series 
of years from small payments subscribed by Stock 
Exchange members. In the course of twenty years 
or so, this safety fund would amount to a consider- 
able sum, to be employed in a manner similar to 
bankers’ consortium fund. to stabilize the market. 
Proposed Definite Collateral Loan Policy 
Another suggestion for market stabilization is 
made by M. H. Cahill, President of the Plaza Trust 
Company of New York, and formerly President of 
the New York State Bankers’ Association. Mr. 
Cahill’s proposal, published November 11, 1929, 
follows * 
“If the banks of the country, acting as a unit, 
would adopt a definite loaning policy under which 
they would not extend a collateral loan in excess of 
75 to 80 per cent of the value of the security offered, 
as determined by appraisal based on the previous 
quarterly statement of earnings, the appraisal not to 
exceed twenty times the net earnings, it would, ipso 
facto, stabilize the market level of securities and