The Stock Market Crash 15 
nificant, that at this nadir of market despair and 
panic the market “averages” had gone down only to 
those of February, 1928—well above the old plateau 
of stock market prices, from the level of which the 
market had ascended after 1923. The worst panic 
in history had not destroyed this new price plateau! 
Industrial stock prices, even at the bottom on 
November 13, 1929, were 30 per cent above 1926 
average, and 300 per cent above the pre-war plateau 
of 1905-1914! Despite the fact that the price level 
of many stocks had run too high, the panic was 
“technical” in its character and largely artificial. 
This may be understood from the fact that indus- 
trial shares had achieved the highest earnings of 
their history, that the price-earnings ratios were on 
the average lower during 1929 than in 1928; and 
that, in over-the-counter transactions, the powerful 
National City Bank saw its shares sold off by 8o 
points, opening around 280 and closing at 200. 
Bank of New York and Trust closed down roo 
points at 650; Guaranty Trust down 50 points at 
560; Bankers’ Trust down 13 at 120; Corn Ex- 
change down 20 at 165, and so on. 
On November 14th, extraordinary measures were 
taken. On this day came the announcement of the 
Proposed cut in income tax, and the notice from 
Washington of the conferences held at the White 
House on November 13th. The rediscount rate at 
the New York Federal Reserve Bank was lowered to 
4%2 per cent, which came after a cut from 6 to z per