Remedies and Preventives of Panic 239 
ber, 1929, by two billion dollars. This withdrawal 
of funds from the call-loan market was by foreign 
lenders, investment and trading companies, and other 
corporations and individuals. In addition, loans to 
brokers for out-of-town banks including loans for 
account of their customers, diminished by $800,000,- 
000. In these circumstances, the New York City 
banks came to the rescue, increasing loans for their 
own account by $1,000,000,000; also, they increased 
their security and other loans to customers, and their 
investments. The weekly reporting member banks 
in leading cities increased their total loans and invest- 
ments in this way from October 2d to October 30th, 
by $1,600,000,000. Most of this increase was in 
New York City banks, whose net demand deposits 
rose by $1,500,000,000 from October 23rd to Octo- 
ber 3oth. With this increase their reserve require- 
ments grew, adding to their reserve balances with 
the Federal Reserve Bank by $240,000,000. Dur- 
ing this crowded week the Reserve Bank of New 
York added $150,000,000 to its discounts from mem- 
ber banks; and let loose a fresh stream of credits by 
purchasing $150,000,000 worth of United States 
Government securities in the open market. 
By such measures money rates eased during the 
height of the panic. Call-money rates had prevailed 
at eight to nine per cent during September, but fell 
to six per cent in the latter part of October, and, 
through the panic and subsequent liquidation, ranged 
at and below six per cent to 414 per cent. On Octo- 
ber 31st, the Federal Reserve Bank of New York