Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-10-31
STOCK CRASH LAID
| TO COP LEADERS
Hoover, Mellon and Coolidge
Are Responsible, Senator
Robinson Says.
~ the Associated Press.

BY the Associated Press.
Responsibility for the stupendous drop
in stock market prices was attributed
last night to President Hoover and other
chieftains of the Republican party by
Senator Robinson of Arkansas, the
Democratic floor leader.
The Chief Executive, Secretary Mel
Ion and former President Coolidge were
blamed by the ArkanSan, who a year
ago was his party'S choice for the vice
presidency, for encouraging the recent
speculative market with o~verconfident
statements and the present administra-
tion for not taking steps to check the
recession when it came.
Disputes Klein Statement.
In addition, Robinson took exception
TO the statement of DR.. Julius Klein, in
a radio speech On Tuesday night, that
the condition of American business and
industry was highly sound and stable
and asserted it was common knowledge
that a persistent depression had gripped
the smaller businesses and industries
and agriculture as well.
1T may be well to trace the begin
ming of this calamity" Robinson said,
referring again to the stock market COLI
lapse. IF the foundation Of the belief
of ruined investors was faith in the
strong position of American industry it
Is also true that the prophets and high
priests of American prosperity, repre-
Sented by no less personalities tina a
former President of the United States,
the Secretary of the Treasury and the
former Secretary Of Commerce, now
President, contributed by unduly and
repeated optimistic statements to the
creation Of enthusiastic, II not fren-
Eied, ventures in stocks.
THE good faith of these gentlemen
may not be impugned except in so far
as their zeal Is justly attributable to the
desire for that partisan political ad-
vantage which is SO often derived from
real or fancied business conditions. Had
n Democratic party been in power
when the stampede on the Stock EX-
change occurred the ruinous results
would have been charged by Republican
leaders to the financial policies of the
administration"
Failed 10 Act, He CHARGES.
He went on to say at must be ad-
mitted" that neither President Hoover
nor Secretary Mellon nor any other adj
miniStration leader took adequate steps
TO prevent the collapse" or ITO stay or
check the recession when 1t passed be-
low the sane economic level-the level
established by h due and proper in
AueIlce OF Tie CaplCal mVoIFeo and the
earning power"
In addition, Robinson asserted that
as a result Of the decline, the power
and prestige of the United States had
been weakened abroad and been greeted
BY foreign experts as "a great relief to
their business institutions"
Referring to Kline's statement, the
Arkansan said that there has been
substantial diminution in the purchas.
ing power of consumers, due not alone
to losses and bankruptcies which have
occurred through stock transactions,
but due in part to the natural and
logical reactions which always follow
periods marked by unusual speculation"
reactions which bring contraction and
slowing down" in various business
spheres.
Confidence will return" ne said,
sand stocks will recover SO that their
prices will bear fair relationship to &C
tual values. These conditions and re-
suits, however, may best be promoted
by frank recognition of the certainty
that conservatism will supersede reck-
1essness In business affairs and that
this may mean sorae shrinkage in the
volume of business transacted for q
considerable time"