The Washington herald., 1929-11-02
c. Q. P. Shit IS
ONUS IN SLUMP
UP TO RASK0B
Attack on Administration Un-
just, Declares Robinson in
Reply to Namesake's View
BY Universal Service

BY Universal Service
Responsibility for the recent crash
of stock market prices was tossed
back and forth between Republi'
cans and Democrats in a fiery out.
burst in the Senate yesterday.
Senator Robinson R.), of Indiana,
started the fireworks when he
branded as unfair and unjust" the
recent statement of Senator Joe T.
Robinson, Democratic leader, blam.
ing President Hoover and his Ad-
ministration leaders for failing to
take steps to prevent the crash.
When Robinson, of Indiana,
pointed his shafts at John j. Ras-
kob for encouraging people to in
vest in securities, Democrats were
quick to start into oratorical ac-
ton.
RASKOB ADVICE QUOTED
Thousands of persons bought
stocks after reading reported state
ments by Raskob last June that
stocks were not too high, Robinson
said.
Raskob's announcement that he
would form an investment trust to
buy securities added fuel to the
speculative flame, according to Rob
inson, of Indiana.
Recalling wide publicity given dur
ing the last campaign to Raskobs
Frnr e7 E0 NunnlS OF
pher to chairman of the finance com.
mittee of General Motors Corporation
and a multi-millionaire, the Indiana
Senator said:
II do not say that RaskOb is re-
spOnSible fOr the stock market
catastrophe Of the last few days,
but / do say that the publicity he
received in the last two years re-
garling opportunities i'm the stock
market and his success caused
thousands of Americans to speCu-
late.
"His open invitation to an easy
way to become rich has enCOur-
aged others 10 60 and do likewise"
MELLON VIEW DEFENDED
Senator Steiwer R), of Oregon, in
terrupted to say that Secretary Mel.
Ion recently advised people to buy
bonds. Robinson replied:
"It is trnJ that MIR. Coolidge
when President said business con-
ditiOns were sound. It is true that
President Hoover and Secretary
Mellon have said that fundamental
business conditions are sound. But
they are no more responsible for
GfnOlE market nRNHRatsnRn kho
man in the mOOn."
Here Senator Pat Harrison D.),
of Mississippi, defended Raskob and
insinuated that Robinson was try
ing to make a play for votes ip
Indiana by accusing Raskob,
friend of Governor Alfred e.
Smith, of responsibility for the
stock, market crash. He added:
"The Democrats don't want to
play politics with this situation.
1t is too serious. Throughout
the country people have been
hurt, Democrats and Republicans.
IL challenge Robinson to point
to any statement ever made by
RaslxOb that caused the American
people to go into an orgy Of
speculation.
ION the contrary, every ex-
preston of RaskOb has been that
investments should be made OH
sound values and gOO! stocks
bearing dividends"
motive PATRIOTIC"
Praising Raskob as having a
''high and patriotic motive" Har-
rison read a statement by Raskob
amid the stock market collapse,
saving that he and his friends were
buying stocks. He continued:
"If RaskOb had wanted to play
politics, he could have withheld
his encouraging statement on the
business situation. but in reality
he helped the Administration by
appealing to the people not to sell
stocks, because they had reached
ridiCulOusly low prices"
Bark1ey (D), of Kentucky. hoped
into the fight, with charges that
publish" statements by, President
Hoover, Mr.. Coolidge while Presi-
dent, and other Administration lead
srs had caused people to indulge un.
wisely In stock buying, which re-
suited in the crash. Barkley said:
at was assumed when Mr.. Cool.
1OE0 was 0IocEoO 'tnaG Ine UOVeTn"
ment would keep entirely alOOf
- from financial transactions or
manipulatiOns.
BASED on that belief there be.
gan the Coolidge bull market Of
1924. and from that day until the
Coolidge Administration retired
from office, scarcely a time
PASSED when a slump in stocks
did not bring a reassuring state
ment from the Secretary of the
Treasury.
att was common rumor that
Secretary Mellon exercised his
whole power to prevent the Fed.
eral Reserve Board from in.
cFeasing the discount rate re-
gently.
"And It is reported that he
threatened to resign some months
ago II the rate were raised from
B TO 8 per cent"
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