Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-11-02
Political Capital.

Vantage out of the crash in the stock
market was bound to come sooner or
later. Senator Robinson of Arkansas,
Democratic leader Of the Senate. started
the ball rolling. with a statement issued
through the Democratic national COM
Srittee, in which he charged that
neither the, President, Secretary Mellon
nor any other official of the admins
tration took adequate steps to prevent
the collapse His line Of reasoning AZ
parently is that these officials of the
Government. are responsible for the
crash.
Senator Robinson may have forgotten
that the Congress so far has not yet
enacted a law prohibiting the manu-
facture. sale and transportation OF
stocks and bonds. The American peo-
pile are permitted to go into the stock
market and buy or sell TO their hearts
content. and if they are caught IN
speculative jam, As they we're recently,
and lose millions and billions OF dollars,
that is still the lookout of the American
people. The stocks which they p,lr-
chased were good stocks in the main.
put out by corporations which have
demonstrated their ability to earn
money. Business conditions have been
and are good In this country, not
understanding the upset of the stock
market.
There was no law back in war times
10 prevent speculation in land values in
Iowa, for example. The farmers bought
and sold land in those days at prices
which proved to be as fatal as those
which have been paid for stocks on the
New York exchange When Il had be-
come evident that the land could not
produce and make a return on the
prices paid for it, the crash in land
Speculation came.
The present administration was no
more to blame for the stock gambling
in New York than was the. Wilson. ad-
IniIiistration to blame for the land
speculation In Iowa and other farm
States during the World War, and per-
haps not as much So for the Govern
7nent; In those days was urging the
farmer and the cattlemsn to produce to
the utmost Of their ability, which natu-
rally gave the prices of land a boost.
Scarcely was the ink dry on the state
snent issued by Senator Robinson of
Arkansas before Senator Robinson of
Indiana, Republican; arose in the SEN
ate and declared that President Hoover,
Secretary Mellon and former President
Coolidge were in no way responsible for
the stock speculation which resulted in
the crash of the market but that John
j. Raskob,~ chairman OF the Democratic
national committee, was the arch vii
lain. He asserted that Faskob had
Recommended the purchase OF stock to
the people, and that Raskobs own
Tfieteoric rise to high place in the
financial world had led others TO seek
to emulate him
Senator Harrison Of Mississippi and
Senator Barley of Kentucky came to
the defense of the national chairman of
their party and sought to heap the
blame for the stock market disturbance
back. on Hoover, Coolidge and Mellon
They accused the Indiana Senator Of
seeking to make politica! capital through
his charge that Raskob had encouraged
speculation In the stock market. The
statement issued by Senator Robinson of
Arkansas may not have been intended
to make political capital" but II so,
why was it put out through the Demo-
cratic national committee? It looks
very much as though the Democrats in
their efforts to place the blame on Re-
publican officials of the Government
had overlooked the counter attack
which was sure to come upon the
chairman of their national organiza-
ton.
The effort TO saddle the blame for the
stock market crash on a political party
seems both idle and beyond the mark.
Speculation in stocks carried to the
nth" power was the cause OF the dis
asteY. The business condition Of the
country is sound. Both President Hoo
yer and Mr.. Raskob will attest that
fact. If the people of America will use
their money for sound investment pur-
poses only. such crashes as that of the
last ten days will not recur.