Bulls, of whom there were many, and bears, of whom there were few, looked last week toward Philadelphia. Traders felt, and with reason, that the deliberations of 5,400 U. S. bankers, gathered for the meeting of the American Bankers' Association, held a more or less potent threat to the stockmarket. Many a banker, speaking for himself or his bank, had warned against frenzied speculation. The market had kept its strength, had soared through a record month. But traders feared the effect of a solemn and public pronouncement from the Philadelphia convention. Resolute bulls faced the 5,400 bankers with hostility.
The effect of the warnings from Philadelphia could be guessed and fought. What could not have been guessed was a 300-word statement from John Jacob Raskob, which came like a knife-thrust in the market's back. With Arthur Cutten, and the Brothers Fisher, Mr. Raskob has stood in the front rank of the bulls. His slightest intimations have lifted stocks nearly 40 points. His name, linked with the Du Pont interests, has been synonymous with a mysterious but potent pool operating in market leaders. Amazing, almost traitorous, appeared this statement, released on the very day the 5,400 bankers were preparing their formal edict:
"Since I have taken this position as Democratic National Chairman (TIME, July 23), I have not purchased any stock whatever.
"It is my opinion that security prices have so far outrun demonstrated values, earning power and dividend returns that a material readjustment is necessary before they will again be attractive to the prudent investor. . . ."
"My name has frequently been mentioned as being prominently identified with Chrysler Corp. and Radio. As a matter of fact I have never owned and do not own a single share of Chrysler Corporation stock, and the stock in the Radio Corp. which I hold was purchased outright by me a long while ago and held as an investment.
"I am not interested, directly or indirectly, in any pool or stock market operations."
Stockmarketeers gasped and gaped. It was not so much that Mr. Raskob had exploded the current myth of the Raskob-Du Pont pool. It was not impossible to believe that he had been out of the market all summer. But that the great bull should have turned into a bear was a blow which could only be described as catastrophic. Seeking a parallel, traders suggested that Nominee Hoover might issue such a statement as this: "My name has been frequently mentioned as being prominently identified with the Republican party. As a matter of fact I have never been a Republican. I am a firm believer in Jeffersonian Democracy."
In deference to the death of a bull, birth of a bear, the market sagged a few respectful points. But the same inexplic- able strength which fortified it against the 5,400 bankers remained to repel Mr. Raskob's attack. The market recaptured its stride.
Thrifty v. Shifty. Most blistering in his attack on the stockmarket was Col. Leonard Porter Ayres of the Cleveland Trust Co. To the convening bankers he said: