2008 candidates load up on cash for final push

By John Whitesides, Political Correspondent

WASHINGTON (Reuters) - Presidential candidates are scrambling to pad their bank accounts before the end of the third financial quarter on Sunday, loading up on cash for a big-spending three-month dash to the first votes in 2008.

After months of early fundraising helped establish their viability and organizational muscle, the top contenders must end the quarter with enough money to bankroll an expensive advertising blitz in early voting states like Iowa, New Hampshire and South Carolina.

"Cash is king now," said Anthony Corrado, a campaign finance expert at Maine's Colby College. "They have to start putting it to work."

With many states moving up their nominating contests, the first votes in Iowa and New Hampshire are now expected in early January 2008. The races in both parties could be finished by early February -- forcing candidates to spend heavily on advertising earlier than ever.

"There is going to be a lot of money going out the door of these campaigns in October or November this year," Corrado said. "No one can afford to wait."

The third fundraising quarter is traditionally the toughest for candidates, who must compete with summer vacations and expand their reach beyond the enthusiastic donors who already have given the $2,300 maximum for primary campaigns.

Most top campaigns expect a dip in fundraising from the second quarter, when Illinois Sen. Barack Obama led the Democratic field with $33 million and former New York Mayor Rudy Giuliani led Republicans by raising $17.6 million.

Among Republicans, the numbers for newly minted candidate Fred Thompson and Arizona Sen. John McCain will be watched closely when candidates submit their financial statements to the Federal Election Commission by October 15.