Kerry matches Bush in funds fight

Democratic party challenger John Kerry has raised more than $180 million (£98m) in his bid to win the White House from President George Bush, campaign figures reveal.

This means his campaign has shattered the conventional political wisdom that the Democrats could never compete with their Republican opponents when it came to raising hard cash.

Kerry is now only narrowly behind Bush, whose campaign has so far raised about $216m. 'It is a sign of how energised Democrats are. They are raising money in incredible amounts,' said Professor Shawn Bowler, a political scientist at the University of California.

This year alone, Kerry has raised more than $150m and shattered several Bush fundraising records. He has now raised more than $30m a month for four months in a row, including $34m in June. The figures are a far cry from last December, when Kerry, who was struggling in the primaries, had to lend himself $6m by taking out a mortgage on his home.

Key to Kerry's success has been copying fundraising techniques pioneered by Bush which include attending many private meetings with groups of individual donors. Dinners, luncheons and 'wine and cheese' meetings have been a key factor in much of Kerry's campaigning and have reaped a huge financial reward.

Democrats have also benefited from the use of many small donors, galvanised by the internet, who have raised $56m through Kerry's campaign website. 'The strength of the small donor has helped level the financial playing field with the Bush campaign,' said Mary Beth Cahill, Kerry's campaign manager.

The real force powering Kerry's financial surge, experts say, is the sheer dislike for his opponent among party activists. Yet Kerry has also been criticised for not taking enough advantage of a Bush administration hit by successive scandals emerging from the Iraq war. 'It has been lacklustre. Kerry now has all this money, but can he use it wisely?' said Bowler.

Kerry and Bush are still virtually neck and neck in most opinion polls, and a knife-edge election in November is widely expected. However, Bush has a distinct advantage as President in that his actions are covered automatically by the media.

Kerry is expected to counter this so-called 'free media' for the first time this week with the announcement of his choice for a vice-presidential running mate. The news should dominate the media for several days and provide a healthy bounce in the polls as the Democrats prepare for their convention in Boston at the end of this month. 'There are only three pivotal moments for Kerry to face: his running mate, his convention speech and his performance in the television debates. This is his first big test,' said Will Marshall, president of the Progressive Policy Institute thinktank.

Democratic party sources say all the leading candidates to be Kerry's choice have been contacted in recent days and told to keep in close contact with the campaign. A decision is expected on Wednesday or sooner. The favourite is Senator John Edwards, who was once Kerry's main rival but has since campaigned on his behalf. Edwards has won fans with his charisma and optimistic style, seen as offsetting Kerry's often wooden public persona. 'Clearly, John Edwards is top of the list at the moment,' said Marshall.

Edwards is also a moderate southerner, which will balance the perception of Kerry as a liberal from Massachusetts, an image unpopular in many key Midwest states.

There are other serious contenders and Kerry is thought to have had a strained personal relationship with Edwards. Missouri Senator Dick Gephardt is Kerry's close friend and would bring strong support in his vital state. The little-known Iowa governor Tom Vilsack has also emerged as a strong late contender and would provide a boost in the Midwest as well as offering the prospect of a Democrat win in Iowa.

The outsider candidates include Senator Joe Biden of Delaware and Florida's Senator Bob Graham.