Evening star., 1939-03-20
Roosevelt Tells
Congress Debt
Limit Can Stand
Morgenthou Letter
Transmitted Askino
Larger Bond Issue
Ey the Associated Press,

IS t'e associated PreSS.
President Roosevelt transmitted to
Congress today for such action as
may be necessary" Secretary of the
Treasury Morgenthaus report that
there is no need to raise the $45, ,0O0,-
100000 public debt limitation, but
that the $4,000, ,OOO, 900 limit on long
term bonds should be removed.
The Morgenthau letter said it
would not be necessary at this time
to increase the total public debt limit
above $45,0O0,00O,00O because the
Treasury still could issue about S.
oo0. 900, 900 of additional public debt
obligations which would be sufficient
to carry 1t we'll into 1910.
Text of Message.
The text Of Mr.. Roosevelts mes
sage follows:
Il am transmitting herewith a
letter dated March II, 1899, from
the Secretary of the Treasury re-
gardlng the limitation placed upon
the total amount of the public debt
obligations which may be issued and
outstanding at any one time under
authority OF the second Liberty
Bond Act, as amended. You will
note from this letter that the Secre-
tary OF the Treasury feels that there
will be no necessity for increasing
the present limitation of S45 ,OOO.-
100000 on the total public debt
which may be outstanding at any
one time, but does feel very strongly
that it will be necessary to increase
the present limitation of $50 OOO,-
100000 face amount of bonds which
may be outstanding at any one time
L recommend that the Congress
take such action as may be necessary
to give the Treasury the authority
which will enable it to carry out its
financing operations during the next
fiscal year as may be for the best
interest of the Government in line
with market conditions at the time
OF such financing
M0rgenthau's Letter.
The Morgenthau letter follows:
MY Dear Mr.. President:
The second Liberty Bond Act
as amended, provides that the face
amount Of bonds. certificates of in
debtedness, Treasury bills and notes
issued under the authority of that
act. and certificates of Indebtedness
issued under the authority of Sec
ton 6 Of the first Liberty Bond Act
shall not exceed in the aggregate
S45 900 ,000,0 900 outstanding at any
one time and provides further tha,
the face amount of bonds issued
within that limitation shall no,
exceed in the aggregate $50. O.OO0,-
100000 outstanding at any one time
AT the present time the Treasury
can issue approximately SIS 900, 600, 600
face amount of additional public
debt obligations under the second
Liberty Bond Act. On the basis OF
the current budget estimates this
balance will be sufficient to carry
the Treasury we'll into 194O I dc
not believe, therefore, that it is
necessary to request at this time an
increase in the limitation on the
total debt that may be issued and
outstanding under authority of the
second Liberty Bond Act, as
amended.
Different Problem Presented.
1.-The limitation of $4,000 ,OOO,-
900 on outstanding bonds presents
however, a different problem. The
amount of bonds which the Treas
ury can issue within this limitation,
after taking into consideration the
March IS refunding operations is
approximately s1,8O0,000, 900. TAX
ing into consideration our cash re-
quirements between now and Jan
uary l, 1910, the monthly issuance
of United States savings bonds, and
the possible refunding operations
which the Treasury may wish to
conduct. it seems quite apparent
that the balance of $1,000, ,00O, 900
will not be sufficient to give the
Treasury that latitude required in
its financial operations over the
next few months.
I'm order that the Treasury
may be in position to take ad-
vantage of favorable market condi-
tions and not be forced to confine
all of its financing operations to
short-term obligations, I strongly
urge that recommendation be
made to the Congress that the lin
itation of $50, 1000 900, 900 on bonds be
eliminated entirely SO as to give
the Treasury the f1exibility it needs
for its financing operations during
the next fiscal year."