Evening star. [volume] (Washington, D.C.) 1854-1972, 1939-11-11
The Political Mill
Election Year Congress Faces Dilemma in
Spending, Debt Limit and Tex Revenues

WI nAlO uAASAAAR40y AAANAAV ees<ANo Nc
SO adjusted that they will not ex-
coed benefit payments until times
are much better.
1t seems certain that If the ad-
ministration backs Mr.. Eccles' tax
program and recommends 1t as its
own when Congress reassembles,
there will be notable struggle with
the legislature. Chairman Doughton
of the House Ways and Means
Committee and Senator Pat Har-
rison, chairman of the Senate Com
mittee on Finance, have been hope
full that 1t would be possible to
avoid tax legislation at the coming
session. Mr. Harrison led the
fight to amend the tax laws so as
to give business some relief-and
he won his fight If 1t is now pro-
posed to go right back after more
revenue from business taxes, there
will be strong opposition.
A present the legal debt limit of
the United States Government is
$45 900, 100000. The public debt has
reached new high already-s41,-
168, OIL 400, which is 1881 1923 $40
short of the authorized limit. BY
the end of this fiscal year, owing
to large expected expenditures, the
statutory limit may easily be
reached. particularly If greatly in
creased expenditures for national
defense are made.
Nav Fare Limit niIovnrna
The economy bloc in Congress
emitted a roar when 1t was sug-
gested earlier in the year that the
debt limit be increased to $780,
OO,OOO,O00 or perhaps $55 900 ,OO0,-
600. The Congress as we'll as the
administration, however. may face
a dilemma in the next few months,
with expenses mounting and the
Treasury Department authorized to
go only to $45 10000 90 900 in debt.
Secretary of the Treasury Nor
genthau passed the buck to Con-
gress in an interview this week,
saying that he was only the pay
master" and that If appropriations
were made, then Congress would
have to do something about the debt
limit or find the money to make the
payments in some other way. He
did not, he said, intend to paw out
any money beyond the legal limit.
Neither the President nor he, said
Mr.. Morgenthau, was likely to ask
Congress to vote an increase in the
debt limit.
In view of the administrations
constant and consistent insistance
upon large Federal spending, which
mas brought deficit after deficit and
the debt to its present size. some
OF the members of the economy bloc
IN Congress saw red when they
heard of the Secretaly's comment
on the situation. They were not
slow. either, in demanding that the
administration cut down estimates
for relief. Senator Adams of Colo
RADIO, chairman of the Senate Appro-
prlations Subcommittee dealing with
deficiency bills and a constant critic
OF deficit spending, said that he
thought relief appropriations could
be cut from 1925 900 900 appropri-
ated for the present fiscal year to
81 600 100000. which he figured
would be sufficient,to care for l $780,
600 persons.
Would Check Borrowing Authority.
Nor did Senator Adams believe
that the appropriate for increased
national defense should run to such
large figures as have been advanced.
Furthermore, the Colorado Senator
insisted that Congress should take
back the borrowing authority which
1t has delegated to the Treasury
Department. He recommended that
Congress make separate and specific
authorization for any borrowing
above the debt limit.
The first session of the present
Congress was given over largely to
contests over expenditures. In the
main the administration was sue
cessful in obtaining its demands.
although the relief appropriations
were trimmed little, and Congress
turned down the new "spend-lend"
program asked by the President. It
looks now as though this fight over
expenditures will be resumed with
as much rancor- if mt moro