Evening star., 1941-01-10
Senators Demand
Congress Retain
A ALimit on Debt
Presidents Deprecotion
Of Statute Brings
Replies From Capitol
By the Associated Press.

Replies From Capitol
BY the Associated Press.
President Roosevelt's suggestion
that a statutory limit on the ma
tional debt serves little purpose
developed congressional demands
today that Congress hold fast to its
control over Government borrowing.
The Federal debt limit now stands
at $40 9,O00,000,O0O, and Secretary
Morgenthau has recommended an
increase to $4,000, 100000 or $65-
000O00,o 900. In his annual budget
message, Mr. Roosevelt said that
he questioned "the significance of
a statutory debt limit, except as 1t
serves as a fiscal monitor"
Senator Adams, Democrat, OF
Colorado, a member Of the Appro-
priations Committee, told reporters
that the Constitution gives the
borrowing power to Congress" He
took the position that the borrow
ing limitation should be increased
only as appropriations require.
Adams Position.
'If Congress had to authorize an
increase in the debt each time 1t
made an appropriation, Senator
Adams declared, II think it might
eventually have some effect In bring
ing about economy.
'It is Just as practical for Con-
sress to authorize borrowing as it is
for it to authorize spending"
Senate Majority Leader Barkley
said he attached little Importance
to the manner in which the debt
limitation was handled, declaring
that "if we have to appropriate the
money we certainly would have to
eliminate the debt limit or increase
It sufficiently to meet appropria-
tions."
Byrd Is Fearful.
But Senator Byrd, Democrat, OF
Virginia, has contended that Presi-
dent Roosevelt's suggestion
to abolish completely the statutory
debt limitation fixed by Congress is
dangerous, and will be an additional
incentive to extravaganza"
ITO make the sky the limit on
the national debt Senator Byrd
said, would INTENSITY the muddle
of our fiscal problems" would dis
courage the raising of new revenue |
and would encourage new borrow
ing.
He also charged the administra-
ton with Juggling" figures in the
new budget to cover up increased
uon-defense expenditures.
Byrd's Statement.
Senator Byrd's statement said in
part:
"It Is a trick budget to the extent
that effort is made 10 create the
impression that there is reduction
In Federal non-defense spending.
This impression appears to have
been conveyed not only by the
language of the budget message,
which does not disclose all of the
facts and details, but also by a
Juggling operation which has moved
appropriations for so-called normal
or non-defense expenditures into |
broadened budgetary defense cate
gories.
"On its face the budget shows
e6,738 100000 of so-called non
defense expenditures for the current
fiscal year and an estimate OF |
e6 STA OO0,0 900 in these items for the |
next fiscal year-a bookkeeping re-
duction of approximately S64 0O0, 900.
Examination, however, reveals
that for 1912 $315 100000 of what
are described as surplus assets OF
Government corporations has been
deducted from Department of Agri-
culture estimates. Thus there is
1915 100000 discrepancy in the non
defense expenditure total.
Called "Subterfuge."
"This is clearly a subterfuge IN |
bookkeeping, because the assets OF |
Government corporations are Gre
ated by the issuance of bonds, In |
most instances, which are guaran-
teed by the Federal Government,
and any recovery Of such assets
should be applied to the payment OF
the Indebtedness which made pos
sible this so-Called surplus fund.
Further analysis of the budget
shows that substantial parts OF the
appropriations for agencies, includ-
ing the Veterans Administration,
National Resources Planning Board,
Civil Service Commission, Federal
Communications Commission, Fed
eral Power Commission and the
State Department have been trans
ferred from non-defense sections OF
the budget to the emergency de-
fense budget.
"Such Juggling actually covers up
increases in the normal budget to
the extent that items involved do
not absolutely result from national
defense necessity. 1t is obvious to
me that normal expenditures are
proposed above the high level of the
current year and that no economies
have been instituted in the overall
administration of the regular de-
partments of the Federal Govern
ment."