Evening star., 1941-02-14
Debt Limit
Continued From First Page.)

that expenditures under the lease
lend bill would run in the neighbor-
hood of s70OO,0OO,000 between now
and July J, 1912
THE Senator can draw that con-
clusion from the statement the Sec
retary made" Senator Brown re-
piled. And I would say with rea-
sonable accuracy. However, I don't
want to be quoted here as saying
that the Secretary made the esti-
mate"
Asked by Senator Bridges, Repub-
lican, of New Hampshire why it was
necessary to go above $4,000 ,000.0 900,
inasmuch as present estimates indi-
Gated only about $4,000, 100000 of
expenditures, Senator Brown replied
that Congress would be "treading
on dangerous ground if We left the
Treasury leeway of only S3,0o0,-
O00.OO0"
1--WE would have to go above s6O,-
o00000,000 if the Treasury is to have
anything at all to spend on the
lease-lend program, wouldn't we?'
Senator Vandenberg asked.
"The Senator Is correct about
that" Senator Brown replied.
Senator Vandenberg said ne was
"perplexed" because the British-aid
bill would cause tremendous ad-
ditional deficit and the Treasury
had proposed S65 100000 900 CELL
Ing before we ever heard of the lease
lend bill
Tax Increase Sought.
Senator Brown said that while
the Treasury may not have had in
mind the specific terms of the lease
lend bill, he believed officials took
into consideration that the world
emergency would require continued
heavy outRys for defense when they
recommended the new debt ceiling
He pointed out also that all COM
mitments made between now and
July, 1912, would not necessarily
have to be paid by that date
Senator Byrd did not oppose the
pending debt increase, nor the
lease-lend bill, which will come up
Monday. He warned, however,
that the debt limit may go to $780,
00o,o0o,o0o by 1943 if the present
emergency continues.
For this reason, he argued, 1t is
imperative that Congress and the
executive together weigh in its broad
aspects the fiscal and economic
effects of present world conditions,
and prepare to meet the postwar
financial situation.
Both Senator Brown and Senator
Tydings, Democrat, of Maryland
urged Increased taxation also at this
session to meet part of the cost of
the defense effort.
Senator Tydings declared in
creased taxation will be easier now
than in postwar days, no matter
who wins the war:
Taft Objects to Rushing Bill.
Senator Taft offered no objection
to passage of the bill, but objected
through Congress, without propos-
ing any comprehensive plan to deal
with the dangerous financial sit
uation."
The defense program" he said.
lis the present excuse for raising
the debt limit, but by far the great
er part of the debt has been due
to deficit spending for domestic pur-
poses. Now, when we have to spend
for defense, we are compelled to
raise the limit to dangerous
heights"
Senator Taft advocated by taxa
ton not only all of the current bud
get for non-defense expenditures.
but the maintenance portion of
Army and Navy requirements.
The Senate yesterday passed a
resolution by Senator Tydings, set
ting up a special committee of three
Senators to study the same general
subject which Senator Byrd today
proposed be undertaken by a joint
House and Senate group.
Senator Taft asserted that the Ex-
ecutive Should present sound fls-
cal policy to Congress, but since it
has not been done, and since it is
also our duty to adopt such a policy,
the special committee authorized
yesterday should make prompt
and comprehensive recommended
ton
Senator Taft, In effect, mdorsed
the Byrd proposal, by expressing
hope that the House would set up
a group similar to the Tydings COM
mittee.
Senator Byrd proposed that the
Joint Committee be composed of six
Senators chosen by the Vice Presi-
dent and six House members Sc
lected by the Speaker.