Evening star., 1941-02-11
House Passes Bill
Debt Limit
To oS65,OOO,OOO,O00
Proposed Increase
AssoiIed by Dewey
As Astronomical

Greater Federal borrowing. includ-
ing issuance of small denomination
defense bonds. was a step closer to-
day as the Senate received from the
House legislation increasing to S65. =
900 900 900 the statutory limit on the
Federal debt.
The administration measure,
passed yesterday by the House, also
would remove Federal tax exemp-
tionS from future issues of United
States Government securities and
would give the Treasury greater
flexibility in issuing savings bonds.
Republicans sought unsucceSsfully
to hold the debt limitation to 500
900 0000 900, arguing that Congress
could increase it later if events re-
quired Their proposal was defeated.
148 to 105 on a teller vote. The bill
finally passed by voice vote without
amendments.
Hell Spend 1t Anyway"
Several Republican members util-
lied the afternoons debate to criti-
cize Federal spending under the
Roosevelt administration Repre-
sentative Knutson, Republican, of
Minnesota asserted that the present
Government debt represents ex-
penditure of s45 for every minute
since the dawn OF the Christian era"
and added:
President Roosevelt spends all
the money We give him. If he hasn't
got it, he'll spend it anyway"
Representative Dewey, Republican,
of Illinois described the proposed
increase in the debt limit from the
present maximum of $4,000 900 900
as astronomical" 1t was both un-
wise and unnecessary, he argued.
Representative Doughton. Demo-
crat, of North Carolina, on the other
hand. told the House:
Both consistency and duty de-
mand that we be as prompt and
willing to implement the Treasury
with the money necessary to dis
charge our national defense obliga-
tions as We are in creating them"
lIC plcSSIlI uCUb llllllI dCUud LILY 10
$50 300 900, 900, he contended, noting
that it includes old authority to
issue s300,000000 of short-term Sc
curities and to have $4,000. 100000 of
war savings certificates outstanding.
The pending BILL" he said. would
replace all of these provisions, limit
ing direct obligations to the United
States by one overall limitation of
SOS ,000, ,0O0, 900 to be outstanding at
any one time. This figure marks an
increase of about $4,000, ,000, 900
over the sum of the various limita-
tions now applicable"
Asks Cushion for Emergencies.
The defense program as contem-
plated, Representative Doughton
said, now aggregates S28,500, 600 900
in appropriations and contract au-
thorizationS 1t appears that the
Federal debt on June 80, 1912, will
not exceed ,400,000,000, he said,
but asserted that there should be a
cushion for emergencies.
Representative Patman, Demo-
crat. of Texas, sought TO amend the
bill and continue exemption of all
Government securities from Federal
taxes. but his proposal was defeated
on voice vote.
Mr.. Doughton pointed out that the
bill would not affect existing securi-
ties, the Federal taxation OF State
and local securities, or the State
taxation of Federal securities. He
expressed belief that taxation of
future Government obligations
would bring eventually a net reve-
nue. increase of 100000 900 to $780,
100000 a year.
The bill gives the Treasury au-
thority to sell savings bonds of any
denomination, whereas now the So
called baby bonds" must be at
least $25.