Evening star., 1941-02-15
Speedy Acceptance
OF Changes in Debt
Limit Bill Expected
Senate Approves Increase;
May Reoch President
EorIy Next Week
RN the Associated Press.

b the Associated Press.
Congressional leaders today fore
cast speedy House concurrence in
Senate amendments to the s65 ,0O0,-
100000 Federal debt limit bill, max
ing it possible to send the measure
to the President early next week.
The bill, major feature of which
already had been approved by the
House, was passed by the Senate
yesterday on a voice vote after
adoption of minor amendments.
The present debt limit is s45 ,000,-
100000, plus a 00000,000 authori-
zation for defense borrowing and
$4,000 ,000,0 900 of other authorizations
for use only in special circumstances,
The Senate action came only after
some members of both major parties
had called for new taxes to finance
the defense program and Senator
Byrd. Democrat. of Virginia had pre-
dicted that a 100000 100000 Fed
eral debt could be expected if the
current emergency continued.
Byrd Predicts 100 Billion Debt.
Senator Byrd predicted that by
July l, 1943, or within the ensuing
year the overall" debt would mount
to S100 100000 900. He urged drastic
cuts in non-defense expenditures.
Senator Wheeler, Democrat, of
Montana suggested that the Senate
be realistic" and raise the limit TO
100000 100000 at once.
The debate produced discussion as
to the possible cost of aid to Britain.
and Senator Taft, Republican. of
Ohio said it was his guess that
the cost would be about $4,000 900, 900
in the first year. Senator Vanden-
berg, Republican, of Michigan es-
timated that the Treasury would
have S700O,0OO, 900 available for such
aid in the year beginning July l.
In addition to raising the debt
limit, the legislation would subject
income from future issues of Federal
securities to Federal taxation and
would give the Treasury flexible
authority to issue securities of small
denominations to attract thrift saw
ingS.
Brown Explains Legislation.
Senator Brown, Democrat, Of
Michigan in explaining the legis-
lation. said the present debt limit
was S53 100000. Most authorities
have said the debt was limited to
S45. 900 900 900 plus s4000.000000 ear
marked last year for defense. Sem
ator Brown said the Treasury also
had authority to issue $4,000 900 900
in war savings stamps" under 1918
legislation and s300000,000 in certifi-
Gates under legislation dating from
the Spanish American War.
Senator Brown explained that all
these were consolidated in the new
legislation.
Senator Taft contended that the
most the Treasury could hope to
raise from small investors was s4,-
900 100000. He said it must borrow
about s19,0O0000,0 900 in the next is
months and this would result in load
ing down banks with Government
bonds, with probable danger from
imitation"
Senator Byrd sounded similar
warning as he asked Congress to
create a Joint committee of six Sem
ators and six Representatives to
make a complete study of present
and postwar fiscal problems.
Wealth Conscription Urged.
Senator Lee, Democrat, OF Okla
homa, sponsor of a scheme to draft
dollars" for national defense. openly
the ability of the Treas
ury to borrow by voluntary meth
DDS" all the funds authorized.
The Oklahoma Senator recalled in
detail the high pressure salesman
ship for liberty bonds during the
World War and then urged Congress
to adopt a definite policy of con-
wealth" for the present
Just before passage, the Senate
accepted an amendment by Senator
Norris, Independent, of Nebraska,
As explained by Senator Brown,
this amendment would restrict to
one year the authority of the Secre-
tary of the Treasury to limit the
amount of small denomination Gov
securities any individual
might own.
Two other Senate amendments
gave the Treasury power to rein-
5urse the Post Office Department
for any expenses incurred in selling
Federal securities and removed eX-
listing limitations on denomination
OF stamp and other thrift savings
issued by the Treasury.