The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1953-07-18
Debt Limit Increase Nav Be
Asked OF Congress Next Week
~ STERLING ?. CRERM

WASHINGTON ltnl = Presided
Eisenhower, who found himself
carrying the biggest national deb
in peacatime today. may ask Con-
gress next week 10 increase the
IT'S billion dollar debt limit.
A six-hilliOn-dOllar boost IN the
debt, resulting from the largest
new borrowing since World War
II, ntlsd the debt yesterday TO
$27z, 81 -, 4o1. 81.
This Is Just seven billions below
the wartime peak Of February,
ls4s, and within three billion dol
lars Of the legal ceiling imposed
by Congress.
Officials have predicted the gov.
eminent win have to borrow at
least three billion dollars more
before Congress. driving for adj
iournment BY AUG. l. meets again
next January.
Congressional leaders adopted q
Wait-and-h0pe policy.
Sen. Knowland OF California, the
acting Republican leader, said he
had received no request for action
n this session 70 raise the debt
limit and doubted that any would
come.
Chairman MIlikin (R-colo) ofthe
Senate Finance Committee said In
ID separate interview that IN In
crease In the limit had been dis
cussed at White House conferences.
But he said no policy decisions had
been made on what to do about II.
Wen have to see what the
developments are, /" Millikin said.
Is'WeI hope that It won't be nec-
Sssary to increase the limit now. /"
Sen. George lD-GAl, q Senate
Finance Committee member, said
that, II the Treasury can get past
Jan. ! without lifting the debt
limit, Il might be able to 80 for
some time under the 27S billion
ceiling.
While . request for . higher
ceiling would be embarrassing
politically to the Eisenhower ad,
ministration, officials insist Il
would not indicate 4 debt burden
dangerous to the economy.
The ceiling was 800 billion dol,
liars during the war, when national
income and national production
were considerably lower than now
The limit was reduced by Congress
Ito US billion In 1916. The deb
reached q postwar low Of Isl bill
lion IN April, 100. Then It begar
rising again.
4 Secretary Of the Treasury Hum
'Iphrey issued 3 statement last nigh
'ipinning responsibility on the Tru
imam administration.
The debt, he said, '.points VI
tire situation which the spending
programs Of the past few years
have produced" These programs
The said, caused the fiscal 1876:
deficit Of 80 ,O0O, 600 which ht
] announced On July !.
i "This administration s. deter
mined to get government spending
under control 50 that this trend d
increasing deficits and increasing
public. debt win be checked, 7
Humphrey said.
1 He said the administration III
ready has cut Sia billion dollars
from the 81. 800, 0OO, 900 in apprO
spriations proposed BY former Pres
IIident Truman last January.
i In the fiscal year which begar
/ July /. he forecast spanding of al
least 4sk billion dollars less thar
the SO, coo. Ooo, 900 proposed b.
il Truman. (.
4 Humphrey cautioned, however,
that the problem d too big TO b
solved quickly
Cause Of the sharp debt Increases
was an, issue Of more thar
s, sOO, 00O, 900 In tax anticipation
certificates sold by the Treasury
this month TO provide funds 70
meet current bills. The securities,
paying IA per cent interest, rep
resented the largest single federal
borrowing sinee the war.
Holders Of the securities may
use them 10 pay federal taxes due
next March Is, shortly after the
any4sfia.&Aa vvsakr,rs.