The frontiersman., 1962-06-07
CRISIS!
By Senator Harry Flood Byrd, Virginia

say good deal of sadness that as chairman of the Senate Committee on Finance was compelled 10 ask for an increase in the Federal debt limit from S2q8 10 $500 billion did so because was told that unless the debt llmlt Was increased our Government could not pay it's current bills
 Ido not recall in my long service on inc Senate Com mttee on Finance that there ever before arose such condition as was presented 10 Us
 had 10 be recognized that the failure of this Gov ernment 10 pay it's bills would create chaos at home and abroad in the free world
 Such a situation could not be permitted to occur
 Under creUstances which had been allowed 10 de- Veop we were virtually forced 10 go more deeply into debt 10 pay running expenses continually coming due in excess of revenue income.
 Federal financial crises such as this are recurrinq with increasing frequency. Enactment of the bill raised the limit on the Federal debt $z billion in months
 year ago the debt limit was $2Q3 billion. In June. l261, al the request of inc administration the debt limit Was raised 10 S298 billion Now, al the request of inc administration. it has been raised 10 $500 billion.
 Treasury figures relating 10 inc recent g billion debt increase show deterioration in the fiscal situation has been PeepoUs since the June request 10 raise inc debt limit 10 S2Q8 billion.
 Unnecessary spending is increasing NonmiIfary Federal expenditures in the first months this year. thfo99h JanUfay l962 ran 10 per cent higher than dur ing the same period last year.
 Total Federal expenditures in the JUIY=JanUarY period were B billion higher han last year. non niarY expenditures increased $24 billion, and military expen- d1yres increased SI 5 billion
 We have been the policeman the banker and inc Santa Claus for the free world more than years Recent figures showed Uz $ foreign aid has totaed more than Si00 billion, and i is continuing.
 Meanwhile we are faced with nenacng deficit n inc balance of international payments between inc United States and nations we have assisted + has run as high as S4 billion a year.
 This stuaon in combination with domestic deficits Which threaten or cause nflaon has resulted in drain god supply We have lost 30 per cent of our gold m relatively few years emphasizes We have lost 30 per cent of our gold reserves.
 We are already laboring under terrible tax burden in and the debt at peak reached for years of gIobaI shooting war.
 In addition 10 $500 billion in direct debt we have assmUed contingent liabilities al home and abroad amounting 10 untold billions more.
 Nov we propose 10 underwrTte the debts of inc United Nations
 Before July, l062, the administration is going to ask that the debt limit be raised again by S8 biion lifting the limit by SIS billion in year As the situation stands this will be the year of the highest and inc highest debt in history.
 lt is clear that continually raising the statutory limit on inc Federal debt is only temporzng with dangerous deterioration in the Governments basic fiscal condition
 As chairman of the Finance Committee and l hope shall be joined by other Senators = shall oppose 10 the utmost of my capacity raising the debt limit additional S8 biion to $308 billion for the next fiscal year when the administration says there will be balanced budget.
 A thoroUqh examination of inc financial position Of the United States should and will be made by the Senate Committee on Finance before the next request 70 raise the limit on the Federal debt is granted
 Work inc examination has started. The Govern 1ments obligations are huge, complex. and worldwide. The study will be exhaustive. II is concerned with hard facts as distinguished from fiscal fantasy
 As starting fact - regardless of how important the iUstifcaons there have been 24 Federal deficits the past 30 years. The deficit last fiscal year $39 billion This year. ending June 30, l962, it will be $7 billion 10 $l0 billion, 10 make if total of Sll billion Sl4 billion for the years. is my frank and consd cred opinion that there will not be balanced budget next year would be willing 10 venture, strongly can the prediction that there will be very substantial deficit unless something is done 10 stop unnecessary spending in inc fiscal year beginning inc first of July, 1862.
 Is possible for US to destroy ourselves from within?
 Every American should ask himself that question.
 Nothing could Khruschev better. Survival of free nations including own depends the financial soUndness of this Government
 Neither our form of government nor our system of enterprise can survive insolvency All of know that cannot continue much longer 10 spend and spend, and tax and tax, and borrow and borrow.
 Nothing before Congress any other branch of Government important than protection of the nations fiscal structure It is being examined Mean while further impairment should be stopped.