Evening star. [volume] (Washington, D.C.) 1854-1972, 1962-06-15

to the statutory permanent limit
Of $685. billion, almost $40 bill
lion less than the actual debt
at this time.
But the victory scored by the
Kennedy administration in the
House late yesterday was by
the narrow margin Of only 18
votes. A Republican attempt
to set the temporary limit at
1905 billion was rejected earlier
on a 201-118 teller vote and on
a 258-145 roll call.
On the final 210-192 roll call
for approval Of the $308 billion
figure, however, 80 Democrats
Joined 153 Republicans in OPP
position. Only 8 Republicans
sided with 202 Democrats for
the higher ceiling.
AS the bill goes to the Sen
ate Finance Committee, head
ed by Senator Byrd. it would
fix the temporary debt ceiling
at 1908 billion from July un-
til next March 81. then let it
drop to $305 billion from April
l to June "a, and make it re-
vert to $500 billion until June
80, the end Of the 1868 fiscal
year.
Last February the then 1898
billion temporary roof was
raised to $500 billion for the
remainder If the current fiscal
year. President Kennedy origi-
nally urged an increase from
$500 billion to $30S billion for
the entire fiscal year beginning
next July l.
Mr.. Kennedy suggested at his
news conference yesterday that
the outcome In Congress could
have a profound effect on the
economy. Asked to comment on
Republican charges that the
Pentagon has been presenting
Congressmen to support the in
crease or risk curtailment of
defense work in their districts,
Mr.. Kennedy said:
well ! think-I am sure,
hope, that 1t was explained to
every one what the effect
would be if we did motif we
had to have a stretchout, not
able to pay our bills, and that
would have been the situa-
ton.
IT recall very clearly in the
fall of 1857, in my own State
Of Massachusetts,, when there
was a stretchout and the con-
tractors and others had to
assume the-pay their own
bills. It not only had a very
drastic effect on them, but
according to the Bookings
Institute and a good many
other studies, 1t was one Of the
factors which helped lead to
the 1858 recession.
This would have taken, in
effect, in a period of -four
months, 50 billion out of our
economy at a time when we
need money flowing into oul
economy. So they were only
being informed of what was 8
fact, which was that we could
not pay the bills in some OF
these areas If we were not given
the kind Of flexibility which
had been requested of the Con-
gress.
cit was the same flexibility
as ! have said, that President
Eisenhower requested anc
which he received and which
we have now received"
BYRD opposes increase
Senator Byrd has made n,
secret of his opposition to tn,
1903 billion figure. In a recen
article on Fiscal Discipline ant
the Declining Dollar" in tn
monthly publication of Ia,
Foundation, Inc, he summe,
up his views on the debt:
1.-THE administration will asl
that the limit be raised to $50
billion, and I shall oppose it.
Federal debt approaching $50
billion would be the creates
national debt in history, in wa
or peace. The limit has neve
been raised above $500 billion
The actual debt at it's Worl,
War II peak never exceede,
$3.50 billion and then there wa
an unused balance in the Treas
ury of $26 billion. Federal deb
and deficits are the prime fac
tors in initiation which con
tinues to reduce the value G
the dollar"