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balance. This would mean that the debt limit' woud have to Kt raised at least $2.1 billion, if it were not for the fact that the Secretary of the Treasury, in addition to his operating balance, has access to approximatey $500 million—$V^ billion—in ffee gold, which h« may draw on in a tight spot. If this were used, a $2 biU lion increase in the debt limit would be ample, but the Secretary, in addition to his operating balance (exclusive of the free gold) of $3.5 billion, said he would like to have a further $3 billion cushion ‘to provide flexibility in financing and for contingencies.” He admitted He could get by with a $3 billion raise in the debt limit, but that he still thought $5 billion would be safer. This position indicated that Mr, Anderson did not have much confidence in the estimates of Treasury receipts contained in the President's budget. .As I did not think a case had been made for the $5 billion increase. I wj» one of three members of the committee who voted against.it.
I believe it is important; for citizens to remember that the big backlog of old spending authority which the Executive Branch may use without coming back to Con, gress makes it impossible for Congress, at this time, to control the Yate of Government speeding effectively through its action on the President’s budget. The debt limit therefore.' is one means of holding . the spending in check. It should be tampered with to the minimum consistent with preservation of the Federal tredit in an emergency. To raise it more than necessary to meet an immediate fiscal crisis is to invite a higher spending rate. If a further crisis develops, the President always can place the oew facts before Congress for consideration of an additional ad-; . justment. •
It is to be noted that the President's budget and the national debt estimates presuppose an increase of $2 billion in federal receipts during the next fiscal year . over the anticipated receipts for the current fiscal year, Manv observers of economic trends have doubts that this will come to pass. Congress should not he expected to assume in advance that the predictions of receipts will not be realized.
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