. Annual report of the Secretary of the Treasury on the state of the finances for the year .. . d nothave to do any cash financing this July, even thougla expenditures are expectedto exceed receipts by $ billion during the month. We are borrowing $ in early August for cash requirements of the next couple of months. The statutory debt limit should be amended to give recognition to the currentoutlook for the year. During the period since 1954, while the Treasury has beenoperating under temporary increases in the public debt limit, and public debtobligations were issued in excess of
. Annual report of the Secretary of the Treasury on the state of the finances for the year .. . d nothave to do any cash financing this July, even thougla expenditures are expectedto exceed receipts by $ billion during the month. We are borrowing $ in early August for cash requirements of the next couple of months. The statutory debt limit should be amended to give recognition to the currentoutlook for the year. During the period since 1954, while the Treasury has beenoperating under temporary increases in the public debt limit, and public debtobligations were issued in excess of the pernument debt limit, it could be reasona-bly estinuited that the excess could be repaid from tax collections prior to theexpiration of the temporary increases in the debt limit, and in fact they the situation we now face, that is not the case. At this point I would like todirect your attention to the attached chart which graphically illustrates thissituation. Chart H PUBLIC DEBT SUBJECT TO LIMIT , iBil. 280 270 260 250 Proposal •• .278 280 V/ 2754 r--^j 288s 285» .Vt It would appear that the only sound course at the present time is to permanentlyincrease the statutory limit to $285 billion. In addition, a further temporaryincrease of $3 billion will afford us a margin to take care of contingencies. Fur-thermore, a regular limit of $285 billion may present problems to the Treasurybefore the end of the fiscal year because there are still substantial seasonal fluc-tuations in the collection of revenues. We will have to look at the situationagain before the end of the fiscal year to determine our course of action beyondthat date in the light of developments. When budget surpluses are again inprospect, the matter of the permanent limit can be reviewed. The figures we are using today do not include any changes in estimated expendi-tures which could eventuate due to recent developments in the internationalsituation. These developments do, however, point up the
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