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Show TREASURY HEAD ASKS DEBT HIKE WASHINGTON, Jarj 29 (INS) Secretary nf the Tressury Morgenthau Mor-genthau Wednesday told the house( ways and means committee commit-tee that during the next two fiscal fis-cal years, starting July 1, the government's spending will exceed ex-ceed Its Income by $15,000,000,000, and he asked that the national debt limit be increased to $63-000,000.000 $63-000,000.000 to finance the deficit. Morgenthau made the request as he called on the legislators to give the treasury sweeping powers pow-ers to finance defense spending with funds borrowed from the "real pavings" of the people. At the same time he demanded that congress reexamine nondefense spending with a "magnifying glass", and cut domestic expenditures expendi-tures to the bone. Bill Permits Bonds The administration's bill boosting boost-ing the debt limit from its $49,-000,000,000 $49,-000,000,000 limit to the proposed new $85,000,000,000 top would also permit issuance of federally taxable tax-able Jong-term securities, and would authorize flotation of small bonds and savings certificates that would enlist the dollars and even the quarters of the "little man" in the defense program. "In such times as these," said Morgenthau. "it is imperative that the government borrow as much as possible from real savers rather than from banks. . . . Favors Long Loans "I do not believe that It would be advisable to undertake to finance fi-nance I this enlarged program through the Issuance of short-term short-term securities and their retirement retire-ment out of earmarked taxes. . . . Moreover, short-term securities) would for the most part be purchased pur-chased by commercial banks, thereby) causing a further Increase of deposits. "It ia highly desirable to avoid further increases of deposits as far as possible, and to some extent ex-tent this can be accomplished by Issuing obligations attractive to permanent investors outside of the banking system." I |