BEHIND THE SCENES: Damage & Diplomacy

¶The Administration is now resigned to the fact that it will have to ask Congress to lift the present $275 billion limit on the national debt. Increased military expenditures, decreased revenues and difficulty in cutting back nonmilitary spending have made the request all but inevitable. Said a White House aide last week: "We're right at the brink—you'll pardon the expression—of going over the debt limit. We're within a very small margin now, and have a very small cash balance." Treasury Secretary Anderson has assured congressional finance committeemen that he can hold out until Congress reconvenes next month. Capitol Hill, in...

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