will and determinati s: The sharp and ser growth pattern and recognize this as something which anticipated. I don't believe I can add any more to that in respons tions, sir. Senator DIRKSEN. Will you yield for one more que Senator DIRKSEN. I thought I detected, of course the emphasis on maintaining the value of the status of he was looking abroad a little because of Britain's con balance which was running, I think, some $90 million that continues very long I assume it is going to have over there and then you will get a strain on your dol Secretary FOWLER. Well, I think we could go in situation to some extent. I think I would prefer to further comments on it now, The Chancellor of t Mr. Callaghan, will be over here the latter part of this expect to have a full and detailed exchange with hir of problems of which obviously the British situation is Senator ANDERSON. Do you have any estimates a you feel it will be before we have a balanced budget? Secretary FOWLER. I would not want to make any to when we will have a balanced budget. I would make a comment as to when it would be possi to have a balanced budget, and I think in that conne like to associate myself with the comments that Se made before this committee-not before this commit the House Committee on Appropriations earlier this I think the situation is very much the same, and I properly. business for over 50 some explicit powers te, margins on stock e he failed and didn't why he would be casti ed the responsibilities ystem. en, I don't know whe n I said that we are n and I, for one, thi -h as this for busines ficials to look at ba view to find any emer to deal with them tes th a recession is to ation of the ways in xercise. I believe it o are concerned to particular expansion d effect over a long pe character to the expe Senator ANDERSON. I would also be happy to re said to this committee in 1961, 1962, and 1963. Secretary FoWLER. I have the 1963, 1964 here. I have gotten back as early as 1961. Senator WILLIAMS. I think it is pretty much all t he has been looking for it all the time but never has fo Secretary FOWLER. Sir? Senator WILLIAMS. I think it is pretty much the san looking for it, searching for it, but never found it. Secretary FOWLER. I hope I will take a leaf out of h not predicting when we would have it, but I am disc would be feasible to have a balanced budget. Man additional opportunk into a balanced budget and involve the President's b rowth such as exemp ding before the com nued emphasis on iz is which Chairman s 1968, the action of the Congress on his requests, the Congress on matters that he does not request-all th particularly and more importantly than anything els for the economy, which is the revenue-producing m have, these are all imponderables. Senator William le to lose an expans Anderson, I would say, in answer to your question, th ry tendencies overta f us. is Dillon said in connection with the discussions of the t cated 1968 would appear to be the earliest time bec tional tax cut will be taking place in the intervening y Senator ANDERSON. That is a perfectly satisfacto would be wrong with raising the permanent ceiling to ery large increases only ask you to say if it is going to have several years ve return to a more C 49-131-65 -3 Secretary FOWLER. I see nothing wrong in that, except I think you would have to have also a temporary ceiling along with it, at the figure we have here. Senator ANDERSON. We would like to have that. of my State, "It Grows as It Goes." As the motto Secretary FOWLER. One would not preclude the other. Secretary FOWLER. But just to elaborate for a moment, on the possibilities of a balanced budget, it would be feasible in 1968, 2 years hence, if the economy continues to advance on its present trajectory and we have the benefit of additional revenues each year, taking into account the excise tax cuts that the committee has voted. If you assume that the increase in budget expenditures were around $21/ billion to $3 billion each year and that the economy continued to advance at its present trajectory, yielding this $5 billion increase, it would be quite feasible to have a balanced budget in 1968. Senator ANDERSON. Thank you. The CHAIRMAN. I have two tables which I think are pertinent to consideration of this bill raising the statutory limit on the Federal debt. They deal with the debt, gross national product, and the fiscalmonetary conditions in the United States. Table I is entitled "Total Gross Debt (Public and Private) and Gross National Product, 1948 to 1964, inclusive." Table II covers the fiscal situation, the value of the dollar, balance of payments, gold stock, and reservcs. Both tables are compiled from official figures. I will not comment on either at this time, but they are submitted for information. TABLE 1.-Total gross debt (public and private) and gross national product, 1948 to 1964, inclusive [Calendar years; dollars in billions] 1948-1964 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 percent 259.4 258.1 284.6 329. 0 347.0 365.4 363.1 397.5 419. 2 442. 8 444.5 482.7 498.6 520. 3 566. 4 607.5 646.0 683.9 714.1 786.4 831.1 867.3 916.8 986.1 192. 2 201.5 199.0 184.6 186.1 187.1 196.6 197.8 198. 2 195.8 206.2 204.2 Farm debt 2 10.8 Percent of GNP. 4. 2 TABLE II.-Federal debt, interest on the debt, budget surplus or deficit, value of the dollar, balance of payments, U.S. gold stock, and total reserves, note liabilities, and deposits of Federal Reserve banks, showing reserve ratio, 1930 to date 1 The difference between U.S. Treasury gold stock and Federal Reserve bank reserves represents gold held in Treasury cash, of which $156,000,000 constitutes a reserve against U.S. notes. 2 June 9, 1965 (Treasury Department). June 9, 1965 (Federal Reserve Board). Reserves now cover liabilities of Federal 8 April 1965. • Preliminary, 1st quarter, 1965. 1965. |