Statement by the President Upon Signing Bill Establishing a New Limit on the Federal Debt.

I HAVE TODAY signed into law the bill establishing a new limit on the Federal debt.

The record of this Administration fully demonstrates its dedication to thoroughgoing economy and efficiency. Despite the great momentum toward increased government spending which has built up in the past, much progress has already been made in bringing the Federal budget into balance. It is our basic policy to continue this progress.

But in the present state of the world it is equally important to emphasize once again that the Federal Government must always be ready to assure our national security, to carry out its responsibilities under the Employment Act, and to fulfill its other obligations. An essential part of this preparedness is a debt limit high enough to permit the Treasury, if necessary, to borrow the funds required to carry out the Government's obligations under the Constitution and under the laws of the Congress.

The present bill permits a temporary increase of up to $6 billion in the Federal debt outstanding before the close of the current fiscal year. Although this provision may prove inadequate, it does allow some indispensable latitude in conducting the operations of the Federal Government during the current year and is an improvement over the existing situation. The Administration will make every possible effort to carry on the activities of the Government in accordance with this limit.