2. BORROWING AND THE PUBLIC DEBT
The successful conclusion of the Victory loan marked the end of war borrowing and the beginning of the transition to postwar debt management.
Because of the success of the Victory loan, I am happy to report that the Treasury will not need to borrow any new money from the public during the remainder of the present fiscal year except through regular sales of savings bonds and savings notes. Furthermore, a part of the large cash balance now in the Treasury will be used for debt redemption so that the public debt which now amounts to about 278 billion dollars will decrease by several billion dollars during the next 18 months. The present statutory debt limit of 300 billion dollars will provide an ample margin for all of the public-debt transactions through the fiscal year 1947. The net effect of the excess of expenditures and debt redemption on the Treasury cash balance, as compared with selected previous years, is shown in the following table:
EXCESS Of BUDGET EXPENDITURES, THE PUBLIC DEBT, AND THE TREASURY CASH BALANCE IN SELECTED YEARS
Excess of At end of period
Budget ex- _____________________
penditures Public Cash bal-
Fiscal Year over receipts debt ance
1940 $3. 9 $43. 0 $1. 9
1945 53. 6 258. 7 24. 7 1946: