Letter from Washington

Remember back in the dead past, when Treasury Secretary William Simon was accused of reckless exaggeration? He warned that the task of financing the Federal Government’s debt would require the government to borrow a frightening $28 billion from the capital market in the first six months of 1975. Well, those were the good old days. The other day the Treasury Department announced that the size of the tax cut passed by Congress, and the unexpectedly large shortfall of revenue produced by the worse than expected economic slump have caused a, well, adjustment. Now the government says it will have to borrow $13 billion more than expected—$41 billion, total. Total, that is, for just half the year. And, of course, congressional spending plans are just beginning to ripen on the vine. So, as always, it is safe to assume that today soon will be looked upon as the good ol’ days.

Oh, yes. One more thing. The Union Bank of Switzerland reports that West Germany is the world’s richest country. West Germany holds twice the monetary reserves of the United States. Reliable sources deny that the Union Bank owns West Germany.

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Remember back in the dead past, when Treasury Secretary William Simon was accused of reckless exaggeration? He warned that the task of financing the Federal Government’s debt would require the government to borrow a frightening $28 billion from the capital market in the first six months of 1975. Well, those were the good old days. The other day the Treasury Department announced that the size of the tax cut passed by Congress, and the unexpectedly large shortfall of revenue produced by the worse than expected economic slump have caused a, well, adjustment. Now the government says it will have to borrow $13 billion more than expected—$41 billion, total. Total, that is, for just half the year. And, of course, congressional spending plans are just beginning to ripen on the vine. So, as always, it is safe to assume that today soon will be looked upon as the good ol’ days.

Oh, yes. One more thing. The Union Bank of Switzerland reports that West Germany is the world’s richest country. West Germany holds twice the monetary reserves of the United States. Reliable sources deny that the Union Bank owns West Germany.