Baker to delay any new try on debt bill to stress plight
Senate Republican leader Howard Baker told President Reagan Tuesday he will not try to pass another debt-limit bill this week so that senators will see the resulting chaos of their inaction, a Baker aide said.
Conservative senators helped Monday to defeat a bill extending the national debt limit in the hope that Mr. Reagan would support their efforts to reduce the deficit through spending cuts and tax increases.
But Reagan rejected any amendments to the debt-limit bill that would reduce the deficit, particularly ones on taxes and spending reductions. Pressed by the failure of Congress to approve a higher debt limit, the Treasury Department today postponed the auction of $6.5 billion of three-year notes but went ahead with a 52-week bill sale.