[Congressional Record Volume 142, Number 124 (Wednesday, September 11, 1996)]
[House]
[Pages H10181-H10182]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                      TREASURY AND THE DEBT CRISIS

  (Mr. NEAL of Massachusetts asked and was given permission to address 
the House for 1 minute and to revise and extend his remarks.)
  Mr. NEAL of Massachusetts. Mr. Speaker, last November I was extremely 
concerned about the debt ceiling. I admired the manner in which 
Secretary Rubin handled the crisis. Secretary Rubin and his staff 
worked diligently to find a solution to the possibility of hitting the 
debt ceiling.
  Congress' failure to take action placed the Department of the 
Treasury in a precarious position. Congressional leadership was holding 
the debt ceiling hostage during the battle of the budget. Congress 
played chicken with the financial markets and the good name of our 
country. Secretary Rubin skillfully used every tool possible to save 
the credit reputation of the United States and to keep the United 
States from defaulting. The United States faced the real possibility of 
a default. Our credit rating had dropped.
  Secretary Rubin took courageous steps to keep the Government 
functioning and the markets stabilized and he was severely criticized. 
At one point, there was even talk of impeachment. Unfortunately, 
Secretary Rubin was criticized by many Members of this body. Many were 
concerned about the use of investments of Federal employment retirement 
funds. The General Accounting Office [GAO] has released a report on 
Treasury's handling of the debt ceiling. The GAO report concluded that 
Treasury conducted the Nation's debt management legally and properly 
during the debt ceiling crisis. Treasury's actions avoided a default 
and violation of the statutory debt limit.
  The GAO report reviewed all actions taken by the Treasury during the 
period leading up to and after the debt limit was reached, 
approximately October 1995, through March 1996. Treasury used 
extraordinary measures because the statutory limit was not raised until 
5 months after the old limit was reached. The GAO report concluded 
Treasury used normal debt management procedures such as investment of 
trust fund assets. Also, Treasury acted in a proper and legal manner. 
Treasury's actions were designed to ensure

[[Page H10182]]

full and prompt restoration of lost interest to uninvested trust funds 
within the limits of the law.
  I am pleased with the results of the GAO report. This report confirms 
my belief that Secretary Rubin acted properly and averted a serious and 
volatile crisis. Once again, I think we should commend the actions 
Secretary Rubin took this past winter.

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