(09-19) 08:28 PDT WASHINGTON, (AP) —

Treasury Secretary Henry Paulson told Congress on Wednesday that the federal government will hit the current debt ceiling on Oct. 1.

He urged quick action to increase the limit, saying it was essential to protect the “full faith and credit” of the country, especially at a time of financial market turmoil.

The current debt limit is $8.965 trillion. Unless Congress votes to raise that ceiling, the country would be unable to borrow more money to keep the government operating and to pay debt obligations coming due. The United States has never defaulted on a debt payment but the decision on whether to raise the debt ceiling often sparks a prolonged political battle in Congress.

In his letter to congressional leaders, Paulson said that according to data now available, the Treasury expects to hit the current debt ceiling on Oct. 1 Д the first day of the new federal budget year. However, that projection does not take into account maneuvers the government often has to employ of withdrawing investments from certain trust funds to create room for extra borrowing until Congress finally approves a debt increase.

“The full faith and credit of the United States, to which we all remain committed, is a national asset and a cornerstone of the global financial system,” Paulson said in his letter. “In light of current developments in financial markets, which would be exacerbated by uncertainty in the Treasuries market, I urge the Senate to pass the legislation reported by the Finance Committee to increase the debt limit as soon as possible.”

The Senate Finance Committee earlier this month approved increasing the limit on the national debt to $9.82 trillion. That boost of $850 billion would be the fifth increase in the government’s borrowing limit since President Bush took office in 2001.

The national debt is the total accumulation of annual budget deficits, which must be financed with borrowed money.

Democrats blame Bush’s tax cuts and the war in Iraq for pushing the debt to record levels. Republicans defend the tax cuts, saying the deficit is now on a downward trajectory in part because of the economic stimulus provided by the tax cuts.

The House approved an increase in the debt limit in May when it adopted the annual congressional budget resolution, but the full Senate has yet to act to raise the limit.

OJ Simpson was today granted bail set at $125,000 (63,000) after being accused of kidnapping, armed robbery and assault arising from a dispute at a Las Vegas hotel.

The 60-year-old former American football star and actor and three others face a total of 11 charges, which could send Mr Simpson to prison for the rest of his life.

He was arrested on Sunday after a sports memorabilia collector reported that a group of armed men stormed into his room at the Palace Station hotel and casino on Thursday night and took several items that Mr Simpson claimed belonged to him.

Mr Simpson was ordered to surrender his passport to his attorney, Yale Galanter, and have no contact with any co-defendants, witnesses or victims in the case.

More details to follow.

Marcus Trescothick has ruled himself out of making any return to the England team this year. Trescothick, who had been included in England’s 30-man squad for the Twenty20 World Cup, has informed the selectors that he would not be making himself available to tour this winter.

“Whilst I have been enjoying my cricket for Somerset this summer and feel that I am making good progress, I need to ensure that I am completely ready for a return to international cricket before making myself available for selection,” said Trescothick.

“I recently informed the selectors that I was happy to be included in the 30-man squad for the Twenty20 World Cup to leave all options open but I am now clear that I should take more time to complete my recovery. I still have ambitions to play for England.”

David Graveney, the ECB’s chairman of selectors, said: “We have been acutely conscious that it would be counter-productive to try to rush Marcus back into international action before he was ready. We appreciate the fact that Marcus has alerted us at the earliest opportunity of his decision which will avoid there being any disruption to the team’s one-day planning processes.

“Marcus has proved himself to be a very special talent on the international stage and we look forward to his making himself available again for England when the time is right and to his pushing his case for selection through his performances for Somerset.”

Brian Rose, Somerset’s director of cricket, added that “Marcus has made terrific progress this summer with Somerset and his longer team future remains the primary concern for us all. His decision has clarified the way forward for Somerset and England. He is still relatively young for an international batsman and we believe that he has many more years playing at club and international level.”