| Bonds, is called the public debt. The internal public debt means government bongs which is to raise domestic individuals and units. And government to raise overseas debt which is called the foreign public debt; According to different levels of government bonds, it can be divided into central government bonds and local government.The bonds, an important means of raise funds,regulating the balance of payments and the allocation of social resources, has played an important role in the government fiscal policy for a government as well.The Chinese local government bonds began in the late Qing Dynasty, because of the local finance deficit, trained army needs, or new needs, The local government began to issue a large number of local bonds. In1905, in order to train the army and expansion of the Beiyang army, the Governor of Chihli, Yuan Shikai took the Pan Kuyin as collateral, issued the first public offering of bonds. After that, such as Hubei, Anhui and other provinces followed this model in their respective provinces. In December1909, the Governor of Anhui province Zhu Jiabao who was the grand coordinators of Anhui issued the first public bonds. Anhui bonds, however, due to the large circulation and raise few, finally had to pay with foreign banks underwriting into a foreign debt. After the establishment of Republic of China, due to changes in claims, the public debt arrears had been up in the air, representations into tripartite negotiations between the two sides, eventually after the establishment of the Nanjing National Government, been incorporated into the finishing in the foreign debt Commission, cleared, after more than twenty years, which bring local government bond issue for far-reaching effects.When entered the Republic of China, Anhui finance had always been in poor and chaos. And Ni Sichong had released more than10times regardless of the local bonds in the period of the Northern Government, According to the purposes of local debt issuance of Anhui, it all make up the munitions administration fee instead of to the Service for Local Economy. And that was refused with fierce opposition several times of some citizens’groups from Anhui and shanghai. The forms of Anhui local bonds in Beiyang period, the most bonds did not have the nature of it in the modern sense and it was difficult to sell. The uncontrolled distribution, which ignored the bonds to repay the Fund’s reserves, which had a major impact on the subsequent repayment. In fact, this vicious circle did not change government in Nanjing period.During the National Government, the Anhui local government continued to issue bonds, until1941, the central government begun to deal with the growing financial crisis which held the Third National Financial Conference to re-planed the war period the domestic financial and demanded to stop the bonds in1942. So the local bond of Anhui Province history only came to consummate. From the view of local government bonds issued in Anhui Province in historical point, Jiangsu, Zhejiang, there were still certain differences which from local financial lag the modern Anhui. In Anhui Province, local bonds several times to take apportion and underwriting to China bank, transportation and other banks. Still, Modern Anhui local government bonds, not only did the issue the number among the nation, the number of bonds continued to expand, it focus to compensate for the military and political costs mainly bonds issued after repeatedly postponed, resulted in credit ruined, chaotic management as well.In conclusion, the author made a comparison between the history and reality. And the author pointed out that the achievements and deficiencies of socialized disaster relief in both periods. In today’s increasingly relaxed Bond Policy by the Local Government, Local Government Bonds conditions become more sophisticated to issue local bonds. The issue of local government bonds must establish reasonable debt offering debt mechanism, build good credit, scientific planning, reasonable control scale, to serve local development as the center and to continue to improve the construction of the legal system is the most critical path selection... |
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