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The late public debt Economic Analysis

Author: WeiZhi From: www.yourpaper.net Posted: 2007-11-20 20:12:46 Read:
[Abstract title] study of the history of economic expertise

[Key words] bond theory / late Qing the bonds / economic analysis


The national debt is on a certain basis for the development of the commodity economy and the credit system, a special financial areas. Due to the expansion of state functions, especially in foreign wars and strengthening state intervention in the economy on the occasion, the state financial expenditure is increasing, relying on increased tax has been unable to meet the expenses of the state, the government often has been established in the credit system and the development of foundation on the central part of the social loafing, a national credit funds to make up for the lack of financial funds. The purpose of initial financing of the government bonds, generally in order to overcome the financial difficulties at the time. In the early days of capitalism, the national debt is an important lever of primitive accumulation of capital. Marx said: "bonds become one of the most powerful means of primitive accumulation it is like waving a magic wand to make the production of currency has fertility ... every part of the government bonds on the capital fell from the sky from falling into the tax package , businessmen and private hands - aside these government bonds also make AG, a variety of securities transactions, securities speculation, short, the Exchange speculation and modern banking rule flourished. (Note: "The Complete Works of Marx and Engels," 23, page 823.)
Under normal circumstances, the issuance of government bonds must rely on a perfect development, normal operation and smooth flow of government bonds market. If you do not have a well-developed government bond market, especially developed bond secondary market, the large issuance of government bonds is impossible. The status of the development of the government bond market, directly restricting the issuance of treasury bonds on the primary market. At the same time due to the bond market as a point of integration, and comprehensive implementation of the fiscal and financial policies is increasingly becoming important tool for countries to use economic means to carry out macro-control. Therefore, the government bond market development is directly related to the realization of the Government's economic objectives and the effectiveness of government regulation of the market.
First, the issues raised
At the end of the Qing Dynasty, due to the huge military spending and claim expenses finances in dire straits. To compensate for insufficient funds, so they follow the example of the West, and the issue of domestic public debt. Late Qing Dynasty issued a total of three bonds: 1894 "Commercial Loan", "the Akinobu stock" on the 1898 and 1911's "patriotic bonds".
The first issue of domestic debt of the Qing government in 1894 the interest by the supplier shall. The purpose of issuing bonds is a military order to cope with the Sino-Japanese war, recommended by the Ministry of borrowing to the wealthiest businessmen, war left the souvenir. Issue approach is to raise money to Beijing and the provinces the sub-quota tariff guarantees to the small provinces implement fundraising approach of the same, such as the provisions of sub-two-and-a-half years debt service in Beijing, one to six months, the first one also interest, but not principal, since the second phase of principal and interest with also 1/4 installments of principal, the monthly interest rate of 7% Indian votes in the 100 two one, as more than 10,000 two "to the virtual title sealed Code to show encouragement "The debt object is the" gentry supplier China. (Note: Qian Jiaju: "Old Chinese bonds history information" (1894-1949), Zhonghua Book Company, 1984, page 4.) Although there is no total provisions this issue public debt, but to develop a six way, the actual issuance of $ 11020000 two, but all sorts of problems, just like donations, then stop issued in 1895.
The late Qing second bond is 1898 Zhaoxin Stock Commercial Loan Modern bonds closer than the last. At that time, in order to pay the fourth reparations under the Treaty of Shimonoseki, plans to issue a total of 100 million taels, named the "the Akinobu stock", meaning "emperor clear large letters" public debt. The bond amount of votes is divided into 100, 500, 1000 twenty-three kinds of 5% per annum, secured to land tax and salt tax, 20 years to pay off, and provides that the debt relief fund principal after 10 years. Bonds permit the mortgage to the sale, but the the Akinobu stock must be reported to the Ministry of Bureau for the record. It also provides a form of encouragement to the rank. (Note: ibid., 5) the bonds regardless of the distribution method, or the issuance program than the first Commercial Loan more complete, but also the evils of excessive Reform Movement of 1898 (1898) closed. , Fundraising 20,000,000 from the issue to the closure of two.
The late Qing third public debt in 1911 of the so-called "patriotic bonds. Was when the Revolution broke out, in order to raise the suppression of the Revolution of funding to maintain the feudal rule, plans to issue 30 million two named "patriotic bonds. Bonds par value of five yuan, 10 yuan, 100 yuan, 1,000 yuan four, an annual interest rate of 6%, the Ministry of library revenue guarantee period of nine years, the first 4 years of interest-bearing, after five years average balloting principal. The bond is issued, when the Qing government is about to collapse from all walks of life on the Qing government has lost trust, so the general the merchant people rarely subscribe, only a few of the nobility, civil and military officials to buy a little. (Note: ibid., page 6.) The vast majority is purchased by the Qing royal treasury cash within the actual issuance of 11.6 million yuan, no time issue is completed, the Qing government was overthrown, after the Northern Government to continue to bear.
The Qing government issued three bonds, many scholars have conducted a special study, a matter of opinion. Far as the eye can probably involved in the following aspects.
Qing government issuing bonds, unanimously attributed to the financial crisis of the Qing government. If people think that "With Western Learning part of the Qing Dynasty, the ruling clique within the public debt of the Western capitalist countries understand and advocate emulate oceanic civil raise debt. Qing government due to the financial crisis, an increasing problem, had to consider this new source of revenue. "(Note: of Zhu Ying:" with the 1894 Commercial Loan "Brief Account", "Guizhou Social Sciences 4, 1993.)" First, to maintain the Qing Dynasty corruption huge bureaucracy of the expenditure, the second is In order to cope with the needs of the military spending of the Sino-Japanese war. "(Note: Huxian Li, Guo Xisheng:" early Chinese bonds "," Zhengzhou University (Philosophy and Social Sciences) 1994 6.)
The drawbacks of the late Qing government bonds issued in one hand, due to the limitations of the socio-economic conditions, on the other hand is caused by the corruption of the Qing government. The reasons for the failure of the public debt, mainly due to: first, under the reign of the Qing government corruption, issuing bonds become the gentry in disguise donations and people disguised blackmail. Second bond issue to many abuses. Akinobu stock issue causes: Silver No. money shop closed down; membership end extortion, China bribery when told his demand Free; gentry of Li Yi as Lee Tau, to benefit from it; drive people to cast foreign religion, thought talisman. Third, these bonds are not used in the production side, but is used to cover the deficit to supplement military and political costs for reparations, and thus did not play the role of the Western public debt the kind of primitive accumulation leverage these bonds, and Treasury market was there are legal and regulatory regime is not complete, intermediaries immature, relatively narrow market development space gap. Fourth, the late Qing lagging financial market seriously hamper the issuance of government bonds in circulation, the national debt of the financial function calls for the birth of the new financial system. From bonds issued by the status quo, the late Qing Dynasty government bonds has full administrative apportioned, does not flow characteristics. A standardized liquid market for government bonds, should include a unified national government bonds custodian, clearing system, banks to form a unified and open market framework, in order to promote the healthy development of the government bond market, the late Qing bonds without obtaining one of the root causes of success from this. (Note: Qian Jiaju: "Old Chinese bonds history information" (1894-1949), Zhonghua Book Company, 1984, page 4. Zhou Yumin: "fiscal and social change in the late Qing Dynasty, the fifth chapter, Chapter, instruct People's Publishing House in 2000. Huxian Li Guo Xisheng: "early Chinese bonds", "Zhengzhou University (Philosophy and Social Sciences) 1994 6. AERONAUTICS AND ASTRONAUTICS:" three bonds issued by the Qing Dynasty and its reasons for failure Probe Huaiyin Teachers College, 1992.)
About the role and significance of the late Qing Dynasty government bonds at the time and later historical works constantly under attack and accused, that internal positive significance neglected. Was that "If it is said that the Westernization Movement absorption supplier Shares founder 'Government Commerce' or 'organized government officials and businessmen' Westernization enterprise from the perspective of government-issued bonds to increase the economic burden of a businessman, in some respects, is still to some extent played a role in promoting the growth of capitalism in China, the Sino-Japanese 'interest rates by official shall' not only did not produce objective and positive role in this regard, to the contrary, it hinders the development of capitalism in China. "(Note: Zhu Ying:" Jiawu bearing borrowings providers paragraph "Brief Account", "Social Sciences" 1993) but it was also commented that: in the feudal society or slave society, the inviolability of sovereignty of the monarch, "the whole world, Could Wang earth. rates of soil coast, does the king of the people ", the subjects of the monarch only contraband satisfied obligations grain, absolutely no the subjects money lenders to the monarch and the monarch anti debts truth. Governments and individuals opposing economic units as the occurrence of this concept is a reflection of the eighteenth century capitalist consciousness after considerable development. The Qing government issued bonds, began to approach the nature of the capitalist system of public credit, consciously or unconsciously, the relationship between the government (monarchy) and subjects placed in a position of equality after the formation of the public debt, the national and public debt subscriber lending relationship. (Note: Qian Jiaju: "Old Chinese bonds history information" (1894-1949), Zhonghua Book Company, 1984, page 4.) On this basis, further said: "issued to resist foreign aggression financial needs patriotic bonds of nature. "" breakthrough the Qing Dynasty usual donations to serve the feudal backwardness fundraising, using borrowing to meet the emergency financial needs of the court, financial means and financial concepts are progressive significance. "borrowing," the name of the emperor to his subjects for the the feudal hierarchical order is a huge impact. "(Note: Zhou Yumin:" Late fiscal and social change, the fifth chapter, sixth chapter about content, Shanghai People's Publishing Society, 2000.)
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