The fiscal problem in Missouri

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Monograph

Identifikator:: 1833271335

URN:: urn:nbn:de:zbw-retromon-230042

Document type:: Monograph

Title:: The fiscal problem in Missouri

Place of publication:: New York

Publisher:: National Industrial Conference Board, Inc.

Year of publication:: 1930

Scope:: xvi, 359 S.

Digitisation:: 2022

Collection:: Economics Books

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Document type:: Monograph

Structure type:: Chapter

Title:: Chapter IX. Financing the capital requirements of the State

Collection:: Economics Books

CHAPTER IX FINANCING THE CAPITAL REQUIREMENTS OF THE STATE NHE capital requirements of state and local governments A are ordinarily financed by means of current revenue, through funds obtained by borrowing, or by a combina- tion of the two methods. On the other hand, it is a recog- nized principle in public finance that current expenses for operation and maintenance purposes should not be met by borrowing, although the financing of a certain amount of expenditures through the sale of warrants issued in anticipa- tion of tax receipts is not regarded unfavorably. In instances in which funds obtained from the sale of bonds have been used in meeting current expenses for operation and mainte- nance, the practice has received the condemnation of all those seriously interested in the proper administration of fiscal affairs. There is a sharp division of opinion in respect to the manner in which capital requirements should be financed. The pay-as-you-go school holds that it is always best to finance capital additions out of current revenues, and that it is only by following this policy without deviation that the highest degree of success in fiscal administration can be obtained. The other school sanctions a combination of bor- rowing and current revenues in the financing of capital ad- ditions. The advocates of the pay-as-you-go policy have at times been in the great majority in the United States. This was especially true of the administrators of state finances in the United States during the period following the Civil War. State borrowing in the United States was not of much importance prior to 1820, but in the succeeding period many eastern states borrowed considerable sums for internal im- provements. In the development of the Middle West the same policy was followed. During this period credit was not 269 ,—

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