sinking funds

Book cover
Purchase of this book includes free trial access to www.million-books.com where you can read more than a million books for free. This is an OCR edition with typos. Excerpt from book: III. The Theory Of Amortization. We are in a position, now that our historical survey has supplied us with a sufficient stock of precedents, to enter upon the theory of amortization, and to discover the relation of the various species of sinking fund to each other, and to their common function. Simple as the thing may seem after our comparative study, no financial task has so befooled statesmen and led to costly mistakes, as the sinking of public debt. In England, the pioneer in modern finance, the search for the best way of amortization has strained the powers, and taxed the ingenuity, of the best heads for over a century. And yet it has been demonstrated that England, during the Napoleonic wars, lost by her theory of amortization a sum greater than the debt left us by the Revolution. In fact, it is only within the last two decades that the practice of the great financial powers has approached such an unanimity, as encourages the student fearlessly to frame a theory of amortization. Our Theory Concerned with Settled Policy. The first thing to note is, that whatever theory there may be relates to the sinking of funded, consolidated, or permanent debt. The theoretical side of amortization is principally concerned with fixed policy; and floating debt, such as treasury notes, exchequer bills, bans du tresor, is not, and should not become the object of a permanent provision. Good financiering requires that a floating debt be either paid off or funded. We have, it is true, occasional redemption funds and the rather nondescript caissed'amortissement of Napoleon I, but their theoretical import is too slight to require treatment. Similarly we are not concerned with any temporary. hand-to-mouth handling of a time debt. When legislation busies itself solely with the present, lea...
add to favoritesadd

Users who have this book

Users who want this book

What readers are saying

What do you think? Write your own comment on this book!

write a comment

What do you think? Write your own comment on this book

Info about the book

Series:

Unknown

ISBN:

1145646441

Rating:

3/5 (1)

Your rating:

0/5

Languge:

English

Do you want to read a book that interests you? It’s EASY!

Create an account and send a request for reading to other users on the Webpage of the book!