Study On National Economic Development Bonds 1954-1958

Being a cameralistic and financial measure, government bond is always used as a tool of significance to regulate the economy for a country, and China government has been applying it as a means to accelerate the socialist modernization construction as well. The essay which focused on the government construction bond of 1954 to 1958 period, based on the contemporary documents, newspapers and magazines, conducted by some relevant bond theories, seeks to do a research about the issuance, characteristics and influence of the bond.This article consists of four parts, the historical background of issue, the survey of the circulation, public attitude, and the perspective of its function and why ceased. In the 50's of the last century, our country had revived from the war and lead to an epoch of economy all-around acceleration, thus the bond's function of raising capital is expected to play the key role in the process of socialist industrialization. Consequently, from 1954, the central government kept on issuing incessantly for five years. The operation was according to U.S.S.R., featured china's situation, and launched by administration. As an outcome of it, the design and issue were inevitably accompanied by some malpractice of planned economy. Nevertheless, it materialized the socialist country's ability to concentrate the domestic resource, and recognized as an unalterable choice in laggard countries' industrialization.The second part of the paper mainly illustrated the general complication of the bond's issue through probing the administration and detailed process, and subsequently analyzed the operation's specialty in 50's. As the issue aimed at the individuals whose support was tightly linked with its success, the third sector detected the attitude, towards the bond, of diverse class who demonstrated their patriotism and national responsibility by subscribing the bond eagerly.The last segment analyzed the impact of the issue and the reason of its halt. During the 5 year period, a number of 3.544 billion of the construction bond were offered, with a surplus of 16.96% beyond plan, equaling 4.11% of the contemporary entire national economy construction investment.86, 224 million. The capital were invested into the most hungered and weakest sectors of the economy and generated an remarkable impetus to the accomplishment of the First Five-Year Plan, the erection of industrial infrastructure, and national economy growth.In addition, long-lasting, wide-ranging, and highly-efficient promotion wasn't only conducive to the issuance operation but also made a positive role in spreading the government's policies and unifying the ideology of the mass. Therefore, the influence had exceeded economy sectors, and exerted a profound influence on politics, considering the large number just as a tiny part of its significance. The central government didn't set an end to the practice until 1958, for the prevalence of left-extreme guideline, and at that time, the operation finally came to an end.