Cyclopædia of Political Science, Political Economy, and the Political History of the United States

Edited by: Lalor, John J.
(?-1899)
BIO
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Editor/Trans.
First Pub. Date
1881
Publisher/Edition
New York: Maynard, Merrill, and Co.
Pub. Date
1899
Comments
Includes articles by Frédéric Bastiat, Gustave de Molinari, Henry George, J. B. Say, Francis A. Walker, and more.
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FUND, FUNDING, REFUNDING.

II.100.1

FUND, FUNDING, REFUNDING. In finance "fund" signifies a sum of money set apart for some specific purpose, or a source whence money may be obtained. In England the national debt is called "the funds". The term "funds" is not so applied in the United States.—"The funding of a debt" according to Mr. J. S. Gibbons, "consists in dividing it into parts, or shares, which are represented by certificates, and on which interest is paid to the holder. These certificates are known as stock, or bonds, indifferently." The term "funding," as it is used in the laws of the United States, signifies the conversion of floating or temporary indebtedness into indebtedness having a longer time to run before maturity. (See act of Feb.25, 1862.) Funding in this sense may consist in converting floating debt, or evidences of public debt bearing no interest (such as United States notes), into interest-bearing bonds, or it may consist in converting one form of interest-bearing bonds or notes into another form having a longer time to run.—"Refunding," as the term is used in laws of the United States signifies the renewal, or continuance in a new form, of debt that has once been funded and has matured or is about to mature. (See title of act of July 14, 1870.)

HAYDN SMITH.

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