ABSTRACT
§ 1. One method by which a public authority may obtain income is by borrowing. The proceeds of such public borrowing form part of public receipts, or public income. On the other hand, the payment of interest on, and the repayment of the principal of, the public debts thus created form part of public expenditure. The correlative of public debts is public assets. The debts of most national governments, however, greatly exceed their assets, chiefly because most of these debts are war debts. But some public authorities, especially local authorities, most of whose debts have been incurred in the purchase of land and material capital, have assets in excess of their debts.
