Abstract: When the rule of the nationalist government was established, it formulated a series of laws and regulations to stipulate the issuance procedures, the issuance purposes, the proceeds and the redemption funds of local bonds; on such a basis it exercised supervision over the local government bonds. During the Anti-Japanese War, the Third National Financial Conference of the Nationalist government decided to take over and clear up the local government bonds issued in all provinces. It also stipulated that since 1942 each province could not issue local bonds. The supervision of the Nationalist government over the local government bonds is in nature the supervision of local finance. As the most comprehensive and most systematic supervision over the local government bonds in modern China, it to some extent ended the disordered situation of local bond issurance. To take over and clear up local government bonds further strengthened the control of the central government over the local finances and adapted to the needs of wartime finance. In theory, it is conducive to maintaining the government’s debt rating.

Key words: nationalist government; local public bonds; history of the Republic of China