In the American history of the public debt, its main characters were presenting several cycles definitely, showing the peculiarity of financial assets and the variety of it s creditor.

The public debt thoughts of Liang Qichao are very rich, and the public debt thought of this article is specially referred to his internal debt.

Researches into China s external public debt have been started early enough in the academic community that a lot of related scientific achievements have been scored.

The paper researches the positive role the government bonds play in promoting the economy in each stage when there is a lack of capital input and capital accumulation in western region.

The article includes four parts:The first part analysed bonds in modern times of China and Mao Dun s literary works, represented by Midnight.

As a whole ,it was undeveloped,showing concretely that government bonds as main issue and trading object,develops unevenly,and the securities price changed violently.

By dealing with the problem of capital deficiency concerning agriculture, rural areas and peasants, the paper proposes a new approach for strengthening the financial function of the government in the development of western China, that is, issuing local government bonds.

Because of the risks of public bond, rational public bond scale is the prerequisite to totally carry out the macro adjustment function of public bond.