A review is presented of the history and evolution of general obligation school bonds and capital outlay financing for public education. Following a discussion of past legislation of several states concerned with school borrowing, the evolution of school bonding is explained in terms of increased school financing from 1900 through 1958. Consideration is given to the school building authority, federal aid, and state capital outlay assistance as major causes for the plateau in school borrowing. The rate of expansion of building authority bonds and state bonds is also considered. (FS)