The laws of Massachusetts, relating to the investment of savings bank deposits, give a very good definition of this term as follows:

"The words ' net indebtedness ' shall mean the indebtedness of a county, city, town or district, omitting debts created for supplying the inhabitants with water and other debts exempted from the operation of the law limiting their indebtedness, and deducting the amount of sinking fund available for the payment of the indebtedness included."

Of course, this would not apply in all cases, although the usual meaning, in reference to a municipality, is the deducting of the amount of water indebtedness, if any, and sinking fund. In the case of a State, as a rule, the sinking fund is about all that can be deducted to determine the " net indebtedness." The net debt of a corporation would be the total debt less "sinking fund ' or money on hand specially set aside for the payment of same. In bookkeeping it would be considered the difference between the assets and liabilities.