Birmingham age-herald., 1895-03-23
OUR CITY CREDIT.

The AGE- HERALD was yesterday shown two letters received from New York parties interested in Birmingham bonds, by gen. tleman of this city, which would prove in- teresting reading If they could be made public. One of these letter. writers encloses clipping from an Eastern paper relative to the recent attempt of Howard and Manning to injure the credit of Alabama, and in commenting upon this matter in conjuuc- tion with the presence Of Mayor VanHoose in New York, and the object of his visit, proceeds to present a warning lesson to Birmingham.
 The fact that Mayor VanHoose is in New York seeking to relieve the city by asking reduction in the present rate of interest on our bonds, has caused alarm. Prior to the legislative enactment authorizing the refunding of our city debt, the AGE HERALD expressed doubt of the feasibility of such plan; but after the law was passed and our honorable Mayor was enthused over what appeared to him to be an opportunity for relief we offered no objection to his ef- fort and made no further suggestions. It seems now from the letters received from bondholders that Mayor VanHoose has told them plainly that the city of Birming- ham needed assistance, and has boldly asked these creditors that they do the as- sisting by accepting in lieu of the bonds they have new bonds bearing less rate of interest.
 It IS not reasonable to believe that the Mayor went into this effort in an indscreet way, nor with the intention of injuring tue credit of Birmingham and other Alabama cities. He has proven by his brief official career that he intends to do everything in his power for the advancement of the city's interest. But we see the effect of thevery proposition of compromise. Birmingham has never Jagged a single day in promptly meeting her interest coupons, when all of asudden the proposition is presented to the bondhoider that there is danger, at least, of future inability to continue this promptness. He is startled. He has letters from nearly every banker in the city and of other prominent business men of the city, dated little over twelve months ago, declaring Birmingham's securities safe and sound. Why should he not be startled at the present proposition?
 That the loss of the Birmingham tax amendment at last years gen eral election was calamity to this city, there is no doubt. The need of it was repeatedly pre- sented iu these columns. The people feared the extra taxation; now they have so.lstt:ag wurse to fear. Not default in our interest-that must not and will not be; but still further cutting down in the several branches of our city government seems to be necessity now. Under only a 5 mills tax rate the present school system, fire department, police, sanitary and pub lie improvement, light and water depart ments cannot be maintained as now; and to attempt to hold these up to their present efficiency would be worse than folly, and bring about still worse confused condi- tion of affairs. With this heavy draugbt of genuine retrenchment wo can hope to pull through, suffering great inconvenience, until another year, when the special school tax law is to apply, add ing 2b mills to the tax rate for school pur. poses, will give relief and put us back on a fair working ground with our credit pro- tected and strongly established.
 The holders of our securities need have no fears. We are not repudiators, and Mayor VanHoose's mission IS to explain to creditors the true status of our city affairs, and to seek relief wherever .bers appears a