Birmingham age-herald., 1895-05-17
OUR pITY DEBT.

 organ of the investing world, and what might properly be called a promoter. It answers correspondents sometimes truthfully, sometimes. perhaps, other wise, but never unknowingly(D. Here is one of the recent questions and an swers in the Investor" which will be read with interest by Birmingham tax payers:
 1444 (Albany, N. Y.) How do you interpret the circular recently issued to holders of the bonds of the city of Bir- mingham, Ala, of inability to meet in- terest on same? My clients securities are dated 1888. and are sanitary and building bonds.
 Ans. So far as we can determine the Birmingham circular is open to but two interpretations: First, the city proposes to break faith with it's creditors and try to make the holders of it's bonds accept a lower rate bond, without compensation for the loss of interest; or second, it does not actually propose so to act. but is merely trying to frighten the bond holders into giving up part of their in- terest. Neither interpretation is credit able to the city. Either is calculated to impair the standing of the city in the financial world. We dc not believe that the city will venture to go to the limit of repudating any part of it's obligation, such as would be involved in forcing on the bondholders a reduction in interest. Such step would mean a set back to the industrial progress of Birmingham, from which it would take a great many years to recover. When the issue is brought Squarely before the city we do not be- lieve that it will pursue the suicidal course which it's recent circular seems to indicate. So far as any action on the part of the bondholders is concerned We should advise ignoring the invita- tion to cooperate with the city. The - bondholders can lose nothing by purSu ing this policy. They should be on tn ir guard against making any concessions in the matter of interest
 Now, both of these conclusions by the editor of the Investor" are uncalled for, unjust and altogether wrong. The Age Herald has watched this matter of the | authorities of Birmingham attempting to fund the citys debt from the begin ming; and we know that there was no irA tention on the part of the city to break faith with its creditors or to frlghten anybody into doing anything that would injure materially the interests of debtor and creditor. We speak of intention, not result
 Could not the Investor" conceive or discover another interpretation not quite so harsh? May not the proposition
 
 to the bondholders that Birmingham is heavily laden with her bond obligations. and the circular is an appeal for leniency to those who have it in their power to say 'yes" or "no?"
 That Mayor VanHoose and those who assisted him in originating or planning such a proposition oyerestimated their power of persuasion in a matter of this kind seems to be clearly demonstrated; and that they are confronted by cold business spirit is also true. Therefore it is quite evident that a mistake has been made. But it was an honest mistake, and nobody should be hurt thereby.
 The Age-Herald's repeatedly expressed desire for a preservation of the city's credit has been earnest, and selfish only insomuch as it believed that every in dividual and corporate enterprise in Bir- mingham would suffer by municipal de- fault, and evidence is abundant to prove that this is true in the history of all cities and towns that have been thus blighted.
 If the editorial expressions of the Age Herald, so strongly indorsed by the tax payers of the city, followed by the wig orous address on the subject delivered by President Rhodes of the Commercial Club and the resolutions adopted by the City Council on Wednesday night, in line and in sympathy with the sugges- tions of the Age-Herald. shall result in preserving the credit of the city, which we are quite confident will be the result, the present and future generations of Birmingham will bless the efforts, and our city will move on in the march of progress.
 The proposition made to the Birming- ham bondholders will no doubt be with drawn at once, and ways and means pro- vided for meeting the coupons as they fall due. It is understood that the city administration can see it's way clear for some months yet, and the people will calmly rely upon the ability of Mayor VanHoose and his Board of Aldermen to provide ways and means for reaching next tax-paying time without suffering the damaging effect of even temporary default The Age-Herald does not be- lieve Birmingham will ever cause the loss of one dollar to those wno have invested in her securities.