Birmingham age-herald., 1895-05-11

the deepest consideration of every cit- izen of Birmingham:
 Office of
 Baltimore Trust and Guarantee Go.
 Baltimore, May 8. 1885, To the Age-Herald:
 As chairman of the Birmingham bond holders committee l send you by today's mail a copy of the Baltimore American, having marked in the financial column Every investor would avoid anything like the Birminghams." This is the le- gitimate fruit of the effort now being made to violate promise pledging the faith, credit, integrity and property of one of the foremost cities of the new south.
 Are your people unappreciative of the severe strain to which they are subject ing every material interest of your city? Are they unmindful of the disastrous blow which is being struck at the nas- cent prosperity of the fairest portion of our common country? Very respectfully yours.
 ROBERT c. DAVIDSON, Chairman of the Bondholders' Commit
 tee.
 It is not surprising to the Age-Herald that the Baltimore market should be making a great noise over the present outlook for Birmngham's municipal bonds, for Baltimore has for long time demonstrated great faith in this city, and has been heavy purchaser of our secur- itics. The Baltimore papers and cncu- lars from bond dealers sare flooding this city bearing sounds of alarm at the financial condition of Birmingham. This uneasiness has been caused not by any default of the city, but by an act of the last Legislature authorizing the refund ing of the city's debt, by the visit of Mayor VanHoose to the East and a pre- sentation to bondholders by him of rath- CT a gloomy picture, and a certain cir cular recently sent to holders by the Br- mingham bond commission, wherein the direct proposition is made to them to grant an exchange of 6 per cent old bouds for or per cent new bonds.
 The very proposition has a frighten- ing color; therefore it is no wonder that the Baltimore holders of our bonds have gathered themselves together, employed able counsel and proceeded to the work of Investigating our condition and resisting if possible any and all movements by this municipality to withhold payment of interest, and to force Birmingham to find a way out of her dilemma other that by default.
 It is hardly ever in good taste to say q told you so,' but our own people are in large measure to blame for this con4 dition of things, and it is not surprising that our public creditors should feel that somebody has neglected duty Twice the Legislature of Alabama has given opportunity for amending the State con- sttution so that our miserably low tax rate could be raised to an amount ade- quate to a protection of our credit, and neither time have the whole people of Birmingham expressed a willingness to accept such power. Last year there was organized opposition to the measure here by some of the largest tax payers in the city and they succeeded admirably we'll in defeating the Birmingham amend ment" notwithstanding the honorable effort of few to preserve the credit of the city. The Age-Herald then pointed out the danger which confronted us and zealousy urged the people to secure the right to tax themselves.
 It may be too late now to refer to the matter but Birmingham is making his- tory and it is well toerecord it. If Br- mingham defaults every man, woman and child in the city will feel the effect of the failure, but the greatest sufferers will be the heavier tax payers.
 But there yet remains ray of hope The holders of these bonds f1atly refuse to accept the compromise proposed This they have a right to~tio. Birmingham can no more force them to exchange their To per cent bonds for per cent bonds than can an individual debtor force 50 per cent compromise on an in- dividual creditor. Hence when the bond holder says mo" there's the end of the refundng scheme, and it is the high and honorable duty of the debtor to seek other sources of relief.
 Under the present depressed condi- ton of the real estate values and the F of per cent tax rate, with so large an overgrown city to sustain, the revenue is insufficient to make ends meet, and we are confronted by most serious condi- tion. It requires no theorist to solve this problem, but plain, practical action on the part of our city government. Some grave mistakes have been made by several ad- ministrations, the present one included. but we lose time in recounting or be- moaning these blunders. Birmingham has simply outgrown itself, and we must look for present and future relief.
 The only remedy seems to lie in the ist suance of scrip for the payment of cur rent expenses. This scrip can be based only on the prospects of the future-the growth of Birmingham and another op- portunity for amending the constitution.
 The city of New Orleans has passed through rough places like this by which Birmingham is confronted. Fifteen years ago New Orleans 6 per cent bonds sold at heavy discount. She, fioated scrip for current expenses for several years. always meeting her bonded obligations, The city grew in wealth and population. and year after year she reduced her floating indebtedness, at the same time protecting her credit On1v a fa,, 5o,