The Birmingham age-herald., 1904-04-03

which the writer believes now constitutes a greater burden than business condi-
 tions will henceforth justify. Now 1t
 must come either from this source or from the reduction of the police force or fire department or by the reduction
 of the salaries of the office holders; or
 are we again to face the condition of ask
 ing the bondholders to withhold one-half
 of their interest coupons?
 Inasmuch as the administration is advo-
 eating this issue of $200,000 new bonds, 1t should show beforehand from what
 source the additional revenue Is to be
 derived to meet additional interest be- fore the people can intelligentiy and
 with due regard to the city's welfare
 cast their votes upon the proposition. Such provisions should first be made as
 it is purely a matter of business and
 along lines of prudent and sound financial
 management; and this is most essential if an advantageous sale of the bonds Is to ba effected
 It is a much easier matter to vote for and issue bonds than hereafter to pay
 interest on them It behooves any busi-
 ness citizen. or municipality as well, be-
 fore ncurring a debt to make provision for ways and means necessary and re- qulred to meet the obligation. The writer | admits that new high school build i ing is desirable and we should have 1t , as soon as we can see a way to provide it, but a municipality, like an individual cannot always gratify it's desires until 1t can pay for them.
 A failure by the city to sell It's bonds will retard it's growth, will do injury to the public credit and cause an indefin- fte postponement, if not complete de- feat, of the very object in view. It will l destroy the chances for many years to come to procure funds to acquire water rlx or nth ,,tf a ttfc
 as a new high school building. Let us l first increase our income either by con- l stitutional amendment, increasing the | power of taxation, or by other practical 1 legal means which an investor in city l bonds may look to and reply upon in the
 future and an income such as may be 1 counted on with an equal degree of cer-
 tainty as the fixed interest charge fol-
 lows the increased debt and without im- 1 pairing the efficiency of the departments
 of the city government which are indis- | pensable
 1 It has been proposed in administration
 quarters that tuition be charged students
 in the new high school, if built, and thus 1 defray the expenses of maintenance and | interest on bonds. but will an investor I accept such unstable security? Would not | such income be only temporary and sub | iect to abolishment at any time by poiti- 1 cal whim or clamor for a free school ? Would this in fact not be the battle cry
 of the aspiring politician in the first city | campaignf
 1 The city ought not to make the mis-
 take of offering bonds for sale and make
 a failure of it. With adequate provisions, l insrring payment of interest, the city
 would sell a lower rate bond than per cent, but doubtful security will not 1 sell at any price.
 l None of the taxes levied under the
 special constitutional amendment can be l applied to the payment of interest on the proposed issue of bonds since this 1 special bond tax, under section 2l6 article
 A, of the constitution of 1901, can only l be used. and must be applied exclusively. 1 to the payment of interest and to pro- 1 vide a sinking fund on the bonds of the
 city heretofore issued in pursuance of
 law that Is. issued prior to the adoption I of the new constitution. The general bur-
 den. and an investor would have no
 definite fixed income to look to for the l satisfaction of the interest and principal | of the new high school building bonds, l as every dollar of the present revenues | is required to defray the expenses of
 governmental functions, and which. in
 fact, are really inadequate to maintain
 proper standard of municipal existence; 1 and the courts cannot deprive the city
 of the necessary revenues required for | the conduct of municipal affairs. See l White vs. Mayor. etc. City of Decatur. | 119 Alabama, 476 23rd Southern Reporter, | 99'
 l The city has issued since 1900 s369,o00 of l new bonds (not including $3o0,000 street | improvement bonds above mentioned), or an increase of the public debt of about l s2000O0 per annum in the past three years.
 and it is now proposed to continue this
 ratio of increase. The increase of debt ..e past three years has been equivalent