The Birmingham age-herald., 1916-06-20
Birmingham Faces a Crisis

As result of the injunction suits pending against the bond issues re- gently approved at the polls, Birming ham faces the most critical period in it's history.
 President George B. Ward of the city commission has shown that a decision adverse to the city in the in- junction suits instituted by T. c. Me- Donald, which would enjoin the com mission from paying the interest on bonds issued since 1901 out of spe cial tax levy of one-half of one per cent, would constitute an additional drain of $246,35 on the general fund, which now barely suffices for the needs of municipal government, al- though the most rigid economies are being practiced and certain appropria- tions which are taken as matter of course in all enlightened communities have been cut off. To save the city from bankruptcy he suggests three steps: First, an increase on all licenses of 40 per cent; second, the imposition of street tax of $5 on all male citizens over IS years of age and under 50; third, an increase in the incidental fee in the public schools from 25 cents to 75 cents a month.
 During the next 12 months interest on bonds issued since 1901 will amount to total of $246,350 and the interest on bonds issued prior to that time and not sought to be enjoined will be S123,1S0 total interest due for the next 12 months of $369, ,530. If the city loses the injunction suits, which is not improbable, the first and worst alternative would be default on the payment of interest, which MT. Ward rightly terms "unthinkable." The city's credit would be destroyed for a period of from 10 to 20 years, it would be deprived of market for the sale of bonds and the price would col lapse immediately. If the police and fire departments were cut 50 per cent, S71, ,000 would be saved in the police department and $77,505 in the fire department, but this would provide only half the sum needed. Further more, both these departments have al- ready been reduced below the point of highest efficiency and it is only by hard work that they have been able to make a surprisingly good showing. To reduce these depart ments 50 per cent more would be equivalent to abandoning both fire and police protection, which is out of the question. The evils which would follow immediately upon such course are obvious
 To raise funds by still further cur tailing school facilities would be equally disastrous. If the sum neces- sary to pay interest on the bonds were taken out of the school appropriation the city schools would have to be closed. That is, of course, an alterna- tive that no right-minded person cares to consider for a moment.
 As MT. Ward points out, the third alternative, that of raising all licenses 70 per cent, is simple, although it would place heavy burden on busi- ness men and would still leave bal ance of $144,O0O to be raised some other way.
 It must be remembered that these drastic measures come at time when all appropriations have been pared to the limit, when not dollar was donated by the city last year to charity or to fight tuberculosis, when the library fund has been decreased along with street, fire and police budgets, when teachers salaries have been cut and free textbooks abolished.
 The commissioners have done their part-they have done all that reason can suggest and it is net their fault that the city is threatened with bank ruptcy. The situation may be re- garded as unprecedented in city of Birmingham's size and importance. It