The Birmingham age-herald., 1916-06-09
PROVISION READOPTED

ne cOnSuIullOnal convention, Wlln the act of the legislature referred to before it, and with that practical interpreta- tfon of the law in known operation and effect, readopted without substantial change the provisions of the amendment Of 1898.
 Since that time, more than s4,000, a0 worth of bonds have been sold upon the faith and credit of that provision of the city charter above referred to. It has been the express understanding at the time of the sale of each issue of bonds that the interest would be provided for out of this special five-mill fund, and such has been the practice.
 "The interest upon all outstanding bonds has been paid out of this special fund, and in consequence Birminghams credit has been good and its bonds have been floated at a remarkably low rate of interest.
 The city has incurred no indebtedness that was not absolutely necessary for the upbuildng of the ctys fife.
 Tt has not sold these bonds without profit to the people. The public is re- ceiving the benefit of these bonds and has acquiesced for IT years in this prac- tice
 The application of the funds from the special five-nill tax to interest on bonds thereafter as well as therefore issued, has been indulged by every administra-
 
 quarter.
 The city commission believes that the readoption of the amendment of 1898 by the constitutional convention of 1901, after it's provisions had been practically interpreted and construed by the legis- lature and by the executive officers of the city charged with it's enforcement. was a practical ratification and approval of that interpretation and amounted to validation thereof, and this conclusion is strengthened by the long period of ac- quiescence therein since 1901.
 ASSAULT WITHOUT MERIT
 Ut is, therefore, the belief of the city that MT. McDonald's assault upon this practice is without merit and must fail. However. it Is the duty of the commits sion to advise the public that the issues presented by Mr. McDonald's bill go much further than an effort to make impossible the sale of $3.000,00o worth of bonds which the people in every in stance, by large majorities, have so recently authorized Not only must needed improvements in our public school system be indefinitely postponed, not only must the auditorium follow the same fate, as we'll as the electric light plant. but more vital than all, the in terest upon s5,000,000 worth of bonds sold by the city in perfect good faith, the proceeds of which were used for the city's own welfare and the benefit of which the city has already received, must be defaulted and Birmin gham' S credit and prestige materially, if not permanently. lowered in the eyes of the world, if the prayer of this bill is granted.
 We can conceive of no calamity that could befall Birmin gham worse than a default upon an honest indebtedness which it has incurred for known and necessary public purposes, and yet this is the inevitable alternative If the in junction prayed is granted in the pend ing suits.
 BOND MARKET HIGH NOW "The average tax rate of the 3S cities of the United States of from 100000 to 300. GOO population is 17.7 mills. If MT. Mcdonald succeeds in his contention. Birminghams tax rate will be mills. "It is difficult enough to operate the government on 10 mills. It cannot be op- erated efficiently and wisely with that rate.
 When it is reduced to mills, financial repudiation is one. but not the only evil which confronts us Other vital inter ests will suffer at the same time. "It is a source of regret to all pa triotic citizens that the city will not b, 1 in position to utilize the present splendid | bond market owing to the delay caused by this litigation.
 1 Municipal bonds are now higher ant more in demand than ever before in tn, ! history of the United States. | How long this market will hold u, an1 what will be it's future. no man car 1 tell. The sale of the bonds at present however would mean a very large saving
 to the public trea ------ ,-