This document contains the proceedings of a conference dealing with the issues that face U.S. cities today. Convened in October of 1979, the conference was sponsored by the Federal Reserve Bank of Philadelphia. The document contains addresses and comments by six authorities on the current fiscal situation of large cities. The presentation "America's Cities" recounts urban America's development and outlines a program for the recovery of urban America from its afflictions of ugly slums, disgraceful housing, ineffective schools, violent crimes, malnutrition, drug abuse, and widespread human suffering. Included in the recovery program is federal recognition and responsiveness; the stabilization and rebuilding of cities' economic bases to be competitive in terms of business, industry, and commerce; the curtailment of spending; and the rejuvenation of neighborhoods. The second presentation "The Future of Large, Older American Cities to the Year 2000" examines trends which include a lack of housing demand in cities and the conflict between surburban growth and city restoration. Commenting on the second presentation, the third speaker states that to help solve city problems government should stimulate the marketplace rather than invest in large public works programs. Leadership and risk taking are needed. All of us have a role to play in reactivating our own ingenuity in using cooperatively both private and public resources. Two of the presentations deal with "The Fiscal Stance of Philadelphia." The concluding presentation examines "The Changing Nature of Intergovernmental Relations." (Author/RM)