Not Jerusalem - lowly Bethlehem, 'Twas that gave us Christ to save us. Not Jerusalem - favored Bethlehem, Honored is that name. Then came Jesus to release us, Favored Bethlehem
(German Lyrics)
Nicht Jerusalem, sondern Bethlehem Hat be scheret was uns nahret; nicht Jerusalem, werthes Bethlehem. Du bist angenehm Aus dir kommet was uns frommet, werthes Bethlehem
Notes: From German Moravians of Bethlehem, Pennsylvania. Apparently originated December 24, 1741. According to legend, neighbors gathered from miles around to celebrate Christmas and amongst themselves, they could not agree what name to call their little town. This song, after they heard it, persuaded them to name it Bethlehem, not Jerusalem, Pennsylvania.
From "A Treasury of American Song" Downes, Seigmeister, 1940, 1943 pp 32-33