There was just one drawback to all this.  In order to get the full advantage of this condition the large banker holding them must be an “inside banker,” one close to the political forces of the city, for if he was not and needed money and he carried his warrants to the city treasurer, he would find that he could not get cash for them.  But if he transferred them to some banker or note-broker who was close to the political force of the city, it was quite another matter.  The treasury would find means to pay.  Or, if so desired by the note-broker or banker—­the right one—­notes which were intended to be met in three months, and should have been settled at that time, were extended to run on years and years, drawing interest at six per cent. even when the city had ample funds to meet them.  Yet this meant, of course, an illegal interest drain on the city, but that was all right also.  “No funds” could cover that.  The general public did not know.  It could not find out.  The newspapers were not at all vigilant, being pro-political.  There were no persistent, enthusiastic reformers who obtained any political credence.  During the war, warrants outstanding in this manner arose in amount to much over two million dollars, all drawing six per cent. interest, but then, of course, it began to get a little scandalous.  Besides, at least some of the investors began to want their money back.

In order, therefore, to clear up this outstanding indebtedness and make everything shipshape again, it was decided that the city must issue a loan, say for two million dollars—­no need to be exact about the amount.  And this loan must take the shape of interest-bearing certificates of a par value of one hundred dollars, redeemable in six, twelve, or eighteen months, as the case may be.  These certificates of loan were then ostensibly to be sold in the open market, a sinking-fund set aside for their redemption, and the money so obtained used to take up the long-outstanding warrants which were now such a subject of public comment.

It is obvious that this was merely a case of robbing Peter to pay Paul.  There was no real clearing up of the outstanding debt.  It was the intention of the schemers to make it possible for the financial politicians on the inside to reap the same old harvest by allowing the certificates to be sold to the right parties for ninety or less, setting up the claim that there was no market for them, the credit of the city being bad.  To a certain extent this was true.  The war was just over.  Money was high.  Investors could get more than six per cent. elsewhere unless the loan was sold at ninety.  But there were a few watchful politicians not in the administration, and some newspapers and non-political financiers who, because of the high strain of patriotism existing at the time, insisted that the loan should be sold at par.  Therefore a clause to that effect had to be inserted in the enabling ordinance.