THE FINANCIER 
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 in- 
side to reap the same old harvest by allowing the certifi- 
cates 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. Times had changed. 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 adminis- 
tration, 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. 
Because of the recent patriotic war-feeling it was assumed 
that this could be done, and it was not easy to avoid this 
vaunted call to honesty. A clause had to be inserted in 
the enabling ordinance providing that the loan certificate 
must be sold at par. 
This destroyed the politicians' little scheme to get it at 
ninety. Nevertheless they desired that the money tied 
up in the old warrants and now not redeemable because 
of lack of funds should be paid them. The only way this 
could be done would be to have some broker who knew 
the subtleties of the stock market handle this new city 
loan on 'change in such a way that it would be made to 
seem worth one hundred and so would be sold to out- 
siders at that figure. Afterward, if it fell below that, the 
politicians could buy as much of it as they pleased, and 
eventiinlly have the city redeem it at par. Meanwhile 
they would receive the money tied up in the old city 
warrants. 
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