The
captain of a ship offered ten dollars to a negro to act as his cook. The
negro replied, "If you will walk up to my restaurant, I'll set you to
work at twenty-five dollars immediately." From men in such humble
stations up to the very highest and most respected citizens the spirit
of gambling, of taking chances, was also in the air.
As has been pointed out, a large proportion of the city's wealth was
raised not from taxation but from the sale of its property. Under the
heedless extravagance of the first government the municipal debt rose to
over one million dollars. Since interest charged on this was thirty-six
per cent annually, it can be seen that the financial situation was
rather hopeless. As the city was even then often very short of funds, it
paid for its work and its improvements in certificates of indebtedness,
usually called "scrip." Naturally this scrip was held below par--a
condition that caused all contractors and supply merchants to charge two
or three hundred per cent over the normal prices for their work and
commodities in order to keep even. And this practice, completing the
vicious circle, increased the debt. An attempt was made to fund the city
debt by handing in the scrip in exchange for a ten per cent obligation.
This method gave promise of success; but a number of holders of scrip
refused to surrender it, and brought suit to enforce payment.
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