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. One of these, a physician named Peter Smith, was owed a considerable sum for the care of indigent sick. He obtained a judgment against the city, levied on some of its property, and proceeded to sell. The city commissioners warned the public that titles under the Smith claim were not legal, and proceeded to sell the property on their own account. The speculators bought claims under Peter Smith amounting to over two millions of dollars at merely nominal rates. For example, one parcel of city lots sold at less than ten cents per lot. The prices were so absurd that these sales were treated as a joke. The joke came in on the other side, however, when the officials proceeded to ratify these sales. The public then woke up to the fact that it had been fleeced. Enormous prices were paid for unsuitable property, ostensibly for the uses of the city. After the money had passed, these properties were often declared unsuitable and resold at reduced prices to people already determined upon by the ring.