Knoxville weekly chronicle. [volume] (Knoxville, Tenn.) 1870-1875, 1870-06-15
TENNESSEE DEMOCRACY EXPOSED.

The Democratic General Assembly of |
our State find their corruptions exposed i'm |
the most scathing terms by friends AZ well |
as foes. We are now publishing letters |
from II gentleman of this State who has
been one of their strongest leaders, in which
their corruptions are to be shown up in u
thorough manner. Now comes the New
York World, the leading Democratic pa
per of this country, and exposes the start
ling frauds and combinations of Tennessee
Democrats in the following whitening arti-
Gle. 1t shows up this reputation demo-
cratic scheme IN new light:
New York June 9.--Tho feature in Wall
street to-day was the great advance in the price
of new Tennessee bonds, selling rs high as 63Y
to g. and the enormous TRANSACTIONS IN them
being 1888 900 on the published list of the regu
lar call and about S2OOO,0OO outside. When
new Tennessee beads were selling at 52l-now
6i-7Hc World warned the public against selling
them short in the following article;
From The World April s.
" Another remarkable event in these revolu-
tionary times promises before long to be- revealed
fully and in practical form to the public For
some time past Wall street has been much per-
picked to account for the steady and continuous
demand for an advancing price in Tennessee
| State bonds in the iucc OF abundant reasons for
Il reverse movement These purchases of Ten
nessee State bonds have been made by strong
and influential firms thoroughly acquainted
with the financial conditions and legislative ma
chinery of the State of Tennessee, and possessed
I of great influence in the State. All the bill, in
: troduced into the Tennessee Legislature, and all
the influence OF its officials and the political ma
| chnery OF the State, lave been, strange to say
! for some time past enlisted in grand crusade
against the credit of the State and It's bonds.
/ Whilst all these damaging measures and liking
/ against Tennessee State credit have been and
! still are progressing, the singular anomaly has
been presented all the time up date of steady
/ absorption OF all the bonds offered on this mar
llet, and at advancing prices. Most of the sales
have been by spectators selling them n or..
The short interest is enormous. IL Is said by
shrewd and well-iniormed parties to the present
manipulation that the amount of short i from
81, 600, coo to Sl0OOO,OO0. The brokers generally
report that they can lend all the new Tennessee
| bonds they have, and that there Is n constant
borrowing demand tor them The old bonds Mt
times cannot be borrowed ut all Many have
been shipped to Europe.
Associated with the leading domestic firms
buying these Tennessee bonds are some foreign
houses with large means.
| THE solution of this remarkable anomaly is
stated to be follows, and 10 has been up to the
present time carefully concealed from the pub
lie:
THE Tennessee State debt is in round mum
bers about $40 100000. OF this amount the lead
ing railroads of the State are reported to have
bOuplt abOut SIOUOOD of the new bonds. anC
are Still buying more with which they will can.
eel their own Obligations to the State and that
amount of State indebtedness This operation
viii reduce the State debt to about $4,000 600
! IT is reported that the necessary arrange
ments have been made in the proper quarter t.
insure the passage of bill in Congress to REIN
burse the loyal State of Tennessee for its losses
during the war. by the Federal Government
having to Tennessee $40 600 900 to SIS eco 600 il
cash Thi, is claimed rs merely justice, and on
the same ground as the grant Of money which
was made bv the Government to the State %
Missouri for the same purpose This will reduct
the State debt to Sl5 600 to $1,000 600, anC
will also relieve the State from all floating obi
cations.
. When this is done the State Legislature o
Tennessee will pass laws similar to hose of Soutl
Carolina and to hay the interest on the bonds il
, coin.
"The profits OF this gigantic transaction will
be not less than S20O0O,00O as the bonds vii
rank naturally alongside Of Missouri skies a
q2I to 81 The natural wealth and enterprise o
the Tennesseans are well known. tis apparen
nj n glance TO the experienced politician tn
enormous political power which can be wieldet
with this vast sum- to suit the views of those win
The contamination of this gigantic Tennes
see affair promises to create not only sehsatio