Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1870-04-12
TENNESSEE HONDs sENsA.
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s. We find in the financial article Of the
New York World the following !.
NEW YORK, April Another remark
able event in these revolutionary times
promises before long to be revealed fully
and in practical form 10 the public. For
sometime past Wall street has been much
preplexed to account for the steady and
continuous demand for and advancing
price in Tennessee State bonds, in the
face of abundant reasons for q reverse
movement. These purchases of Tennes-
see State bonds have been made by strong
and influential firms, thoroughly acduaint.
ed with the financial condition and legis-
iative machinery of the State of Tennes-
see, and possessed of great influence. in
the State. All the bills introduced into
the Tennessee Legislature, and all the
influence of its officials and the political
machinery of the States, have been,
strange TO say, for some time past enlist
ed IN grand crusade against the credit of
the State and its bonds Whilst all these
damaging measures and talking against
Tennessee State credit have been and still
are progressing, the singular anomaly has
been presented all the time up to date of
steady absorption of all the bonds offer
ed on this market, and at advancing
prices. Most of the sales have been by
Spectators selling them short. The short
interest is enormous. 1t is said by
shrewd and well-informed parties to the
present manipulation that the amount of
shorts is from 81, OO0, 900 to $40, 900, 600.
The brokers generally report that they can
lend all the new Tennessee bonds they
have, and that there is constant borrow
ing demand for them. The old bonds at
times cannot be borrowed at 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 ano-
maly is stated to be as follows, and it
has been up to the present time carefully
concealed from the public:
The Tennessee State debt is in round
numbers about $4,000, 600. OF this
amount the leading railroads of the State
are reported to have bought about $10,-
100000 of the new bonds, and are still
buying more, with which they will can
Gel their own obligations to the State and
that amount of State Indebtedness. This
operation will reduce the State debt to
about $50, 600, 600.
1t is reported that the necessary ar
engagements have been made in the proper
quarters to insure the passage of bill in
Congress to reimburse the loyal State of
Tennessee for its losses duringthe war, by
the Federal government paying to Tennes-
see SIC, 900, 900 to SIS, 600, 600 in cash. 1
This is claimed as merely Justice, and on
the same grounds as the grant of money
which was made by government to the
State of Missouri for the same purpose.
This will reduce the State debt to $40, OO0,-
600 to $50, 900, 600, and viii also relieve
the State from all floating obligations.
When this is done the State Legisla-
ture of Tennessee will pass laws similar
to those of South Carolina, to pay the
interest on the bonds in coin.
The profits on this gigantic transaction
viii be not less than $40, 600, 900, as the
bonds viii rank naturally alongside of Mis-
souri, skies at 924 to SO. The natural
wealth and enterprise of the Tennesseeans
are well known. 1t is apparent at a |
glance to the experienced political the
enormous political power which can be
welded with this vast sum, to suit the
views of those who control its distribu- |
ton.
The contamination Of this gigantic |
Tennessee affair promises to create not |
only sensation which will astound Wall |
street with its financial results, but it is
also calculated to be a powerful engine in
future political movements.
That this is sensational, gotten up pure
y for speculative purposes, there can be
no doubt. Wall street spectators have
been investing very heavily in new Ten
lessee bonds, and they are now anxious
% dispose of their purchase to such IN
innocents as may be induced to
believed the rose-colored statements con-
aimed in the above 1t is a matter in
which the people of Tennessee have but
title interest, as we do not suppose there
S a citizen in the State who owns one
# the new bonds.