TeachMeFinance.com - explain New Tennessee
New Tennessee -- An exclamation used by the brokers when
a new member first appears on the New York Stock Exchange
as a signal for his "initiation," which consists in hazing him.
The exclamation also is used to direct attention to the presence
of a stranger on the exchange.
The term "New Tennessee" originated in the refunding in
1883 by the state of Tennessee of its old defaulted bonds . New
bonds were given for the old ones, but for considerably less
than the face value of the old bonds, and the rate of interest
on the new bonds also was less than the rate on the old ones.
The conditions of exchange of the old bonds for the new ones
were unsatisfactory and "New Tennessee," the abbreviation
for the new bonds of the state of Tennessee, became a term of
derision. It soon became the practise to shout it out when a
new member of the exchange made his first appearance on the
floor or when a stranger eluded the vigilance of the doorkeepers
and wandered upon the floor. The corresponding expression on the London Stock Exchange
is fourteen hundred; see Fourteen hundred.
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