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86-485: These former wage-earning Coal Creek coal miners repeatedly attacked and burned both state prison stockades and mine properties, all while releasing hundreds of the state convict laborers from their bondage to the mine companies. Many of these same Coal Creek coal miners were wounded or killed in small-arms skirmishes during the Coal Creek War, along with dozens of Tennessee state militiamen. One historian describes

172-466: A stockade for its convict laborers. Miners and local merchants met on July 14 to determine a course of action. It was rumored a larger group of convicts would arrive the next day. That night about 300 armed miners—probably led by Knights of Labor organizers Eugene Merrell , George Irish, and Marcena Ingraham —surrounded the Briceville stockade. The stockade's guards surrendered without

258-541: A "fool contract" made by TCMC president B.A. Jenkins for the uprising, he nevertheless supported the use of convict labor as a means to keep regional coal companies competitive. In 1882, Sanford helped organize the Mechanics' National Bank and initially served as the bank's vice president. In October 1882 the bank's first president, Thomas O'Connor, was killed in a notorious shootout in downtown Knoxville . Sanford served as an interim president until Samuel B. Luttrell

344-504: A banjo tune called "Coal Creek March," which was recorded by Kentucky banjoist Pete Steele for the Library of Congress in 1938 and is still popular among old-time musicians. The song "Buddy Won't You Roll Down the Line," written and performed by Grand Ole Opry pioneer Uncle Dave Macon , was based on the Coal Creek War. Crowding out (economics) In economics , crowding out is

430-422: A committee of local figures friendly to the miners' interests, namely attorney J.C.J. Williams, Knoxville Journal editor William Rule , and United Mine Workers organizer William Webb. On July 23 Williams and Webb went to Coal Creek to address the miners, echoing the governor's plea for patience. Williams assured the miners that the governor supported an end to convict leasing but said it would take time to change

516-761: A direct foothold in the Anderson County coalfields. As the company minimized the work of its free laborers, however, tensions steadily rose. On August 13, 1892, free miners in Grundy County tore down the TCI stockade in Tracy City , and on August 15 convicts were removed from the TCI stockade at Innman in Marion County . These actions reignited resentment in East Tennessee, and on August 17

602-840: A director of several other companies, including the East Tennessee, Virginia and Georgia Railway , the Knoxville Brick Company, and the Knoxville Iron Company. In 1898 Sanford purchased both the Knoxville Journal and the Knoxville Tribune and combined the two into a single newspaper. He retained his Civil War-era associate, William Rule, as the paper's editor. Sanford died at his home in Knoxville on October 27, 1902. He

688-486: A felony to interfere with the leasing system and authorizing the governor to take any necessary action to protect the system. After this setback, the miners held out hope with the state's court system, which considered a case brought by the Tennessee Commissioner of Labor, George Ford, who claimed the poor conditions in which the inmates worked and lived violated state law. The case moved quickly through

774-495: A fight, and the convicts were marched to Coal Creek where they were loaded onto a train and sent to Knoxville. After seizing the Briceville stockade, the Coal Creek miners sent a telegram to Governor Buchanan, stating their actions were taken to defend their property and wages and asking for his intervention. On July 16 Buchanan, escorted by three Tennessee state militia companies (two from Chattanooga and one from Knoxville) led

860-482: A group of miners led by John Hatmaker attacked the TCI stockade at Oliver Springs but were beaten back by the guards. Shortly afterward a larger group of miners reconvened at the stockade, and its guards finally surrendered. The stockade was burned, and the convicts were put on a train and sent to Nashville. The following day Anderson was captured at Coal Creek, and the miners ordered Fort Anderson's second-in-command, Lieutenant Perry Fyffe, to surrender. After Fyffe refused,

946-556: A half-dozen companies, Sanford helped finance Knoxville's post- Civil War industrial boom and was involved in nearly every major industry operating in the city during this period. Companies he led during his career included Sanford, Chamberlain and Albers, Mechanics' National Bank, Knoxville Woolen Mills, and the Coal Creek Coal Mining and Manufacturing Company. Sanford was born in Redding, Connecticut , in 1831. He

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1032-429: A percentage of its value. Miners also demanded they be allowed to use their own checkweighmen—the specialists who weighed the coal and determined how much a particular miner had earned—instead of checkweighmen hired by the company. Since state laws already barred scrip payment and company-hired checkweighmen, most mine owners accepted the demands, though they were in the midst of an economic downturn. However,

1118-707: A phenomenon that occurs when increased government involvement in a sector of the market economy substantially affects the remainder of the market, either on the supply or demand side of the market. One type frequently discussed is when expansionary fiscal policy reduces investment spending by the private sector. The government spending is "crowding out" investment because it is demanding more loanable funds and thus causing increased interest rates and therefore reducing investment spending. This basic analysis has been broadened to multiple channels that might leave total output little changed or even smaller. Other economists use "crowding out" to refer to government providing

1204-557: A result of policy change may not be as robust. In the context of the CHIP debate, this assumption was challenged by projections produced by the Congressional Budget Office, which "scored" all versions of the CHIP reauthorization and included in those scores the best assumptions available regarding the impacts of increased funding for these programs. CBO assumed that many already eligible children would become enrolled as

1290-477: A result of the new funding and policies in CHIP reauthorization, but that some would be eligible for private insurance. The vast majority, even in states with enrollments of those above twice the poverty line (around $ 40,000 for a family of four), did not have access to age-appropriate health insurance for their children. New Jersey, supposedly the model for profligacy in SCHIP with eligibility that stretched to 350% of

1376-445: A service or good that would otherwise be a business opportunity for private industry, and be subject only to the economic forces seen in voluntary exchange . Behavioral economists and other social scientists also use "crowding out" to describe a downside of solutions based on private exchange: the crowding out of intrinsic motivation and prosocial norms in response to the financial incentives of voluntary market exchange. The idea of

1462-478: A soldier in a brawl; he was then hanged by the militia from a railroad bridge near Briceville. Buchanan, attacked by both miners and mine owners alike for his indecisiveness, failed to win his party's nomination for governor in 1892, the Democrats choosing Chief Justice Turney instead. Buchanan still ran as a third-party candidate, but Turney won the election easily, ending Buchanan's political career. Seeing that

1548-490: A toll on growth; they reduce capital formation in the private sector. But this argument rests on how government deficits are used. Increased net spending on highly productive state investment in physical and human infrastructure will likely increase long-run growth due to an expansion in the productive potential of the population. When there is considerable excess capacity within the economy, an increase in government deficit does not crowd out private real capital formation. Instead,

1634-534: Is "not a plausible story with excess capacity, the Fed funds [interest] rate at zero, and companies sitting on cash that they could invest with if they saw good reasons to do so." Another American economist, Paul Krugman , pointed out that, after the beginning of the recession in 2008, the federal government's borrowing increased by hundreds of billions of dollars, leading to warnings about crowding out, but instead interest rates had actually fallen. When aggregate demand

1720-491: Is a unique level of income at which the money market is in equilibrium. Thus, with a vertical LM curve, an increase in government spending cannot change the equilibrium income and only raises the equilibrium interest rates. But if government spending is higher and the output is unchanged, there must be an offsetting reduction in private spending. In this case, the increase in interest rates crowds out an amount of private spending equal to increase in government spending. Thus, there

1806-439: Is available to the private sector. However, this is assuming that the resource acquisition for the public purpose is non-productive in the long run. There is some controversy in modern macroeconomics on the subject, as different schools of economic thought differ on how households and financial markets would react to more government borrowing under various circumstances. The extent to which resource crowding out occurs depends on

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1892-406: Is below capacity and there is a surplus of resources available, an increase in the government's deficit does not result in competition with the private sector. In this scenario, the stimulus program would be much more effective. In summary, changing the government's budget deficit has a stronger impact on GDP when the economy is below capacity. In the aftermath of the 2008 subprime mortgage crisis ,

1978-573: Is full crowding out if LM is vertical. If increased government net spending with a corresponding increased issuance of government bonds leads to the Central Bank increasing interest rates, and hence a higher "price" ( ceteris paribus ), the private sector , which is sensitive to interest rates, will likely reduce investment due to a lower rate of return. This is the investment that is crowded out. The weakening of fixed investment and other interest-sensitive expenditure counteracts to varying extents

2064-518: Is greater the more interest rate increases when government spending rises. Economist Laura D'Andrea Tyson wrote in June 2012: "By itself an increase in the deficit, either in the form of an increase in government spending or a reduction in taxes, causes an increase in demand. But how this affects output, employment and growth depends on what happens to interest rates. When the economy is operating near capacity, government borrowing to finance an increase in

2150-555: Is interred in Old Gray Cemetery . The company he cofounded, Sanford, Chamberlain and Albers, continued operating in Knoxville as Albers, Inc., until 1994. The company's former store and office at 430 South Gay Street still stands and is a contributing property in the National Register of Historic Places -listed Gay Street Commercial Historic District. Maplehurst Park, an apartment complex in downtown Knoxville,

2236-409: Is low, government spending tends to expand the market for private-sector products through the fiscal multiplier and thus stimulates – or "crowds in" – fixed investment (via the " accelerator effect "). This accelerator effect is most important when business suffers from unused industrial capacity, i.e., during a serious recession or a depression . Chartalist and Post-Keynesian economists question

2322-486: Is named for Sanford's mansion, Maplehurst, which once stood on the property. Sanford was a lifelong advocate for education in Knoxville. In 1869, working as an agent for East Tennessee University (now the University of Tennessee ), he helped secure for the institution the state's Morrill Act (land-grant) funds. During the same period, he advocated the establishment of a public school system in Knoxville and served as

2408-423: Is not constrained by any "amount of funds" or "money supply" or similar concept. Rather, banks lend to any credit-worthy customer, constrained by their capitalization level and risk regulations. The resulting loan creates a deposit simultaneously, increasing the amount of endogenous money at that time. Crowding out is most plausibly effective when an economy is already at potential output or full employment . Then

2494-612: Is now Lenoir City in 1890. While the Panic of 1893 seriously stunted the city's growth, the city survived, and today part of the city still follows the Lenoir City Company's early-1890s grid. During the 1880s and 1890s, Sanford served as president of the Knoxville Woolen Mills, which under his leadership had grown to become Knoxville's largest textile firm by 1900. During this same period, he served as

2580-428: The ' Treasury view ' in the interwar years, down to the 'monetarist' assaults on the public sector of the 1970s and 1980s, it has been alleged that public sector growth in itself, but especially if funded by state borrowing, has detrimental effects on the national economy." Much of the debate in the 1970s was based on the assumption of a fixed supply of savings within a single country, but with the global capital markets of

2666-515: The 21st century "...international capital mobility completely undermines a simple model of crowding out". One channel of crowding out is a reduction in private investment and accumulation of real resources that occurs because of an increase in government spending. Increased government spending results in a shift in the distribution of real resources produced within an economy, away from private use and to public use. This "crowding out" of real investment of capital stock and other resources reduces what

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2752-421: The Briceville stockade. The miners' ranks had been bolstered by an influx of miners from the border town of Jellico and several hundred miners from Kentucky, some of whom had successfully removed convicts from two Kentucky mines five years earlier. After gaining an assurance that no company property would be damaged, Sevier surrendered upon seeing the futility of resisting such a large force. The miners again marched

2838-490: The Central Bank raises them, which attract inflows of money on the capital account from foreign financial markets into the domestic currency (i.e., into assets denominated in that currency). Under floating exchange rates , that leads to appreciation of the exchange rate and thus the "crowding out" of domestic exports (which become more expensive to those using foreign currency). However, an appreciating domestic currency increases domestic demand for imports thereby "crowding in"

2924-631: The Civil War. While the mining companies reaped substantial profits, the miners often struggled economically and began to organize in the 1880s. The mine owners preferred free labor, but they threatened to replace free miners with convicts whenever free miners talked about forming unions. Nevertheless, by the late 1880s, only two mining operations in Anderson County—;the Knoxville Iron Company mine at Coal Creek and

3010-430: The Coal Creek War as "one of the most dramatic and significant episodes in all American labor history." The Coal Creek War was part of a greater labor struggle across Tennessee that was launched against the state government's controversial convict leasing system, which allowed the state prison system to lease convict labor to mining companies (and other business enterprises) with the effect of suppressing employee wages in

3096-594: The Cumberland Coal Company's "Big Mountain" mine at Oliver Springs—primarily used convict labor. In 1890, the election of several members of the labor-friendly Tennessee Farmers' Alliance— among them Governor John P. Buchanan — to the state government emboldened miners in the Coal Creek valley to make several demands. One of the key demands was payment in cash rather than company scrip , which could either be used only at company-owned stores with marked-up prices or be redeemed for cash at

3182-459: The Nashville, Chattanooga, and Knoxville areas. A group of Knoxville volunteers marched to relieve the besieged Fort Anderson, but as they descended Walden Ridge they were ambushed by a group of miners, who killed two of the volunteers and sent the rest fleeing back toward Clinton . Carnes arrived on August 19 and quickly restored order and obtained Anderson's release. He then initiated a sweep of

3268-527: The Tennessee Coal Mining Company (TCMC), which operated a mine near Briceville, rejected the demands and on April 1, 1891, shut down operations. Two months later the company demanded its miners sign an iron-clad contract before returning to work; the miners refused. On July 5, TCMC reopened the Briceville mine using convicts it had leased from TCI. With tensions already high, the company tore down miners' houses in Briceville to build

3354-402: The U.S. economy remained well below capacity and there was a large headroom of potential production available should investment be made, so increasing the budget deficit put funds to use that would otherwise have been idle. The extent to which interest rate adjustments dampen the output expansion induced by increased government spending is determined by: In each case, the extent of crowding out

3440-569: The Walden Ridge water gap, which was outfitted with a Gatling gun , and the convicts returned to the Coal Creek Valley on January 31, 1892. Relations between the militiamen, most of whom were from middle or west Tennessee, and the people of Coal Creek soured quickly. Merrell wrote to Buchanan complaining of the troops' behavior, and for several months miners and soldiers indiscriminately shot at one another, with either side blaming

3526-475: The area of venture capital , suggesting that government involvement in financing commercial enterprises crowds out private finance . Edward J. Sanford Edward Jackson Sanford (November 23, 1831 – October 27, 1902) was an American manufacturing tycoon and financier, active primarily in Knoxville, Tennessee , in the late 19th century. As president or vice president of two banks and more than

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3612-471: The battle for Temple's book, East Tennessee and the Civil War . Toward the end of the war in 1864, Sanford formed a drug company, E.J. Sanford and Company. In 1872 this company consolidated with a business established by Hiram Chamberlain and A.J. Albers to form Sanford, Chamberlain and Albers. In subsequent years, this company grew to become one of the largest pharmaceutical companies in the South . During

3698-614: The conflict. Sentiment was initially pro-miner, although as violent outbreaks continued and militiamen were killed, sentiment began to shift. The Nashville Banner called the miners " thieves, robbers, ruffians, and outlaws, " while the Chattanooga Republican accused the state legislature of being " inhuman. " The two Knoxville papers, the Journal and the Tribune , initially praised the miners' decisiveness and derided

3784-466: The convicts back to Briceville. At Thistle Switch, a railroad stop near Fraterville , several hundred angry miners confronted the governor and demanded he address them. Buchanan told the miners he was a champion of labor, but as governor he was obligated to enforce the laws and pleaded for calm and patience. After the governor's speech, Merrell rebutted it, claiming that the governor had not bothered to enforce laws regarding scrip or checkweighmen and calling

3870-415: The convicts to Coal Creek and put them on a train back to Knoxville. Later that day, the miners marched on the Knoxville Iron Company mine near Coal Creek, which also used convict labor, forced the guards at its stockade to surrender, and likewise sent its convicts to Knoxville. On July 21, 1891, Buchanan travelled to Knoxville where he again summoned the militia. Over a four-day period, the governor met with

3956-420: The convicts to smaller mining companies. While there was some resistance among free miners to the use of convict laborers in the 1870s, the abundance of jobs and companies' preference for the higher-quality production of free labor eased the miners' concerns. During the same period, the Coal Creek valley became one of Tennessee's most lucrative coal mining regions. The town of Coal Creek expanded rapidly, becoming

4042-606: The courts, reaching the Tennessee Supreme Court in October 1891. Chief Justice Peter Turney ruled against the miners, essentially citing the sanctity of contracts. On October 28, 1891, the committee representing the Coal Creek miners' interests announced they were resigning, denounced the legislature, and issued a subtle call to arms. On October 31 a group of miners burned the TCMC stockade at Briceville and seized

4128-470: The crowding out effect, though not the term itself, has been discussed since at least the 18th century. Economic historian Jim Tomlinson wrote in 2010: "All major economic crises in twentieth century Britain have reignited simmering debates about the impact of public sector expansion on economic performance. From the ' Geddes Axe ' after the First World War, through John Maynard Keynes ' attack on

4214-458: The crowding out of nominal funds thesis because government spending has the actual effect of lowering short-term interest rates by injecting liquidity into the banking system in the first instance, not raising them. However, the rate for short-term debt is always set by intervention by central banks - they pay interest on reserve balances to set a floor on inter-bank lending rates and therefore bank-customer lending rates. Additionally, private credit

4300-540: The deficit causes interest rates to fall in the first instance since higher net spending from the government injects liquidity into the banking system, pushing down the overnight rate. A response from the Central Bank to increase interest rates may occur if they believe the increased government spending at full resource employment would be inflationary. Higher interest rates reduce private investment, and this reduces growth. The resource “crowding out” argument purports to explain why large and sustained government deficits can take

4386-527: The downfall of Governor John P. Buchanan and forced the Tennessee General Assembly to reconsider its state convict labor-leasing system. The Tennessee state government later refused to renew its convict labor-lease contracts with private businesses upon the arrival at the 1896 expiration dates, making Tennessee one of the first states within the southern United States to end this controversial practice. The Coal Creek War took place on

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4472-683: The eastern fringe of the Cumberland Mountains , where the range gives way to the Tennessee Valley . Coal Creek, a tributary of the Clinch River , flows north for several miles from its source in the mountains, slicing a narrow valley between the backbone-like Walden Ridge on the east and Vowell Mountain to the west before exiting the mountains eastward through a water gap in Walden Ridge. A flank of Vowell Mountain known as "Militia Hill" overlooks this water gap. Most of

4558-404: The economic situation. If the economy is at capacity or full employment, then the government suddenly increasing its budget deficit (e.g., via stimulus programs) could create competition with the private sector for scarce resources, resulting in a redistribution of production across the economy. Thus the effect of the stimulus is offset by the effect of crowding out. On the other hand, if the economy

4644-423: The eligibility of the child. These anti-crowd-out procedures can fracture care for children, sever the connection to their medical home and lead to worse health outcomes. Crowding out is also said to occur in charitable giving when government public policy inserts itself into roles that had traditionally been private voluntary charity , rendering private charity unnecessary. Crowding out has also been observed in

4730-511: The equilibrium income. There is no change in the interest associated with the change in government spending, thus no investment spending cut off. Therefore, there is no dampening of the effects of increased government spending on income. If the demand for money is very sensitive to interest rates, so that the LM curve is almost horizontal, fiscal policy changes have a relatively large effect on output, while monetary policy changes have little effect on

4816-422: The equilibrium output. So, if the LM curve is horizontal, monetary policy has no impact on the equilibrium of the economy and the fiscal policy has a maximal effect. If the LM curve is vertical, then an increase in government spending has no effect on the equilibrium income and only increases the interest rates. If the demand for money is not related to the interest rate, as the vertical LM curve implies, then there

4902-497: The expansionary effect of government deficits. More importantly, a fall in fixed investment by business can hurt long-term economic growth of the supply side, i.e., the growth of potential output . Thus, the situation in which a tight monetary policy may lead to crowding out is that companies would like to expand productive capacity, but, because of high interest rates, cannot borrow funds with which to do so. According to American economist Jared Bernstein , writing in 2011, this scenario

4988-465: The federal poverty level, testified that it could identify 14% crowd-out in its CHIP program. In the context of CHIP and Medicaid, many children are eligible but not enrolled. Thus, in comparison to Medicare, which allows for near "auto-enrollment" for those over 64, children's caregivers may be required to fill out 17-page forms, produce multiple consecutive pay stubs, re-apply at more than yearly intervals and even conduct face-to-face interviews to prove

5074-510: The government's expansionary fiscal policy encourages increased prices, which lead to an increased demand for money . This in turn leads to higher interest rates if the Central Bank decides to increase them and crowds out interest-sensitive spending. At potential output, businesses are in no need of markets, so that there is no room for an accelerator effect. More directly, if the economy stays at full employment gross domestic product , any increase in government purchases shifts resources away from

5160-426: The government's ineffectiveness, but their sentiments shifted after the stockades were burned in October 1891. While the East Tennessee mining companies were moving away from convict labor, the state's primary lessee, TCI, remained stalwartly dedicated to using convict leasing at its south Tennessee mines. When Cumberland Coal balked at using convicts at its Oliver Springs mine, TCI purchased the mine's lease, giving it

5246-473: The higher demand resulting from the increase in the deficit bolsters employment and output directly, and the resulting increase in income and economic activity in turn encourages or 'crowds in' additional private spending. The crowding-in argument is the right one for current economic conditions." If the economy is in a hypothesized liquidity trap , the "Liquidity-Money" (LM) curve is horizontal, an increase in government spending has its full multiplier effect on

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5332-441: The import of real production produced abroad. These effects on net exports have ambiguous impacts on the demand-promoting effects of government deficits but have no obvious negative effect on long-term economic growth. In terms of health economics , "crowding-out" refers to the phenomenon whereby new or expanded programs meant to cover the uninsured have the effect of prompting those already enrolled in private insurance to switch to

5418-510: The indictments of nearly 300 miners and other individuals associated with the Coal Creek uprisings. Many fled the state before they could be charged or brought to trial, including Eugene Merrell. Nearly all who showed up in court were either acquitted or found guilty and fined. Only one trial ended with serious jail time: D.B. Monroe was sentenced to seven years after being vilified in the media as an "outsider" from Chattanooga who had come to Anderson County to spread his "anarchist" philosophy. Monroe

5504-490: The junction of Highway 116 and Lower Briceville Highway. Much of the land purchased by the state in 1896 for the construction of Brushy Mountain State Penitentiary is now part of Frozen Head State Park . The Coal Creek War provided inspiration for some of the earliest Appalachian coal mining protest music . Songs about the conflict include "Coal Creek Troubles," written and recorded by Jilson Setters in 1937, and

5590-469: The largest in Anderson County with a population of 3,000 by the end of the 1870s. Coal mines opened throughout the valley between Coal Creek and Briceville, which was founded as a mining town in the late 1880s. Most mines were established by companies leasing land from the Coal Creek Mining & Manufacturing Company, which had been formed by Edward J. Sanford and other land speculators after

5676-579: The late 1860s, Sanford helped establish the Coal Creek Mining and Manufacturing Company which purchased over 60,000 acres (240 km ) of land in the coal -rich Coal Creek valley of western Anderson County . This company in turn leased the land to various mining firms, most notably the Knoxville Iron Company and the Tennessee Coal Mining Company (TCMC). In 1891, an uprising known as the Coal Creek War erupted when TCMC attempted to replace its free miners with convict laborers. While Sanford blamed

5762-459: The law. The miners thus agreed to a 60-day truce after the governor assured them he would call a special session of the Tennessee state legislature and recommend the lease law be repealed. The convict laborers returned on July 25. During the truce, Merrell and Irish traveled around the state giving speeches to rally support for the miners' cause. On August 31, Buchanan called a special session of

5848-452: The miners agreed to allow the return of convicts to Coal Creek and Oliver Springs, but not Briceville, where TCMC president B.A. Jenkins had grown disgruntled with convict labor. The state dispatched 84 militiamen under the command of J. Keller Anderson to guard the convict stockade at Coal Creek and a small force to guard the one at Oliver Springs. Anderson built Fort Anderson on what came to be known as "Militia Hill", overlooking Coal Creek via

5934-538: The miners charged the fort, killing two militiamen but failing to capture the position. In response to this latest uprising, Buchanan dispatched 583 militiamen under the command of General Samuel T. Carnes to East Tennessee. He also ordered sheriffs of affected counties to form posses . Most county sheriffs—including the Anderson and Morgan sheriffs—ignored this order or made lackluster attempts to execute it, although several dozen volunteers were amassed in

6020-531: The new program. This effect was seen, for example, in expansions to Medicaid and the State Children's Health Insurance Program (SCHIP) in the late 1990s. Therefore, high takeup rates for new or expanded programs do not merely represent the previously uninsured, but also represent those who may have been forced to shift their health insurance from the private to the public sector. As a result of these shifts, it can be projected that healthcare improvements as

6106-431: The open market across the state. The outbreak of this labor conflict touched off a partisan media firestorm between the miners' supporters and detractors and brought the issue of convict leasing to the public debate. Although the Coal Creek War essentially ended with the arrests of hundreds of former company coal miners during 1892, the adverse exposure that this state conflict with private labor generated nationwide led to

6192-467: The other for provoking it. In the meantime, Merrell and Jenkins had made amends, and the two began promoting a new cooperative style of mining operations favorable to both miners and managers. By summer 1892, dozens of newspapers and magazines nationwide, including The New York Times , the Alabama Sentinel , and Harper's Weekly , had sent correspondents to the Coal Creek region to cover

6278-514: The president of the city's Board of Education in the early 1880s. Sanford's son, Edward Terry Sanford , was a prominent Knoxville attorney who served as an associate justice of the United States Supreme Court from 1923 until 1930. Another son, Alfred (1875–1946), continued publishing the Knoxville Journal until 1928, when he sold the paper to senator and publisher, Luke Lea . Sanford's son, Hugh (1879–1961),

6364-470: The private sector. This phenomenon is sometimes called "real" crowding out and is the only pertinent crowding out that occurs with increased government spending. Crowding out of another sort (often referred to as international crowding out ) may occur due to the prevalence of floating exchange rates , as demonstrated by the Mundell–Fleming model . Government borrowing can lead to higher interest rates if

6450-582: The region from Coal Creek to Jellico, arresting hundreds of miners deemed complicit in the insurrection. The militia used the Briceville Community Church as a temporary jail for those arrested. Carnes' sweep of the Coal Creek Valley largely ended the Coal Creek War, although other events threatened to reignite the violence. A failed attack on the TCI stockade at Tracy City occurred in April 1893. In August 1893, miner Richard Drummond killed

6536-418: The state government a "disgrace to a civilized country . " Later that night shots were fired at the stockade, startling the governor who had remained in the area until the following day. Buchanan left 107 militiamen under Colonel Granville Sevier, a great-grandson of John Sevier , to guard the stockade. On the morning of July 20 an estimated 2,000 miners armed with shotguns, rifles, and pistols again surrounded

6622-420: The state legislature to consider the convict lease issue. One question before the legislature was whether the state could terminate the leasing contract it had signed, which did not expire until December 31, 1895. Another issue was what to do with convicts should the convict-leasing system be terminated. After three weeks of debate, the legislature adjourned on September 21, taking little action other than making it

6708-568: The state's coalfields to major mining operations, creating a large demand for cheap labor. In 1866, the state began leasing its convicts to companies willing to pay for the inmates' housing in exchange for their labor, and in 1871 leased convicts to the Tennessee Coal, Iron, and Railway Company (TCI), which owned a large coal and coke operation in the Cumberland Plateau area west of Chattanooga . TCI in turn subleased most of

6794-479: The state's financial gains from convict-leasing had been erased by having to keep the militia in the field, Turney and the legislature decided to let the TCI contract expire and enacted legislation to build Brushy Mountain State Penitentiary and purchase land in Morgan County where convicts would mine coal directly for the state, rather than competing with free labor. Anderson County judge W.R. Hicks oversaw

6880-410: The stockade at Coal Creek. Several company buildings were destroyed or looted, but the stockade was spared. Over 300 convicts were freed and supplied with fresh food and civilian clothes by the insurgents, who urged them not to commit further crimes. On November 2 another band burned the stockade at Oliver Springs, freeing 153 convicts. In response to the outbreak, a second truce was negotiated in which

6966-570: The uprising, and a parallel anti-leasing conflict took place in Grundy County and Marion County , about 100 miles (160 km) south of the Coal Creek area, in 1892. Coal Creek was connected to Kentucky and Knoxville by the East Tennessee, Virginia & Georgia Railroad, and a spur line connected Coal Creek to Briceville. After the American Civil War , Tennessee, like other Southern states, struggled to find sources of revenue. Post-war railroad construction, meanwhile, had opened up

7052-482: The violence centered around two communities— Briceville at the upper end of Coal Creek near its source, and the town of Coal Creek, the modern Rocky Top , at the lower end of the creek where it emerges from its Walden Ridge water gap. Other key events occurred some 15 miles (24 km) south of Coal Creek at Oliver Springs . A substantial number of sympathetic miners trekked southward from Jellico , about twenty-five miles north of Coal Creek, and Kentucky to join

7138-567: Was elected president of the bank in 1883. During the late 1880s, Sanford became enamored with social theories regarding the development of a company town , where company workers could live free from the vices that plagued large cities. In 1889, he and his long-time associate Charles McClung McGhee founded the Lenoir City Company with plans to establish such a town. The company purchased the Lenoir estate in Loudon County and platted what

7224-686: Was in hiding in the mountains. In 1862 Sanford fled to Kentucky to join the Union Army but fell ill before he could enlist (Sanford's account of his escape to Kentucky was later published as an appendix in Thomas William Humes 's The Loyal Mountaineers of Tennessee ). He returned to Knoxville following Burnside 's capture of the city in late 1863. Sanford fought at the Battle of Fort Sanders on November 29, 1863, and years later provided historian Oliver Perry Temple with an account of

7310-429: Was released after serving two years. The Coal Creek Watershed Foundation presently works to preserve the legacy of the Coal Creek War and its impact on the area and has taken the initiative in locating the remains of Fort Anderson and several poorly-marked or unmarked convict graves near the old Knoxville Iron Company mine. Drummond's Trestle, the railroad bridge where Richard Drummond was hanged in 1893, still stands near

7396-632: Was trained as a carpenter and moved to Knoxville at age 22 to work in this trade. He initially worked for Shepard, Leeds and Hoyts, which built railroad cars. Later in the decade, he cofounded a lumber and construction company. Although many people fled Knoxville during the city's cholera outbreak of 1854, Sanford stayed behind to help care for the sick and dying. At the outset of the Civil War in November 1861, Sanford helped fellow Unionist William Rule sneak out of Confederate-occupied Knoxville to carry messages to newspaper editor William G. Brownlow , who

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