Fayetteville observer. [volume] (Fayetteville, Tenn.) 1850-1966, 1877-11-15
An Extra Session Of The
Legislature Called.
Nashville Banner.

iue TUX u ,StctutuiS VA tCuiltSn Z i'll
extra session. Wednesday, the 9Th
day oi ID cein.er-
Fast-i q consider the recon
mendation made By the ari,ittrs
at the conference held in New.
York in March. 1877. To adjust
tue State debt by the issuance Of
new six per cent. bonds at the rate
Of GO per cent. Of the total amount
OF principal and due interest.
Second-To levy tax sulli-
cient to met the interest on the
new bonds; to provide a sinking
fund f1r the extingaishment OF
the debt, and for the more eff
.cIent COLLECTION of the r, venue. :
Third-To provide by appro
pirate legislation for the expenses
oi the General Assembly.
1t hss been generally under
stood that G vernon Porter has
been in c)mnunic .tion with some
OF the principal creditors of the
Sta e for some time past, and 1t
is stated that he received q com
muHlcati0n from them yesterday
and Immediately thereafter issued
This pro ;lalDation. But if he has
any recent information from the
b lndhulders of the State, which
would Sc m to justify him in
calling on extra session OF the Leg
isla,ure for the special purpose of
readjusting the public debt, he
tails to state the Tact in his pro-
clamalion, for he definitely says
that the call is made ITO consider
the recommendation made by the
arbiters at the conference held at
New York in March, 1871" The
parties to that conference were a
Legislative Committee, who went
on to New York, and a committee
of that city appointed at a NEE
ting of the creditors of the State,
which represented bonds amount
ing 10 about ten million dollars.
The following is brief state
ment Of the result oil that con
ference:
The committee we're not sent
to propose anything, but only to
he~r what the representatives of
the bondholders might say, and
transmit it for action to the leg
islafure. The FIST proposition as
to the amount Of interest which
wac suggested, was to settle it at
rate Of four per cent. for the first
five years, and six per cent. for
the remaining years, but this did
not meet the vie ws of the commit
lee and it was rejected. But one
more proposition was made and
that was to agree on a pay ment
lof the debt at the rate cf sixty
cents On the dollar by issuing
bonds, dated January lst, 1878.
and to run thirty years, The inter
est to be paid in New York. This
he arbitrators stat.a was their
loves; figures. though the CON-
pittee labored in vain for them
% decrease it to fifty cents on the
collar. This could have doubt
less Leen effected bad it not been
Coz letters received by the arbi-
ttrs from bondhoI,lels in Tpnnes.
see, protesting against a comprom-
Use, and inspiring hope in the
breasts of the arbiters that the
State wa able to meet her finan-
cial liahililies
The Legislature finally ad-
journed, having accomplished
nothing in the way OF comprom-
ise with the creditors of the State.
1t is now said, and we suppose the
Governor has some definite infur
nation upon the sulj"ct, thai
parties owning maj rily of the
bonds of the State. express a
willingness to enter into a com
promise of the State debt at the
rate OF sixty cents en- the dollar.
This would necrssitate the re-
funding OF the whole debt Of the
State. At what rate OF interest
! the bends would bear or how long
they would run are questions TO
! be considered in connection with
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