Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1877-12-12
rae aoYRRNoR CONS down.

The anti. compromise element Of the
legislature has won q victory for the PEG.
pie worth millions Of dollars. Governor
Portsr's narrow proposition has been re.
pudiated and set aside. But one course
was left him-to open the whole ques-
ton of adjusting the State debt question
or let the Legislature 20 home and leave
all prospect Of a settlement over until
the meeting Of another and a new legis-
lature fresh from the hands Of the PEG
pie. This wss too great srisk, therefore
the following remarkable some-doWn let
ter was read yesterday in both houses;
EXECUTIVE 0FFIcE. December II. 1877.
Gentlemen Of the Senate and House Of Rep
resentstivss:
/ have, within the past tweniy-fonr
hours, received 10 writing, by telegram,
and orally from the creditors oil the
State satisfactory assurances OF their
willingness to modify the propositions of
the arbiters, submitted to you in my
message at the beginning OF this extra
session, so as "a make the basis of com.
promise fifty cents on the dollar, instead
OF sixty cents, as proposed. TIE relieve
the consideration OF this modified prop
osition from any constitutional doubts, |
recommend that the present extra ses
sion adjourn sine die, 10 order hat !
may convene Immediately another extra
session, by proclamation, so worded as
to remove the restrictions which were
attached to my last, and authorize the
general assembly to pass such laws as
would enable the State to carry out any
adjustment that may be made, and also
to pay the expenses Of the present gene
raj assembly. | am prompted to make
this recommendation by an earnest de.
sire to cooperate with the Legislature,
heartily, aud to the fullest extent con.
sistent with my official duty and author
ity. in an endeavor TO effect an honorable,
satisfactory and permanent adjustment
of our public debt.
JAMES D. PORTER.
After considerable discussion both
houses adjourned sine die yesterday at.
t%ernoon, and Immediately thereafter the
following proclamation from the gov
ernor was read:
Executive 0FPIcE. STATE OF TEESEssKE.
To the Members Of the Fortieth General As
sembly Of the State Of Tennessee:
By virtue Of the power and authority
in me vested by the constitution of the
State, | do hereby convene the general
assembly Of Tennessee in extraordinary
session, at the capital, on Tuesday, the
eleventh day of December, 1877, at the
hour of four O'Clock, in the afternoon,
when the assembled members OF the two
houses will enter upon the following leg
islative business:
First-To consider the adjustment and
compromise Of the State debt.
Second = To provide the necessary
revenue to meet the interest Of such
bonds as may be issued under such ad.
justment, and for a more efficient col.
lection of the revenue Of the State.
Third To provide, by appropriate
legislation. for the expenses Of the Fret
extra session of ae fortieth general as
sembly, and Of session hereby convened.
Both houses reconvened, and soon sf-
ter adjourned over until to-day. This lie
the first time in the history Of Tennessee
legislation hat two extra sessions have
been called in one year or during one
term. The new session dates from YES
terdsy, and the members can draw pay
for twenty days only from that time, but
no extra mileage. The legislature has
been in session one week. and as a mat
ter Of course, accomplished nothing
under such a call. The cost to the PEG.
pie has been over $500 a day. So much
thrown away ia ON attempt by the ex-
ecutive to force through an obnoxious
measure. There is some probability that
a settlement Of some kind will be made.
The bondholders will no doubt be willing
to take fifty cents on the dollar, perhaps
less. 1t is important. however, to know
what rate Of interest is to be fixed and
what increase Of taxation will be neces-
ssry to meet toe interest promptly. 1t
would be the greatest farce OF all to re.
fund the State debt without providing for
the interest. We would suggest also that
it is a dangerous experiment to make the
coupons receivable for taxes. The high.
est courts would construe this to be a
contract and require the State to take
such coupons, even as we had to redeem
the notes of the Bank of Tennessee after
the war.