The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1877-12-31

The second extra session of the Tennessee
Legislature has adjourned without settling
the vexed question Of the State debt
Although two sessions were called for thi
special purpose alone, and although it was
thoroughly and fully discussed. the Legisla
ture took no action at all In the matter.
The New York Funding Association, which
was organized In New York some time ago
and which announced that it intended to begin
a campaign against the Southern States and
compel some arrangement by which thesbond.
holders should be paid, have failed miserably
In their first fight, and this on account of their
own bad movements and strategy.
This Funding Association some weeks ago
requested Gov. Porter, Of Tennessee, to call
the Legislature in extra session to consider a
compromise of the State debt that they pro-
posed, to wit, the funding Of the bonds at
sixty cents on the dollar at the present rate
OF interest. The Legislature was called for
this purpose, met, considered the proposition
OF the Association, declined to accept it, and
adjourned.
The Funding Association requested the
Governor to call another session at once,
ms they had other compromises to offer.
This was done, and the Legislature reassem-
bled. The anti-bondholders, repudiationists,
etc, then offered to compromise the debt
IL the Funding Association would agree that
the bonds should be funded at fifty cents at
four per cent interest. If this had been
agreed to the question of the Tennessee State
debt would undoubtedly have been settled
by this time, but the Association hestated,
off half n icac
and terms, and completely bewildered, con-
fused and deceived the Legislature.
When an auctioneer offers a valuable desk
for $40, "only half the cost price" then drops
10 $15, then to $40 and finally asserts that
"anybody who wants the old thing can have it
for So" the locker on Is pretty apt to hesitate
and wait until that desk comes down to his
price-half q dollar. This seems to have been
exactly the way in which the Tennessee
Legislature acted. 1t waited for the Funding
Association to drop to fifty cents and four per
cent interest There is little doubt that the
association would have gladly accepted these
terms, and there is little doubt, on the other
hand, that the Legislature would have
agreed to them and enforced the compromise
faithfully. The association. however, hes
itated, and tried to secure better terms. Being
strong in the Senate it secured the passing Of
a bill there in funding the bonds at fifty cents
Mt four per cent interest for ten years, and five
per cent interest for the remainder of the time
until the bonds became due. Having secured
the passage of this bill the Senate immedi-
ately adjourned sine die, it being the opinion of
the bondholders that the House would be COM
PEELED by this fact to adopt the Senate bill
The House met and defeated the Senate bill
by large majority; it then passed funding
bill at fifty cents, and four per cent interest,
and also adjourned sine die. The conse-
ouence is that the association has defeated it.
self No funding bill Of any kind has been
passed, as the funding bills passed by the
Senate and the House respectively fail to
agree, and neither of the two is consequently
law.
The whole matter appears to have been mis-
arahly mismanaged. 1t would have been far
better if these two extra sessions had never
been call d. They have Injured the State
sseait, brought the disgrace OF quasi-repu-
aasgion on Tennessee. and probably defeated