The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1879-01-09

people Of the entire country of the whole world for
their cordial sympathy and prompt and noble bene-
factions to the afflicted and distressed citizens OF
Tennessee during the late terrible epidemic.
Governor james d. Porter. the outgoing Executive.
to-day delivered his Message to the Legislature. On
the subject of the State debt he said
The State has issued 1898 bonds, amounting to
$49,l133lt 66; the number cancelled is 3S,3S5,
amounting to $2s 3.016 66; the number out
standing as liability against the state is 2o.2l9.
State has paid three instalments of Interest.
seven are past due. amounting, after deduct
s sao Pa t9 and he in
and interest Of $24 IT, The settlements OF this
debt is paramount to all questions of Legislation that
can engage the attention of the General Assembly;
it involves the honor and good of tho
State. the credit and honor of every
of its citizens 1t liability that was voluntarily
contracted and whether it wisely created or not
cannot now be question. In December, 1871 certain
creditors of the State proposed adjust that part of
the debt held by themselves upon basis of fifty
cents for principal and past due interest.
and offered assurances that the great body
terms; this proposition was submitted to an
extra session OF the Fortieth General Assembly aud
fed that the creditors making this proposition would
still make the adjustment settled at fifty cents tho
debt would amount to sl2 the annual interest
upon this sum. at six per cent would amount to
$72S220. l do not hesitate to again urge
the acceptance Of this proposition cannot be mis-
taken in the opinion that the people of the State
anxious TO delivered from further discussion
OF this question and from longer postponement Of
its settlement. If this recommendation is adopted
the Comptroller should be invested with authority
after day to be fixed by law, to make publica-
ton, with notice to financial agents OF the sew
eral counties announcing the number of old
bonds returned and cancelled with the number of new
bonds issued and the amount Of revenue to be pro-
vided to meet tho interest with the amount assigned to
each county; upon this publication and notice the
county courts should be required to make the
necessary levy to meet the interest without further
legislation.
MISSOURI FINANCEs-THE CONTEST BETwEEA
THE GOVERNOR AND STATE TREASURER II
REFERENCE TO THE MAsTIN BANK FAILURE.
ST. LOUIS. No. JAM 8, 1879.
Governor Phelps message to the Legislature is
lengthy document 1t reviews the relations Of thu
Governor with the State Treasurer. and the
ton of the latter officer with the defunct Masrin
Bank, which was of the State repositories. II
says the State Bank of Missouri from it's incorpora-
ton to its Close was the financial agent Of the
State. When it failed. year and half ago.
there law prescribing where and how State
funds should be deposited; there any law
giving the Governor Auditor any supervising
power over the matter. The Treasurer was simply
required to give account to the Auditor
of receipts and expenditures. The consti-
tuition requires the States money to be
and approved by the Governor and Attorney
General. but the passage OF law was necessary to
give force to this requirement. and the Legislature
failed to pass such law In this condition OF things,
if the surety of Treasurer became insolvent
moved from the State, neither the Governor nor any
other official had power to demand another
bond; neither did, nor does, the Cover
possess power to remove Treasurer
for neglect Of duty. Before the failure Of the
Mastn Bank the State Treasurer had no understand
ing with Governor Phelps as to the deposit of the
States moneys. When the Mastin Bank failed State
Treasurer Gates had about half million of the
States funds in it. The Treasurer had the bond Of
the bank for $1,O00.000 also some vaiua-
BILE securities, the sale of part of which
has realized $2200o0. leaving IN the Mastin
Bank about $2SO,000. Last tall the Bank
of Commerce, of st. Louis, and the Exchange Bank.
funds under the law. both giving satisfactory bonds
and depositing in the hands of trustees in New York
securities of the United States and OF this State for
the faithful performance of their contract
State Treasurer Gates brought suit against the
Mastn Bank and its bondsmen immediately after its
legal proceedings have been instituted by Gov
ernor Phelps against the State Treasurer
his bondsmen as it is thought the State
has no right to until the Treasurer
Is forced to give q new bond. The State Treasurer
indicted at the October term of the Criminal
Court Jackson county for alleged criminal tansac
tons with the Mastin Bank. Governor Phelps inn
the Circuit Attorney of Jackson county in prosecute
ing the State Treasurer, well as his predecessor.
who was also indicted The State could not proceed
In the cose the last session Of the Court
Of the absence of witnesses. The Governor says il
the State Treasurer is guilty he should be punished.
The law must be executed against all. without dis
tincton, but act Of justice to the State Treas
urer, the Governor says, he has demanded speedy
trial.