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their cordial sympathy and prompt and noble benefactions 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 49,393 bonds, amounting to $49,173,316 66; the number cancelled is 28,385, amounting to $28,163,016 66; the number now outstanding as a liability against the State is 20,219, amounting to $20,221,300. In ten years the State has paid three instalments of interest, seven are past due, amounting, after deducting $149,050 paid to educational and charitable institutions, to $4,052,717. making a debt of principal and interest of $24,274,000 17. The settlement 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 name of the State, the credit and honor of every one of its citizens. It is a liability that was voluntarily contracte 1, and whether it was wisely created or not cannot now be a question. In December, 1877, certain creditors of the State proposed to adjust that part of the debt held by themselves upon a basis of fifty cents for principal and past due interest, and offered assurances that the great body of the creditors would accept the same terms; this proposition was submitted to an extra session of the Fortieth General Assembly and its acceptance earnestly recommended. I am satisfied that the creditors making this proposition would still make the adjustment; settled at fifty cents the debt would amount to $12,137,000; the annual interest upon this sum, at six per cent would amount to $728,220. I do not hesitate to again urge the acceptance of this proposition. I cannot be mistaken in the opinion that the people of the State are anxious to be delivered from a further discussion of this question and from a longer postponement of its settlement. If this recommendation is adopted the Comptroller should be invested with authority, after a day to be fixed by law, to make publication, with notice to financial agents of the several counties, announcing the number of old bonds returned and cancelled, with the number of new bonds issued and the amount of revenue to be provided to meet the 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 BETWEEL THE GOVERNOR AND STATE TREASURER IN REFERENCE TO THE MASTIN BANK FAILURE. Sr. LOUIS, Mo., Jan. 8, 1879. Governor Phelps' message to the Legislature is , lengthy document. It reviews the relations of the Governor with the State Treasurer, and the connection of the latter officer with the defunct Mastin Bank, which was one of the State depositories. It says the State Bank of Missouri, from its incorporation to its close, was the financial agent of the State. When it failed, a year and a half ago, there was no law prescribing where and how State funds should be deposited; nor was there any law giving the Governor or Auditor any supervising power over the matter. The Treasurer was simply required to give account to the Auditor of receipts and expenditures. The constitution requires the State's money to be deposited in a bank selected by the Treasurer and approved by the Governor and Attorney General, but the passage of a law was necessary to give force to this requirement, and the Legislature failed to pass such a law. In this condition of things, if the surety of a Treasurer became insolvent or removed from the State, neither the Governor nor any other official had power to demand another bond; neither did, nor does, the Governor possess power to remove a Treasurer for neglect of duty. Before the failure of the Mastin Bank the State Treasurer had no understanding with Governor Phelps as to the deposit of the State's moneys. When the Mastin Bank failed State Treasurer Gates had about half a million of the State's funds in it. The Treasurer had the bond of the bank for $1,000,000, also some valuable securities, the sale of part of which has realized $220,000, leaving in the Mastin Bank about $280,000. Last fall the Bank of Commerce, of St. Louis, and the Exchange Bank, of Jefferson City, were made depositories of State 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 brougat suit against the Mastin Bank and its bondsmen immediately after its failure for the recovery of the State funds. No legal proceedings have been instituted by Governor Phelps against the State Treasurer or his bondsmen, as it is thought the State has no right to sue until the Treasurer is forced to give a new bond. The State Treasurer was indicted at the October term of the Criminal Court of Jackson county for alleged criminal transactions with the Mastin Bank. Governor Phelps immediately instructe the Attorney General to assist the Circuit Attorney of Jackson county in prosecuting the State Treasurer, as well as his predecessor, who was also indicted. The State could not proceed in the case at the last session of the Court on account of the absence of witnesses. The Governor says if the State Treasurer is guilty he should be punished. The Executive will protect no one from punishment. The law must be executed against all, without distinction, but as an act of justice to the State Treasurer, the Governor says, he has demanded a speedy trial.
