Murphy accompanied the army of General Frederick Steele when it marched into Little Rock in September of 1863. The following month Unionists at Fort Smith began to agitate for a loyalist government to be created in the Union-controlled sector of the state. They issued a call for elections to be held in the Union counties to select delegates for a constitutional convention to be held in January.
On December 8, 1863, Lincoln issued his guidelines for creation of loyalist governments in the Union held areas of the South. It provided that if 10% of the number who voted in the state in the 1860 election would swear a loyalty oath, they could establish a civil government.
On January 4th delegates began arriving in Little Rock for the proposed constitutional convention. On January 11 Gen. Steele allowed them to meet in the Senate Chamber of the State House, which was serving as the barracks for the Third Minnesota. Thirty-two delegates were present when the convention began deliberating; forty-six by the time it concluded its work ten days later. The new constitution prohibited slavery and it required a loyalty oath for anyone wishing to vote, but in almost all other respects it was identical to the Arkansas Constitution of 1836.
The convention set March 14-16 for an election to ratify the constitution and choose state officers. They would more than double Lincoln's 10% requirement. The constitution carried by a margin of 12,177 to 226 and Murphy was elected governor 12,418 to 25.
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