The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1878-04-01
Course of Examination Agreed Upon by
lnlationislS and Resumptionists.
The GOVERNMENT AND THE BANKS
Conservative Attitude Of Republican Senator's
Toward The President.
FROM OUR SPECIAL CORRESPONDENT.

WAsHiSGToS, March 81, 1878.
TIE EXAMINATION OF SECRETARY SHERMAN BY
THE BANKING AND CURRENCY COMMITTEE
INFORMATION TO BE SOUGHT by THE INFLA-
TIoNIsTs AND THE SOUND MONEY MEMBERs.
The Banking and currency Committee have made
elaborate preparations 10 Secretary sherman
tomorrow Several OF its leading members have
boon studying the report or his conversation with tho
senate Finance Committee, and intend to take
point OF departure and base further inquiries upon
what tho Secretary there said. General Ewing VIII
take the lead the nfaonist sido Of tho committee
and says he means TO ask for:-
Ftrst-A specific statement Of the act ual amount
OF gold ana silver in tho Treasury applicable TO re-
sumption, and what amount is la tho actual posses
sion OF the national banks
Second-What amount OF paper currency he expects
TO be able TO keep afi oat redcemable In coin.
7hiyd--What amount OF he counts on accumu-
latng between now and January l, 1879, In addition
to what he already has where he expects TO get
IL, and how.
Fourth w neither the Secretary expects to resume
In both gold and silver or whether no means use
his silver as barrcadc TO preserve his gold.
General Ewing says he hopes 10 show that Secro-
tary Sherman, in his statements before the Finance
Committee OF tho senate, largely overstatcd tho
amount OF gold which Is In reality applicable to
sumption BY failing to mako deduction for the
sinking fund, accruing interest ana other do
mands for which the gold Is specially appro-
prlated by law, and that these reductions being
made, the sum OF gold applicable TO resumption Is
comparatively riaing. He adds that in his Interview
with the Senate Finance Committee tho Secretary
failed to answer tho question whether and how tho
volume Of bank circulation would be maintained after
resumption, but only SAID the banks must look
out for themselves General Ewing will try to
show that tho United States must meet the
ontiro Coin demand precisely II the $3.50 000, 900
OF paper money wore all legal tendcrs-in other
words, that tho banks nocd not make, as they nave
not made, preparation for resumption except TO nc.
cumulate legal tender notes. because the Treasury
bound 10 supply the coin demand whether mado on
Il directly through tho banks TO tho OF
whole volume OF legal sender curfepcy.
Mr.. Chittcndcn, who IS tho leader OF tho sound
money 10 the committee, has. for hts part, pre-
pared four questions which no intends to ask tho
Secretary, and which no expects cloar and definite
answers. Ho has written them out to savo time and
they as follows:-
First-With silver and silver certificates full legal
tender Tor all debts, including tho customs and tho
public debt, is not gold practically dcmonezed and
how will you renew your supplies or prevent its OK
elusive uso use merchandise In foreign commerce
.Secoad-ls there danger that tho national banks
ookn out for themselves will hoard green backs
enough TO exhaust your gold reserves when tho day
for resumption comes?
Third-Is It probable that before you have coined
hundred million OF tho silver dollar, with greater
activity In foreign trade, they will DO adopted NJ
their bullion value to settle trade balances and with
what effect upon tho price Of bullion?
FoarM-Docs not your success In rcsumirg coin
payments depend absolutely upon an advance in tho
price OF silver bullion London to about 1ity.ninc
pence sterling per ounce
II Is very curious that these sets OF questions
Mr.. Chittcnden's and Mr.. Ewng's--havc been eabo-
rated by zach without Communication with tho Other
the being q most pronounced hard money
man and the other tho leader OF the
innatonists. Both seem to have como indepe ndcnty
TO somewhat similar conclusions so far their con-
illusions be gathered from their questions ana 1t II
evident that tho Secretary Will have to TACO what
may DO called q combined attack. Tho IMITATION
part OF tho committee arc determined IL
possible force the Secretary such admissions rs
would strengthen their demand for further silver leg
islaton. In this thoy will hardly succeed, but tho
financial situation OF tho government and the coun-
try is nkciy to become very tborouhgy understood
before tho committees OF Congress get cono with tho
Secretary.