The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-08-12
The Secretary at Liberty to Direct the Coin
age of the l40. .00O. 900 0nnces of Silver in
the frsaiury Vaults if lie Wants TO.
Fourth National of Nashville Refuses 10
Pay Above 500 to Deposition
..Bank-Certiied Checks TO Be Used for
Money al BlTalo-FailareS.


The Administration, Under Existing Laws,
Has Ample Power TO Relieve the srriDgeocy.
NEW YORK. Aug. 11.-Gen. benjamin K.
Tracy. ex-Secretary of the Navy. was asked
to-day to tell what. in his opinion. were the
causes OF the present financial situation.
He said the question was too comprehensive
TO answer of hand. bnt that he might
after due reflection. attempt TO give his
views on 1t. lie consented To talk of the
currency famine. He said: The admin
istration has ample power TO relieve the
currency famine in forty-eicht hours by
exercising authority with which it is
clothed by statute"
How may this be donei"
"The act of Jnly ii. 1890. known as the
Sherman ect. directs the purchase O..
4,50o,0OO ounces of silver bullion monthly,
and the third section provides that the
Secretary of the Treasury shall each
month coin 100000 ounces of silver
bullion, purchased under the provis-
ions OF this act. into standard silver
dollars, until the first day OF July. 1891,
aud after that time lie shall coin of The siI.
YER bullion. purchased under the provisions
of this act. as much as may be necessary TO
provide for the redemption of the treasury
notes herein provided tor. and any gain or
seigniorage arising from said coinage shall
be accounted for and paid into the treas
ury. The amount of bullion purchased. bat
not coined. under this provision.
prior to July. 1891, was abous
S0000.O00 ounces. At that date Presi-
dent H8rrison's administration Suspended
the coinage of silver dollars. The accumu-
lated purchases of bullion since that day
amount TO llO.OO0.0 900 ounces making "a to-
tai of 140.000.00J ounces of unooined silver
in the treasury to-day. Against this ssive
treasury notes have been issued TO its bul.
lion value but no standard silver dollars
have been coined with which To redeem
them. The Secretary of the Treasury ia.
therefore, at liberty to direct that all. or
any portion. of these 10000. COO ounces be
coined into silver dollars.
Tho profits Of seigniorage for the COIN
age of this bullion would make upward OF
fifty million dollars If the whole amount
were coined. The moment the Secretary Of
the Treasury decides TO coin this bullion,
and places IL at the mint for that purpose.
he can treat the gain or sci gniorage there-
on as already secured. The profit 10 so
much additional cash in the treasury. To
corn the whole amount would therefore set
for disbursement. fifty million dollars
of the silver coin now held IN tho
treasury for the REDEEM ption of silver cer-
tifcates issued against it from time to
time. and would set it free immediately.
for the coin so held would be replaced hy
the bullion in process of coinage at the
mint. The coin thus made available could
be immediately deposited at national de-
positories. and being there deposited. would
at once enter into the circulation of the
country. The present. falling off in the re-
receipts of the government indicate that
unless the step be taken of increasing it's
resources by the profits TO be derived from
the coinage of the bullion now in the treas-
ury, it will lie under the necessity of SELL
ing bonds. IL it would escape q deficiency
of at least $4,000. 900 at the close of the
current fiscal year. l am not attending
to indicate what the present edministra-
tion should do. or to express any OPINION as
to what IL may be wise for it to do. L Limit
myself to suggesting what it may do, If it
chooses TO exercise the powers vested by
the statutes in the Secretary of the Treas
ury."