Evening star. [volume] (Washington, D.C.) 1854-1972, 1893-08-12
SCARCITY OF MONEY.
Ex-Secretary Tracy SuEEests a Plan
for Immediate Relief.

Ex-Secretary Tracy SuEEests q Plan
for Immediate Relief.
General Benjamin F. Tracy, ex-Secretary
OF the Navy. was asked yesterday to tell
what. in his opinion, were the causes Of the
present financial situation. He said the
question was too comprehensive to answer
off-hand, but that he might, after due re-
Election. attempt to give his Views on it. He
consented to talk OF the currency famine.
He said:
THE administration has ample power to
relieve the currency famine In forty eight
hours by exercising authority with which 1t
Is clothed by statute"
How may this be done?"
THE act Of July A. 1890. known as the
Sherman act, directs the purchase of four
and one-half million ounces Of silver bullion
That the Secretary Of the Treasury skall
each month coin 100000 ounces Of silver
bullion. purchased under the provisions Of
this act. into standard silver dollars. until
the first Gay of July. 1884, and after that
time he shall coin Of the silver bullion pur-
chased under the provisions Of this act as
much as may be necessary to provide for
the redemption Of the Treasury notes herein
provided for. and any gain or seigniorage
arising from said coinage shall be accounted
Tor ana paid into the Treasury.
The amount Of bullion purchased but rot
coined. under the above provisions, prior to
July, 1881. was about 30.0O0.0O0 ounces At
ton suspended the coinage of silver dollars.
The accumulated purchases Of bullion since
that date amount to I00 200 ounces, max
ing a total Of lao. 100000 ounces of uncoined
silver In the Treasury today. Against this
silver treasury notes have been issued to
It's bullion value, but standard silver
dollars have been coined with which to re-
deem them. The Secretary of the Treasury
Is. therefore, at liberty to direct that all or
any portion Of these 10000 900 ounces be
coined into silver dollars
the pronts OF seigniorage for the coming
OF this bullion would make upward of $50
OOOOOO II the whole amount was coined. The
moment the Secretary of the Treasury d.
reefs to coin this bullion, and places it at
the mint for that purpose. he can treat the
gain or Setgntorage thereon as already Sc
cured. The profit Is So much additional cash
In the Treasury. To coin the whole amount
would. therefore, set free, not only for CIR
culation. but for disbursement, $50 900 900 OF
the silver coin now held In the Treas ury for
the redemption Of silver certificates issued
against 1t from time to time. and would set
1t free Immediately. for the coin 50 held
would be replaced by the bullion in process
OF coinage at the mint.
THE coin thus made available could he
Immediately deposited at national ieposi-
tories, and. being there deposited would at
once enter upon the circulate Of the ccun-
or the government indicates that unless the
step Is taken of increasing it's resources by
the profits to be derived from the coinage of
the bullion now in the Treasury 1t wifi be
would escape a deficiency Of at least $50 600,
600 at the close of the current fiscal year
Il am not attempting to indicate what the
present administration should do, or to ex-
press my opinion as to what 1t may be wise
for Ii to do. limit myself to suggesting
what 1t may do II 1t chooses to exercise the
powers vested by the statutes In the Score
tary Of the Treasury"