New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1893-08-16
SECRETARY TRACY,s IDEA.
Interview With the Ex.secretary Of the
Navy.

Interview With the Ex.secretary Of the
Navy.
The Administration Could Relieve The
Stnngency in Forty-Eight Hours.
Gen. Benjamin F. Tracy, ex-secrctary
of the navy, was asked Saturday to tell
what, in his opinion, was the cause of
the present financial situation. He said
the situation was too comprehensive to
answer off-hand, but that he might, after
due reflection, attempt to give his views
on it. He consented to talk Of the cur
rency famine he said:
ss'Fhe administration can relieve the
currency famine in 48 hours by exercis-
ing authority with which it is clothed by
statue" g.
"How may this be done?''
ssThe act Of July Ia, 1890, known as
the Sherman act, directs the purchase of
100000 ounces of silver bullion month
ly and in the third section provides that
the secretary of the treasury shall each
month coin 100000 ounces of silver
bullion purchased under the provisions Of
this act into standard silver dollars un.
til the first day of July, 1891, and after
that time he shall coin the silver bullion
purchased under the provisions of this
act or as much as necessary to provide
for the redemption of the treasury notes
herein provided for, and any gain or
selgnorage arising from said coinage shall
be accounted for and paid into the treas
ury. s...~s -.
''The amount of bullion purchased,
but not coined, under this provision, pri-
or to July 1891, was about 3O,OOO,O0O
ounces. At that date President Harri-
sons administration suspended the COIN
age of silver dollars. The accumulated
purchases of bullion since that date
amount to 110,000,000 ounces making a
total of 140, 100000 ounces of uncoined
silver in the treasury today. Against this
silver treasury notes have been issued to
its bullion value, but no standard silver
dollars have been coined with which to
redeem them. The secretary of the treas
ury is therefore at liberty to direct that
all or any portion of these 1tO,0O0,O0O
ounces he coined into silver dollars.
"The profits of seignorage for the com
ing of this bullion would make upward
of $5O,O0O,0OO, if the whole amount
were coined. The moment the secretary
OF the treasury decides to coin this bull
Ion and places it at the mint for that
purpose, he can treat the gain or selgnor-
age thereon as already secured. The
profit is so much additional each in the
treasury. To coin the whole amount
would, therefore, set free not only for
circulation but disbursement $50, ,O0O, 900
of the silver coin now held in the treas
ury for the redemption of silver certif
Gates issued against it from time to
time and would set it free Immediately.
A coin SO held would be replaced by 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 erter the circulation of
the country. The present falling off in
the receipts of the government indicate
that unless the step is taken of increas-
ing its resources by the profits to be de-
rived from the coinage of the bullion
now in tbs treasury, 1t will be under the
necessity of selling bonds, if it would es-
cape deficiency of at least $50, ,OOO, 900
at the close Of the current fiscal year.
81 am not attempting to indicate what
the present administration should do, or
to express any opinion as to what it
may be wise for it to do; limit myself
to suggesting what it may do, if it choo-
ses to exercise the powers vested by the
statutes in the secretary Of the treasu-
ry.'
SOME SLEEPY EYETEMS.
= Vote Taken on the General Charter
Law.