In 1917 Tracy graduated from Central High School. He began studying architecture at the University of Pennsylvania but dropped out to become a professional singer. He began singing part-time in the Yiddish theatre and vaudeville while working as a furniture salesman.
After moving to New York City in 1924, he appeared regularly in vaudeville, joined the Blossom Time touring company and appeared in various New York amateur revues, where he was seen by William Paley who offered him a 15-minute CBS radio program.
To avoid embarrassing his family if his show failed and to prevent being blackballed from future vaudeville bookings for having appeared on radio, Tracy decided to make his identity a mystery and borrowed a billing from the title of Frederick Lonsdale's play The Street Singer. Listeners demanded to know his identity, but it was not revealed until five months after his 1931 debut on CBS. The following year he was off to Hollywood to appear in The Big Broadcast of 1932 with other radio stars, including Bing Crosby, Kate Smith and the Boswell Sisters.
In the short film Ramblin' Round Radio Row #5 (1933), his last name is pronounced "Treecy."
Tracy gave his romantic interpretation to such songs as "When I Grow Too Old to Dream", "I'll See You Again", "Trees", "Everything I Have Is Yours", "Red Sails in the Sunset", "Harbour Lights", "The Whistling Waltz" and "Danny Boy". His 1937 recording of "Pennies from Heaven" was featured in the 1981 movie of that name, with Vernal Bagneris lip-synching to Tracy's voice.
The film brought Tracy out of retirement, and at age 82 he returned as a cabaret singer at the Cookery in Greenwich Village in 1982. This brought a favorable review in The New York Times from John Wilson, who wrote that his vocalizing had "a delightful patina of period charm", adding that Tracy was "a spellbinder, setting a mood and scene, disarming the doubters by admitting that 'I always put all the schmalz I had into my songs.'"