GOL

YOLD and filver, and other precious metals, have a two-fold value: a value intrinfic, and a value conventional. They are valuable on account of their own qualities; and they are valuable as the figns and pledges of wealth. This diftinction men learnt to make in the progrefs of commerce. And there was never an abstraction more curious in itself, or in common affairs more important in its confequences. The conventional, or arbitrary, value of gold and filver, the figns and pledges of wealth, has been taken off, has been abstracted from the solid metals, and transferred to paper: a very flimfy and unfubftantial body, and which may be confidered as holding a middle place between matter and fpirit. It is not, however, the paper that is, in fact, the fubftitute for money, but fomething ftill more exile; the promife, the act of the mind ftamped upon it; fo that money has come to be, not fo much a fubftantial, or material, as a metaphyfical thing; and fo eafily multiplied, that the number of paperdollars in America, affignats in France, and bank notes in Great Britain, have almost exceeded calsulation.

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The bank of England, which has the greatest circulation of any bank in England, was originally projected by a merchant of the name of Patterson, and established in the year 1694. The company was incorporated by parliament, in the 5th and 6th of William and Mary, in, confideration of the loan of 1,200,0001. granted to the government, for which the subscribers received nearly 8 per cent. By an act of the 8th and 9th of William III. they were empowered to enlarge their capital flock to 2,201,1717. By another act of 7th of Anne, they were farther empowered to augment their capital to 4,402,3437. on which they advanced 400,000%. more to government; in 1714 another loan of 1,500,000).; and other loans in fubfequent periods. Nor was the bank of England found to be a greater conveniency to government than this, with others called country banks, was to individual adventurers in manufactures and commerce, and every species of improvement.

But, in this country, as in others, different caufes concurred to remind the world that there was a wide difference between money that poffeffed an intrinfic value, and mo

ney.

induced the farmers and others, refident in the parts diftant from the metropolis, to withdraw their money from the hands of thofe bankers with whom it was depofited. The run, therefore, commenced upon the country banks, and the demand for fpecie foon reached the metropolis. In this alarming ftate, the miniftry thought themfelves compelled to interfere, and an order of the privy council was iffued on the 26th of February, prohibiting the directors of the bank from iffing any cafh in payment till the fenfe of parliament could be taken on that fubject, and the proper mcafures adopted thereupon for maintaining the means of circulation, and fupporting the public and commercial credit of the kingdom at this important conjuncture."

On the following day, therefore, 27th of February, a meffage was delivered from his majefty to both houfes of parliament, ftating, " that an unufual demand of fpecie having been made, from different parts of the country, on the metropolis, it had been found neceffary to make an order of council, to the directors of the bank, prohibiting the iflaing of any cafh in payment, till the fenfe of parliament could be taken on the fubject." The order of council was read, along with his majefty's mef-, fage; and lord Grenville, in the boufe of lords, rofe to move, "that the communication from his majefty fhould be taken into confideration the following day.

The duke of Norfolk was of opinion that the defperate exigency, to which minifters had driven the country, was owing to the exportation of fpecie to the emperor of Germany and our other allies on the continent. He therefore moved,

that a humble addrefs be prefented to his majefty, to prevent the farther exportation of fpecie, until the feníe of parliament fhould be taken on that fubject.

Lord Grenville faid, as their lordships had determined not to take the fubject into confideration till next day, he did not wish to difcufs it, as neither he nor the houfe were prepared for it. The neceflity of acceding to the motion was urged by the earl of Guildford, and the earl of Moira, on the ground, that to decline this would have an ill effect on the public mind.

The duke of Norfolk put the queftion directly to lord Grenville whether it was intended to fend money to the emperor? The fecretary, perfevered in his determination, not to difcufs, that day, a fubjeft that was to be taken into confideration the next. The queftion being put, the duke of Norfolk's motion was rejected by 3+ against 5.

His majefty's meffage being again read, next day, lord Grenville, aiter much prefatory matter, which it is not neceflary to our purpofe to relate, informed the houfe, that he had tivo motions for their confideration; and firft, "that a humble addrefs be prefented to his majefty, to return thanks for his gracious communication, and to allure his majefty, that he might rely with the utmott confidence on the wilddom of parliament, to call forth, in cafe of ne ceffity, the extensive refources of the kingdom: this addrefs was unanimouly agreed to. Lord Grenville's other motion was for the appointment of a felet and fecret committee of nine lords, to examine and report, on the outstanding debis against the bank, the flate of the funds for difcharging the fame; the

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caufe that rendered the order of council néceflary, and which might juftify the members of that houfe for taking the proper fteps for the confirmation and continuance of that meafure."

The duke of Grafton faid, that minifters had gone to the extreme length of a measure founded in an allumption of power, unknown to the laws and conftitution of the country. They would be obliged to have recourfe to a bill of indemnity, to legalize their conduct; for, unlefs this could be obtained, the bank-directors were liable to an action from every individual to whom they refufed payment.

Lord Grenville replied, that he had no objection to that measure; though the bank were not legally obliged to act upon the requifition contained in the order of the council.

The earl of Guildford thought, that there were parts of the inquiry propofed, which by no means required fecrecy, that, on the contrary, they ought to be made as public as poflible. If the bank was in fuch a flourishing state as was reprefented, it ought to be laid before the public, for the purpofe of removing all ground of fufpicion. The duke of Grafton fpoke to the fame effect. But the earl of Liverpool approved of a fecret committee, where fubjects of a delicate nature were to be inveftigated.

The duke of Bedford, confidering the ill conduct of minifters throughout the war, and the alarming flate to which they had reduced the country, thought it not improbable, that the measure in queftion was abfolutely neceffary; though he could not but remark, that, when

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he read the order of council, he was aftonifhed to find that the unusual demand for fpecie was imputed to ill-tounded and exaggerated apprehenfions of individuals, notwith-ftanding that minifters had been the caufe of raiting them. He was a friend to open difcuffion, as their lordships would thereby be enabled · to form a judgement of facts within their own knowledge, and to af-" certain how much of the prefent calamitous ftate of the country was connected with the bank. He did not know, he faid, that there was any reafon why the committee fhould be a fecret committee. there was, he was not prepared to admit it. Be that as it might, he could not conceive that their lordhips were to determine a great national queftion, of fuch immenfe importance as the prefent, on the report of nine lords, be they whom they might. The words, as they now food in the refolution propofed by the fecretary of state, authorized the committee to report their opinion, of the neceffity of confirming and continuing the mea fare adopted by the bank, in confequence of the order of council; which was neither more nor lefs than, that the bank should continue to ftop payment, and to give only paper, inftead of cath, when payment in money was demanded; "a thing both inconfiftent and alarming. His grace, therefore, moved,' by way of amendment to lord Grenville's motion, to leave out all that part of it which related to the committee's reporting their opinion on the continuance of the meature, This amendment,

Lord Grenville faid, he would certainly oppofe, as it tended to IN3]

take

take away an effential part of the original motion, and render the others of little use.

The duke of Norfolk ftrongly objected to a fecret committee. If the bank were equal to all demands, it was for their honour that there fhould be no conceal ment. Any thing like fecrecy would make a ferious impreffion without doors. The duke of Grafton, too, was decidedly against the fecrecy of the committee, and alfo against any report by the committee, on the neceffity of confirming and continuing the meafure adopted in the minute of council. He would therefore fupport the amendment propofed by the duke of Grafton.

The marquis of Lansdowne faid, that noble lords would do him the juftice to recollect, that not one feffion had paffed over, fince the year 1793, in which he had not, to ufe a vulgar but ftrong expreffion, bored their lordships with his prophetic admonitions. His mind had been early imprefled with a moft facred reverence for that moft delicate and indefinite thing, called, public credit. A fmall pamphlet, but a most able one, had been put into his hands, and recommended to his study: it was the production of a great and diftinguithed member of parliament and ftatefman (Harley, earl of Oxford). This noble author illuftrated the nature of public credit, by faying, that it was to the people of Great Britain what the foul of man was to his body. It was pure foul: it was immaterial in itfelf; and yet it was that which gave to fubftance its functions. It was not the cause but the effect; it flowed from the happy organization of all the parts of the material body. It was

not to be created; it was not to be forced: its precife feat, in the body politic, could not be difcovered; it at once prevaded over, and proceeded out of, the whole. It both gave and received its animation and its existence. It was not property, for no branch of the body could call it its own. It was not the king's credit; it was not the credit of parliament; it was public credit. It was that thing which fprung from the happy concoction of all the vital juices of the na tional frame, which proceded from the nice diftribution of our parts, and their mutual co-operation; which gave to the national fyftem a fympathetic connection, an union of action, a correspondence, and promptitude, which, in matter of finance, is known by the name of punctuality. This public credit was the foul of England; it was that which carried the nation to a height infinitely beyond its numerical power. It was our credit that fet all the calculations of political arithmetic at defiance; it derided the cold diffidence of thofe who judged of our means by the geographical limits of the ifland, or the visible number of its people, Public credit did not even look to fecurity as its basis: it always connected fecurity with punctuality. Many lords, with their 20,0001. a year, would find it difficult to procure the loan of 1,0001, on emergency, though they had perfect fecurity to offer, when a neighbouring tradefman, with a capital of, perhaps, only a few hundreds, would find the loan with facility. Why was his? It was the known punctuality of the one placed againft the known want of punctuality in the other: it was becaufe the lender

knew,