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ed in gross misrepresentation of the vances made to the emperora truth, in thameful attempts to con- mounted to 14,988,422!.; and lat. ceal what ought to be known to ly, that the fums paid for all sorts the houfe. In this summary it of military services on the contiwas contended, however, that the nent, during the war ending in ditficulties of the bank were ow 1763, amounted to 20,626,9971. ing in some degree to a scarcity of His grace remarked upon this state. circulating medium. Hence it was ment, that if the authors of the redenied that bilis of exchange were port meant to compare the expenapplicable to the purpose of cir- ces of the present war on the conti. culation. He referred to Mr. nent with those of the war ending Thornton's evidence upon the in 1763, the number of years fobject in page 71 of the report, ought to have been marked; and who ftates his opinion nearly as then it would be found that there follows, * I conceive that the num- had been expended in tour years of ber of bills of exchange, which the present war almost twice as much may happen at any time to exist, as in eight years of the former. He bears no neceffary proportion to begged their lord hips to remark, the magnitude of the existing trade; that, in the account of the conalthough I conceive that the ute tinental expences during the preof them in payment does bear a fent war, the sums advanced to the pretty regular proportion to the emperor are said to be included. It quantity of coinmerce. For in- appeared, however, that the account stance, at Liverpool and Manchef- was accurate only by leaving out ter all payments are made either in the word " including the imperial coin or bits of exchange.” His loan and the advances made to the grace said, if they bore a regular emperor.” These fums appeared proportion to the quantity of com in the title, but were excluded from merce, he could hardly agree in the body of the account, so that the opinion advanced in the paper there was an error in the total sum annexed to the report, that they of 5,500,oool.

of 5,5oo, oool. For an error so were not a part of the circulation gross, he knew not how to account; of the kingdom. He came now to however, he would leave it to their a fubject of a much more serious lordships to decide whether the ernature. As it was stated that this ror originated in intention or igno paper contained facts, but which rance, but to one or the other it were not warranted by the evi- must be imputed. His grace next dence given before the committee, , dwelt at fome length on our exnor introduced into the report, he parts and imports, upon which was at a loss how to account for great stress had been laid by the the gross mis-statement which he committee. He reminded their was about to mention. In page lordships, that in the last years of 252, they found that all the remit. the American war the exports atances made for the services of the bove the imports were averaged at war, into different distant parts 6,000,000l. He found that the adduring the last four years, amount- ditional expence of naval stores, ed to 33,510,7791. diftinguidhed which certainly was considerably from those expended in other parts increased in time of war, is stated during the laid four years, includ- as having rendered the balance of ing the imperial loan; and the ad. commerce less favourable; but this

circumftance ought to have been vations upon this subject, he proe mentioned on the other fide of the ceeded to state the substance of the account, as increasing our exports resolutions which he meant to pro, over our imports. In the summary pose, founded upon the correspond, before their lordships, he was sur. ence which had taken place beprised to find one material thing o- tween the bank-directors and the mitted, viz. the result of the cor- chancellor of the exchequer. His refpondence which took place be- grace went through the different tween the chancellor of the exche- parts of the correspondence, and quer and the directors of the bank, adverted to the resolution of the relative to making remittances to court of directors, of the 11th of foreign powers. His grace made February, 1796, and Mr. Pitt's anfeveral remarks on the representa- swer to it, in which he promises tion of Mr. Ellison, in afcribing neither to make any further loan the stoppage of the Newcastle or advance to the emperor, withbanks to a local alarm; but, in his out previously consulting the bank; opinion, that shock had been pro- while at the very moment he was duced not by alarms, but by a com- sending money to his imperial mabination of different caufes. Upon jesty. After dwelling upon this this part of the subject, he regretted subject for some length, his grace that fome papers containing differ- concluded in a very eloquent apent ftatements of cash in the bank peal to their lordships ; reprobating at different periods, which were the conduct of administration in laid before the committee, had not the most severe and pointed lanbeen published in the report, and guage, whom he described as the more especially as he could have despoilers of our fortunes ! opprelffhewn from them, that the state ors of the poor! and plunderers of ments contained in the report were the rich! He then moved the first false. His grace next made some of the following resolutions:obfervations upon the evidence of 1. That it appears to this house Mr. Boyd and Mr. Thornton, whose that subsequent to the month of opinions were that the difficul- June, 1795, and during the year ties which the commercial world 1795, a great diminution was exhad experienced, and the shock perienced in the fpecie of the bank which public credit had sustained, of England. arose from the bank 'not extending 2. That it appears to this house, their discounts; but to these theo- that the governor and deputy ries he opposed the sentiments of governor of the bank did at va Mr. Adam Smith. His grace next rious times represent to the chan. obferved, that the reduction of the cellor of the exchequer the danger paper in circulation amounted to to the bank from the diminution only one eighth, from the quan- of its specie, particularly at the foltity afloat in 1795. But, fuppor- lowing periods :ing that the decrease had been 11th of December, 1794; roth greater, he could not conceive how of O&tober, 1796; 23d of O&tober, a decrease of notes could produce 1796; 18th of November, 1796; a decrease of caMh; though he could 3d December, 1794; 15th and 16th

fily perceive that a decrease of of January, 1796; 28th of Januacath might produce a decrease of ry, 1796; 5th and 8th of February, notes. After making some obser- 1796; with of February, 1797 ;



8th, ioth, and 21st of February, the dread that their refusal might 1797

be productive of a greater evil." 3. That it appears that during 6. That it appears, that during thele periods the directors of the the above period a confiderable bank frequently remonstrated with portion of the bank advances was the chancellor of the exchequer, on occasioned by payments of bills of the magnitude of their advances to exchange drawn on the treasury government, anxioutly requiring from abroad. payment, or a confiderable reduc 7. That it appears that it had fel, tion of the same; but that, never- dom been the custom of the bank theless, the chancellor of the exche- of England to advance, on the ac. quer not only neglected to comply count of such bills, more than from with the object of those remonftran- 20,000l. to 30,000l, and that even ces, but, usually under pretence of during the American war luch bills the necesity of the public service, never exceeded at any one time the renewed his demands for further sum of 150,00ol. ; the wisdom of aid; and that, under the exigency our ancestors having foreseen, and of the case, as stared to them by provided against, the mischief of the chancellor of the exchequer, fimilar advances by a claute in an the directors of the bank were from ac pated in the fitih year of Wild time to time induced to consent to liam and Mary, by which the go further accommodation.

vernor and company of the bank 4. That it appears that the chan- of England were restrained from cellor of the exchequer frequently advancing any fums of money, C, solicited such further accommoda- ther than on such funds on wbich tioo, in the most anxious and prefl- a credit is granted by parliament. ing terms; declaring, that it was 8. That it appears, that from impossible to avoid the most serious and after the year 1793, at which embarraitment to the public ser- time an act of parlianient pailed, vice, unless the directors of the containing a claule by which the bank afforded the afli stance he re- directors of the bank are indemniquired.

fied for the advances they had made 5. That it appears, that, although out of the bills drawn from abroad, by these means the directors of the and exempted in future from the bank were induced to comply with penalties of the said act of William his demands, they generally expreff and Mary, respecting such ad. ed their reluctance in ftrong lan- vances to government, the amount guage ; and that they at latt, that is of treasury-biils paid at the bank to lay on the 28 h of July, 1796, continued progresively to increase; thought it necessary for their own and that beteeen the itt of Janua juftification, to request the chan. ry, 1795, and the 25th of February, cellor of the exchequer to lay be- 1797, sums to the amount of up fore his majesty's cabinet their most wards of 15,000,oool. were at dit. serious and folemn remonttrance; ferent periods advanced to governin which they declare that, “ sen- ment upon this head. sible of the alarming and dangerous 9. That it appears, that the di. fate of public credit, nothing could rectors of the bank did, at various induce them to comply with the times, during the years 1795, 1796, demand then made upon them, but and 1797, apply to the chancellor

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of the exchequer for re-payment solution to the chancellor of the of such advances, and represented exchequer, who assured thern“ be to him the ruinous consequences to should lay aside all thoughts of it, theinfelves and to the public, of unless the ftuation of things reiaContinuing the system of making tive to the bank Mould fo alter as treasury-bills payable at the bank; to render such a loan of no importand that they even declared they ance or inconvenience to thein." cunceived it to be " an unconstitu 13. That on the 5th of February, tional mode of raising money, and 1796, the chancellor of the exche. what they were not warranted by quer, after stating, in conversation their charter to consent to." with the governor and deputa.

10. That it appears, that the tion from the bank of England, chancellor of the exchequer did, at his opinion of the neceffity of furvarious times, in that period, un- thier aflifting the emperor, promised dertake to reduce the advances on to take no step is that business that head within the sum of without previously communicating 500,oool, and likewise so to ar- to them his intention. range his payments as to put an 14. That on the nth of Februa. end to the account; but that, ne ry, 1796, the directors of the bank vertheless, the said promises never pafled unanimously the following were kept by him, and that the ad- resolutions : vances on treasury.bills, on the " Retolved, That it is the opinion 28th February, 1797, amounted to of this court, founded upon the expe. 1,619,0491.

rience of the effects of the late im, 1. That it appears to this house, perial loan, that, if any further loan that foreign semittances to a much or advance of money to the emlarger amount than ever peror, or to any other foreign state, known in the most expensive wars should in the present state of af. in which this country has been in- fairs take place, it will in all provolved, have taken place fince the bability prove fatal to the bank of year 1793.

England. 12. That the extent of such re • The court of dire&tors, theremittances occafioned at so early a fore, do moft earnestly deprecate period as the end of the year 1794, the adoption of any such measure, and the beginning of the year 1795, and they folemnly protest against great alarnis in tre minds of the di- any responsibility for the calamirectors, which they had at various tous consequences that may follow periods communicated to the chan- thereupon." cellor of the exchequer; and that To which refolution, when com. on the 3d December, 1795, the municated to him, the chancellor court of directors, under the appre- of the exchequer returned for an. hension that it was intended to swer, “That, after the repeated ingrant a further loan to the emperor, timation which he had given to came to a resolution by which they the governor, &c. of the bank, that declare their unanimous opinion, no further loan to the emperor that, should such a loan take place, would be resolved on without preit would be “ most fatal in its con vious communication with the sequences to the bank of England.” bank, he did not see any reason for That they communicated such re- these resolutions; that he did jup:



pose they were adopted in a mo- duced, the bank would have been ment of alarm, and that he thould enabled to give more exten-led aid consider them in that light.” to the mercantile interest of Great

15. That, both from the general 'Britain in the way of discount. tenor of the said aofwer, and from 19. That it appears that if the its particular reference to the sub-advances on treasury bills had been ftance and matter of the resolutions paid off when required, and as the then communicated to him, he gave chancellor of the exchequer had the governors, &c. of the bank to promised, and the foreign remitvaderstand that he was bound by tances abstained froin, as the chanpromise to them to negotiate no cellor of the exchequer had likeloan for the service of his imperial wise promised, there would have majesty, nor to make any remit- existed no necessity for suspending tance either to his said imperial ma- the due and ordinary course of the jesty, or any foreign prince, under bank payments in casb. any pretence whatsoever, without 20. That it appears to this house, previously communicating such his upon an attentive examination of intention to the bank of England; the evidence reported by the secret that the directors to understood committee, upon a minute perutal him, and that, impressed with that of the correspondence between the belief, they abftained from making governor and directors of the bank any further remonftrance on this of England and the chancellor of subject.

the exchequer, during the years. 16. That nevertheless the chan. 1795, 1796, and 1797; and after cellor of the exchequer for fore a thorough review of the whole cime prior to February 11, 1795, circumstances of the case, that the elandestinely remitted, and did for neglect of the chancellor of the exseveral months subsequent clandes- chequer in discharging or fufficiente tinely remit, his said imperial ma- ly diminishing the amount of the jesty, and other foreign princes, fums advanced to government by large sums of money, in defiance of the bank of England, uis perseverhis repeated promises, and in viola- ance in directing treasury bills of tion of his folemnn engagement exchange, to an amount unexwith the bank of England, and ampled, to be paid at the bank, his consequent upon their resolution of frequent promises and conitant the rith of February.

breach of those promises to reduce 17. That it appears, that if the their amount within the funn of faid advances of the bank to go. 500,000l, and that the enormous avernment had been paid off when mount of his remittarices to foreign required, or considerably reduced, princes in loans and fubfidies, were the bark would have been enabled the principal and leading cases to reduce, if expedient, the amount which produced the pecellite for of its outstanding notes ; and that the order of council on the 26th of such option would have been of esa February laft. fential service to its interests.

The earl of Liverpool said, that 18. That it appears from the evi- the fubject upon which he was dence of the governor and deputy now to address their lord shins, was governor of the bank, that if the attended with dithicalty. He hoped, faid advances had been paid off however, to be able to satisfy them, when required, or considerably re. that they ought not agree to the re7797

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