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parture from the original object of their inftitution, and from too close a connection with government. It was necellary to guard against the effects of perfuation or of force, which might be employed by government at any future period. The bank had departed from their original inftitution, contrary to that claufe in the act of king William prohibiting them from ever owing more than the amount of what was owing to them by government. Another claufe in the 5th of king William provides, that the bank, under the penalty of forfeiting triple the amount, fhould not make any advances to government, but on funds granted by parliament. This tied up their hands from making too great advances, and this continued with great advantage till within three years, when a claufe to repeal it was thruft by a fide-wind into an exchequer loan bill, by which an indemnity was given for paft advances, and the controul removed in future. Since that period the bank had made advances to government, which it could not have done had the provision existed. His fecond propofal, therefore, was to repeal the claufe, and to re-establish the prohibition. His third was to enable the bank to avail themselves of the debt due from government. These were the three points which he intended to propofe. If the prefent capital were not fufficient, the fum of eleven millions might be increased, and then, independent of the profits of their tranfactions, and the affets they poffeffed, as long as the country exifted the creditors of the bank would have fecurity in their dealings. Mr. Sheridan wifhed the three first propofitious to be confidered in a committee of the whole houfe; and concluded with moving. "That it

appearing to this houfe, that the the effects of the bank on the 25th of February laft amounted to 17,597,280l. and that the outstanding demands on the bank amounted to 13,770,590l; and it further appearing that there is owing to the bank by government the fum of 9,964,4131. (exclufive of the permanent debt due from government of 11,686,800l.) "Refolved that it is highly expedient, as well for the honour of his majesty's government as for the re-establishment of public credit, that the speedieft measures fhould be taken for the payment to the bank, of the faid advances, or of a confiderable part thereof."

Mr. Pitt rofe, and, after fome preliminary obfervations, demanded across the table, whether Mr. Sheridan meant by his propofition that the bank fhould never owe more than the country owed to the bank of original debt; or whether he meant that it never fhould owe more than the country owed to the bank upon parliamentary fecurity?

Mr. Sheridan replied, that he meant by his propofition that the bank fhould never owe more than the whole amount of the debt due from government to the bank upon parliamentary fecurity. The chancellor then proceeded. He was glad to hear that the honourable gentleman had come to this explanation, which, he was perfuaded, was not the original idea which the houfe fuppofed from his mode of ftating his propofition. What was the beft mode of bringing out the fpecie, when there was a scarcity in circulation, was certainly a point of great delicacy to determine. The honourable gentleman's plan was, to limit the circulation of paper in order to call forth the cash. For his own part he believed it was

quite impoffible all at once to call back fpecie, into circulation. Paper, he faid, was a good medium of exchange if it refted upon a proper ultimate fecurity, and if it did not exceed the demands of the medium; but when a country was furcharged with it, certainly it became a great evil. Mr. Pitt contended, that the propofitions then before the houfe were inadequate to the end for which they were brought forward. The debts of the bank amounted to thirteen millions, all of which was demandable in cath: now, though government were to pay five millions to the bank, even fuppofing they could pay it in cafh, would this be fufficient to liquidate all poble demands upon that corporation? which was the pofition held by the honourable gentleman. He concluded with moving the previous question.

Mr. Fox defended the refolutions propofed by Mr. Sheridan. He faid the queftion for the house to decide upon was fimply this, Whether the liquidation of the debt due from the government to the bank, which was admitted on all hands to be expedient, ought to be executed as a part of the minister's plan of finance, or in confequence of an independent refolution of the houfe? He thought the latter mode was much preferable. The houfe divided upon the previous queftionAves 183 Noes

45 It has been already obferved, that the chancellor of the exchequer introduced the indemnity-bill into the commons on the 9th of March; on the 13th of the fame month, he brought up the bill under the title of "A bill for enabling the bank of England to iffue notes in payment of demands up

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Mr. Fox faid, there feemed to be no provifions in the bill obliging government to receive notes in payment of the taxes, which, as he fuppofed, was one part of the mi nifter's plan. He exhorted the houfe alfo to obferve the alarming fituation in which every man in the kingdom was placed. If any perfon could not pay his debts in cath, he was liable to be fued and arrested at the will of his creditor, as there was no poffibility of procuring a fupply of fpecie. This fituation was certainly alarming, and it might be particularly hard upon bankers; yet, he was convinced, that if the only remedy which could be reforted to were ufed, it would be much more ruinous and deftructive. Here he alluded to the making of bank notes a legal tender.

The chancellor of the exchequer, in that ftage of the bill, waved making any obfervations upon what had fallen from the right honourable gentleman.

Mr. Hobhoufe objected to the whole bill as an act of robbery and depredation against the public creditor; he therefore oppofed it throughout; left the plunderer, paffing in this inftance with impunity, fhould proceed in his fyftem of pillage. He was afraid that mi

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nisters,

nifters, by iffuing the order of council, had taken a ftep which they would never be able to retrieve.

Mr. Bryan Edwards faid, the houfe was now placed in this predicament, by the motion for the fecond reading of the bill, either that this stage of the bill fhould be poftponed, that the order of council fhould be repealed, which would occafion a run upon the bank, or that the houfe fhould fanction an order of this nature before they were acquainted with the grounds upon which it was iffued, which certainly would be in the highest degree unparliamentary. He was of opinion, that the fecond reading of the bill fhould be put off till the report of the fecret committee was before the house.

Lord Hawfkebury reminded the honourable gentleman and the houfe, that the committee alluded to had been first appointed to inquire into the neceffity of continuing and confirming that order of council. The committee had ac cordingly made that inquiry, and reported to the houfe, that the order of council ought to be continued and confirmed; and fince that, another inquiry had been referred to that committee, to know whether the privy council were juftified in their proceedings at the time of the reftriction, which was a confideration fecondary to that of its continuance. But certainly the houfe might, with the greatest propriety, permit the bill to be read a fecond time, as the opinion delivered in the report of the former committee was, that the operation of the order of council ought to be continued, which undoubtedly could be beft carried into effect under the authority of an act of parliament. Mr. Grey rofe chiefly to ftate to

the house fome alarming information contained in a paper prefented that day by Mr. Long, in confequence of a motion which was made by an honourable friend of his on a former day. It had also been moved fome time before, that, minifters, in the present state of the country, ought to be prohibited from fending any further fums to the emperor. The anfwer of the chancellor of the exchequer on the latter occafion did not preclude him from iffuing any part of the 500,000). which was put at his difcretion by a vote of credit granted to him by parliament before Christmas. He reminded the houfe, however, at what time this fum was voted; it was voted before Chriftmas, long before thofe calamities which had now overtaken us, long before the houfe of commons knew that the bank had ftopped payment, and that the credit of the country was wounded in its moft vital part. Had the houfe at that time been aware of the dangers with which they were threatened, he was convinced that they would not have given their affent to the meafure of fending mo ney out of the country. When this danger was realized, and when we were befet by a crowd of unexpected difafters, he did expect that minifters would have exercifed the difcretion vefted in them for the retief, not for the further oppreffion, of the public. What was his furprife then, when on looking into the accounts which were that day prefented, to find, that as late as Saturday laft a fum of 120,000l. was iffied in exchequer bills to be paid in fpecie by the bank to the agents of his imperial majefty. He hoped that the houfe would impofe fome reftriétions upon thofe minifters, who became more defperate in proportion as the defperation of

public affairs increased, and prohibit them at this time from fending more money out of the country. He had heard also that these exchequer-bills were at from 2 to 3 per cent. discount; a circumftance for which they could not account, as they were payable by the bank on account of the paymafters of the forces.

After a few obfervations by the chancellor of the exchequer the bill was read a fecond time, and ordered to be committed to a committee of the whole houfe on Monday next.

The chancellor of the exchequer on the fame day informed the commons that he had that morning had a meeting with fome London bankers, who had fuggefted to him fome circumftances, which, in his opinion, would be material for the confideration of the house. These circumstances however were of fuch a nature as to render it neceffary that they should hold a meeting among themselves. It was alfo ne cefary they thould have an opportuuity of holding that meeting before the house went into a committee upon the bill. Under thefe circumftances it appeared to him necellary that the houfe thould not go joto the committee that day, as he had intended. The committee was Therefore poftponed till the enfuing Wednesday.

On that day (March 22) the houfe refolved itfelf into a committee, and the bill being read paragraph by paragraph, on the claufe granting an indemnity to the bank, Mr. Dent obferved, that the fearcity of cath that then prevailed was partly real and partly ideal. That fcarcity had been produced by a variety of circumstances, the alarm of invafion, the melting down of guineas, the fending them abroad,

and the immenfe fpeculations which had been occafioned by the extended commerce of the country. From the present state of affairs, bankers, in general, were reduced to a fituation of the greateft difficulty and hazard. It was not his wifh that notes fhould be made completely a legal tender, but only fo far as the debt of the bank then extended, and, in his opinion, the bank ought to be reftricted from iffuing any more notes, except with the confent of two-thirds of the proprietors.

Mr. Fox commented on the circumftance of the bank having iffued 50,000 guineas for the accommodation of private bankers. The measure might be right or wrong; but what he found fault with was the channel through which the accommodation was obtained. The bankers, inftead of petitioning the bank, went and petitioned the chan cellor of the exchequer, who interfered with the directors of the bank, and by his influence procured for them this fupply. What, faid Mr. Fox, muft be the con fequence of private perfons going to the minifter and making ufe of his influence to induce the bank to extend its credit where it had refufed to extend it, and to substitute authority in place of confidence. It had been faid, from good authority, that because the bank was not liberal enough in its difcounts, the merchants had recourse to the fame channel, and that in confequence of another authoritative in. terference thefe difcounts had been extended. One of the reafons why he was against granting indemnity to the bank was, that if the state of things was what it had been reprefented, and if the perfons who entered into the affociations which had been fo much talked of, were

*

*For receiving bank-notes inftead of money. See Principal Occurrences.

fincere

fincere in their profeffions, no indemnity would be neceffary. If thefe affociations were extenfive enough to protect the bank for the future, they might certainly be trufted as amply fufficient to protect it for the paft. For these reasons he fhould vote against the prefent clause.

The chancellor of the exchequer replied to the arguments of Mr. Fox, and denied the influence of minifters with refpect to the bank having accommodated private bankers with the fum of 50,000 guineas, and with refpect to the difcounting of bills.

Mr. Manning and Mr. Thornton, two bank-directors, affured Mr. Fox that the bank had acted entire ly upon their own discretion.

Mr. Baflard ftrongly reprobated the influence which government had affumed over the affairs of the bank. With regard to the indemnity the houfe was called upon to pafs, he did not know to what it was to apply. He had no doubt in his own mind of the culpability of the bank directors, and wifhed an inquiry into their conduct. Parliament ought to cut off entirely that connection which had been fatally eftablished between government and the bank, from which a great part of the prefent calamity arofe.

The queftion was then called for, and the claufe carried without a divifion.

The fecond claufe being read, Mr. Fox faid, taat he intended to move for an exception to this claufe with regard to dividend-warrants. That the claufe was meant to comprehend thefe could not be doubted; but if fo, it fhould be more clearly and fpecifically exreffed. As the houfe was not conidering at present the propriety of creating a new circulating medium,

but deliberating upon a measure by which the public faith was broken with the public creditor, by refusing to pay him in cafh; he gave notice that he fhould move as an amendment to this claufe" that the bank fhould be prohibited from making any advances to govern. ment by which the exifting debt fhould be increased during the continuance of the prefent act.”

The chancellor of the exchequer objected to the introduction of any fuch claufe. If the neceflity of adopting the prefent measure arofe from the prefent scarcity of cash in the bank, that circumstance was incompatible with tendering payments of the public dividends in cafh. Mr. Pitt remarked, that the precife ftipulation with the public creditor was to pay the public dividends at the back. The fums iffued from the exchequer to the bank, and the payment of fums due to government, were usually paid in bank-notes. Nor was it reasonable during the prefent temporary and national embarraffment, that the receivers of dividends fhould be the only perfons exempt. ed from the confequences which the preffure of the moment unavoidably occafioned.

Mr. Fox replied that the doctrine held by the right honourable gentleman was very alarming, as it openéd a way to the most dangerous fraud upon the public creditor. Neceffity had compelled the government to defraud the public creditor, by offering him that which the law never had in contemplation when it fecured to him 5 per cent. for his money. This was the fulfilment of the event predicted by Mr. Hume: when government was to lay its hands on the fums provided for the payment of the pub. lic creditor, the government, not

the

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