is for the public fervice: and I trust the very large re-payments which are fecured to the bank in the course of the prefent year, will admit of their making these temporary advances at a period when they are peculiarly important,

I have the honour to be, &c. (Signed) WM. PITT. Governor and Deputy Governor of the Bank. S P. S. In cafe the bank fhould find it neceffary (which I hope will not be the cafe) to difpofe of any of the exchequer bills on the vote of credit, before provifion is made for their difcharge, and any lofs fhould arife from their being at a discount in the market, I fhould of courfe propofe that fuch a lofs fhould be made good by the public.

After a debate on the fubject of this letter, the court came to the following refolution thereon:

hundred thousand pounds on the credit of exchequer bills on the confolidated fund, on condition of being paid off the 400,000l. lately advanced to government, and the navy bills due and coming due; but they do not confent to advance the fecond fum of eight hundred thousand pounds in the month of Auguft.

The governor, deputy governor, with Mr. Darell and Mr. Samuel Thornton, were defired by the to the chancellor of the exchequer; court to carry up these refolutions which they did as foon as the court broke up. And being admitted, they gave a copy of the refolutions to Mr. Pitt, who having read them attentively over, faid, "He was

66

Refolved, That this court confent to receive payment for the amount of advances on the treafury bills which have been and fhall be paid before the first of August, beyond the fum of 500,000l. and which will be 867,70l. in exchequer bills iflued on the vote of credit of the prefent year, under the ftipulation of indemnity from lofs on the fale propofed by Mr. Pitt, and to wave their claim of re-payment of the 500,000l. till the meeting of parliament; when the court will expect that this mode of paying treasury bills fhall be totally done away.

Refolved, That the court do not confent to advance any more money for the payment of fuch bills which fall due after the first of Auguft.

Refolved, That the court do confent to the other part of the

of the committee; and that he "would be glad to fee the gover "nor and deputy governor agaia "before the next court fhould " meet."

AFTER attentively confidering

1 received from you on Thursday laft, I feel it an indispensable duty, however unwilling I am to urge any request which appears to them liable to any difficulty or objection, to represent to you, in the moft earneft manner, that it will be impoffible to avoid the most serious and diftreffing embarrassments to the public fervice, unlefs in addition to the accommodation which has been already agreed to for the prefent month, the court can confent to advance the fecond fum of 800,000l. in the month of August, and can also make provifion for the payment of fuch farther treafury bills as may fall due in the next month, or as may be drawn payable in September and October. With refpect to those for the two latter months, as none fuch have yet been accepted, I fhould hope an arrangement may be made for accepting them, payable at a period fubfequent to October, by which means the inconvenience of the advance may poffibly be in a great degree obviated. I must requeft you to take the firft opporfanity of laying this application before your court, and to ftate to them, that objects of the utmoft importance to the public are involved in their determination upon it.

I have the honour to be, Gentlemen, Your obedient humble fervant, (Signed) WM. PITT. Governor and Deputy } Governor of the Bank. f Refolved, That this court do agree to advance, for the fervice of the public, the fum of 800,00ol. towards the end of the month of Auguft, on the fecurity of exchequer bills to be iffued under the act of parliament on the furplus of the confolidated fund; and that

fuch treafury bills as have been ac. cepted, and fhall fall due during the month of Auguft, be likewife difcharged on a depofit of like exchequer bills to be iffued on the confolidated fund to an equal a mount, which bills have been ftated by the chancellor of the exchequer to be about the fum of 300,000l.

That this court do not engage to advance for any fum of treafury bills which may be drawn, and fhall fall due after the month of Auguft.

That this court do expect that the chancellor of the exchequer will give a promise that a new mode of paying the treafury bills fhall be adopted immediately on the meeting of parliament, as this court will not continue the mode of difcharging them any longer.

Refolved, That the court, have ing granted this accommodation with great reluctance, and contrary to their wishes, the governor be defired to prefent to Mr. Pitt, a copy of the following memorial; and request of him, that, for the juftification of the court of directors, the fame may be laid before his majefty's cabinet:

"The court of directors of the bank of England, fully fenfible of the alarming and dangerous fituation of the public credit of this kingdom, and deeply impreffed with the communication lately made to them by the right honourable Willam Pitt, both by letter and in a conference with the governor and deputy governor, are very willing and defirous to do every thing in their power to fupport the national credit, and to enable his majefty's minifters to carry on the public fervice; but in com plying with the request made to them by the right honourable Wil

liam Pitt, in his letter of the 27th inftant, they think that they should be wanting in their duty to their proprietors, and to the public, if that compliance was not accompanied with the following most ferious and folemn remonstrance; which, for the juftification of their court, they defire may be laid before his majesty's cabinet.

"They beg leave to declare, that nothing could induce them, under the prefent circumftances, to comply with the demand now made upon them, but the dread that their refufal might be productive of a greater evil, and nothing but the extreme preffure and exigency of the cafe can in any fhape justify them for acceding to this meafure; and they apprehend, that in fo doing they render themfelves totally incapable of granting any farther affiftance to government during the remainder of this year, and unable even to make the ufual advances on the land and malt for the enfuing year, should those bills be paffed before Christmas.

"They likewife confent to this meafure, in a firm reliance that the repeated promifes fo frequently made to them, that the advances on the treasury bills fhould be completely done away, may be actually fulfilled at the next meeting of parliament, and the neceffary arrangements taken to prevent the fame from ever happening again, as they conceive it to be an unconftitutional mode of raifing money, what they are not warranted by their charter to confent to, and an advance always extremely inconvenient to themfelves."

(No. 23.) Interview with the Chancellor of the Exchequer, 9th Aug. 1796. SOME lifts of treasury bills ac

cepted, payable at the bank, of which about 37,000l. fall due in September and October, being brought down to the bank, the governor and deputy governor this day waited on Mr. Pitt, to mention this matter to him; and to remind him, that the court had refolved not to pay any bills on the treasury due in thofe months, unless provifion was made for the fame by the treafury. Mr. Pitt thanked them for the attention, and told them, that it was meant to prepare money at the bank for the dif charge of those bills.

Downing Street, Nov. 3, 1796.
Gentlemen,

I HAVE to request you to reprefent to your court, that it will contribute effentially to the public fervice, if they think proper, to advance the amount (as it may be wanted) of exchequer bills ufually raised on the land and malt; and that I fhall, in that cafe, be enabled to make provision for the payment of the balance now due on treasury bills, at such time and in fuch proportions as may be agreed upon by them.

I have the honour to be,
Gentlemen,
Your obedient humble fervant,
(Signed)
WM. PITT.

Refolved, That the lords of the treafury be accommodated with the fum of 2,750,000l. on the land

and

and malt taxes, 1797, on the following conditions: That the fum of 1,513,3451. 198. 7d. already advanced by the bank on treasury bills of exchange, be paid thereout; and that all the treafury bills directed to be paid at the bank, which fhall fail due in the months of November and December, fhall be difcharged and fatisfied by money to be fent down for the purpose: and that from the first day of January, 1797, provifion fhall be made, on notice that bills have been accepted to the amount of 100,000l. that money or exchequer bills to that amount fhall be iffued to the bank three days before the whole fum becomes due. The government was defired to inform the chancellor of the exchequer with the above refolution, and at the fame time mention to him, that the court intended to adhere ftrictly to thefe terms, and hoped he would give directions that no alteration hould take place refpecting them.

(No. 25.) Interview with the Chancellor of the Exchequer, ift of February, 1797

THE governor and deputy go. vernor yesterday waited upon the chancellor of the exchequer, to reprefent to him how uneafy the court were at their large advances for government, and especially on the treafury bills paid, which now amounted to 1,554,6351. and would in a few days be augmented to 1,819,8181. and required that fome effective measure thould be immediately taken for the payment of the whole of this fum, as had been fo feriously promited them should be done at the opening of this

but faid, that he had been prevented by the very preffing calls for various other fervices. He faid, however, he would confider over his payments and refources, and would endeavour to form fome plan, for the re-payment of the treasury bills, against the next day, when the governor and deputy governor were to wait upon him again about the business of the national stock. Accordingly, this day Mr. Pitt refumed the fubject, and faid, that he was endeavouring to fell exchequer bills; out of which he hoped to be able to pay about 300,000l. at prefent; which the governor wished him to do, that the bank might be provided for the bills now falling due. Mr. Pitt faid, as to future payment he believed he could propofe to pay every week about 150,000l. or in that proportion, until the whole fum now due was paid off. Mr. Pitt, however, hinted in converfation, that another large fum of bills had appeared from St. Domin go. The governor begged he would give us an idea to what amount they were. He said, about 700,000l. on which the governor expreffed great apprehenfion about fuch an accefs to the prefent advance; and begged of Mr. Pitt to put off the acceptance of these. freth bills, or, at least, to protract the acceptance of them to a term of two months beyond their tenor; which, he faid, he would confider about, and take his refolution.

The governor then defired Mr. Pitt to write a letter officially to him, and he would lay it before the court, and take their refolutions upon it. Mr. Pitt then hinted that he fhould want fome money to fend to Ireland, that he had been applied to for a large fum, but that 200,000l. in fpecie would be

neceffary.

neceffary. The governor and deputy governor told him, that any farther drain of cafh from the bank would, in thefe times, be very dangerous, as they acknowledged that the cash had been very materially leffened of late, and they therefore begged of him to try if 100,cool. would not be fufficient.

(No. 26.)

Interview with the Chancellor of the Exchequer, 3d of February, 1797

THE governor and deputy governor this day waited on Mr. Pitt, to mention to him that his letter, which contained the engagement to liquidate the prefent advance on treasury bills, was yesterday laid before the court; who, after a long debate on the subject, had fubmit ted to the plan as propofed by him; but that, by the direction of the court, they recommended a punc tual performance of the payments promised Which Mr. Pitt faid fhould certainly be observed; and

that he had hopes of being able to pay it off, even quicker than he had proposed.

(No. 27.)

Refolution of the Court of Direc tors, and Deputation's Interview with the Chancellor of the Exchequer, 10th February, 1797. THE committee met this day, and taking into their most serious confideration the certainty, which now threatens us, that Mr. Pitt will be obliged to bring forward here a loan for Ireland, to the amount of 1,500,000l. and the evils which will probably follow on fuch a measure to this houfe, by the fending over to that country a great part of the fum in fpecie →→→ they refolved to afk of Mr. Pitt, a confiderable reduction of the bank's prefent advances to government, to be raised, as he hinted, by a new loan: and they made out a statement for that purpose to be prefented to him, which was as follows: