Mr. Pitt faid, he would fend 50,000l. to the bank in part provihion thereof, but that he did not think he could raife the money to the full amount of the bills due.

(No. 36.)

Interview with the Chancellor of the Exchequer, 24th of February, 1797.

AT a committee of the whole court held this day, it appeared that the lofs of cafh yesterday was above £. and that about £. were already drawn out this day, which gave fuch an alarm for the fafety of the houfe, that the deputy governor and Mr. Bofanquet were defired to wait on Mr. Pitt to mention to him thefe circumstances, and to ask him how far he thought the bank might venture to go on paying cath, and when he would think it necefiary to interfere before our cash was fo reduced as might be detrimental to the immediate fervice of the ftate. Mr. Pitt faid, this was a matter of great importance, and that he muft be prepared with fome refolution to bring forward in the council, for a proclamation to ftop the iffue of cafh from the bank, and to give the fecurity of parliament to the notes of the bank. In confequence of which he should think it might be proper to appoint a fecret committee of the house of commons to Jook into the ftate of the bank affairs; which they affured him the bank were well prepared for, and would produce to fuch a committee. Mr. Pitt alfo obferved, that he fhould have no objection to propofe to parliament, in cafe of a proclamation, to give parliamentary fecurity for bank notes. The governor and deputy governor this day waited on Mr. Pitt, to mention

to him, that it would in the prefent circumftances be highly requi fite that fome general meeting of the bankers and chief merchants of London fhould be held, in order to bring on fome refolution for the fupport of the public credit in this alarming crifis; and they took the liberty to recommend to Mr. Pitt, to have a private meeting of fome of the chief bankers at his house to-morrow, at three o'clock, in which the plan for a more general meeting on Tuesday or Wednefday next might be laid; in the propriety of which Mr. Pitt agreed, and faid he would fummon a previous meeting for to-morrow accordingly. This was communicated by the governor to the com. mittee.

plied with out of hand, and that he would order 1,200,000l. to be paid to the bank, on that account, immediately.

ANSWER to (No. 4.)

ON prefenting this paper, Mr. Pitt faid, it was not his fault that the account had not been diminished, for he had ordered, some time fince, two warrants to be made out, amounting to above 600,000l. which were now completing, and would foon come down to us; fewing, at the fame time. the preparatory parts thereof. The governor then replied, that 600,000l. would not nearly reduce the amount to the agreed fum; that our calls had lately been fo great, with large drains of cash and bullion, as made us earneftly wish to leffen our credits, as much as poffible; and then he wifhed Mr. Pitt would, without particular inconvenience to himself name a day from whence the refolution of the court should take place. The deputy-governor afked, if Mr. Pitt could do this next Monday (when the chairs were to meet him on the national. flock business)? He replied, he could not, he believed, be ready to do it by that time; but he might probably then inform us farther about it; and added his hope, that the bank did not, for this year,

mean to reftrict him from the credit of 500,000l. on treasury bills.

ANSWER to (No. 5.)

MR. PITT acknowledged, That he had not, in his note of Wednefday laft, entered into any particu1rs about the payment of the treafury bills; but that he meant, if the bank affifted him with the two

millions and an half in question, on exchequer bills, payable out of the growing produce of the confolidat ed fund, in the quarters for October next and the April following, he did mean to pay part of the bank's advance on the treasury bills out of that money; but he hoped that the whole of it would not be required, bot that it fhould be provided for out of other funds -The governor then obferved to him, how frequent pron ifes had been given to reduce this advance to the limit of 500,000l. which had never yet been carried into effect; and begged leave to represent, how defirous the bank court was, to have the payment of the treafury acceptances otherwife arranged toan at the bank; which Mr. Pitt faid, fhould be taken up on a future occafion. The governor said, he

ld not engage for any thing; but he knew how defirous the court always was to affift the government; though a provident care for their eftabiifh ent must precede all other objects. Mr. Pitt obferved on this, that the welfare of the bank, we must fuppofe, was an object of equal importance to hm as to us. The governor then added, that though he did not ergage for the court, if Mr. Pitt could promife that two millions of the fum now asked for fhould be applied to extinguish fo much of the advance on the treafury bills, he believed it might be acceded to. Mr. Pitt replied, that he could not anfwer for fo large a part being paid immediately; but that he would, on this information, draw up a new letter to the court, to be confidered next Thurfday; and he wifhed to fee the two governors at twelve o'clock on Tuefday next, to fubmit to them the plan of his

letter:

letter: and the governor and depaty promifed to wait on him at that time accordingly.

ANSWERS to (No. 7.)

AFTER Mr. Pitt had read this paper, with great attention, twice, he began by expreffing his fatisfaction and approbation of the meafure of communica ing fuch matters to him; saying, that he would most certainly frame his arrangements in a manner that might enable him to remove our fears, and prevent unpleafant confequences; and that he would endeavour to do this in fuch a manner as fhould produce no alarm; ftrongly remending to the court of directors to ufe every poflible precaution to prevent that alfo.

The governor then faid, That he hoped Mr. Pitt did not conceive it to be the intention of the court to refuse the advance of the land and malt, 1796; but orly that it was their with to protract it for fome time. Mr. Pitt faid, he understood it fo, and should avoid applying for it until it might be more fuitable to the bank. He alfo faid, he fhould certainly re-imburse a million of the treasury bills, and repay the 1,100,000l. as foon as the accounts were made up; and, if neceffary, the 1,400,000l. remain ing fhould be re-imbursed.

The governor mentioned to him, the drain of cafh to Ireland, the calls for the Weft-India armament, and the probability of foon perceiving thofe that may be occafioned by the claimants of the neutral fhips being reimburfed: in all which he feemed to concur. Then the governor stated to him, that the price of goid being fo much above the value of our guineas, muft neceffarily impress his mind with the unavoidable

confequences. The chancellor of the exchequer viewed this in a most ferious light.

The governor then mentioned the probability of the claims of the American hips taken in the West Indies foon coming to a hearing, and which he faid, from report, would a nount to near four millions. Mr. Pitt agreed that appeals were foon to be made, but he did not think the amount would come up to fuch a fum. The governor then refumed the fubject of the treasury bills; and hoped, that after the meeting of parliament, Mr. Pitt would fo arrange matters as to prevent their continuing to be paid by the bank in the manner lately adopted. His reply was, that this object would foon ceafe; their amount feemed to have impreffed his mind with a defign to difcontinue the fervice that occafioned them; the troops were about to return home. He candidly acknowledged, that the expense of our troops on the continent had been enormous; and intimated, that the bent and operation of the war, as long as it did ftill continue, would be naval, and in the Weft Ind es.

The governor then made his acknowledgments to Mr. Pitt, for the indulgence of fo much time as he had given to him and the deputygovernor. The chancellor of the exchequer faid, he was going out of town to-morrow, for a week, and at his return would be glad to fee the governors again, if any thing material fhould occur.

fame, and to report the Refult thereof to the Houfe, together with their Opinion on the Neceffity of providing for the Confirmation and Continuance of Majures taken in purfuance of the Minute of Council on the 26th of February last.

Ordered to report, THAT the committee having, in purfuance of the order of the houfe, proceeded to take into their confideration the feveral matters referred to them, have agreed to report thereon as follows:

With refpect to the first part of the order of the houfe, by which they are directed to examine and report the total amount of outstanding demands on the bank of England, and likewife of the funds for difcharging the fame, they called upon the governor of the bank, and upon Mr. Bolanquet, one of the directors of the bank (who attended them in the abfence of the deputy governor), for an account to that effect; which account having, by them, been produced to the committee, was verified by the deputy accourtant of the bank; and the fame having been examined by the committee, it was agreed to report the refult thereof to the Lonfe, as follows:

That the total amount of outftanding demands on the bank, on the 25th day of February laft, was 13,770.59ol; and that the total amount of the funds for difcharging thofe demands, over and above the permanent debt due from government of 11,686,8oci. was, on the fame day of February last, 17,597,280l., and that the refult is, that there was, on the 25th day of February laft, a furplus of effects belonging to the bank beyond the total of their debts, amounting to the fum of 3,826,8gol. over and

above the before-mentioned permanent debt of 11,686,800l. due from government.

The committee think it right to obferve, that this account is made up to the 25th of February inclufive; and that fince that day, feveral confiderable iffues have been made by the bank in banknotes, both upon government se. curities, and in difcounting bills, the particulars of which could not immediately be made up; but that, as thofe iffues were upon correfponding fecurities, taken with the ufual care and attention, the actual balance in favour of the bank has not been materially varied, but, if at all, has been rather increased.

In proceeding to the confideration of the fecond part of the order of reference, in which the com mittee are directed to report to the houfe their opinion on the neceffity of providing for the confirmation and continuance of the meafures taken in purfuance of the minute of council of the 26th of February, the committee have thought it right to confine their inquiries to thofe points only on which that neceffity appeared to them principally to depend; and having examined to these points the governor of the bank, and the faid Mr. Bofanquet (one of the directors thereof), the committee find,

That the bank of England has lately experienced an unufual drain of cafh.

That this drain was owing, in great part, to demands for cafh, from the country; fuch demands being made upon the bank indirectly from the country, but directly from the bankers of London, who are to fupply the country.

That by the effect of this drain,

the