defign of fending money to the continent, to carry on the war, he was bound in duty to give it his negative. The houfe thould reflect on the evils which fuch a measure as this would not fail to produce. It would leffen the value of the paper currency of the kingdom. He had feen the mifery which that had produced in other parts of the world, by raising moft rapidly the price of all provifions, and bringing on a train of evils with which that houfe was unacquainted.

Mr. Wilberforce Bird, who reprefented a manufacturing town, had inftructions from his conftituents, to inquire what method would be recommended to enable them to carry on their business, and to answer the many demands to which it expofed them. A rumour had gone abroad, that it was the intention of the bank, to iffue fmall notes of one or two guineas each. He was exceedingly folicitous to know if the rumour had any foundation, as fuch an expedient would quiet the alarm, and relieve the manufacturers from prefent preffures.

Mr. Pitt replied, that it was his intention, before the houfe feparated, to move for leave to bring in a bill, which might be carried through both houfes very quickly, to enable the bank to iffue notes below 51. value.

Notes of this kind were accordingly iffued in a few days. They were found to afford very great temporary convenience; but feem to have laid a foundation for many evils, particularly to the labouring

and other claffes of the people, as well as to ftipendiaries of all kinds; the very leifurely advancement of whole wages and falaries is ufually very difproportionate to the rapid depreciation in the value of the national currency.

Sir William Pultney obferved, that in 1793, the Newcastle bankers had declared, as now, that they muft ftop the payment of their notes in cafh, under the preffure of temporary fcarcity; but they foon obtained the neceffary fupply, and went on again as before. It was notorious to every body, that the bank had not always befide them cash for all their notes; for, if they had, why iffue notes at all? However, he was of opinion, that the caufes, which had contributed to place the bank in its prefent fituation ought to be known. Though fuch a measure, as that adopted by administration, might do no harm for once, yet it was neceflary to prevent it in future. It was certain that the country could not ftand if the credit of the bank was fhaken: it was therefore neceffary to protect its ftability, not by a partial, but full and particular investigation into the causes of its embarrafments.

Mr. Huffey faid, let the chancel lor of the exchequer pay all the money advanced by the bank, and their prefent embarrasment would ceafe. Let him pay the ten millions due to the bank, and every thing would refume its ufual course.

Mr. Pitt, perceiving that fome fufpicions were entertained that the measure adopted for fuccouring pub

lic credit, was defigned to be permament, affured the houfe, that nothing could be farther from his intention. However, while it continued, it aught to have the fanction of legiflative authority. With regard to what was faid by Mr. Huffey, pay the bank, and all will be well," it was founded on a mistake: for, by the greater part of the fum due to the bank, was floating advances, not now made for the firft time. Nor were there more advances now outstanding than there had been before on many occafions, prior to his coming into office. Mr. Curwen, Mr. Brandling, and Mr. Baftard, declared their oppofition to a fecret and partial inquiry into the prefent and alarming fituation of the bank, in the ftrongest

terms.

Mr. Sheridan did not conceive the measure that had been adopted for its relief, as a temporary expedient. He forefaw that the bank never would be able, afterwards, to defray its out-standing engagements in cash. For, how was it poffible they could? fince they were about to illue a greater quantity of paper, and their cash was feized on for the public fervice? He did not approve of appointing a committee to inquire into the affairs of the bank, as he had the firmeft confidence in its folidity: but he deemed it highly expedient, that a committee fhould be appointed to inquire into the grounds on which the order of the privy council had been given. He was unfriendly to a committee for inquiring into the fituation of the bank, but instead of oppofing it would move an amendment, which confifted in an additional claufe, inftructing the committee, to "in

quire into the caufes which had pro duced the order in council, dated February 26, " providing for the confirmation and continuance of the meafure contained in the order."

Mr. Dundas faid, that the amend ment proposed negatived the origi nal motion. While Mr. Sheridan profeffed himfelf averfe to an inquiry, he propofed to enlarge it, by adding a queftion refpecting the causes of the embargo; which were alleged to be a total mifmanagement in in every department of finance. Thus an inquiry into every circumftance of the war, from its commencement, would be fet on foot; and the firft and great object of fatisfying the public with refpect to the folvency of the bank, would be delayed till the state of the nation, in every particular, could be afcer tained.

Mr. Fox confidered the two queftions of the meafures to be adopted, and the cause of the prefent fituation of the bank, as infepa rable. Until the house were ap prized of what had produced the order of council, relative to the dif order, they could not poffibly know how to apply the remedy.

Mr. Pitt obferved, that though the motion and amendment comprized three diftinct queftions, yet Mr. Sheridan, by the tenor of his fpeech, had objected to that part of the motion which preffed an inquiry into the state of the bank. This inquiry, however, he wished to be made, with a view to fhew that its ultimate refources were folid. And this he confidered to be the more neceffary, that Mr. Fox, at the fame time that he had expreffed his conviction that they were fo, had yet stated their late conduct

not to be remedied. When gentlemen cried up the folidity of a corporate body in one breath, and in the next imputed bankruptcy to it, an inquiry became neceflary, in order to establish its reputation, for being equal to the difcharge of all its engagements. Mr. Fox replied, that he had not applied the term of bankruptcy to the ftate of the bank, but to government, to which it had been long applicable. On a divifion of the houfe, Mr. Sheridan's amendment was rejected by 244 against 86. The original motion was then carried without a divifion, and a fecret committee chofen by ballot.*

Mr. Fox then moved, "That it is the duty of this houfe to inquire into all the caufes that have produced this extraordinary meafure." This refolution being agreed to, Mr. Fox gave notice that he fhould, on the next day, move for the appointment of a committee to that effect. Accordingly, on the next day, March 1ft. Mr. Fox moved, that a committee be appointed to inquire into the caufes which had produced the order of council. This motion was feconded by general Walpole, and fupported by Mr. Sheridan, Mr. Grey, Mr. Curwen, and Dr. Lawrence, but opposed by Mr. Pitt, on the ground that the committee, already appointed, was competent to every purpofe of inquiry. The motion, on a divifion of the house, was loft;

it 144.

A fecret committee, for inveftigating the affairs of the bank of England, was alfo appointed on the fecond of March, by the houfe of lords. On the fixth, the earl of Chatham brought up the report of that committee, which ftated, that, on the twenty-fifth day of February last, there was a furplus of effects, belonging to the bank, beyond the total of their debts, amounting to the fum of 3,826,8907. exclufive of a permanent debt of 11,666,8007. due from government; that the bank of England had lately experienced an univerfal, drain of cath; that this drain was owing to demands for cafh from the country, arifing from local alarms of invafion; demands had been, of late, progreflively increafing, but particularly in the last week; and that there was every reafon to apprehend that these demands, and the confequent progreffive reduction of cah, would continue, and even increafe; infomuch, that there was reafon to apprehend that, if it were to continue in the fame proportion, the bank of England would be deprived of the means of fupplying the cash which might be neceffary for preffing exigencies of public fervice. On thefe grounds the committee ftated it as their opinion, that it was neceflary to continue and confirm the mea. fures already taken, for fuch time, and under fuch limitations, as to

the wifdom of parliament might feem expedient.*

The duke of Bedford contended for the neceflity of appointing a fecret committee, in order to inquire into the caufes of the prefent embarrafments. He had an objection to a fecret committee, being of opinion, that, in order to reftore the confidence of the nation, the greatest publicity ought to be given to its proceedings. His grace therefore moved, "That a felect committee, of fifteen peers, be appointed to inquire into the caufes for fluing the order of council of 26th of February last.”

Lord Grenville differed from the noble duke, not on the propriety of an inquiry, but on the diftinction he made between a fecret and a select committee He was of opinion, that a secret committee was preferable; he therefore moved, as an amendment, that for felect, the word fecret fhould be fubftituted.

The duke of Norfolk had no objection to a fecret committee, if it was openly appointed: but he objected to the mode of choofing a committee by ballot, be, cause it was well known that fuch committees were chofen by the minifters friends. In the last committee, there were no fewer than three cabinet minifters, who were the very perfons who figned the order of council in queftion, and two of whom were near relations of the minifter. After a fhort conference, that enfued be

tween the duke of Bedford and lord Grenville, his lordthip's mo, tion was agreed to: on which he moved, that the committee be chosen by ballot.

The duke of Bedford obferved, that it was notorious, that the last committee was compofed of those very perfons whofe conduct was implicated in the inquiry; and fhameful, that men fhould be appointed judges of their own acts. He was, therefore, of opinion, that the committee fhould be openly nominated by their lordflips, and made a motion to that effect. But, on a divifion of the houfe, the appointment of a committee, by ballot, was carried.†

The report of this committee was taken into consideration, in the houfe of peers, on the fifteenth of May. The duke of Bedford faid, when he first read the order of council, aferibing the drain of cash from the bank to unfounded alarms of invafion, he doubted the truth of the allegation. But when he found that a committee, appointed, by ballot to inquire into the circumftances which rendered that order neceffary, was compofed notonly of the zealous fupporters of adminiftration but of members of that very cabinet on whofe conduct they were appointed to decide, his doubts were confirmed. He therefore thought it his duty to move for an-, other committee,with more extended powers than the former, which was agreed to. But the committee, as

before

before, was compofed almoft intirely of their own fupporters, with a due proportion of the members of the cabinet. He was difpofed to doubt the matter contained in the order of council, from the beginning; and thefe doubts were confirmed by an inveftigation of the report of the committee. On the correfpondence which had taken place between the bank-directors and the chancellor of the exchequer, he meant to propofe certain refolutions: of which he proceeded to ftate the fubftance. His grace went through the different parts of the correfpondence, and particularly adverted to the refolution of the court of directors of the eleventh of February, 1796, and Mr. Pitt's anfwer to it, in which he promises neither to make any farther loan, nor ad, vances to the emperor, without previously confulting the bank; while, at the very moment, he was fending money to his Imperial majefty. After reprobating the conduct of administration, in the severeft terms, and defcribing minifiers as the defpoilers of our fortunes! oppreffors of the poor and plunderers of the rich! he moved the firft of the following refolutions:

I. That it appears to this houfe, that, fubfequent to the month of June, 1795, and during the year of 1796, a great diminution was experienced in the fpecie of the bank of England.

II. That it appears to this houfe, that the governor, and deputy-governor, of the bank, did, at various times, reprefent, to the chancellor of the exchequer, the danger to the bank from the diminution of its fpecie, particularly at the following periods: (amounting to twelve, and which were particularly fpecified).

III. That it appears, that, during thefe periods, the directors of the bank frequently remonftrated with the chancellor of the exchequer, on the magnitude of their advances to government, anxioufly requiring payment, or a confiderable reduction of the fame; but that, neverthelefs, the chancellor of the exchequer not only neglected to com, ply with the object of thefe remonftrances, but, ufually, under pretence of the neceflity of the. public fervice, renewed his demands for farther aid; and, that, under the exigency of the cafe, as ftated to them by the chancellor of the exchequer, the directors of the bank' were, from time to time, induced to confent to farther accommodation,

IV. That it appears, that the chancellor of the exchequer frequently folicited fuch farther accommodation, in the moft anxious and preffing terms; declaring, that it was impoffible to avoid the most ferious embarrafment to the public fervice, unlefs the directors of the bank afforded the affiftance he required.

V. That it appears, that, although by thefe means the directors of the bank-were induced to comply with his demands, they generally expreffed their reluctance in ftrong language; and, that they, at last, that is to fay, on the twenty-eighth of July, 1796, thought it neceffary, for their own juftification, to request the chancellor of the exchequer to lay before his majesty's cabinet their moft felemn and ferious remonftrance; in which they declare, that, "fenfible of the alarming and dangerous ftate of public credit, nothing could induce them to comply with the demand then made