folution; the Governor, and other gentlemen deputed, went to Mr. Pitt, fhewed him the statement of the Bank's demands on government; which they wifhed to have paid off, or fo arranged before the fettlement of the Irish loan. Mr. Pitt, on the article of the Treafury bills, faid, that he had already laid his plan for the difcharge of that article, which he meant to adhere to, and that therefore this article might be left out of the prefent agreement; and that he would lay his plan for the liquidation of the reft, by an addition to the late voluntary loan, or by fome other measure as might be moft forcible. The Deputation preffed on him the neceffity of attending, in his plans, to the point of making the payments to the Bank precede thofe which might be fixed for the Irish loan. They alfo informed him of their intention to call a fpecial court of Directors, to impart their bufinefs to them, which might be held on Monday or Tuesday next, as might beft fuit Mr. Pitt. He begged it might be called on Monday, as he faid that Mr. Pelham, the fecretary of ftate for Ireland, had been here fome 'days on this bufinefs; and that it was of the utmoft confequence that the matter fhould be fixed, and advice fent over to that country of it as foon as poffible. On which the Governor told Mr. Pitt, that a court of Directors should be fummoned for Monday; and requested, that he would furnish him with a letter, explanatory of the bufinefs, to be laid before the court; which Mr. Pitt promifed should be fent to the Bank either to-morrow or on Sunday.

SINCE our last conversation I have turned my attention to an idea, which has been fuggested to me, of raifing the money wanted for Ireland as part of one loan, together with that which may be requifite here, and of leaving the time and mode of remittance to be fettled between the English and Irish_governments, according to circumftances. Such a meafure might poffibly prevent fome inconvenience, which would arife from there being otherwise two loans on the market at the fame time, and might also give better means of regulating the remittance in the manner leaft inconvenient. It would at the fame time hardly fail to be acceptable to Ireland, as it would probably procure money for them at a much cheaper rate than they could otherwise borrow it. I have to request the favour of you to learn the fentiments of your court on this point, and to communicate to me the refult.

I have the honour to be, &c.
(Signed)
WM. PITT.

Governor and Deputy Governor
of the Bank.

(No. 28.)

Mr.

Mr. Pitt with the following obfervation on his letter, as dictated by the court:

"It is the opinion of this court, "That the plan of adding to the "intended English loan the fum "that has been propofed to be raif"ed here for the government of "Ireland, and of making the remit"tances at fuch periods, and in "fuch manner, as may be least in"convenient, is preferable to the "raising an Irish loan in England "by itself, and fixing the payments "and remittances in a manner

"which cannot be varied according

"to circumftances.

"But the court muft repeat their 66 apprehenfions, that any measure "which tends to carry money out "of the country, is replete with alarming confequences to the "Bank of England."

66

The paper containing the above was accordingly carried up to Mr. Pitt, who read it with attention, and then returned it.

(No. 29.)

(No. 30.)

Addition to No. 26.

THE Governor mentioned to

Mr. Pitt the great distress and inconvenience which the Bank, the bankers, and the public, suffered for want of a fresh coinage of filver, Exchequer to take fome early meaand requested the Chancellor of the fures for a redrefs thereof by a new coinage, at leaft of fome part of

what would be wanted.

(No. 31.)

Interview with the Chancellor of the Exchequer, 18th of February, 1797.

THE Governor and Deputy Governor this day waited upon the Chancellor of the Exchequer, by his appointment; when he mentioned to them, that he was exceedingly preffed by the government of Ireland to allow them to raise a loan in this country; and he thought that about 1,500,000l. would be the fum. He knew it would be a difficult and unpleasant measure to be carried through, but thought it right to speak to the Governor of the

"Refolved, That it is the opi"nion of this court, that the Trea66 fury bills of exchange fhall be 66 paid, which will become due in "the courfe of next week, to the amount of about 150,000l; but "that no other Treafury bills of "exchange fhall be paid by this "houfe until money be iffued to "the Bank to pay the fame."

The Governor and Deputy Governor were defired to go and wait upon Mr. Pitt with the above refolution, as foon as the court

broke up.

immediately told Mr. Pitt, that such a fcheme muft have the worst effect ruin of the Bank; for that fuch a poffible; that it would cause the loan raised here would all be sent would drain much of our specie over in money to Ireland, and

from us.

Mr. Pitt defired that the

matter might at prefent be only

of Treasury, but not to the court of Directors ; which the Governor promised to do, and to wait upon him again to-morrow with Mr. Puwith him alfo on the subject. get, as Mr. Pitt wifhed to fpeak

communicated to the Committee

(No. 32.)

Interview with the Chancellor of the Ex

chequer, 9th of February, 1797.

THE Governor this day communicated to the Committee the circumstance mentioned by Mr. Pitt yesterday, about a farther loan for Ireland; which ftruck them all as likely to produce the most difaftrous confequences to the Houfe. And the Committee joined in opinion fully, that the Governor in his interview with Mr. Pitt to-day, fhould tell him, that under the present ftate of the Bank's advances to government here, fuch a meafure would threaten ruin to the house, and most probably bring us under the neceffity to fhut up our

doors.

After the court this day, the Governor, with Mr. S. Thornton (as the Deputy could not attend) and Mr. Puget, waited on Mr. Pitt; who told them, that notwithstanding the difficulties and dangers which they forefaw by his carrying into execution a farther loan for Ireland, he found it to be a measure of government abfolutely neceffary; but that he would do every thing he could to obviate the difficulties, by making the Bank more eafy in other points; and he propofed to raife, by an addition to the prefent voluntary loan, or by other means, with the confent of the fubfcribers to that loan, whatever fum the Bank might defire to be paid off from its advances to government. He propofed this from an opinion that it was poffibly in the power of the Bank to render itself fafe by the diminution of its outstanding notes; and he added that he wifhed this reduction of their notes to be effected by a diminution of their advances to government, rather than

by leffening their commercial dif

counts.

On the Governor's stating that, in the event of the measure of an Irish loan being effected here, the Bank would probably think it neceffary to reftrain their advances, both to government and the public, by way of discount, Mr. Pitt anfwered, He had rather pay back five millions to the Bank than that they should restrain their discounts three millions; or to that effect. Mr. Pitt expreffed an opinion that a good deal of the money that had been taken from this country last year was returned; and, perhaps, kept back in London, or in other parts of the kingdom, from whence he hoped to draw the refources he wants by a loan under the propofed circumstances. Some difcuffion took place with Mr. Puget, whether a part at least of the Irish loan might not be negotiated in Ireland: and reafon was given to think that a trial for this would be made. Mr. Puget fuggefted, that a pecuniary affiftance given by this government to the Irish government might be preferable to a loan, as the money might be demanded back when there was preffing occafion for it: but Mr. Pitt was of opinion, that if the neceffity to call it back fhould arife, Ireland would not be able to pay it; whereas he hoped the fpecie would find its way back, by the regular course of trade, as soon as the internal state of that country would permit.

Mr. Pitt proposed that the repayment to the Bank fhould be made proportionate to the instalments on the Irish loan, or to exceed them confiderably if defired; alfo that no discount for prompt payment fhould be made on the Irish loan.

On their return from Mr. Pitt,

the

ferious debate upon the subject, they came to the following refolution, viz.

"Refolved, That the court is "of opinion, that the repayment "of feven millions of the money "advanced by the Bank to govern"ment, will be of very effential fer"vice to this houfe; but the court "is nevertheless extremely appre"henfive that the negotiating the "propofed loan for Ireland in this country, will neceffarily endanger the fafety of the Eank of "England, by the large drains of "caf which it muft occafion for "the remittance of that fum to "Ireland."

66

The Governor and Deputy Governor, with Mr. Darell and Mr. Bofanquet, were deputed by the court to wait upon the Chancellor of the Exchequer with this refolution; and they took with them a copy of it in a paper fealed up, that in cafe Mr. Pitt fhould require it to be left with him to fhew it to the cabinet, it might be in a fituation guarded from the eyes of the people in office. The Deputation waited on Mr. Pitt when the court broke up, and waited till he came home; when, being admitted, the Governor told him, that a fpecial court had been held on the fubject, and that he and the other gentlemen were deputed to bring him the refolution of the court upon it; which Mr. Pitt read attentively; and defiring to have a copy left with him, the one fealed up was given to him; which he was defired by the Governor to return to him when he had communicated it to the cabinet. In the converfation which took place afterwards, the Governor asked if it was not poffible that a part of the 1,500,000l.

could be raised in Ireland for its own ufe. Mr. Pitt faid, that the fum mentioned was all expected from this country; that a farther fum was wanted in the whole; but that the Irish government hoped to raise the remainder in that country. On the fubject of the loan to be raised here to pay off the above fum to the Bank, Mr. Pitt faid he meant to make it equal, not only to that purpofe, but to fet him at his eafe for other parts of the public fervice, which he had not been able to calculate with fufficient exactitude on bringing out the last loan. That he meant to raise this additional fum in the fame funds; and, if poffible, by the fame fubfcribers, to whom proposals would be made, with an allowance for their lofs on the former engagement; and that if he was disappointed in this expectation, he must take other measures as ufual.

After this, the Governor afked of Mr. Pitt if it could not be made compatible with the forms of office, that when the payments fhould come to be made on this propofed loan, the money might be retained at once by the Bank, as far as was intended for the liquidation of their advances, without being fent up to the Exchequer, as was hitherto practifed; which mode had often caused a delay of many days, and once laft year a total difappointment of the fum. Mr. Pitt faid, that he faw no reafon why this routine of office fhould not be altered ;-that he would think of it, and order another arrangement.