been taken on the subject, upon a full review of the causes of the present exigencies of the public." Mr. Nicholls thought the motion ought to be immediately adopted. He pressed Mr. Pitt for an answer to the question, whether it was his intention that the notes of the Bank of England should be declared a legal tender to the public creditor? If so, he was about to proclaim an act of insolvency; and, considering it in this light, he reprobated his silence as an instance of the most atrocious arrogance. connected with the present state of public | until the sense of parliament shall have affairs; the conclusion of it contained nothing less than a positive requisition of all the cash in the bank: a requisition which, however strange and unconstitutional, the bank directors thought them selves bound in duty to obey. This order certainly was of such a nature, that the House had a right to expect some explanation upon the subject. The conduct of the minister, however, had suggested to him a motion, upon which he would certainly take the sense of the House. He should endeavour to abstain from expressing those sentiments of indignation which every man must feel that evening. He could not, however, but remark, that the right hon. gentleman was now acting upon the same system of delusion which had characterised all his administration. He entertained no doubts about the solidity of the bank, nor did he object to the public pledging their security for the outstanding engagements of the bank; but he remonstrated against the mode in which the business was brought before the legislature. What right had government to exercise a compulsatory power over the bank of England? The fair way would have been for the bank to have laid a statement of their situation before the House, to have described the causes to which their embarrassments were to be imputed, and to have prayed for that interference in their behalf, which he was sure the legislature, upon proper grounds, would have been ready to grant. Instead of this an order in council had been issued putting the whole cash of the bank in requisition. And upon what pretence? To satisfy the necessary demands of the public service! What right had go vernment to the cash of the bank more than to the cash of any individual in the kingdom? And what were these public exigences on account of which this unprecedented measure was adopted? They must necessarily be such as the public paper securities could not satisfy. With respect to the appointment of a committee to inquire into the affairs of the bank, it was notorious that a leak had sprung in the vessel, and it was pretty evident that it had been occasioned by the exportation of specie to foreign countries. Taking that for granted, he should move, "That it is the opinion of this House, that no farther exportation of specie or gold should take place for the use of the Emperor, or any other foreign power, [VOL. XXXII.] Mr. Pitt said, that the learned gentle. man seemed to be as ignorant of the forms of the House as of the common modes of business. He might have known that, though it was sometimes convenient to ask and to communicate information by question and answer, no discussion could regularly take place, except when a motion was before the House. He was always ready to answer any question respecting public business which it was fair and candid to put; bet he saw no reason why opinions upon any subject should be extorted from him before it came regularly under discussion. As to the motion, what was it in point of fact? A subject of great national importance was deferred for consideration till the next day. The hon. gentleman, however, had seized upon one particular branch of the subject, and pressed the House to come to an immediate decision upon it. This he had done upon two grounds; first the unconstitutional nature of what he was pleased to term a requisition: and secondly, the mode in which the application was made to the House. If the public safety required that the measure should be instantly taken, it was surely much better that it should be executed in the most summary way; for had application come from the bank after danger was apprehended, the apprehensions might have been realised, while the deliberations upon the remedy were pending; and with respect to the other ground of the motion, it involved the expediency of the Order in Council, which would be discussed the next day. He could only say that ministers had been guided by a concern for the public safety. If they had trespassed upon the laws, they submitted to the candour of the House, conscious that had they not taken the step which has been adopted, they would have been deficient in the first du [5 E assertion that the exportation had not produced the present scarcity of specie, because it had been frequently severely felt in the course of the war, when no alarm of invasion existed. When accused of sending money to the Emperor without the consent of the House, the minister had come forward and boasted of his conduct. How then could they trust that the system which he had so defended would not be renewed? Mr. Secretary Dundas said, that the object of the present motion could only be to prevent ministers from making any remittances to the Emperor between this and the next day. Surely, then, the necessity of pressing it now could not be very clear. Without the information which the ensuing discussion would af ford, the House was called upon to decide that the remittances to the Emperor were the cause of the present difficulties, whereas it would probably appear that it was quite on the other side. they owed to the country. Whether they Mr. For said, that his hon. friend did not call upon the House to decide whether more assistance was to be granted to the Emperor. That deliberation upon which the hon. minister insisted, it was the object of his hon. friend to procure. The right hon. gentleman insisted, that they had concluded the reserve of cash to be made entirely for foreign services. They had concluded no such thing; they had thrown no impediment in the way of reserve. Perhaps at that very moment, ministers were sending money abroad; and all that was asked was inhibition upon them during this solemn pause, this interregnum of the laws. He contradicted the Sir W. Milner said, it was the duty of the House to prevent ministers from sending any money out of the kingdom, and to tie up their hands. The situation of the country was truly alarming. By the Bank not paying in cash, every country bank had stopped payment, and broken the contract with those who entrusted them with money. The question being put, "That the order of the day be now read," the House divided : NOES A Message from his Majesty, together with a Copy of the Order in Council, was this day presented to the Lords by lord Grenville. A motion to prevent the exportation of specie to the Emperor, moved by the duke of Norfolk, was, after a short conversation, negatived: the Contents being 5; the Non-contents 34. a Debate in the Commons on Appointing Committee to examine the Outstanding Demands on the Bank.] Feb. 28. The order of the day being read for taking into consideration his Majesty's Message, Mr. Pitt, after a few preparatory observations, moved, "That an humble Address be presented to his majesty, to return his majesty the thanks of this House for his most gracious message: to assure his majesty, that the House will proceed, without delay, to the consideration of the important subject which his majesty has recommended to their attention; and that his majesty may rely on our earnest and anxious desire to adopt such measures as the circumstances may appear to require, and as may be best calculated to meet the pressure of any temporary difficulties, and to call forth, at this important conjuncture, the extensive resources of the kingdom, in support of our public and commercial credit, and in defence of our dearest interests." The motion was agreed to nem. con. Mr. Pitt then rosc to move for a Committee, to examine the amount of Outstanding Demands on the Bank. With respect, he said, to the first step to be considered, the state of the Bank, that has already, in a great measure, been ascertained by the confidence of public opinion. Of this public opinion the most unequivocal proofs have been afforded, even within the short space that has elapsed since the minute of council has been issued. It has been clearly evinced that there is no doubt entertained with respect to the solidity of the Bank to answer all the demands of its creditors. But though there can be no hesitation with respect to the solidity of the Bank, it is incumbent upon the House to satisfy themselves, that the measure which has been adopted had become indispensably necessary. I am confident that the result of the investigation will be such, as not only to leave no doubt that the security of the Bank, is unquestionable, but completely to establish the propriety of adding the public security to the security and property of the Bank. It is proposed that the public security should be given not only for the outstanding claims on the Bank which exist at the present moment, but also for those additional issues of paper which may be deemed advisable. As to the degree of satisfaction proper to be obtained with respect to the grounds of the necessity on which the measure has been adopted, it must appear to every reflecting man that this is a subject of inquiry of so critical and delicate a nature, that it cannot, consistently with public safety, be pushed to too great a minuteness of detail. It cannot be doubtful to any man acquainted with the subject, that it would be highly improper for the committee to enter into a minute inquiry into the precise state of the different descriptions of specie belonging to the Bank, to proceed to a dissection of their accounts, and to state the balance of cash. My object, therefore, is, to move for the appointment of a committee to ascertain the general state of the funds and obligations of the Bank, to examine into the grounds of the necessity of the measure already adopted, and to suggest what farther measures ought to be taken by parliament in pursuance of the minute of council. If it should be proved, that the extent of the late demands upon the Bank, and the rapidity with which they were brought forward, were likely to occasion such a pressure as not to leave a sufficient fund for the public service, a strong argument will then be afforded that the measure, which the necessity of the times required on the part of the executive administration, it is incumbent on the legislature to confirm and enforce. On these grounds I move "That a committee be appointed to examine and state the total amount of outstanding demands on the Bank of England, and likewise of the funds for discharging the same, and to report the result thereof to the House, together with their opinion on the necessity of providing for the confirmation and continuance of measures taken in pursuance of the mi nute of council on the 26th instant." Mr. Fox said:-Sir, when I consider the wonderful event which has this night been announced to the House for a second time; when I take into review the causes which have led to this extraordinary situation of affairs, and the effects likely to result from it; I confess that after the pause which has been afforded me for deliberation, I do not at all feel more sanguinely or more agreeably than I did on the first mention of the subject. The right hon. gentleman has moved for the appointment of a committee for the purpose of inquiry, to which, if it was vested with powers sufficiently ample, I certainly should not object. But it might have been expected, and I, for one, did expect, that the minister, who had conducted affairs in such a manner as to call for the measure that has now been proposed, would not have been contented to pass so slightly over the nature of the crisis; but would have thought it incumbent on him to have given, at least, some general statement of those circumstances which have led to that situation of unprece Of dented embarrassment, in which we are a power of this nature has been confided now placed. Let us consider a little how to a senate, or to a large body of men, it he has proceeded, even in the first stage has presented fewer instances of abuse, of the business. Every man who read than in those situations where the reverse the order of council must have been has been the case. This conclusion is struck with the reflection that this was supported by the recorded facts of history, the first time a measure had been adopted and the uniform testimony of experience. by the executive government of this counn- It has been proved that the stability of try to prevent the bank from answering credit has always been better maintained the demands of its lawful creditors. The in republics, than in those governments effect of the measure I will not describe where it merely depended on an indiviby saying that it has impaired-for that dual, or on a small body of men. is but a weak word on such an occasion all modes, then, by which the object I contend that it has destroyed the credit could have been effected, the measure of the bank. There is no gentleman so that has actually been adopted is the ignorant of the principles of paper credit, most pernicious in its principle and the as not to know, that the whole source of most dangerous in its consequences. It the validity of this species of currency is will not be easily erased from the mederived from the circumstance of its being mories of men, or from the annals of the convertible into gold and silver. But country, that whatever may be the when we learn, that ministers have not vaunted theory of our constitution, whatmerely recommended to the bank to sus- ever the nominal value of our rights, pend all payments in specie, but have whatever the pretended security of our positively required them to adopt this laws, one word from the king may have measure, we must consider ourselves as the effect to destroy one-half of the proplaced in a very different situation with perty of the country. The order of counrespect to the future state of our paper cil merely forbids the issuing of money; credit. If the thing itself was necessary the paper, however, subsequently pubfrom the circumstances of the times, still lished from the bank, removes all doubts I do not approve of the mode in which it with respect to the nature and extent of has been carried into execution. If the the measure, and thanks are due to the measure was indispensably requisite from directors for the explicitness they have the pressing exigency of the country, an manifested on the occasion. After exact of parliament was surely the only pro- pressing their intention to comply with per mode of effecting the purpose. If the order of council, they proceed to the plea of urgency be brought forward, point out the objects which the measure that was a consideration on which the has in view. They declare that they will House were competent to decide, and continue their discounts to the merchants which must have impelled them, as in in paper, and that they will also pay in other cases, to lose no time in carrying a paper the dividend warrants. Gentlemen bill through the different stages. This may ascribe it to affectation, when I deHouse was that particular branch of the clare that I feel nervous in stating the legislature, which it was of the most es- probable effect of this proceeding; and sential importance to consult on such an the more so, as I observed that the right occasion. The neglect that has taken hon. gentleman who has certainly more place in this instance is of the most mis- cause than myself to take a fearful interest chievous example, and may be attended in the issue of this transaction, seemed with the most fatal consequences at a to experience a similar feeling to so great future period. All those who have turned a degree, that he was unable to use his their attention to the paper credit of this splendid abilities to afford to the House country, must view with alarm, that the any satisfactory explanation of its objects king or executive government have by and effects. the present measure claimed a power to annihilate by one breath all the property of the creditors of the bank. It may be said, that such a power would be equally dangerous in any branch of the legislature. But surely the danger is greater from the quarter in which it has now been exercised, It has been found that wherever What, I ask, is the meaning of this measure? Though it has been declared by repeated laws, that faith is most solemnly to be kept with the public creditors, though you honorably declare that you will impose no tax on the interest they hold in the stocks; you now so strongly feel the exigency of your situa tion, that you are compelled to overlook | tion a sufficient ground of confidence, the covenants of law and the obligations what account shall we be able to give to of honour, and to apply for a resource our constituents of this new disaster that to the great depot of national wealth. has befallen the country? Amidst the But it may be said that the dividends are calamities and disgraces of former periods, still to be paid in paper. Is there however we had still one ground of consolation in any gentleman so ignorant as to conceive the sanctity of national credit. Every that there is any difference between re- minister might say to parliament, and fusing to pay the dividends in specie, every member to his constituents, even and refusing to pay them altogether? Are at the most afflicting eras, "the public not the terms of the contract, that they faith has been preserved." The inviolashall be paid in the current coin of the bility of the principle sanctioned its future kingdom? With what pretence can you observance. But now we are even deaffirm that you do not tax the income of prived of this last source of public conthe stock-holder, if you break the terms solation, this last prop of national honour. of the contract, and compel him to take With the feelings naturally impressed for his interest a compensation of less upon me by these reflections, I yesterday value than that which has been stipulated came down to the House. I must own by solemn engagement? Does any man that I did not then like some words that believe that he would receive at the pre- fell from the right hon. gentleman with sent moment in the city a thousand pounds respect to the order of council. A moin cash for a thousand pounds in notes? tion for inquiry is brought forward. The You admit, then, that you are arrived at order evidently threw some slur on the such a state of desperation, that it be- bank, and as a proof that they felt so, the comes necessary to violate all contracts. directors immediately published a paper Suppose the dividends were confided to which contained an assurance of the prosministers to pay the expenses of the army perous state of their affairs. Under these or navy, and that they gave to the holders circumstances, it was natural and laudable certain paper on government security, that they should feel an anxiety for that would they be placed in the same situa- inquiry, which was necessary to vindicate tion as before with respect to the stability their own credit. Another reason assigned of public credit? So far as regarded the for the inquiry is, that the public are to principle, ministers might as well at once be called upon to guarantee the security confiscate their property for the use of of the bank notes. On the first suggesthe state. But it has been said, that tion, I did not see any thing objectionable emergencies will arise, which render it in granting this guarantee. As I have necessary to break through all ordinary since, however, altered my opinion, it may restraint. Unquestionably necessity fur- be proper for me to say a few words on nishes that strong argument, to which no the subject. Every sanction given by reason can be opposed; but it ought to the public to the credit of individuals, be proved, that the emergency was of the though for a time it may be attended most pressing nature, and capable of being with some advantage, will ultimately be clearly demonstrated. The minister who found to be injurious and destructive. If comes down and endeavours to prove to the credit of the bank rests on that footthe House, that necessity has compelled ing of solidity which has been asserted, him to this fatal and irremediable act of it is better that it should still remain on bankruptcy, ought at least to be prepared the same foundation. The right hon. to show that the necessity was occasioned gentleman, however, thinks that even with by no fault of his own. Nothing of this the favourable opinion which is now enter. sort has been attempted; we have only tained by the public of the credit of the the assertion of the right hon. gentleman bank, there would still be some advantage of the strong conviction he felt of the derived from the guarantee of the governnecessity of the measure; and it is incum- ment. It is curious to hear from the bent on the House to determine whether right hon. gentleman this theory with they ought to be satisfied on the authority respect to the advantages of guarantee. of his bare assertion that the danger has Happy would it have been for the counbeen fully proved, and that it could by try if he had not in former instances exno precaution have possibly been pre- tended this system of guarantee to fovented. If we are to be satisfied on such reign powers. Without paying any comauthority, if we are to conceive an asser-pliment to the bank of England, I think |