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Mr. Pitt said, it was his intention before the House separated, to move for leave to bring in a bill, which might be carried through very quickly, to enable the Bank to issue notes below 5l. value.

the bank was compulsory and unjust, as being a partnership of an insolvent government, which required a solvent company to bolster up its ruined finances. With regard to the utility of a secret committee, he would much rather take the word of the directors of the Bank, as to the solidity and responsibility of their funds, than the report of the secret committee, who had only the power of making a partial inquiry.

The Earl of Wycombe said, that if the suspension of payment required by the privy council, was intended to remove a public pressure at home, he should have no objection to accede to it; but as he thought all this was intended merely to cover a design of sending money to the continent, to carry on the war, he was bound in duty to give it his negative. | The House should reflect on the evils which such a measure as this could not fail to produce. It would lessen the value of the paper currency of the kingdom. He had seen the misery which that had produced in other parts of the world, by raising the price of all provisions, and bringing on a train of evils with which that House was unacquainted.

Mr. Pollen was of opinion that the inquiry which ought to be entered into should be of the most extensive nature. If, upon inquiry, it should appear that ministers were undeserving of his confidence, he should withdraw it from them. He should vote for a full inquiry into the circumstances which had led to the present situation of the country.

Mr. C. Yorke said, that an unlimited inquiry must in its nature be tedious, and delay might be attended with the most fatal consequences. He would therefore refrain from any opposition that might obstruct a speedy report.

Mr. Wilberforce Bird said, he was instructed by his constituents to inquire what method would be recommended to enable them to carry on their business, and to answer the many demands to which it exposed them. He did not intend to put any unnecessary question, with a view to embarrass ministers, but in the desire to obviate the difficulties in which manufacturers must be involved. A rumour had gone abroad, that it was the intention of the Bank to issue notes of one and two guineas each. Such an expedient would quiet the alarm, and enable the manu facturers to answer the many claims that were continually made on them.

Sir W. Pulteney said, that the order of council had given rise to just alarm. He gave ministers credit for having so speedily laid before the House a measure of this importance. He considered the state of the country as no worse in consequence of the present step, provided wise measures were taken upon it. The stoppage of payment in cash was not to be held as a permanent system, but merely as the alternative adopted under the pressure of the moment. The motives, however, assigned by the chancellor of the exchequer, did not satisfy him that it was to be only for a limited time. Indeed, it was impossible to think of it as a measure to be continued. There was a great difference between the measure itself, and the continuance of it. In 1798 the Newcastle banks had declared as now, that they must stop the payment of their notes in cash, under the pressure of a temporary scarcity; but they soon obtained the necessary supply, and went on again as before. Such was the case of the Bank. The Bank had not always beside them the cash for all the notes they issued ; for if they had, why issue notes at all? The Bank merely kept what was conceived to be necessary. They had value, however, in good bills, or otherwise for all the notes they issued, and money was within their reach. They would, doubtless, be able to answer all demands. Such a measure as that adopted by ministers might do no harm for once; but if it again occurred, it would be no joke. It was therefore highly necessary to inquire into the causes, that in future they might be prevented. The plan proposed was not enough. Partial reports from the committee would not be sufficient. To prevent the same dilemma from recurring was the great point. No mischief could arise from a full investigation. The measure of refusing payments in cash must be for a short time, or the consequences would be fatal. In France, on account of an occasional pressure, the bankers joined in application with the caisse d'escompte, that they might not be obliged to pay their notes in cash, which gave a blow to their paper money, which it never recovered. This measure was merely calculated for the emergency of

the occasion. The country could not | cumstances which could infer either the stand if the credit of the Bank was shaken; it was therefore necessary to protect its stability, and by a full inquiry into the causes which had led to this situation, to guard against the danger of its recurring. With regard to the cause, he thought he knew where it lay. The existence of paper money made the exportation of specie necessary. What was thus put out of circulation must go somewhere. It was impossible to prevent the exportation of specie and bullion. Spain and Portugal were instances; and if the prohibition were complied with, we should feel its bad effects. Industry, agriculture, manufactures, were the true riches of a country, and would always command a sufficient supply of the precious metals. Mr. Hussey said, that the chancellor of the exchequer, and not the Bank, had occasioned the measure of stopping their payments in cash. It was he who had imposed upon them this fatal order. Let him pay to them all the money they had advanced, and then the difficulty would cease. The minister had laid his rapacious hands on the sums destined for the payment of the public creditor. The public creditors had been refused their just demands. He had been told that in payment of a sum of 231., three pounds in cash had been offered, and the rest only in notes. Such a melancholy day as this for England he had hoped never to have lived to see. It was deluding the people to talk of a committee such as that proposed. Instead of such idle stuff as this, let the minister pay off the ten millions due to the Bank, and every thing would go on smoothly.

Mr. Pitt said, that the hon. baronet was alarmed at the proposal, as it implied that the measure was to be permanent. Nothing, however, could be farther from his intention. He had not the smallest objection that a limited time should be fixed; nay, the words from which the conclusion of its continuation was inferred, had been introduced solely in this view. The measure was one which, while it continued, ought to have the sanction of legislative authority. He was ready to say, that the Austrian loan, though one of the causes which might influence the great events which operated on our situation, was not the immediate cause to which the necessity was to be ascribed. The sudden drain upon the metropolis was unconnected with any cir

deficiency of the Bank, or the unpros-
perous situation of the country. The
rate of foreign exchanges never were
more flourishing than at this moment.
The necessity of the measure originated
in a sudden demand beyond the usual
average. The short question for the
House was, to prove the reality of the si-
tuation which had produced the order of
council. The causes would be so differ-
ently viewed according to the political
and commercial opinions of men, that
they more properly belonged to future
discussion. The inquiry was called for in
the first instance by every consideration
of public interest and public duty. With
regard to the observation of the hon.
gentleman, "pay the Bank what they
have advanced, and all will be well," it
was founded entirely on mistake.
Did
the hon. gentleman imagine that the
Bank advanced their specie to govern-
ment; or that he, with rapacious hand,
had seized upon so much money as he
had mentioned? By far the greater part
of that sum was floating advances, not
now made for the first time: nor was
there more now outstanding than had
been upon many occasions before he
came into office.
commonly made in notes, and paid in the
same manner; unless the Bank had no
other advances but those to government;
and unless these occasioned an issue of
their paper, inferring a demand for specie
which otherwise would not have taken
place, the advances to government could
not in any view produce the difficulties
of the Bank for cash. It was not impos-
sible that, upon some future occasion, a
loan might be required for the purpose
of taking up these floating advances; but,
did the hon. gentleman conceive that such
a loan could be in specie? The hon. gen-
tleman supposed that taxes were paid in
specie, and that the public creditor, on
the other hand, was not to be paid at all.
The public creditor, however, often re-
ceived notes instead of cash. Loans were
often advanced without any expectation
of being paid in specie, nor could the
Bank ever have it in contemplation, that
every quarterly dividend was to be paid
in cash. All the receipt of the revenue
paper was taken in the same manner.

The advances were

Mr. Curwen said, that this was another rash endeavour to delude the country. The arguments of the minister were a mockery of their understandings. He

said that paper was, in common usage taken by the public creditor. But, good God! was not the case now widely different, when paper could no longer be converted into cash at pleasure? The House ought to step in to rescue the nation from ruin. Not the downfall of a minister, but the safety of the country was at stake. Unless the House made a decided stand, the country would be ruined.

Mr. Bastard said, that a partial inquiry would do more harm than good. It was his opinion that the Bank needed no support; but if the state of the Bank was to be investigated, was it not of much greater importance to know the state of the country? The House ought to combine to apply a powerful remedy. They ought to cut off that prodigality which had prevailed. They ought to see that the money raised for the public service was fairly applied. They must retrench; they must regulate; they must controul. Without fairly examining into our situation, there was no chance of salvation.

Mr. Dent thought that inquiry, so far from being attended with good, would do infinite harm. The Bank was equal to every fair demand upon it, though not prepared to answer an extraordinary exigency, whether arising from the pressure of the war, or other occasions-a war not entered into by this country from choice, but wantonly made against us by a people who had denied the existence of a supreme being.

Mr. Sheridan denied that the value of bank notes was the same now, as it was before the order in council. Was not the question always put to the creditor whether he would take his dividend in paper or in cash? The measure had inflicted upon the bank a very severe stroke, and he saw only one way in which it could possibly recover it, which was by coming forward, and showing the country that they had adopted the measure from compulsion. An hon. baronet had observed, that if the measure was repeated, it would make but a bad joke. If it was a joke, it certainly was one at which the country was not much disposed to laugh; but if it was tolerated in this instance, he was afraid these facetious measures would frequently occur. He conceived that it was by no means a temporary expedient, and foresaw

they could, since they were about to issue a greater quantity of paper, and their cash was seized on for the public service? He reprobated the transaction as a step to associate the bankrupt government with the solvent bank; a partnership which, if the bank directors knew the interest of the concern under their direction they ought to spurn at, and to force the right hon. gentleman to with draw his indorsements from their bills. But it was urged, that the bank had temporary difficulties to encounter, and that it behoved the House to adopt some mode of granting relief to that important public body. The House, however, knew nothing of this. No application had been made to them by the Bank, nor did it appear even that application had been made for the order in council; on the contrary, it appeared that this facetious council, instead of examining the directors of the bank, acted entirely upon the authority of the chancellor of the exchequer. Nay, what added to his surprise was, that not one of the bank directors who had seats in that House, had come forward and expressed an opinion upon the subject. Some information was certainly necessary before the House sanctioned so novel and dangerous a measure. They had heard of the bank lending two millions to government, and they had also heard of the dividends on bank stock increasing. Was it not material to be informed how they came to stop payment at a time when their affairs seemed to be going on so prosperously? He called upon the directors to say, whether it was at their desire that the order in council had been issued He did not approve of appointing a committee to inquire into the affairs of the bank, as he had the firmest confidence in its solidity; but he deemed it highly expedient that a committee should be appointed to inquire into the grounds upon which the order in council had been issued. There was but one hope, and one opinion that the Bank would be found to he perfectly secure, Why, then, should the public guarantee their notes? As well might the master of the Mint indorse a guinea. But what was the nature of this guarantee which government so generously offered to the bank? Government first lays hands on the cash of the bank. Next day government say, You

that the bank never would be able after- cannot pay your notes; No, replies the all

wards to defray its outstanding engage ments in cash. For how was it possible

bank, because you have taken away our cash. Very well, then, say government,

in a

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shell:

546

you must stop payment till we examine
into your affairs, form a partnership, and
indorse your bills. The bank might very
justly answer; Give us back our cash, and
we neither want your partnership nor
your guarantee. Had such a man as sir
John Barnard presided at the bank, he
would have taken the order of council,
and thrown it in the face of the mes-
senger; for in either case it was an affront
upon that body. If they had cash, what
right had the chancellor of the exchequer
to seize upon it: if they had none, it was
an insult to pretend to prohibit them from
issuing it. And what was the value of
this guarantee, which government was so
generous as to offer to the bank? Had
not government broken its faith with all
its creditors, with the bank, wirh the em
peror of Germany, and with every indi-
vidual who were in possession of its ac
ceptances? The solidity of the bank
would be infinitely stronger, if it remained
entirely unconnected with so discreditable
a partner. In his opinion, bank notes
ought to be made a legal tender to go-
vernment, and government ought to be
compelled to make every payment in
bank notes, except the dividends on the
public stock, which ought to be paid in
cash. He was unfriendly to a committee
to inquire into the situation of the bank,
but, instead of opposing it, he would
move an amendment, by inserting after
the word "House," these words: "And
also to inquire into the causes which have
produced the order of council, of the 26th
instant."

Mr. S. Thornton, as one of the directors
of the bank, would only observe, that if
the House should institute a committee
of inquiry, there was no investigation
which the directors would not most
cheerfully meet, as they were conscious
it must tend to their honour, and to the
credit and reputation of the bank of
England.

Mr. Secretary Dundas said, that the amendment proposed negatived the original motion. While the hon. gentleman professed himself adverse to an inquiry, he proposed to enlarge it by adding a question respecting the causes of the embargo; and these were alleged to be a total mismanagement in every department of finance. Thus an inquiry into every circumstance of the war would be set on foot: and the great object of satisfying the public with respect to the solvency of the bank, would be delayed

till the state of the nation, in every particular, could have been ascertained.

The Attorney General said, the case was shortly this: an order of council, without any legal validity, had been sent to the first monied company in the kingdom, and this order had been complied with. It was universally agreed, that such an order should not have been issued, unless it was warranted by necessity, and that it should continue in force no longer than the necessity continued. The question therefore was, whether the House should not immediately proceed to discuss the circumstances under which it had issued, with a view to determine whether it ought any longer to be acted under ? As he saw the necessity of an immediate determination on a business of such consequence, he should vote against the amendment.

Mr. Fox considered the questions of the measures to be adopted and of the cause of the present situation, as inseparable. Till the House were apprized of what had produced the order, they could not well know how to apply the remedy.

Mr. Pitt considered the motion and amendment as comprising three distinct inquiries. Though they were all retained in the amended motion, yet Mr. Sheridan had objected to that part of the motion which pressed an inquiry into the state of the bank. This inquiry, he wished, however, to be made, with a view to show that its ultimate resources were solid. He considered this as the more necessary, because, while Mr. Fox had said, that he was convinced of the fact, and stood in need of nothing to confirm him in his belief, he stated their late conduct as an act of bankruptcy not to be remedied. When gentlemen cried up the solidity of a corporate body in one breath, and in the next imputed bankruptcy to it, an inquiry became necessary.

Mr. Fox said, he had not applied the word bankruptcy to the state of the bank, but to the government, to which it had been long applicable.

The question being put, That the words proposed by Mr. Sheridan be there inserted, the House divided:

Tellers.
YEAS Mr. Whitbread
Mr. Grey -

NOES

(Mr. Douglas
Mr. Rose

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[1550 The original motion was then carried, | dreadful consequences might this not and a secret committee of fifteen was lead. It would be dreadful, indeed, if ordered to be chosen by ballot. After these notes should become assignats; and which it was resolved, on the motion of he feared it would be so. Mr. Fox, "That it is the duty of this House, to inquire into the causes which have produced the Order of Council of the 26th instant;" and Mr. Pitt brought in a bill to remove doubts respecting Promissory Notes of the Bank of England, for payment of sums of money under five pounds. The bill was read a first time, and went through the remaining stages on the following day.

Debate in the Commons on the Bill to suspend the Acts for restraining the Negotiation of Promissory Notes.] March 1. Mr. Wilberforce Bird said, that in consequence of the present scarcity of cash in the hands of manufacturers, it became necessary that bankers and manufacturers in the country should be enabled to issue notes, payable at stated times. There were laws now in force to prohibit the issuing of small promissory notes, payable otherwise than on demand. His object was to allow the issuing of promissory notes for a limited time, as if such laws were not in existence. There could not be much inconvenience in allowing country bankers and manufacturers to issue these small notes; for they would be known in the neighbourhood in which the notes were issued, and the persons who held them could have no difficulty in procuring payment for them. He then moved, "That leave be given to suspend, for a time to be limited, the Acts of the 15th and 17th of his Majesty, for restrain ing the Negotiation of Promissory Notes, as far as they relate to Manufacturers and Bankers, not residing in the cities of London and Westminster, and the borough of Southwark."

Mr. Pitt thought the effects of the suspension might be beneficial to London, Westminster and Southwark. He therefore wished that the exception should be left out.

Mr. For said, he had no objection to the amendment. He foresaw, however, great inconvenience in issuing these bills, particularly in the metropolis. He feared that great advantages would be taken of the ignorance of the multitude, and that great frauds and mischief would ensue.

The anrendment was agreed to, and leave was given to bring in the bill. The bill was brought in on the following day. It was read a third time on the 3rd, and after a clause had been introduced limiting its operation to the 1st of May, it was passed.

Debate on Mr. Fox's Motion for a Committee to inquire into the Causes of the Order of Council respecting the Stoppage of Cash Payments at the Bank.] March 1. The Resolution of yesterday," That it is the duty of this House to inquire into the Causes which have produced the Order of Council of the 26th instant," being read,

Mr. Fox said:-In rising to move for a committee of inquiry, I assure the House, that any person who thinks me disposed to indulge in petty cavils, or to enter into minute and verbal criticisms, is totally ignorant of the state of my mind on the present occasion. I feel the present crisis to be the most important that ever occurred in the history of this country; and I solemnly declare, that my opinion, with respect to the chance of the future prosperity of this island, is more Mr. Sheridan said, that the remedy changed within these eight and forty hours, proposed he believed to be absolutely than I could possibly have conceived at necessary. It would undoubtedly be a any former period. The object of the great evil; yet if omitted, a greater evil committee which has been moved for, bemight ensue. He did not know how it sides inquiring into the state of the Bank, was possible to go on without making is to examine into the necessity of consome provision for the capital as well as firming and continuing the order of council. for the country. He was confounded I conceive the duty assigned to this comwhen he looked at the probable conse-mittee to be far too narrow: they are quences to which the measure which gave birth to these applications might lead. If a poor man was to be paid by a guinea note instead of a guinea, and no one would give him change for it without a discount of seven shillings, to what

not empowered to inquire into the causes which produced the necessity on which the order of council is said to have been founded. Now, there may be some who are of opinion, that no previous necessity existed to justify that order. But, after

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