is not, how much you will give for peace, but how much disgrace you will suffer at the outset, how much degradation you will submit to as a preliminary? In these circumstances, then, are we to persevere in the war with a spirit and energy worthy of the British name and of the British character; or are we, by sending couriers to Paris, to prostrate ourselves at the feet of a stubborn and supercilious government, to do what they require, and to submit to whatever they may impose? I hope there is not a hand in his Majesty's councils that would sign the proposals, that there is not a heart in this house that would sanction the measure, and that there is not an individual in the British dominions who would act as the courier.

Mr. Pitt concluded with moving,

"That an humble address be presented to his Majesty, to assure his Majesty, that that house also felt the utmost concern that his Majesty's earnest endeavours to effect the restoration of peace had been unhappily frustrated, and that the negociation, in which he had been happily engaged, had been abruptly broken off by the peremptory refusal of the French government to treat, except upon a Basis evidently inadmissible, and by their having in consequence required his Majesty's plenipotentiary to quit Paris within forty-eight hours.

"To thank his Majesty for having directed the several memorials and papers which had been exchanged in the course of the late discussion, and, the account transmitted to his Majesty of its final result, to be laid before the house.

"That they were perfectly satisfied, from the perusal of these papers, that his Majesty's conduct had been guided by a sincere desire to effect the restoration of peace, on principles suited to the relative situation of the belligerent powers, and essential for the permanent interests of his Majesty's kingdoms, and the general security of Europe: whilst his enemies had advanced pretensions at once inconsistent with those objects, unsupported even on the grounds on which they were professed to rest, and repugnant both to the system established by repeated treaties; and to the principles and practice which had hitherto regulated the intercourse of independent nations.

"To assure his Majesty, that, under the protection of Providence, he might place the fullest reliance on the wisdom and firmness of his parliament, on the tried valour of his forces by sea and land, and on the zeal, public spirit, and resources of his kingdoms, for vigorous and effectual support in the prosecution of a contest, which it did not depend on his Majesty to terminate, and which involved in it the security and permanent interests of this country and of Europe."

The House divided on an amendment moved by Mr. Fox, censuring the conduct of ministers in the negociation:

For the amendment
Against it

37

212

The address was then agreed to.

February 28, 1797.

MR. PITT moved the order of the day for taking into consideration the following message from his Majesty,

"GEORGE R.

"His Majesty thinks it proper to communicate to the House of Commons, without delay, the measure adopted to obviate the effects which might be occasioned by the unusual demand of specie lately made from different parts of the country on the metropolis.

"The peculiar nature and exigency of the case appeared to require, in the first instance, the measure contained in the order of council, which his Majesty has directed to be laid before the House.* In recommending this important subject to the immediate and serious attention of the House of Commons, his Majesty relies with the utmost confidence on the experienced wisdom and firmness of his parliament, for taking such measures as may be best calculated to meet any temporary pressure, and to call forth, in the most effectual manner, the exclusive resources of this kingdom, in support of their public and commercial credit, and in defence of their dearest interests.

* See next page.

G. R."

The message being read by the Speaker,

Mr. PITT rose:

Sir, I gave notice yesterday that I should first move an address to his Majesty, returning him thanks for his most gracious communication, and assuring him that the house would immediately proceed to take into consideration the object recommended in the message to their serious attention. I stated that my next motion would be for the appointment of a select committee to enquiré into the amount of the outstanding engagements of the bank, and the means they had of making good their engagements. As with respect to my first motion, for expressing our thanks to his Majesty, and assuring him of our readiness to take immediate steps to comply with his recommendation, there can scarcely be

* Copy of the Order of Privy Council.

"At the Council Chamber, Whitehall, February 26, 1797.

"By the Lords of his Majesty's most

The Lord Chancellor,

Lord President,

Duke of Portland,

Marquis Cornwallis,

honourable Privy Council. Present. Earl Spencer,

Earl of Liverpool,

Lord Grenville,

Mr. Chancellor of the Exchequer,

"Upon the representation of the Chancellor of the Exchequer, stating, that from the result of the information which he has received, and of the inquiries which it has been his duty to make respecting the effect of the unusual demands for specie that have been made upon the metropolis, in consequence of ill-founded or exaggerated alarms in different parts of the country, it appears, that unless some measure is immediately taken, there may be reason to apprehend a want of a sufficient supply of cash to answer the exigencies of the public service. It is the unanimous opinion of the board that it is indispensably necessary for the public service, that the direc tors of the Bank of England should forbear issuing any cash in payment until the sense of parliament can be taken on that subject, and the proper measures adopted thereupon, for maintaining the means of circulation, and supporting the public and commercial credit of the kingdom at this important conjuncture; and it is ordered, that a copy of this minute be transmitted to the directors of the Bank of England; and they are hereby required, on the grounds of the exigency of the case, to conform thereto until the sense of parliament can be taken as aforesaid,

supposed to take place any difference of opinion, I will not in prefacing that motion detain the house any longer, but content myself with moving,

"That an humble address be presented to his Majesty, to return thanks for his most gracious message, and to assure him that the house would proceed, without delay, to the deliberation of the important subject, which his Majesty has recommended to their attention; and that his Majesty might rely on the earnest. and anxious desire of the house to adopt such measures as may be best calculated to meet the pressure of any temporary difficulties, and to call forth at this present conjuncture, the extensive resources of the kingdom, in support of our public and commercial credit, and in defence of our dearest interests."

Mr. Dundas seconded the motion, which was carried nemine contradicente.

Mr. PITT then proceeded :—

I suggested that it was also my intention this day to submit to the house a motion, that there should be appointed a select committee to make such enquiry into the state of the bank as might be conceived to be necessary, and to collect such information with respect to the circumstances of the time, as might be sufficient to point out the necessity of the measure adopted by the bank in consequence of an order of council, and at the same time justifying the members of that house in taking the proper steps to confirm and enforce that measure.

With respect to the first step to be ascertained, the state of the bank, that already has in a great measure been ascertained by the confidence of public opinion. Of this public opinion the most unequivocal and satisfactory 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. At this trying period that has called for the exertion of the good sense and the fortitude of Englishmen, their good sense, and their fortitude have been displayed in a way equally creditable to themselves, and auspicious to the

public welfare. But though there can be no hesitation with respect to the solidity of the bank, undoubtedly at so important a period, and under those critical circumstances which now require the interference of the house, it is incumbent upon them to take the proper means to satisfy themselves, that the measure which has been adopted in consequence of the opinion of council, was occasioned by unavoidable emergency, and had become indispensably necessary. It is the more incumbent upon them to institute this enquiry, and obtain the fullest conviction on this head, as it is proposed that parliament should now be called upon to confirm that opinion, and to sanction the measure by an act of the legislature. I am indeed confident that the result of the investigation will be such, as not only to leave no doubt that the security of the bank is as unquestionable, as it is unquestioned, but will completely establish the propriety of adding the public security to the security and property of the bank. With respect to the amount of the outstanding demands on the bank, and the means which they possess for discharging their obligations, I am satisfied that the enquiry will be comprised in a short compass, and that from the result of a very short investigation, the advantage of the measure already adopted will appear so obvious, as to lay the natural foundation of every further proceeding on the part of this house. 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.

There is, however, one point, which from the novelty and importance of the conjuncture, it is necessary should be well understood. As to the degree of satisfaction proper to be obtained with respect to the grounds of necessity on which the measure has been adopted, it must appear to every reflecting man that this is a subject of enquiry of so critical and delicate a nature, that it cannot, consistently with public safety, be pushed to great particularity or 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