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country. The rates 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. With regard to the quantities of money exported, and the remittances received, it was a point which the house could ascertain by a motion of their own better than by any question put to him. This run might have, occasioned a demand, which, when connected with the alarm which prevailed, would have produced the worst effects, and reduced the country to a very dangerous situation. The short question for the house, however, was, to prove the reality of the situation which had The causes would be so diffeproduced the order of council. rently viewed according to political and commercial opinions of men, that they more properly belonged to future discussion. The inquiry immediately relating to the point before the house was urged in the first instance by every consideration of public interest and public duty.

"

With regard to the observation of the honourable gentleman, pay the bank what they have advanced, and they will be able to answer all the demands," it was founded entirely on mistake. Did the honourable gentleman imagine that the bank advanced their specie to government; 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. The advances were 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, it could not be said that the advances to government could in any view produce the difficulties of the bank for cash. It was not impossible that, upon some future occasion, a loan might be required, for the purpose of taking up these floating advances; but, did the honourable gentleman conceive that such a loan could be in specie? This was not the

moment, in the midst of these embarrassments, to propose such a loan; and, though it were transacted, it could not supply the bank with a single additional guinea in cash. Surely it would not be proposed to give up the inquiry into the measure which he had brought forward, and, instead of it, require him to borrow money for such purposes, and with such expectations as this.

The honourable gentleman 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, like every other person, often received notes instead of cash. Upon such a question as this, it was proper to look at general usage. It was a fact well known, that 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; nor did they form their arrangements upon that supposition. All the receipt of the revenue paper was taken in the same manner. The observations of the honourable gentleman were entirely founded in mistake; and, as he hoped he was guided by motives of candour, he would be aware of the false grounds on which he had formed his conclusions. He should repeat, therefore, that the inquiry which was necessary to be entered upon at present was comprehended in his original proposal: whatever went beyond that object might, with much greater advantage, be referred to a future opportunity.

Mr. Sheridan then moved, as an amendment to the motion, "That the committee should inquire into the causes which produced the order of council of the 26th instant."

country. The rates 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. With regard to the quantities of money exported, and the remittances received, it was a point which the house could ascertain by a motion of their own better than by any question put to him. This run might have, occasioned a demand, which, when connected with the alarm which prevailed, would have produced the worst effects, and reduced the country to a very dangerous situation. The short question for the house, however, was, to prove the reality of the situation which had produced the order of council. The causes would be so differently viewed according to political and commercial opinions of men, that they more properly belonged to future discussion. The inquiry immediately relating to the point before the house was urged in the first instance by every consideration of public interest and public duty.

With regard to the observation of the honourable gentleman, " pay the bank what they have advanced, and they will be able to answer all the demands," it was founded entirely on mistake. Did the honourable gentleman imagine that the bank advanced their specie to government; 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. The advances were 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, it could not be said that the advances to government could in any view produce the difficulties of the bank for cash. It was not impossible that, upon some future occasion, a loan might be required, for the purpose of taking up these floating advances; but, did the honourable gentleman conceive that such a loan could be in specie? This was not the

moment, in the midst of these embarrassments, to propose such a loan; and, though it were transacted, it could not supply the bank with a single additional guinea in cash. Surely it would not be proposed to give up the inquiry into the measure which he had brought forward, and, instead of it, require him to borrow money for such purposes, and with such expectations as this.

The honourable gentleman 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, like every other person, often received notes instead of cash. Upon such a question as this, it was proper to look at general usage. It was a fact well known, that 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; nor did they form their arrangements upon that supposition. All the receipt of the revenue paper was taken in the same manner. The observations of the honourable gentleman were entirely founded in mistake; and, as he hoped he was guided by motives of candour, he would be aware of the false grounds on which he had formed his conclusions. He should repeat, therefore, that the inquiry which was necessary to be entered upon at present was comprehended in his original proposal: whatever went beyond that object might, with much greater advantage, be referred to a future opportunity.

Mr. Sheridan then moved, as an amendment to the motion, "That the committee should inquire into the causes which produced the order of council of the 26th instant."

March 9, 1797.

THE House having resolved itself into a committee of the whole House to take into consideration the reports of the Committee of Secrecy, appointed to inquire into the affairs of the Bank,

Mr. PITT expressed himself as follows:

I rise in consequence of the notice which I gave on a former day of my intention to make some propositions on the present state of public affairs, grounded on the reports of the secret committee appointed to inquire into the affairs of the bank, and the necessity of providing for the continuance of the operation of the order in council of the 26th of February last. These reports. relate to two distinct points-the state of the funds of the bank, and the necessity of continuing the restriction by which the issue of specie is at present suspended. With respect to the first point, there undoubtedly appeared from the beginning of the discussion an almost universal persuasion of the solidity of the funds of that corporation. It was the opinion of those who were most interested in its concerns, and it was readily adopted by persons more immediately conversant in pecuniary transactions, who evinced the sincerity of their confidence by the measures which they at first adopted, and the line of conduct they have since pursued. The report of the select committee confirmed the general impression respecting the stability of its resources; and never till this day have I heard them questioned.* That their assets greatly exceed all demands which can be made on them cannot be disputed.

The only part of the honourable gentleman's† speech on which I find myself called upon to make any observations, was that in

*Mr. Sheridan had previously risen to give notice of his intention to move on the next day, that immediate steps should be taken to pay the money advanced by the Directors of the Bank to Government.

+ Mr. Sheridan.