to be made to the emperor without their previous knowledge, and that they re-asserted that the whole of the last two years. His grace thought that the repeated warnings which they gave him ought to have determined him from the drain of cash from the bank, which had brought on the calamity of the stoppage of payment. Lord Grenville rose to make some remarks upon what had fallen from the duke of Bedford, and contended, that, if the chancellor of the exchequer had given any assurance to the governor and directors of the bank, that no advances should be made to the emperor without their previous concurrence, it would not have been what the noble duke had called it, the government taking the direction of the affairs of the bank of England into their own hands, but it would have been in fact a surrender of the functions of go vernment into the hands of the bank. His lordship admitted that the chancellor of the exchequer might have overlooked the word adcances in the application of the bank, and have answered them ge nerally, without supposing government should be in any degree restrained in private remittances to the emperor or other foreign power; neither was there any one fact to prove that the advances to the emperor had either occasioned a run upon the bank, affected the exchanges, or injured the credit of the country. After remarking at some length that the exchange had risen in our favour during the ad, vances, which, he said, had been fully proved by the convincing arguments of the noble earl, his lordship concluded by making some remarks on the violent language employed by the duke of Bedford. The duke of Bedford made a short reply, in which he said, as long as he existed, he should hold it his duty to declare his sentiments on public matters with freedom, equally regardless of the noble secretary's reprehension or his misrepresentation. After a few words in explanation from the earl of Guilford, the previous question was put on each of the series of resolutions, and carried. Both the order of time and the order of precedence demanded that the first place should be assigned to the debates of the lords on this important subject. It was, however, in the house of commons, that the most interesting debates took place; and to these it is our wish particularly to direct the attention of the reader. On the 28th of February a mes. sage similar to that which was presented to the house of lords, was brought up in the house of commons by the chancellor of the exchequer. When he moved the order of the day for taking the same into consideration The chancellor said, he had given notice the preceding day, that he should first move an address to his majesty returning him thanks for his gracious communication, and to assure him that the house would proceed without delay to the deliberation of the important subject. His second motion, he informed them, was for the appointment of a select committee, to inquire into the outstanding engagements of the bank. He therefore moved, that an humble address be presented to his majesty, thanking him for his most gracious communication. Mr. Dundas seconded the motion, which was carried nem. con. and ordered to be taken to his majesty, by such of the members of the the house as were of his majesty's privy council. The chancellor of the exchequer next proceeded to submit to the house his promised motion relative to appointing a select committee, to make such inquiry into the state of the bank as might be thought necessary to justify the necessity of the measure adopted by the bank in consequence of an order of council.But though there could be no hesitation with respect to the solidity of the bank, it was incumbent, he observed, upon them to take the proper means to satisfy themselves, that the measure which had been adopted in consequence of the opinion of council was occasioned by unavoidable emergency. It was now necessary that parliament should be called upon to confirm that opinion, and to sanction that measure by an act of the legislature. With respect to the amount of the outstanding demands of the bank, and the means which they possess for discharging their obligations, the inquiry would be comprized in a short compass; and from the result of a very short investigation, the advantage of the measure adopted would, in his opinion, appear so obvious as to lay the natural foundation of every further proceeding on the part of the house. It was proposed that public' security should be given, not only for the outstanding claims on the bank, but also for those additional issues of paper which might be deemed advisable. "It is necessary, however, (continued Mr. Pitt) to observe one point relative to the necessity of adopting such a measure. It must appear to every reflecting man, that it is a subject of inquiry of so delicate a nature, that it cannot, consistently with public safety, be push. ed to great particularity or minute ness of detail." It would also, he said, be highly improper for the committee to enter into a minute investigation of the precise state of the different descriptions of specie belonging to the bank. It would therefore be necessary that the committee appointed should be a secret one, and that they should be instructed not to push their inquiries too minutely into particulars. On these grounds he was desirous to rest the motion, which was to the following effect: "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 of the necessity of provid ing for the confirmation and continuance of the measures taken in pursuance of the minute of council, on the 26th instant.” The motion being read, Mr. Fox rose and addressed the house.-When he considered, he said, the wonderful event which had this night been announced to the house; when he took into review the causes which had led to this extraordinary situation of affairs, and the effects likely to result from it; after the pause which had been afforded for deliberation, he did not at all feel more sanguinely or more agreeably than he did on the first mention of the subject. The right honourable gentleman had moved for the appointment of a committee. for the purpose of inquiry; but it might be expected, that the minister who had conducted affairs in such a manner as to call for the measure which was now proposed, would not have been contented to pass so slightly over the nature of the crisis. Every man who read the order order of council must have been struck with the reflection that this was the first time a measure had been adopted by the executive government in this country to prevent the bank from answering the demands of its lawful creditors. If the measure was indispensably required from the pressing exigency of the country, and the imperious consideration of public safety, an act of parliament was surely the only proper mode of effecting the purpose. That house was that particular branch of the legislature which should have been consulted on such an occasion. All those who had turned their attention to the paper-credit of this country (Mr. Fox observed), inust view with alarm for years and centuries to come, that the ministers or the executive government had by the present measure claimed a power to annihilate at one breach all the property of the creditors of the bank. The proclamation of the council merely forbade the issuing of money; the paper, however, subsequently published from the bank removed all doubts with respect to the nature and extent of the measure; and thanks were due to the directors for the explicitness they had manifested on the occasion. The minister, who came down to the house, and endeavoured to prove that necessity had compelled him to this fatal and irremediable act of bankruptcy, ought at least to have been prepared to shew that the necessity had been occasioned by no fault of his own, and that the most rigid economy had prevailed in every department of administration. "If I thought that the committee (added Mr. Fox) would be empowered to go into all the causes which have led to this disastrous state of affairs, and into all the circumstances connected with the transaction, I cer tainly should not desire that the inquiry should be placed on a more extensive scale. But the right ho nourable gentleman has intimated, that it is not his intention the inquiry should be conducted in this manner. I therefore say, if the house of commons should allow this committee to be appointed, they will most scandalously abandon their duty if they confine their inquiry to what the chancellor of the exchequer has this night stated." Mr. Fox next remarked, that the directors of the bank often told the minister, what the effect would be of sending such vast sums of money abroad; for he sent sums not only against the opinion and in defiance of the remonstrances of the bank, but in one instance against the known spirit, and palpably against the very letter of the constitution. In the course of what he had said, he had abstained from much observa. tion upon what he thought would be the effect of the measure now before the house. He thought that in many parts of the measure it was impossible to conceive any thing that would be more mischievous to this country; he could not put any thing in competition with the dan ger of refusing to pay the public cre. ditor. He did not think, that evea under the measures of the present administration our total ruin was become so near. It was our duty, if possible, to retrieve our affairs; but if the house persisted in confiding in ministers," our ruin (said Mr. Fox) is inevitable!" Mr. Hobhouse observed, that, when information was received that this measure was to be adopted, all the bankers were struck with consternation. They did not know whether they should be able to keep open their shops; and he was afraid that the bank-paper would fall into as low a condition as assignats or mandates. It appeared to him that the appointment of a committee, such as the chancellor of the exchequer bad moved for, would answer no good purpose, without a full and complete inquiry into all the circumstances that have led us to this dreadful situation: and there fore this proposition should have his negative. Mr. Martin said, he could not help taking notice, that the chancellor of the exchequer had proposed an inquiry which in its nature was a partial one. It appeared to him an absurdity, and therefore he could not vote for it. Sir John Sinclair remarked, that the only rational mode of judging what ought to be done in fature, was to look at what had been done in former times; for this purpose he referred to the journals in the year 1095, where it appeared there had been an inquiry into the affairs of the bank, but that inquiry had not been a partial one, "We should therefore (said he) know all the circumstances that led to that which we now feel. He had learnt from the chancellor of the exche quer that it was the intention of government that the notes of the bank of England should be received from individuals by the public; upon which there was one observa tion which appeared to him ex tremely necessary. While the notes of the bank continue in credit, they may be received by the public from the individual, and the revenue will not suffer; but if they should fall in credit, the revenue must necessarily be diminished, and the loss in that respect will be a loss to the public in a serious way. The next point to be considered was, whether bank-notes were to be deemed a legal tender from the pub. lic to the individual; because, unless this was enacted by law, it would be impossible to carry on the public affairs, for there was not specie enough in the country_to pay all the public creditors. The depreciation of bank paper, he said, in fact, would alter the price of every article that was purchased abroad. After commenting upon the subject at some length, he concluded by saying, he trusted, that if a committee should be appointed, it would consist of able and independent men, and not of persons who would either support or oppose administration upon interested ot party motives. Mr. W. Smith said, it appeared to him totally impossible for him to support a motion which limited the committee to such a superficial inquiry. The measure resorted to by government appeared to be a direct injury to the bank of England." He never heard that any request had been made on the part of the bank, for the interference or assistance of government; nor could he conceive the justice of government, in the first instance, making the bank a corporation of bankers, and afterwards exonerating them from paying the money deposited in their hands. With respect to the proposal of referring the whole business to a secret committee, who were to report their opinion to parliament, he thought the bank and the proprietors of the bank ought not to submit to have those for trustees of the national purse, over whom they had no controul. The partnership between the government and the bank, he said, was compulsive and uujust, as "being a partnership between an insolvent government which required a solvent company to bolster up its ruined finances." With respect to the utility of a ser cret eret committee, he thought it would be of none: for he would much rather take the word of the directors of the bank, as to the responsibility and solidity of their funds, than he would the report of a secret committee of the house of commons, which only had the power of making a partial inquiry. Did the house imagine, that the way to restore the reponsibility of the bank was to confirm its bankruptcy? for it was clear, that the first time the bank refused to pay its notes in specie, in consequence of the order of council, it did commit an act of bankruptcy. For these reasons he should oppose the motion as nugatory. Lord Wycombe made a few remarks relative to the situation of the country, and said that the house had proceeded upon every thing . just as the minister had thought fit to propose, for a great length of time, and more especially for the two last years; they had been quite unmindful of the public rights and of the liberties of the people. They had availed themselves of the public torpor and the public ignorance, to deprive them of their dearest rights. If he had reason to believe that the suspension of payment required by the privy council was necessary for the public purposes, and if he had reason to believe it was intended to pursue this plan to remove a public pressure at home, he should have no objection to accede; but if 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. Mr. Pollen objected to the in quiry, being a partial one; but thought it ought to be as extensive as possible, to prove that adminstration had not forfeited the confidence re posed in them. Mr. C. Yorke said, as the difference of opinion was only relative to the limitation of the powers of the committee, it appeared to him highly necessary, that an immediate report would be brought in. Mr. Wilberforce Bird said, that as soon as he heard of the order of council he was filled with alarm for the situation of manufacturers, and instantly waited on the directors of the bank, in hopes that some reserve had been made in favour of that industrious description of men; but, much to his concern, he found that no such reserve had been made.He had the honour to represent a manufacturing town, and he had instructions from 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 natually exposed them. A rumour had gone abroad, that it was the intention of the bank to issue small notes of one or two guineas each; and he was exceedingly solicituous to know if the rumour had any foundation, as such an expedient would quiet the alarm, and enable manufacturers to answer the many claims continually made on them. The chancellor of the exchequer replied, that the necessity of providing for small payments had suggested the idea of doing something with that view. It was therefore his intention, before the house separated, to move for leave to bring in a bill which might be carried through the house with the utmost rapidity, to enable the bank to issue notes below five pounds value. Sir. W. Pulteney said he considered the state of the country as in reality no worse in consequence of the present step, provided wise measures |