measures were taken upon it. The stoppage of payment in cash was not to be held as a permanent system, though the motives assigned did not satisfy him that it was to be limited. In 1793 the Newcastle banks had declared, as now, that they must stop the payment of their notes in cash, under the pressure of temporary scarcity; but they soon obtained the necessary supply, and went on again as before. It was notorious to every body, that the bank had not always beside them cash for all the notes they issued; for if they had, why issue notes at all However, he was of opinion, that the causes which had contributed to place the bank in this situation ought to be known; though such a measure as that adopted by administration might do no harm for once, yet it was necessary to prevent it in future. He did not approve of the plan proposed by the chancellor of the exchequer; as partial reports from the committee would not be sufficient. It was certain, however, that the country could not stand if the credit of the bank was shaken; it was therefore necessary to protect its stability by a full investigation into the causes which had led to this situation. It was impossible, however, to prevent the exportation of specie and bul lion: Spain and Portugal were instances of it; and if the prohibition were complied with, they would feel its bad effects. Mr. Hussey said, the honourable baronet had made several observations concerning the cash kept by the bank; but would he say, that the advances made to the emperor would return in two months to supply the demand of cash which might come upon the bank. It was the chancellor of the exchequer who imposed upon them the fatal order. Let him pay them all the money they had advanced, and then the difficulty would cease. It was not that the bank was unable to satisfy its creditors, but it was the continued demand of money to feed the expences of this runious and disastrous war which rendered it unjust to those who depended upon it. It was idle in the extreme, it was deluding the people, to talk of a committee such as that proposed. Let the chancellor of the exchequer pay the ten millions due to the bank, and every thing would resume its usual course. The chancellor of the exchequer said, that he had been called upon so immediately by the honourable baronet and the honourable gentleman who had just sat down, that he hoped for the indulgence of the house, while he made a reply. The honourable baronet was alarmed at the way in which the proposal was conceived, as it implied that the measure was to be permanent. He assured the house that nothing could be farther from his intention; so much the contrary, that he had no objection to a limited time being fixed. However, while it continued, it ought to have the sanction of legislative authority. With respect to the causes which produced the necessity of the measure, opinions would be different, as the general sentiments of individuals were dif ferent on political topics. He however was ready to say, that the Austrian loan, though one of the causes, was not the immediate cause to which the necessity was to be ascribed. The necessity of the measure originated in a sudden demand of specie beyond the usual average; and with respect to the quantities of money exported, and the remittances received, it was a point which the house could ascertain by a motion a motion of their own, better than by any question to him. With regard to the observation of the honourable gentleman, "Pay the bank what they had advanced, and they will be able to answer all demands," it was founded entirely on mistake; for 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 before on many occasions prior to his coming into office. The honourable gentleman supposed the taxes were paid in specie, and that the public creditor, on the other hand, was not paid at all. He should repeat, therefore, that the inquiry which was necessary to be entered upon at present, was comprehended in his original motion; whatever went beyond that object might be referred to a future opportunity. Mr. Curwen said, that this was another rash endeavour on the part of the minister to delude the country. His arguments at this time of the day were a mockery of their feelings and understanding. 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! After making several remarks on the conduct of the minister, he concluded by saying, unless the house made a decided stand, the country was ruined. Mr. Brandling spoke in favour of a full inquiry.And Mr. Bastard also said, that a partial inquiry would do much harm, rather than produce good. However, he was of opinion, that the bank needed no support; but if the state of the bank was to be in vestigated, was it not of much greater importance to know the state of the country; for without fairly examining into our situation, there was no chance of salvation. Mr. Dent, with his usual judgment and eloquence, thought a committee of inquiry could do no good but a great deal of harm. He was confident that the bank was equal to every demand upon it. It was the enormous expense of the war which caused the precent failure a war not entered into by this country by choice, but a war wantonly made against us by a people who had denied the existence of a Being !!! strain of plea Mr. Sheridan rose, and, after adverting to the eloquent speech of Mr. Dent, and particularly the lat ter part of it, in santry, said, there certainly was no moment in which the British house of commons had been more powerfully called upon to renounce all dependence on the ministers, and to repose confidence in themselves. On the last speech of the chancellor of the exchequer he meant to make a few remarks. In one part of his argument, he advanced the absurd position, that, were government to discharge all the debts they owed to the bank, as the payment would be made good in paper, it would not relieve that public body from the difficulties produced by their want of cash. Was any man, however, so ignorant as not to know that the deficiency arose, not merely from the positive want of cash, but from the comparative surplus of paper which they had issued? After commenting at considerable length upon this subject, Mr. She ridan said he did not conceive of the measure as a temporary expedient; but he foresaw that the bank never would be able afterwards to defray its outstanding engagements in cash, For how was it possible that they could; since they were about to is sue a greater quantity of paper, and their their cash was seized upon for the public service? He said, they had heard of the bank a short time ago lending two millions to government; and they had also heard of dividends on the bank stock increasing: how came they then to stop payment at a time when their affairs seemed to be going on so prosperously? The chancellor of the exchequer had said it was the wish of the bank that the measure should be adopted; he therefore called upon some of the directors of the bank to come forward and say whether it was, or was not, at their desire that the order in council had been is sued. For his part 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 had been issued. However, there was but one hope, and one opinion, viz. that the bank would be found to be perfectly secure. Why then should the public guarantee their notes? As well might the master of the mint indorse a guinea. Mr. Sheridan then suggested the steps which, in his opinion, ought to be taken. Bank-notes ought to be made a legal tender to government, and government ought to be compelled to make every payment in banknotes, except the dividends on public stock, which ought to be paid in cash. He said he would not oppose the measure, but would move an amendment in the original motion, after "this house," and also to inquire into the causes which have produced this order of council dated the 26th of February, providing for the confirmation and continuance of the measure contained in the order." Mr. S. Thornton said, as Mr. Sheridan, and several gentlemen who had spoken before, had ap pealed to him and also to other di rectors of the bank, he desired to acquaint them he was restrained from satisfying their curiosity, by a sense of the duty which he owed to the public welfare. But if the house would appoint a committee of inquiry, there was no investiga tion which the directors would not most cheerfully meet. Mr. Secretary Dundas said a few words in answer to Mr. Sheridan. The amendment proposed negatived the original motion. The honourable gentleman professed himself adverse to an inquiry, and yet wanted 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 this first and great object of satisfying the public relative to the solvency of the bank would be delayed till the state of the nation in every particular could have been ascertained. The reason why he (Mr. Dundas) wished to go into a secret committee was, that it might be necessary to put questions to the bank-directors, which it might not be proper to make public. Mr. Grey rose to explain the amendment, and correct Mr. Dundas when he said his honourable friend was adverse to an inquiry. It was not because an inquiry was not necessary, that it had been objected to, but because it was thought inconvenient. The attorney-general said, he should vote against the amend ment. Mr. Mr. Fox considered the two questions of the measures to be adopted, and the cause of the present situation, as inseparable. Till the house were apprized of what produced the order, they could not possibly know how to apply the remedy. The chancellor of the exchequer, in reply, said, that he considered the motion and amendment as comprizing 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 the inquiry into the state of the bank, which the honourable gentleman (Mr. Fox) said he was convinced was solid. When gentlemen extolled the solidity of the bank; and, next, imputed bankruptcy to it, an inquiry was rendered necessary to establish its reputation. General Walpole seconded the motion, and expressed it as his opinion, that the best way to restore public credit was to give confidence to the people, which could only be done by a removal of those ministers whose ruinous and illconcerted schemes had been the cause of the present embarrassments. The order of council was said to have been issued upon the exigencies created by an unfounded a larm. He contended that the alarm had been created by ministers themselves. When the chancellor of the exchequer came to the house demanding additional aid to the emperor, he sounded the alarm by asserting that he had positive information that the French meditated an invasion of some part of his ma jesty's dominions. What was still more strange, the proclamation issued upon an occasion to which alarm had given rise, was signed by the greatest alarmists in the king. dom-the lord chancellor, the secretary of state, and the first lord of the admiralty; but was not signed by lord Fitzwilliam, who alone had acted consistently with his principles. There was one argument for the motion which appeared to be unaswerable; it was that 158 in the transaction there were two parties, the bank, and administra tion. It was agreed on all hands, that no blame attached to the bank i it followed of course, therefore, that it must be with the ministers. It was upon this ground that he seconded the motion. Mr. Fox explained. He had not made use of the word bankruptcy applicable to the state of the bank, but to government, to which, he said, that word had been long applicable. On the division, the votes were, Ayes, for the amendment, Majority, 86 244 After the division, Mr. Fox moved the following resolution, which was agreed to, "That it is the duty of this house to inquire into all the causes that have produced this extraordinary measure." He then gave notice, that he should move the next day for the appointment of a committee to that effect. Accordingly, on the next day, March the 1st, Mr. Fox moved, "That a committee be appointed to inquire into the causes which have produced the order of coun cil," Mr. Pitt opposed the appointment of a separate committee, upon the ground that the committee already appointed was competent to every purpose of inquiry. Mr. Sheridan, on the contrary, spoke in favour of the motion, and adverted to what had fallen from Mr. Pitt, who had treated the proposition of naming a committee, at that time, as preposterous. But gentlemen would recollect, that there was a time, when, in consequence of the unfortunate situation of affairs (alluding to the time of introducing the regency.bill), the right honourable gentleman himself proposed a committee of inquiry, by nomination; for which he proposed that one member should be named by himself, and another member by another on the opposite side of the house, alternately, until the whole committee should be nominated; and in consequence of a difference of opinion upon that mode of proceeding, a division took place, which, to the best of his recollection, was either 76 or 98 in the support of it. Why, said Mr. She ridan, did the minister adopt this mode of proceeding at that time, and refuse it now? The reason for the change was nice in the extreme, because it was convenient to prejudice and party feeling. The appointment of a committee by ballot had grown into disrepute, on account of the known fact that the minister named all the members, and the notoriety of this jug gle at that awful crisis rendered it expedient to accommodate the appearance of affairs to public prejudice. On a great question of revenue, when a committee by ballot was appointed, he (Mr. Sheridan) produced a list of names influenced by government; and it afterwards appeared that the fifteen names which he produced were actually chosen. After such a notorious demonstration of collusion, he submitted to the house, whether any person there, or out of doors, could for a moment believe the appointment of a committee by ballot equitable and impartial? But the minister had said, that the names of the committee already appointed were not yet known, and therefore no person could yet say how far a trustought, or ought not, to be reposed. Was the right honourable gentleman sure the names were not known? What would he say if the name of every person should be read before the report was made? So notorious was the fact that government had previously chosen every member, that treasury lists had been shewn in the lobby, and people had turned away with disgust from the proceedings. If the practice were such, the publicity of it ought to induce the house, not only to "reform itself altogether," but to adopt some other mode of proceeding, which might at least assume the appearance of impartiality. He next proceeded to support what he had stated, by reading the list of names appointed for this committee by ballot; and if the report should eventually shew, that all, or the greater part, of the persons therein named, were actually appointed, he hoped the house would give him some credit for asserting the necessity of another node. The names which Mr. Sheridan read were as follow: Sir John Scott-a very respectable name. Isaac Hawkins Browne, esq.—a very proper person. C. Bragge, esq.-He will enter tain the committee with critical remarks. John W. Anderson, esq. indeed. Sir John Mitford. William Hussey, esq. esq. Joha |