Eighteen millions, did they not extend it to thirty millions, when they found they could raise the money with so little trouble? By adopting such a mode, they would have been able to pay the bank twelve millions of the debt which they owed, which might have prevented the present difficulties it laboured under. The bank-trustees were bound to do, justice to their creditors, to their trust, and to themselves; and it was extraordinary to see wise and just men like them, brought to such a situation. He concluded by saying, that he should move the next day, that immediate steps be taken to pay the money advanced by the bank to government.

The two reports were taken into consideration by a committee of the whole house, on the 9th of March. The chancellor of the exchequer rose on that occasion, and made several observations upon the two reports. With respect to the first report, which related to the finances of the bank; he asserted that such had been the effect of it upon the public mind, that there did not exist a question of the general sufficiency and solidity of their funds from the moment that report had been made public, there did appear an almost general persuasion of their ultimate solidity and sufficiency. But there was another source from which he drew his own conviction of the prosperous state of the funds of the bank, which was the opinion of those who were the most interested in subjects of a pecuniary nature-he meant the merchants and bankers of the city of London, who had clearly and unequivocally manifested to the world the solidity of the bank, by adopting a line of conduct which evinced their confi

dence in its security. He had never heard until that day, in the speech of an honourable gentleman (Mr. Sheridan), any thing stated that in the smallest degree questioned the truth of the account contained in the report of the committee, that the assests in the bank greatly exceeded all the demands against it. It had been stated, that the sums due from the public to the bank of England were neither equivalent to, nor were to be considered in the same point of view as, the capital of any other coporation or company that embarked in trade. In answer to that, he observed, that the security of a certain number of traders, whether a corporation or not, consisted not only of the original sum embarked, but also of whatever profit had been produced in the course of time; and to deny that such original property embarked, if still unimpaired, whe ther it was secured as part of their outstanding debt or not, was not part of their capital, was to deny every principle upon which every mercantile account was ever constructed. The question was not whether the bank contained actual specie for all the demands which might be made upon them, but whether they had good debts due to them, or property of any other description, which might be finally available to them in the liquidation of the debts owing to the public. It appeared upon the report that the bank was rich, was possessed of substance far exceeding the demands of the public, and that the individuals composing the corporation would have a far greater sum to divide, if a division of property were to take place, than they had originally embarked; and therefore their security was ultimately good. He contended that the re

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port ought to confirm the opinion of the complete and entire sufficiency of the bank; and he thought he had the satisfaction of every gentleman in the house concurring in that opinion, till he heard the honourable gentleman state what he had that day. The committee had reported in distinct terms, that the necessity existed for the order of council; he should therefore feel it his duty to propose the continuance of the measure recommended by the committee. It was his intention to refer to the committee powers to enable them to enter into the examination and discussion of every circumstance which they might have the least reason to suppose in any respect deranged the ordinary channel through which the finances and resources of the country flowed, and to ascertain not merely what related to the bank, but what was the real and undisguised situation of the country. He had the satisfaction to declare, that the fundamental and radical resources of the country were great and flattering. He concluded with moving "for leave to bring in a bill to confirm and continue, for a limited time, the restriction against issuing of money in specie by the bank of England."

Mr Fox thought the observations which Mr. Sheridan had made upon the report of the committee were strictly right. No man could be so ignorant as to consider the sum of eleven millions due from government to the bank as a sum of money available to its utmost extent, or as assets which, in case of necessity, the bank could employ. It was in fact an annuity of $30,000l. which government might, or might not, as it thought proper, redeem. He should consider the report as productive of, at least, one very useful

and important consequence, if it had induced the minister to abandon the intention which he announced, of guaranteeing the notes of the bank with the sanction of government. He was convinced from the fullest reflection, that the more the bank was identified with the government, the more it would be dependent upon the measures of administration. Mr. Fox extended his observations to a considerable length, in which he followed principally the arguments made use of by Mr. Sheridan.

Lord Hawkesbury and the solicitor-general defended the position of the chancellor of the exchequer; to whom Mr Sheridan replied in a speech of great energy, defending his former observations upon the report of the committee.

The motion was then put for leave to bring in the bill, which was carried without a division.

The chancellor of the exchequer then moved that the secret committee for enquiring into the affairs of the bank, &c. be revived; which was carried by 174 votes against 65.

The secret committee was therefore revived. Mr. Sheridan then renewed the motion which he had made before, that the right honourable Charles James Fox be added to the committee. This motion was negatived by 157 votes against 60.

For the accommodation of manu. facturers and others, during the scarcity of cash, the legislature passed "An act to suspend, for a limited time, the operation of two acts of the 15th and 17th of the reign of his present majesty, for restraining the negotiation of promissory notes and inland bills of exchange, under a limited sum." A similar bill was also passed for Scotland.

The former of these bills was

introduced.

The chancellor of the exchequer thought the effects of the suspension might be beneficial to the metropo lis as well as other places, and therefore moved "that the exception should be left out."

Leave was granted to bring in the bill.

Mr. Wilberforce Bird, on the 3d of March, moved the order of the day upon the said bill, when he begged leave to bring up a clause which he was desirous should be inserted in the bill. The purport of this clause was, that if any person should fail in the payment of a note three days after it became due; it should be lawful for the justices to proceed by summons, distress, &c. to enforce payment. Mr. Bryan Edwards expressed himself directly against the bill, because it went to multiply the quantity of paper in circulation. The bill, however, was finally passed on this day, and it was agreed, after some discussion, that it should continue in operation till the 1st of May then ensuing; it received the royal assent on the 10th of March.

Mr. Sheridan, on the 10th of March, rose to make his promised motion relative to the bank. He endeavoured to account for that recent political phenomenon, why the order for prohibiting the bank from paying in specie should have

been attended with so little alarm. One cause was, that the commercial part of the country derived additional accommodation from the liberality of the bank in discounts. If, previous to this order, the country was impoverished by the war, to a degree that was not fully known, the prevalence of certain opinions upon this subject tended to conceal the reality of our situation. The minister felt himself in such a situation, that if he insisted on the bank doing its duty, of discharging the just claims of their creditors, and of limiting their discounts, from the pressure they felt for cash, numerous and important failures must have taken place throughout the country, and produced a general indisposition to the continuance of the war. On the other hand, he was aware, that if he made no effort to enable the bank to keep its faith with its creditors, but allowed the circumstances on which the order was founded to come to extremities, he might find a facility in affording a great temporary relief to the difficulties which were experienced. He presumed that it was for the purposes of government, not from the deficiency of the bank, that the order was issued. The house was called upon by legislative authority to declare, that they preferred the accommodation of government to the just claims of the public creditor. The sentiment of Demosthenes, so often quoted, was one which was particularly applicable to our present circumstances. If we were reduced to our present distress without error or misconduct, the state of the country was desperate, and there was no chance of retrieving our affairs. He contended, that it would be found, upon inquiry, that the embarrassments of the bank had arisen from a de

parture

quite impossible all at once to call back specie into circulation. Paper, he said, was a good medium of exchange, if it rested upon a proper ultimate security, and if it did not exceed the demands of the medium; but when a country was surcharged with it, certainly it became a great evil. Mr. Pitt contended, that the propositions then before the house were inadequate to the end for which they were brought forward. The debts of the bank amounted to thirteen millions, all of which was demandable in cash: now, though government were to pay five millions to the bank, even supposing they could pay it in cash, would this be sufficient to liquidate all possible demands upon that corporation? which was the position held by the honourable gentleman. He concluded with moving the previous question.

Mr. Fox defended the resolutions proposed by Mr Sheridan. He said the question for the house to decide upon was simply this, Whether the liquidation of the debt due from the government to the bank, which was admitted on all hands to be expedient, ought to be executed as a part of the minister's plan of finance, or in consequence of an independent resolution of the house? He thought the latter mode was much preferable. The house divided upon the previous question Ayes Noes It has been already observed, that the chancellor of the exchequer introduced the indemnity-bill into the commons on the 9th of March; on the 13th of the same month, he brought up the bill under the title of "A bill for enabling the bank of England to issue notes in payment of demands up

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on them instead of cash, pursuant to the late order of council to that effect." The bill was read a first time, ordered to be printed. and read a second time on the Thursday ensuing. On that day, however, on account of a paucity of members, the house adjourned without proceeding to business: but on the next day (March 17) the chancellor of the exchequer proposed the second reading of the bill.

Mr. Fox said, there seemed to be no provisions in the bill obliging government to receive notes in payment of the taxes, which, as he supposed, was one part of the minister's plan. He exhorted the house also to observe the alarming situation in which every man in the kingdom was placed. If any person could not pay his debts in cash, he was liable to be sued and arrested at the will of his creditor, as there was no possibility of procuring a supply of specie. This situation was certainly alarming, and it might be particularly hard upon bankers; yet, he was convinced, that if the only remedy which would be resorted to were used, it would be much more ruinous and destructive. Here he alluded to the making of bank-notes a legal tender.

The chancellor of the exchequer, in that stage of the bill, waved making any observations upon what had fallen from the right honourable gentleman.

Mr. Hobhouse objected to the whole bill, as an act of robbery and depredation against the public creditor: he therefore opposed it throughout; lest the plunderer, passing in this instance with impunity, should proceed in his system of pillage. He was afraid that mi

nisters,