(No. 8.)

Interview with the Chancellor of the Exchequer, 23d of October, 1795.

THE governor mentioned his having heard that there might be annexed to the enfuing loan, one of 1,400,000l. for the emperor of Germany; and ftated, that in fuch a cafe it would be highly proper for the bank to have fome intimation of it, that they might adopt fuch arrangements as the measure would render abfolutely neceffary: -The chancellor of the exchequer replied, That he had not at prefent the most diftant idea of it; though he did not pledge himself that on no occafion fuch a thing might happen. The governor thanked him for his anfwer, which he told Mr. Pitt he received with pleasure, thinking, as he did, that another loan of that fort would go nigh to ruin the country. The governor alfo acquainted him that the drain of cash continued; and was likely to do fo, while the bills from abroad continued to be drawn on the treasury. Mr. Pitt faid, they might last two months longer, but he believed not longer.

(No. 9)

Interview with the Chancellor of the Exchequer, 18th of November, 1795.

THE governor informed Mr. Pitt, that the prefent price of gold was 41. 2s. per ounce, and that the daily large drains of fpecie from the bank filled the minds of the directors with ferious apprehenfions; and that in the prefent fitu ation of their affairs, he muft not rely on any aids from them, not even the vote of credit and fupply bills.

The chancellor of the exchequer apologized for the warrants that

were defigned to be applied to the reduction of the amount of the treafury bills paid by the bank, having, from the moft urgent ne ceflity, been otherwife applied to the payment of the troops going abroad. With respect to the million which he had promifed fhould be paid in the courfe of this mouth in farther reduction of the treasury bills, he faid his intention was to take out that fum in part of the land and malt for 1796, and to pay it on this account, having no other means to do it by. The governor then hinted to Mr. Pitt, his apprehenfions from a rumour that a farther loan to the emperor was in agitation, notwithstanding the affurances which Mr. Pitt gave him fome time back, that he had not then the most distant idea of such a measure. The chancellor replied, That he then had not fuch a thought, from the tardy and flow operations of the Auftrians; but the face of things having fince changed, and the Auftrian army hav.. ing been of late very active and fuccefsful, he confeffed it was his, opinion that a continuance of fuch exertions was the fureft way of dif- · treffing the French, and bringing them to proper terms of peace; and on this ground miniftry now had it in contemplation to let the emperor have another loan, not exceeding two millions, trufting that it might be, done with fafety, and on the confideration that the fubfidies of about 900,000l. per annum, which had been paid to different ftates in Germany, for troops, would ceafe, and alfo the bills drawn for the fupport of our army on the continent, which had last year amounted to near three millious fterling: befide, that fhould the loan take place, he had no objection to modify the stated times

for

for the remittance thereof, fo as to caufe the leaft bad effect on the courfe of exchange. And he farther added, That should the fituation of the bank be fuch, as to make this measure a very hazardous one, he would, in compliance with our request, overlook every other confideration, and abandon the loan. The governor and deputy governor then told Mr. Pitt, that they would take the fenfe of their court to-morrow on the advances, which he wished to have on the land and malt of 1796, and wait upon him with the determination of the court as foon as it should break up.

(No. 10.)

Interview with the Chancellor of the Exchequer, 20th of November, 1795.

THE court of directors having, on a confideration of the advances propofed by the chancellor of the exchequer on the land and malt, 1796, refolved to let him have the fum of one million, under the reftriction that it be immediately applied to the difcharge of fo much of the bank's advance on the treafury bills and alfo a further advance of 500,000l. for his prefent accommodation: The governor and deputy governor went, as foon as the court was over, to wait on the chancellor of the exchequer, to acquaint him thereof. But at the fame time the governor mentioned to him, that it was the expectation of the court, that he fhould not take up any more on this fund until about February next, and then gradually, as the advance on the former year would be coming in. The governor alfo faid, that from the prefent fituation of matters at the bank, and from appearances for the future, it would be abfolutely out of the power of the court to

make the advance, which had been done before, of 2,500,000l. on the vote of credit which might be paffed this feffion; and he felt it right to announce this in time to Mr. Pitt, before the loan, that he might make his arrangements accordingly:-Which Mr. Pitt thanked him for having mentioned; faid he fuppofed he might venture to iffue about 1,500,000l of fuch exchequer bills to the public; and that he must provide for the other million by an addition to the loan. The governor then repeated to Mr. Pitt, the abfolute determination of the court to have the advance on the treasury bills quite cleared off, by an early payment out of the monies received in part of the loan.

(No. 11.)

Interview with the Chancellor of the Exchequer, 12th of December, 1795.

IN confequence of a message from the chancellor of the exchequer, the governor and deputy governor waited upon him this day; when he returned to them the paper which contained the copy of the court's refolution made on the 3d instant.

The governor renewed the fubject of the payment of the treasury bills to Mr. Pitt, which amount now to 2,670,000l.; but Mr. Pitt faid, the money hitherto received on account of the prefent loan, fhould be applied to the payment thereof, and a farther fum out of the payments in full, until that advance was reduced to 500,000l.

cellor of the exchequer, by his defire. When he mentioned to them his request that the bank would accommodate him with an advance of 500,000l. which he wanted for the purpose of paying off fums due to the army agents, and for which he would pledge exchequer bills on the land and malt of the prefent year; and if the payments made upon the loan for this year fhould amount in all before the end of this month to above 5,800,000l. the excefs beyond that fum as far as 500,000l. fhould be employed in re-paying the bank's advance on the exchequer bills on the credit of the growing produce of the confolidated fund for the service of the Jaft year. The governor told Mr. Pitt, that he did not think the court would object to fuch an advance, and defired him to write an official letter in time to be laid be. fore the next court for that pur. pose.

Mr. Pitt faid, he had an imme. diate neceffity for 200,000l. which the governor faid he might take up directly; not doubting that it would be approved of by the court of directors.

(No. 13.)

The Governor's Report, and Refolution of the Court of Directors, 28th of January, 1796.

THE governor having informed the court, that a notice was brought this morning from the treasury, that certain bills drawn on the commiffioners of the treafury, amounting to the fum of 201,000l. would fail due on Wednesday the 3d of February, and were directed for payment at the bank; and that the fum now in advance on treasury bills is 1,157,000l.

Refolved unanimoufly, That the governor do give directions to the

cafhiers not to advance any money for the payment of these bills, nor to discharge any part of the fame, unless money fhall be fent down for the purpofe; in which cafe fuch money is to be appropriated exclu fively for the difcharge of thefe bills.

Refolved, That the governor, deputy governor, and a deputation from this court do wait on the chancellor of the exchequer, with a copy of the above refolution; and do farther respectfully lay before him the determination of the court not to continue any longer the mode of advancing the payment of treasury bills, than to fuch time as fhall be fixed on between Mr. Pitt and the deputation beforementioned, which time the court hopes will not be fixed for a distant day.

(No. 14.)

Interview with the Chancellor of the Exchequer, 29th of January, 1796.

THE governor and deputy governor, with Mr. Peters and Mr. Bofanquet, waited on Mr. Pitt this day with the refolution of the court, as stated in the foregoing minute. He dwelt much on the inconvenience which it would put him to to comply with it; but after fome converfation, faid he would arrange his affairs, fo as to provide the money in time for the payment of the treasury bills due on the 3d of February, by applying to that pur pofe money which he had deftined for other fervices.

As to fixing a period when the payment of the treasury bills fhall no longer be referred to the bank, Mr. Pitt declared himself unable to fettle that at fuch a thort notice; but that he would look into the fituation of his payments, and endeavour to form fuch a plan as foon

as

as poffible; and hoped to be able to conclude it by Friday the 5th of February, when he would expect to see the deputation again.

(No. 15.)

Interview with the Chancellor of the Exchequer, 5th of February, 1796.

THE governor, deputy governor, Mr. Peters, and Mr. Bofanquet, this day waited upon Mr. Pitt again, according to appointment, to hear his determination about the latter part of the court's resolution, on the 28th ultimo, as to fixing a time when the prefent mode of paying the treasury bills in advance fhould be brought to a period. Mr. Pitt, after much converfation on the fubject, faid, That measures were now taking for a payment of 500,000l. more on this account, to the bank, which would reduce their advance on this score to under 200,000l.; but that, as matters were fituated, he could not foresee a poffibility of paying the remainder, and quite finishing the account till May or June next; for that, as fome part of our cavalry had not been brought home from Germany, there must ftill be fome monies drawn for their charges, but he did not think it could amount to above 300,000l. more in the whole. Mr. Pitt, however, faid, he would digest his ideas on this fubject more particularly, and send a letter with a propofal to the bank court against next Thursday.

Mr. Pitt dwelt much on the neceffity of fome farther fupport to be given to the emperor, to enable him to continue his efforts against the French, as the most probable means of bringing the war to an end; but knowing the fentiments of the directors of the bank to be

against any fuch affiftance in money, he promised that he would not commit himself to any engagement for a farther loan to the emperor, without a previous communication on the subject with the gentlemen of the bank.

Mr. Pitt read fome extracts of letters from the British refident and others at Hamburgh, which mentioned that large quantities of Englifh guineas were imported thither by the packets from Yarmouth; and one mentioned that the guineas were melted down on arrival there. Mr. Pitt faid, that attention should be paid to this circumftance at the ports from which the packets failed.

(No. 16.)

Interview with the Chancellor of the Exchequer, 12th of February, 1796.

THE governor told Mr. Pitt, That the court had received his letter of the 11th inftant, and would comply with his defire of continuing to pay the treasury bills as ufual till May, when he hoped it would be totally done away; and that he might look to a temporary accommodation of 500,000l. in the interval; but abfolutely required, that it should never exceed that fum.

Mr. Pitt faid, That as far as lay in his power, it fhould not exceed it; but that demands did arife occafionally which he could not forefee, but which the public fervice required to be provided for; and if the money from the loan did not flow in faft enough, he might be obliged to have recourfe for tem porary affiftance to the bank; and that it lay with the court of direc tors to judge whether they chose to accommodate the public or not.

(No.