The governor afterwards mentioned in converfation the defire of the court to have the new arrangements made which fhould eafe the bank from the payment of the treafury bills. The promife to which point Mr. Pitt acknowledged to have made; but being exceffively hurried with a variety of bufinefs, and about to fet off to attend the election at Cambridge, he defired leave to defer this object until fome time next week after his return, when he would refume it. (No. 20.) Interview with the Chancellor of the Exchquer, 14th June, 1796. THE governor and deputy governor this day waited on Mr. Pitt with a statement of the treasury bills paid by the bank, which advance now to the fum of £.1,232,649 25 and requested that fpeedy measures might be taken to pay off the fame. Mr. Pitt told them, That he had made arrangements to pay off the 200,000l. which he had borrowed (as by his letter of the 25th of May, copied in the private minute book of the court), and alfo for the payment of 800,000l. out of the monies received on the laft loan, for which he would take up exchequer bills to that amount on the vote of credit of 1795 and in confequence of thefe payments he hoped the bank would have patience to wait for the discharge of the advance on the treasury bills abovementioned until the quarter ending the 5th of July, of the confolidated fund, when the furplus thereof fhould be applied to that purpofe which the governor faid he fhould refer to the court for their opinion. (No. 21.) Copy of a Letter from the Chancellor of the Exchequer, and Refolution of the Court of Direc tors, 21ft of July, 1796. Downing-Street, Wednesday, 20th of July, 1796. AS the preffure of demands for is for the public fervice: and I truft the very large re-payments which are fecured to the bank in the courfe of the present year, will admit of their making thefe temporary advances at a period when they are peculiarly important. I have the honour to be, &c. (Signed) WM. PITT. Governor and Deputy Governor of the Bank. P. S. In cafe the bank fhould find it neceffary (which I hope will not be the cafe) to difpofe of any of the exchequer bills on the vote of credit before provifion is made for their discharge, and any lofs fhould arise from their being at a discount in the market, I fhould of courfe propofe that fuch a lofs fhould be made good by the public. After a debate on the fubject of this letter, the court came to the following refolution thereon: Refolved, That this court do confent to receive payment for the amount of advances on the treasury bills which have been and fhall be paid before the first of August, beyond the fum of 500,000l. and which will be 867,700l. in exchequer bills iffued on the vote of credit of the prefent year, under the ftipulation of indemnity from loss on the fale propofed by Mr. Pitt, and to wave their claim of re-payment of the 500,000l. till the meeting of parliament; when the court will expect that this mode of paying treasury bills fhall be totally done away. Refolved, That the court do not confent to advance any more mo. ney for the payment of fuch bills which fall due after the firft of Auguft. Refolved, That the court do confent to the other part of the letter, to advance the fum of eight hundred thousand pounds on the credit of exchequer bills on the confolidated fund, on condition of being paid off the 400,000l. lately advanced to government, and the navy bills due and coming due; but they do not consent to advance the fecond fum of eight hundred thousand pounds in the month of Auguft. The governor, deputy governor, with Mr. Darell and Mr. Samuel Thornton, were defired by the court to carry up these resolutions to the chancellor of the exchequer; which they did as foon as the court broke up. And being admitted, they gave a copy of the refolutions to Mr. Pitt, who having read them attentively over, faid, "He was "obliged to the court for what they did grant, which he should " accept of; but added, that it "would be of no material use, in "the prefent circumftances of the nation, unless the other requi"fitions which he had made were "complied with. That he must "refer the affair again in a more "pointed manner to the re-con"fideration of the court, which he "would do in a letter to be sent "to the bank next Tuesday morn"ing, for the previous deliberation "of the committee; and that he "would be glad to see the gover nor and deputy governor again "before the next court fhould "meet." AFTER attentively confidering the refolutions of your court, which I received from you on Thursday laft, I feel it an indifpenfable duty, however unwilling I am to urge any request which appears to them liable to any difficulty or objection, to reprefent to you, in the moft earnest manner, that it will be impoffible to avoid the most serious and diftreffing embarraffiments to the public fervice, unlefs in addition to the accommodation which has been already agreed to for the prefent month, the court can confent to advance the second sum of 800,000l. in the month of Auguft, and can alfo make provifion for the payment of fuch farther treafury bills as may fall due in the next month, or as may be drawn payable in September and October. With refpect to thofe for the two latter months, as none fuch have yet been accepted, I fhould hope an arrangement may be made for accepting them, payable at a period fubfequent to October, by which means the inconvenience of the advance may poffibly be in a great degree obviated. I muft requeft you to take the firft opportunity of laying this application before your court, and to state to them, that objects of the utmost importance to the public are involved in their determination upon it. WM. PITT. I have the honour to be, Gentlemen, Your obedient humble fervant, (Signed) Governor and Deputy Governor of the Bank. Refolved, That this court do agree to advance, for the fervice of the public, the fum of Soo,oool. towards the end of the month of Auguft, on the fecurity of exchequer bills to be iffued under the act of parliament on the furplus of the confolidated fund; and that fuch treasury bills as have been accepted, and fhall fall due during the month of Auguft, be likewife discharged on a depofit of like exchequer bills to be iffied on the confolidated fund to an equal amount, which bills have been stated by the chancellor of the exchequer to be about the fum of 300,000l. That this court do not engage to advance for any fum of treasury bills which may be drawn, and shall fall due after the month of Auguft. That this court do expect that the chancellor of the exchequer will give a promise that a new mode of paying the treasury bills fhall be adopted immediately on the meeting of parliament, as this court will not continue the mode of difcharging them any longer. Refolved, That the court, having granted this accommodation with great reluctance, and contrary to their wishes, the governor be defired to prefent to Mr. Pitt, a copy of the following memorial; and requeft of him, that, for the juftification of the court of directors, the fame may be laid before his majesty's cabinet: "The court of directors of the bank of England, fully fenfible of the alarming and dangerous fituation of the public credit of this kingdom, and deeply impreffed with the communication lately made to them by the right honourable William Pitt, both by letter and in a conference with the governor and deputy governor, are very willing and defirous to do every thing in their power to fupport the national credit, and to enable his majefty's minifters to carry on the public fervice; but in complying with the request made to them by the right honourable Wil liam Pitt, in his letter of the 27th inftant, they think that they should be wanting in their duty to their proprietors, and to the public, if that compliance was not accompa nied with the following most ferious and folemn remonstrance; which, for the juftification of their court, they defire may be laid before his majesty's cabinet. "They beg leave to declare, that nothing could induce them, under the prefent circumftances, to comply with the demand now made upon them, but the dread that their refusal might be productive of a greater evil, and nothing but the extreme preffure and exigency of the cafe can in any shape juftify them for acceding to this meafure; and they apprehend, that in fo doing they render themselves totally incapable of grauting any farther affiftance to government during the remainder of this year, and unable even to make the ufual advances on the land and malt for the enfuing year, fhould those bills be paffed before Christmas. They likewife confent to this meafure, in a firm reliance that the repeated promifes fo frequently made to them, that the advances on the treasury bills fhould be completely done away, may be actually fulfilled at the next meeting of parliament, and the neceffary arrangements taken to prevent the fame from ever happening again, as they conceive it to be an unconftitutional mode of raising money, what they are not warranted by their charter to confent to, and an advance always extremely inconvenient to themfelves." (No. 23.) Interview with the Chancellor of the Exchequer, 9th Aug. 1796. SOME lifts of treafury bills ac cepted, payable at the bank, of which about 37,000l. fall due in September and October, being brought down to the bank, the governor and deputy governor this day waited on Mr. Pitt, to mention this matter to him; and to remind him, that the court had refolved not to pay any bills on the treasury due in thofe months, unless provifion was made for the fame by the treafury. Mr. Pitt thanked them for the attention, and told them, that it was meant to prepare money at the bank for the discharge of those bills. Downing-Street, Nov. 3, 1796. Gentlemen, I HAVE to request you to reprefent to your court, that it will contribute effentially to the public fervice, if they think proper, to advance the amount (as it may be wanted) of exchequer bilis ufually raised on the land and malt; and that I fhall, in that cafe, be enabled to make provifion for the payment of the balance now due on treasury bills, at fuch time and in fuch proportions as may be agreed upon by them. I have the honour to be, Your obedient humble fervant, Refolved, That the lords of the treafury be accommodated with the fum of 2,750,000l. on the land and and malt taxes, 1797, on the following conditions: That the fum of 1,513,3451. 195. 7d. already advanced by the bank on treasury bills of exchange, be paid thereout; and that all the treafury bills directed to be paid at the bank,which fhall fall due in the months of November and December, fhall be difcharged and fatisfied by money to be fent down for the purpofe: and that from the first day of January, 1797, provifion fhall be made, on notice that bills have been ac cepted to the amount of 100,000l. that money or exchequer bills to that amount fhall be iffued to the bank three days before the whole fum becomes due. The government was defired to inform the chancellor of the exchequer with the above refolution, and at the fame time mention to him, that the court intended to adhere ftrictly to these terms, and hoped he would give directions that no alteration hould take place refpecting them. (No. 25.) Interview with the Chancellor of the Exchequer, ift of February, 1797. THE governor and deputy governor yesterday waited upon the chancellor of the exchequer, to reprefent to him how uneafy the court were at their large advances for government, and especially on the treasury bills paid, which now amounted to 1,554,6351. and would in a few days be augmented to 1,819,8181. and required that fome effective measure should be immediately taken for the payment of the whole of this fum, as had been fo seriously promised them fhould be done at the opening of this year. Mr. Pitt acknowledged his intentions and wish to have done it; but faid, that he had been prevented by the very preffing calls for various other fervices. He faid, however, he would confider over his payments and refources, and would endeavour to form fome plan, for the re-payment of the treasury bills, against the next day, when the governor and deputy go vernor were to wait upon him again about the bufinefs of the national stock. Accordingly, this day Mr. Pitt refumed the fubject, and faid, that he was endeavouring to fell exchequer bills; out of which he hoped to be able to pay about 300,000l. at prefent; which the governor wifhed him to do, that the bank might be provided for the bills now falling due. Mr. Pitt faid, as to future payment he believed he could propofe to pay every week about 150,000l. or in that proportion, until the whole fum now due was paid off. Mr. Pitt, however, hinted in converfation, that another large fum of bills had appeared from St. Domingo. The governor begged he would give us an idea to what amount they were. He faid, about 700,000l. on which the governor expreffed great apprehenfion about fuch an accels to the prefent advance; and begged of Mr. Pitt to put off the acceptance of these fresh bills, or, at least, to protract the acceptance of them to a term of two months beyond their tenor; which, he faid, he would confider about, and take his refolution. The governor then defired Mr. Pitt to write a letter officially to him, and he would lay it before the court, and take their refolutions upon it. Mr. Pitt then hinted that he should want fome money to fend to Ireland, that he had been applied to for a large fum, but that 200,000l. in fpecie would be neceffary. |