neceffary. The governor and deputy governor told him, that any farther drain of cash from the bank would, in these times, be very dangerous, as they acknowledged that the cafh had been very materially leffened of late, and they therefore begged of him to try if 100,000l. would not be fufficient.

(No. 26.)

Interview with the Chancellor of the Exchequer, 3d of February, 1797.

THE governor and deputy governor this day waited on Mr. Pitt, to mention to him that his letter, which contained the engagement to liquidate the prefent advance on treasury bills, was yesterday laid before the court; who, after a long debate on the fubject, had fubmitted to the plan as propofed by him; but that, by the direction of the court, they recommended a punctual performance of the payments promifed Which Mr. Pitt faid fhould certainly be obferved; and

that he had hopes of being able to pay it off, even quicker than he had propofed.

(No. 27.)

Refolution of the Court of Directors, and Deputation's Interview with the Chancellor of the Exchequer, 10th February, 1797.

THE committee met this day, and taking into their most serious confideration the certainty, which now threatens us, that Mr. Pitt will be obliged to bring forward here a loan for Ireland, to the amount of 1,500,000l. and the evilswhich will probably follow on such a measure to this houfe, by the fending over to that country a great part of the fum in fpeciethey refolved to ask of Mr. Pitt, a confiderable reduction of the bank's prefent advances to government, to be raised, as he hinted, by a new loan: and they made out a statement for that purpose to be prefented to him, which was as follows:

£. 337,000.

1795

491,000

1796

2,392,000

968,800 1,323,000 1,674,645

£.7,186,445 400,000

And the committee alfo defired, that, if neceffary, a special court of directors might be fummoned to meet, on this bufinefs, on Monday next, at twelve o'clock, that the business may be brought before the court.

In confequence of the above re folution, the governor, and other gentlemen deputed, went to Mr. Pitt, fhewed him the statement of the bank's demands on govern

ment,

ment, which they wished to have paid off, or fo arranged before the fettlement of the Irish loan. Mr. Pitt, on the article of the treasury bills, faid, that he had already laid his plan for the difcharge of that article, which he meant to adhere to, and that therefore this article might be left out of the prefent agreement; and that he would lay his plan for the liquidation of the reft, by an addition to the late voluntary loan, or by fome other meafure as might be moft forcible. The deputation preffed on him the neceffity of attending, in his plans, to the point of making the payments to the bank precede thofe which might be fixed for the Irish loan. They alfo informed him of their intention to call a fpecial court of directors, to impart their bufinefs to them, which might be held on Monday or Tuesday next, as might be fuit Mr. Pitt. He begged it might be called on Monday, as he faid that Mr. Pelham, the fecretary of state for Ireland, had been here fome days on this bufinefs, and that it was of the ut moft confequence that the matter fhould be fixed, and advice fent over to that country of it as foon as poffible. On which the governor told Mr. Pitt, that a court of directors fhould be fummoned for Monday; and requested, that he would furnish him with a letter, explanatory of the bufinefs, to be laid before the court; which Mr. Pitt promifed fhould be fent to the bank, either to-morrow, or on Sunday.

(No. 28.)

Letter from the Chancellor of the
Exchequer, and Opinions of the
Court of Directors.
Downing Street, 15th Feb. 1797-
Gentlemen,
SINCE our laff conversation I
*797.

have turned my attention to an idea, which has been fuggefted to me, of raising the money wanted for Ireland, as part of one loan, together with that which may be requifite here, and of leaving the time and mode of remittance to be fettled between the English and Irish governments, according to circumstances. Such a measure might poffibly prevent fome inconvenience, which would arife from there being otherwife two loans on the market at the fame time, and might alfo give better means of regulating the remittance in the manner leaft inconvenient. It would at the fame time hardly fail to be acceptable to Ireland, as it would probably procure money for them at a much cheaper rate than they could otherwife borrow it. I have to request the favour of you to learn the fentiments of your court on this point, and to communicate to me the refult.

I have the honour so be,
&c. &c. &c.

(Signed) WM. PITT. Governor and Deputy Governor on the

After a debate on the subject of this letter, it was the opinion of the court, that it might be better for the minifter of this country to have the controul over the remittance of the fum intended for Ireland, than, by an open loan for Ireland, to leave it in the power of that government to draw the money away, without any confideration of the cafe of the bank. And the governor and deputy governor, and Mr. S. Thornton, were defired to wait on Mr. Pitt with the following obfervation on his letter, as dictated by the court:

"It is the opinion of this court, "That the plan of adding to the "intended English loan, the fum (0)

"that

"that has been proposed to be "raised here for the government "of Ireland, and of making the "remittances at fuch periods, and "in fuch manner, as may be leaft "inconvenient, is preferable to the "raifing an Irish loan in England "by itself, and fixing the payments "and remittances in a manner, "which cannot be varied accord❝ing to circumstances.

"But the court must repeat their "apprehenfions, that any measure "which tends to carry money out "of the country, is replete with "alarming_confequences to the "bank of England."

The paper containing the above was accordingly carried up to Mr. Pitt, who read it with attention, and then returned it.

(No. 29.) Refolution of the Court of Directors, 23d of February, 1797. "Refolved, That it is the opi"nion of this court, that the trea"fury bills of exchange fhall be 66 paid, which will become due in "the course of next week, to the "amount of about 150,000l. but "that no other treafury bills of ex"change fhall be paid by this "houfe, until money be iffued to "the bank to pay the fame."

The governor and deputy governor were defired to go and wait upon Mr. Pitt with the above refolution, as foon as the court broke up.

(No. 30.) Addition to (No. 26.) THE governor mentioned to Mr. Pitt, the great diftrefs and inconvenience which the bank, the bankers, and the public, fuffered for want of a fresh coinage of filver, and requested the chancellor of the exchequer to take fome early meafures for a redress thereof by a hew

coinage, at least of fome part of what would be wanted.

(No. 31.) Interview with the Chancellor of the Exchequer, 18th of February, 1797.

THE governor and deputy governor this day waited upon the chancellor of the exchequer, by his appointment; when he mentioned to them, that he was exceedingly. preffed by the government of Ireland, to allow them to raise a loan in this country; and he thought that about 1,500,000l. would be the fum. He knew it would be a difficult and unpleasant measure to be carried through, but thought it right to fpeak to the governor of the bank about it. The governor immediately told Mr. Pitt, that fuch a scheme muft have the worst effect poffible; that it would cause the ruin of the bank; for that fuch a loan raised here would all be sent over in money to Ireland, and would drain much of our fpecie from us. Mr. Pitt defired that the matter might at prefent be only communicated to the committee of treasury, but not to the court of directors: which the governor promifed to do, and to wait upon him again to-morrow with Mr. Puget, as Mr. Pitt wifhed to fpeak with him alfo on the subject,

(No. 32.)

Interview with the Chancellor of the Exchequer, 9th of Febru ary, 1797.

THE governor this day commu nicated to the committee, the cir cumftance mentioned by Mr. Pitt yesterday, about a farther loan for Ireland, which ftruck them all as likely to produce the most difaftrous confequences to the house. And the committee joined in api

nion fully, that the governor in his interview with Mr. Pitt to-day, fhould tell him, that under the prefent state of the bank's advances to government here, fuch a measure would threaten ruin to the house, and most probably bring us under the neceffity to fhut up our doors.

After the court this day, the governor, with Mr. S. Thornton (as the deputy could not attend), and Mr. Puget, waited on Mr. Pitt; who told them, that notwithstanding the difficulties and dangers which they forefaw by his carrying into execution a farther loan for Ireland, he found it to be a mea. fure of government abfolutely neceffary; but that he would do every thing he could to obviate the difficulties, by making the bank more eafy in other points; and he propofed to raife, by an addition to the prefent voluntary loan, or by other means, with the confent of the subscribers to that loan, what ever fum the bank might defire to be paid off from its advances to go. vernment. He proposed this, from an opinion that it was poffibly in the power of the bank to render itfelf fafe by the diminution of its outstanding notes; and he added that he wished this reduction of their notes to be effected by a diminution of their advances to go. vernment rather than by leffening their commercial discounts.

On the governor's ftating, that in the event of the measure of an Irish loan being effected here, the bank would probably think it neceffary to reftrain their advances, both to government and to the public, by way of difcount :-Mr. Pitt anfwered, He had rather pay back five millions to the bank, than that they should restrain their dif Counts three millions; or to that effect. Mr. Pitt expreffed an opi

nion that a good deal of the money that had been taken from this coun try last year was returned; and, perhaps, kept back in London, or in other parts of the kingdom, from whence he hoped to draw the refources he wants by a loan under the propofed circumftances. Some difcuffion took place with Mr. Puget, whether a part at least of the Irish loan might not be negotiated in Ireland: and reafon was given to think that a trial for this would be made. Mr. Puget fuggested, that a pecuniary affiffance given by this government to the Irish government might be preferable to a loan, as the money might be demanded back when there was preffing occa fion for it: but Mr. Pitt was of opinion, that if the neceffity to call it back fhould arife, Ireland would not be able to pay it; whereas he hoped the fpecie would find its way back, by the regular courfe of trade, as foon as the internal state of that country would permit.

Mr. Pitt propofed that the repayment to the bank fhould be made proportionate to the instal ments on the Irish loan, or to exceed them confiderably if defired: alfo that no difcount for prompt. payment fhould be made on the Irish loan.

On their return from Mr. Pitt, the governor ordered a committee to be fummoned to meet to-mor row, on very special affairs, at 12 o'clock.

committee of the treasury by Mr. Pitt, and which had been the fubject of the feveral minutes of the committee on the 8th, 9th, and roth inftant, in their private book: and the governor then read to the court the following letter, which he had received from the chancel lor of the exchequer, viz.

Downing-Street, Feb. 10, 1797.
Gentlemen,

I have to request you to acquaint your court, that from the reprefentations received from Ireland, it appears indifpenfable for the public fervice, that a loan fhould be raifed here, for the use of that government, to the amount of 1,500,000l. on which I understand a confiderable depofit will be requifite about the end of March. I am fully fenfible that, in the prefent fituation, fuch a loan might produce great temporary inconvenience here and unlefs fome meafures were adopted to guard againft. its poffible effects, might make it appear neceffary for the bank, from prudence and precaution, to reftrain the accommodation which they now give to the commerce of the country, within much narrower limits than is defirable. In order to avoid this great inconvenience,

:

render them much more at ease, as to the effect of other operations. I wifh alfo to have it understood, that I fhould propofe the re-payments to be received by the bank, to take place by inftalments, at least as early, and to as great an amount, as any remittance that could be made to Ireland, under the inftalments to be fixed for that loan. I fhall be extremely glad to know the fentiments of the court on that fiib. ject, and to confer with you, and any other gentlemen of the court, on any point which may require explanation, and on the best means of carrying the measure into execution, if it meets with the concurrence of the court.

I have the honour to be, &c. &c.
(Signed) WM. PITT.
Governor and Deputy
Governor of the Bank.

The court received this commu nication with great uneafiness, from an apprehenfion of the bad confequences which would, in all pro bability, arife to the bank from the remittance of fuch a fum to Ireland, and the great drain of caff which it would occafion; and after a very serious debate upon the fubject, they came to the following

refolution, viz.

"Refolved, That the court is of "an opinion, that the re-payment "of feven millions of the money "advanced by the bank to govern"ment will be of very effential fer"vice to this house: but the court

"land."

The