The governor and deputy governor, with Mr. Darell and Mr. Bofanquet, were deputed by the court to wait upon the chancellor of the exchequer with this refolution; and they took with them a copy of it in a paper fealed up, that in cafe Mr. Pitt thould require it to be left with him to fhew it to the cabinet, it might be in a fituation guarded from the eyes of the people in of fice. The deputation waited on Mr. Pitt when the court broke up, and waited till he came home; when, being admitted, the governor told him, that a fpecial court had been held on the fubject, and that he and the other gentlemen were deputed to bring him the refolution of the court upon it; which Mr. Pitt read attentively; and defiring to have a copy left with him, the one fealed up was given to him, which he was defired by the governor to return to him when he had communicated it to the cabinet. In the converfation which took place afterwards, the governor afked if it was not poffible that a part of the 1,500,000l. could be raised in Ireland for its own ufe? Mr. Pitt faid, that the fum mentioned was all expected from this country that a farther fum was wanted in the whole; but that the Irish go. vernment hoped to raise the remainder in that country. On the fubject of the loan to be raised here to pay off the above fum to the bank, Mr. Pitt faid, he meant to make it equal, not only to that purpofe, but to fet him at his ease for other parts of the public fervice, which he had not been able to calculate with fufficient exactitude on bring ing out the last loan. That he meant to raise this additional fum in the fame funds, and, if poffible, by the fame fubfcribers, to whom proposals would be made, with an

allowance for their lofs on the former engagement: and that if he was difappointed in this expectation, he must take other measures, as ufual.

After this, the governor asked of Mr. Pitt if it could not be made compatible with the forms of of fice, that when the payments fhould come to be made on this propofed loan, the money might be retained at once by the bank, as far as was intended for the liquidation of their advances, without being fent up to the exchequer, as was hitherto practifed, which mode had often caufed a delay of many days; and once laft year a total difappoint ment of the fum? Mr. Pitt faid, that he faw no reason why this routine of office fhould not be al tered that he would think of it, and order another arrangement.

(No. 34.)

Refolution of the Court of Directors, and Deputation's Interview with the Chancellor of the Exchequer, 21ft of Feb. 1797.

THE committee obferving, with great uneafinefs, the large and conftant decreafe in the cafh, held a particular confultation on that fubject this day; and on exami nation into the ftate of the cafb fince the beginning of this year, they found that in the courfe of the month of January there had been a decrease of £. and fince the beginning of this month a farther lofs of £. the cafli was now reduced to between £. and about £. value, in bullion and foreign coin, and about the value of £. in filver bullion. Perceiving alfo, by the conftant calls of the bankers from all parts of the town for cash, that there must be fome extraordi (03)

and that

nary

nary reafons for this drain, arifing probably from the alarms of an expected invafion; the committee, after maturely confidering the matter, refolved to fend a notice to the chancellor of the exchequer, of the fituation of matters at the bank: and to explain exactly to him how the cafh is circumftanced, that he may, if poffible and proper, ftrike out fome means of alleviating the public alarms, and ftopping this apparent difpofition in people's minds for having a large depofit of cash in their houses. The governor, deputy governor, with Mr. Darell and Mr. Bofanquet, were deputed to wait upon Mr. Pitt; who went to him; and after defcribing to him the anxiety of mind which all the directors were under on this fubject, they explained to Mr. Pitt the exact particulars above-mentioned. Mr. Pitt feemed aware that this unufual drain of cash from the bank must arise from the alarm of an invafion, which he obferved was now become much more general than he could think neceffary. He faid, that by all his informations he could not learn of any hoftile preparations of confequence making in France to invade this country, except the fleet which was re-fitting at Brest, after being driven off from the coaft of Ireland; but that he could not anfwer that no partial attack on this country would be made by fuch a mad and defperate enemy as we had to deal with. The deputation preffed on Mr. Pitt to declare fomething of this kind in parliament, in order to ease the public mind.

The deputation then mentioned to him the neceffity of bringing for ward the new loan, out of which the re-payment of the feven millions to the bank was to be made, as in the prefent emergency it was

of the utmost confequence that our advances fhould be contracted as foon as poffible. He faid, he was occupied on that point, and hoped, in a couple of days, to have his plan fo arranged as to be able to call the gentlemen together, with whom it might be neceffary to negotiate for a new loan. Mr. Pitt alfo mentioned, that he hoped the committee would, in the prefent fituation of matters, think it neceffary to endeavour at obtaining a fupply of gold from foreign coun tries, which the governor told him they were confidering about, and should do what they could therein.

(No. 35.)

Interview with the Chancellor of the Exchequer, 22d Feb. 1797.

Meffrs. Goldfmid and Ellifon attended the committee this day, and were directed to give farther orders to Hamburgh for the purchafe of gold; and were told that an application would immediately be made to the minifter to order a frigate or armed floop to go to Hamburgh to take in fuch gold as might be bought, and alfo to defire that the restriction on the captains of the packets, not to take any gold on board at Hamburgh for this country, might be taken off. The governor and deputy governor waited on Mr. Pitt on this fubject, who promifed to apply to the admiralty for directions about fending out a frigate or armed floop; and that he would apply to the poft mafter general to give the orders to the captains of the packets.

The governor pressed Mr. Pitt again on the fubject of the treasury bills, and told him, that he feared the court would not agree to pay the treasury bills, which fall due next week.

Mr.

Mr. Pitt faid, he would fend 50,000l. to the bank in part provihon thereof, but that he did not think he could raise the money to the full amount of the bills due.

(No. 36.)

Interview with the Chancellor of the Exchequer, 24th of February, 1797.

AT a committee of the whole court held this day, it appeared that the lofs of cafh yefterday was above £. and that about were already drawn out this day, which gave fuch an alarm for the fafety of the houfe, that the deputy governor and Mr. Bofanquet were defired to wait on Mr. Pitt to mention to him these circumftances, and to ask him how far he thought the bank might venture to go on paying cafh, and when he would think it neceffary to interfere before our cash was fo reduced as might be detrimental to the immediate fervice of the state. Mr. Pitt faid, this was a matter of great importance, and that he muft be prepared with some refolution to bring forward in the council, for a proclamation to ftop the iffue of cafh from the bank, and to give the fecurity of parliament to the notes of the bank. In confequence of which he should think it might be proper to appoint a fecret committee of the house of commons to look into the state of the bank affairs; which they affured him the bank were well prepared for, and would produce to fuch a committee. Mr. Pitt alfo obferved, that he fhould have no objection to propofe to parliament, in cafe of a proclamation, to give parliamentary Tecurity for bank notes. The go vernor and deputy governor this day waited on-Mr. Pitt, to mention

to him, that it would in the prefent circumftances be highly requi fite that fome general meeting of the bankers and chief merchants of London should be held, in order to bring on some resolution for the fupport of the public credit in this alarming crifis; and they took the liberty to recommend to Mr. Pitt, to have a private meeting of fome of the chief bankers at his house to-morrow, at three o'clock, in which the plan for a more general meeting on Tuesday or Wednefday next might be laid; in the propriety of which Mr. Pitt agreed, and faid he would fummon a previous meeting for to-morrow accordingly. This was communicated by the governor to the committee.

ANSWER to (No. 1.)

ON the communication of the refolution (No. 1.) on the 17th of January 1795, the chancellor of the exchequer expreffed his thanks for the communication; and faid, he should arrange his measures in conformity: but that though he was going to reduce immediately the fum of the treasury bills, it might not be in his power to bring them down to the fum ftipulated, till after the first payment of the loan..

ANSWER to (No. 2.)

THE chancellor of the exche quer having read the paper, feemed fully convinced of the propriety of the representation; and declar. ed, that it fhould have been attend. ed to on his part before, but that. in the multiplicity of public affairs it had been forgotten. He, how ever, faid, that it should be com (04)

plied

letter: and the governor and deputy promifed to wait on him at that time accordingly.

ANSWERS to (No. 7.)

AFTER Mr. Pitt had read this paper, with great attention, twice, he began by expreffing his fatif. faction and approbation of the meafure of communicating fuch mat ters to him; faying, hat he would most certainly frame his arrange ments in a manner that might enable him to remove our fears, and prevent; unpleasant confequences; aud that he would endeavour to do this in fuch a manner as fhould produce no alarm; ftrongly recommending to the court of directors to ufe every poffible precaution to prevent that also.

The governor then faid, That he hoped Mr. Pitt did not conceive to be the intention of the court to refufe the advance of the land and malt, 1796; but only that it was their wish to protract it for fome time. Mr. Pitt faid, he understood it fo, and fhould avoid applying for it until it might be more fuitable to the bank. He also faid, he fhould certainly re-imburfe a million of the treasury bills, and re pay the 1,100,000l. as feon as the accounts were made up; and, if neceffary, the 1,400,000l. remain ing fhould be re-imbursed.

The governor mentioned to him, the drain of cash to Ireland, the calls for the Weft-India armament, and the probability of foon per ceiving, thofe that may be occa fioned by the claimants of the ueutral hips being re-imbursed: in all which be feemed to concur. Then the governor ftated to him,. that the price of gold, being fo much above the value of our guineas, muft neceffarily imprefs his mind with the unavoidable

confequences. The chancellor of the exchequer viewed this in a moft ferious light.

The governor then mentioned the probability of the claims of the American fhips taken in the Weft Indies foon coming to a hearing, and which he said, from report, would amount to near four millions. Mr. Pitt agreed that appeals were foon to be made, but he did not think the amount would come up to fuch a fum. The governor then refumed the fubject of the treafury bills; and hoped, that af ter the meeting of parliament, Mr. Pitt would fo arrange matters as to prevent their continuing to be paid by the bank in the manner lately adopted. His reply was, that this object would foon ceafe; their amount feemed to have impreffed his mind with a defign to difcontinue the fervice that occafioned them; the troops were about to return home. He candidly acknowledged, that the expenfe of our troops on the continent had been enormous; and intimated, that the bent and operation of the war, as long as it did ftill continue, would be naval, and in the Weft Indies.

The governor then made his acknowledgments to Mr. Pitt, for the indulgence of fo much time as he had given to him and the deputy governor. The chancellor of the exchequer faid, he was going out of town to-morrow, for a week, and at his return would be glad to fee the governors again, if any thing material should occur.