stance, supposing the Bank of England to have issued ten millions in paper by way of loan, and to be possessed of one million in cash, as a sum sufficient to answer the demand, certainly if five millions of this loan were paid them, they might issue five hundred thousand pounds out of the million of specie, because the run upon their cash would, in that case, be diminished precisely half. The right hon. gentleman had alleged that the dividends on stock were always paid in notes. But were the notes the same before that they are now? Was not the question always put to the creditor, whether he would take his dividend in paper or in cash? And when it was put to his choice he took it in paper, because he might have had cash if he pleased. With respect to the effect of the measure upon the bank credit, it certainly had inflicted upon it a very severe stroke, and he saw only one way in which it could possibly recover it, which was by the bank coming forward and showing the country they had adopted the measure from compulsion. An hon. gentleman (Mr. Bastard) had urged, in very proper and becoming language, the necessity of cutting off everything superfluous; he was not of a sanguinary disposition, but when he saw a person presiding in one of the principal departments of public affairs, and ruining the country by his measures, he was at a loss to know what ought to be cut off first; but he was convinced some example ought to be made for the instruction of both the present and of future times. An hon. baronet (Sir William Pulteney) observed, that if the measure was repeated it would make but a bad joke. If it was a joke, it certainly was one at which the country was not much disposed to laugh; but if it was tolerated in this instance, he was afraid that these facetious measures would frequently occur. What then was to be done in order to prevent them from ever again recurring? An hon. gentleman (Mr. Hussey) had said that, to retrieve the credit of the bank, government had only to discharge the sums advanced them by the bank; but he would add, it was necessary also that government should pay all their creditors as well as the bank-they should pay the civil list-they should pay the half-pay officers, who were now almost starvingthat they should pay their agents and their contractors. Mr. Sheridan conceived it was by no means a temporary expedient; but he foresaw that the bank never would be able afterwards to defray its outstanding engagements in cash for how was it

possible they could, since they were about to issue a greater quantity of paper, and their cash was seized upon for the public service? The hon. baronet who advanced a contrary opinion, and who knew more about business than most gentlemen of equal property, had too much good sense not to acknowledge the error on which it was founded. Mr. Sheridan next reprobated the transaction as a step to associate the bankrupt government with the solvent bank; a partnership which, if the bank directors knew the interest of the concern under their direction, they ought to spurn, and to force the right hon. gentleman to withdraw his indorsements from their bills. But it was urged, the bank had temporary difficulties to encounter, and it behoved them to adopt some mode of granting relief to that important public body The house of commons, however, knew nothing of this; no application had been made for the order in council; on the contrary, it appeared that this facetious council, instead of examining the directors of the bank, acted entirely upon the authority of the chancellor of the exchequer. Nay, what added to his surprise was, that not one of the bank directors who had seats in that house had ever come forward and expressed an opinion upon the subject. Some information was certainly necessary before the house sanctioned so novel and dangerous a measure. They had heard of the bank a short time ago lending two millions to government; and they had also heard of the dividends on bank stock increasing. Was it not material to be informed, therefore, how they had come to stop payment at a time when their affairs seemed to be going on so prosperously? Perhaps the directors might be to blame; he did not say it was so, but the house ought to be satisfied that it was not so. They were not even apprised whether it was the wish of the bank that the measure should be adopted. The chancellor of the exchequer said it was, but he took nothing upon his word, and therefore called upon some of the directors of the bank to come forward and say whether it was, or was not, at their desire the order in council had been issued. There was something unaccountable on the face of the business for the bank to announce its own solvency immediately after it had been ordered to stop payment; and if it was solvent, why was an order issued which would operate so much to the injury of their credit? For his own part, he did not approve of opening a committee to inquire into the affairs of

the bank, because he had the firmest confidence in its solidity, and such an inquiry might considerably hurt its credit; but he deemed it highly expedient that a committee should be appointed to inquire into the grounds upon which the order in council had been issued. He was of opinion, at all events, the two inquiries ought not to be separated. An instruction, if necessary, might be given to the committee, to report upon the circumstances of the bank before it entered upon the other inquiry. But he did not perceive so much dispatch was requisite, because the proclamation, at present, had all the effect of a law, and a bill might be immediately passed as a matter of temporary accommodation, to enable the bank to issue small notes. So far, however, as he had made up his opinion, he disapproved of a committee to inquire into the circumstances of the bank, as such an inquiry might be productive of evil, and could not possibly do any good. For what was the result expected to be? There was but one hope, and one opinion, that the bank would be found to be perfectly secure. Why then should the public guarantee their notes? As well might the Master of the Mint indorse a guinea. But what was the nature of this guarantee which government so generously offered to the bank? Government first lays hands on the cash of the bank. Next day government says, "You cannot pay your notes." "No," replies the bank, "because you have taken away our cash." "Very well, then," say government, " You must stop payment till we examine into your affairs, form a partnership, and indorse your bills." The bank might very justly answer, "Give us back our cash, and we neither want your partnership nor your guarantee." Had such a man as Sir John Barnard presided at the bank, he would have taken the order of council and thrown it in the face of the messenger, for in either case it was an affront upon that body. If they had cash, what right had the chancellor of the exchequer to seize upon it; if they had none, it was an insult to pretend to prohibit them from issuing it. And what was the value of this gaurantee, which government was so generous as to offer to the bank? Had not government broken its faith with all its creditors, with the bank, with the Emperor of Germany, and with every individual who were in possession of its acceptances? The solidity of the bank would be infinitely stronger, if it remained entirely unconnected with so discreditable a partner. Mr. Sheridan then suggested the

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steps which, in his opinion, ought to be taken, if the difficulties really existed. Bank-notes ought to be made a legal tender to government, and government ought to be compelled to make every payment in bank-notes, except the dividends on the public stock, which ought to be paid in cash. He was unfriendly to a committee to inquire into the situation of the bank, but instead of opposing it, he would move an amendment, that these words be inserted into the original motion after "this house;" "and also to inquire into the causes which have produced this order in council, and the grounds of providing for the order in council, dated the 26th of February, providing for the confirmation and continuance of measures contained in said order."

The house divided upon the amendment—ayes 11; noes 244.

MARCH 1.

STOPPAGE OF CASH PAYMENTS AT THE BANK.

Mr. Wilberforce Bird moved for leave to bring in a bill to suspend, for a time limited, the operations of two acts (prohibiting the issuing of any promissory note for less than twenty shillings, payable any otherwise than upon demand, &c.) as far as related to bankers not residing in the cities of London and Westminster, and the borough of Southwark.

MR. SHERIDAN said, he deplored the necessity to which we were now driven upon the subject of specie all over this kingdom. The remedy now proposed, he feared and believed to be absolutely necessary. It would undoubtedly be a great evil; yet, if omitted, a greater evil might ensue; and when two evils presented themselves to view, it was of course proper to choose the lesser; and, therefore, according to the idea he had upon the subject, not pretending to be thoroughly well acquainted with it, he thought that the remedy which was now proposed must be adopted. But he could not help saying a few words upon this matter, because it appeared to him to be of vast importance. The hon. gentleman said, that the manufacturers and bankers in the country were well known in the neighbourhood in which they live, and therefore there could be no inconvenience in this measure, with regard to the payment of the notes as they became due; but he thought the case was otherwise with regard to the capital, and therefore London, Westminster, and Southwark were to be omitted in the bills, according to the hon. gentleman's intention at present. That there might be great difficulty and

inconvenience in the extension of the bill, he had no doubt; for, most unhappily for this country, there must be great difficulty and inconvenience in the whole progress, and in every branch of this subject; but he did not know how it was possible to go on without making some provision, in this respect, for the capital as well as for the country; and here he hardly knew what to say; he was confounded when he looked at the probable consequences to which the measure which gave birth to these applications might lead. He knew not what provision was made, or could be made, for the payment of workmen, manufacturers, tradesmen or others, even for next Saturday night. He was sure, that if any measure was to be adopted upon the subject, not a moment ought to be lost. If a poor man was to be paid by a guinea note instead of a guinea, and no man would give him change for it without a discount of seven shillings, to what dreadful consequences might this not lead? What would a poor man do with his fourteen shillings instead of his guinea? What would the still poorer man do, whose whole weekly wages amounted to no more than fourteen shillings? and, he believed, the average priee of weekly labour was not higher. Indeed he apprehended the most dreadful consequence would soon ensue from these things; nor did he know how the evil was to be averted. He mentioned these things, that every man in the house should instantly turnh is thoughts to the subject. It would be dreadful, indeed, if these notes, instead of money, should become assignats; and he feared it would be so.

Mr. Pitt thought the effects of the suspension might be beneficial to London, Westminster, and Southwark. He should therefore wish for leave to bring in the bill that it should be larger than the motion asked; and therefore moved, as an amendment, "That the exception should be left out." This was assented to.

Mr. Fox moved" That a committee be appointed to inquire into the causes which have produced the order of council." Mr. Pitt said, he objected to the appointment of a committee as now proposed, but not to the inquiry, or to its being conducted by the committee now appointed.

Mr. Sheridan said, that the mode of inquiry which the chancellor of the exchequer now proposed, was precisely that which was suggested by the amendment which he had moved, and which was rejected last night. The right hon. gentleman had asserted the dignity of the house with much warmth, and here he was permitted to retort upon him; but his speech was so barren of argument, that it need only be repeated to appear ridiculous.