an government on a point to which they appear to have attached so much importance: that by this omission, much unnecessary irritation has been suffered to prevail in America, long after it was in the power of his majesty's ministers to have effectually removed the same; and fresh obstacles to conciliation and friendship have thus wantonly been interposed. 5. "That it is, therefore, the opinion of this house, that the said orders are in themselves unjust and impollic; that the issuing of them at the time, and under the circum. stances, above mentioned, was an act of the utmost improvidence and rashness: and that by abruptly breaking off a friendly negotiation, and withholding a satisfactory explanation on a point, on which it might have been given with so much ease and advantage, his majesty's ministers have acted in disregard of our true policy, which is to cultivate the friendship of a nation, whose interests and prosperity are so intimately interwoven with our own; and have conducted themselves in a manner the least adapted to enable his majesty to maintain that maritime superiority, on which the greatness, and even the existence, of his empire so much depend." These resolutions, after an animated debate, were negatived by a large majority. CHAPTER IV. Debates on the Arrangement with the Bank of England-Lord Folkstone's Mtion on the Oude Papers, and the Marquis of Welles! y-Sir John Ansirutber's M-tion-Mr. Adam's Motion on the Law of Parliament-Lord Castlereagh's M tion on the new Clause in the Mutiny Bill-Sir Francis Burdett's Motion on the Army-The Duke of Glocester's Motion on the Mutiny Bill. WE 10th the house went into a committee on the subject: when The chancellor of the exchequer said, he had the satisfaction to call other discussions in parliament the attention of the committee to which are necessary to elucidate an arrangement, which it had been his good fortune to make, under circumstances so advantageous to the public, and at the same time gland. On the 2d of February, so fair towards the bank, that he after some conversation between Mr. Tierney, the chancellor of the the committee to have its full ap was sure on explaining them to exchequer and others, some papers which gave an account of the the correspondence between him were ordered, particularly those committee contained the details of amount of the unclaimed dividends and the governor and deputy goin each quarter on the day pre- vernor of the bank. It was, there. viously to the payment from the fore, only necessary for him to bank into the exchequer. On the state the origin and conclusion of probation. The papers before the the the arrangement which he had now to submit. The house would be aware, that this arrangement was first suggested by the committee appointed by the house in the last year, to inquire into the means of reducing the public expenditure. The second report of that committee turned upon the management of the public debt by the bank, and the manner in which the bank was connected with the public revenue and the public expenditure. This subject resolved itself into three heads: 1st, the management of the public debt; 2dly, the balances of the public money in the hands of the bank; and 3dly, the unclaimed dividends. On all these heads, the committee had presented such facts as afforded opportunities of considering how these matters may be conducted with a saving to the public. The allowance that had been first made for the management of the public debt, and the times and degrees in which that allowance had been altered, and the causes of the al teration, were all specified. The great increase of the amount of the public debt since the last alteration, was mentioned as a proper ground for revising the last arrangement, with a view to a saving to the public. On this point the agreement between the bank and him (the chancellor of the exchequer) rested. It was agreed that the allowance for management should be 3407. per million, when the debt should amount to 400 millions, and from that to 600 millions incluísive; 3001. per millien for all debt above 600 millions, the 600 millions contineing at 3107; and 4507. per millon between 300 millions and 400 millions, in the event of the public debt being reduced so low as that amount. Under this head alone, the saving to the public, by the present arrangement, would be from 62 to 65,000l. a-year. The next head of the agreement was the advance of 3,000,0001. by way of loan without interest, till six months after the conclusion of a definitive treaty, in consideration of the ad vantages of management, and in participation of the benefit of the balances. The committee, to whom he was indebted for being enabled to bring this subject distinctly be fore the bank and the house, had stated that the average amount of balances of the public money in the bank was about 11,400,9197. But the committee was in error in including in this 475,000l., part of 600,000% placed in the bank in virtue of an arrangement with the United States of America. Though the claimants on this fund may not have been as prompt in coming forward with demands as before, it was in the power of the trustees to vest the money in exchequer bills for the benefit of the claimants, whenever they should come forward. The fair sum at which the amount of balances may be taken, was about 10,600,000%. or 10,500,000/ From the economic attention that had of late been put in force, these balances would not rise above 10,000,000l. from year to year during the continuance of the war. The committee that had suggested these improvements that were now to be carried into effect, had shown one principle on which advantage may be reasonably claimed for the public Mr. Pitt, in his arrangement with the bank, had asserted the right of the public to participate in the advantages derived by the bank from the management and balances; and that, whether this participation should be be in the proportion of one-third, one fourth, or one-half, it would be greatly to the advantage of the public. This showed that not more than a participation was in tended; and therefore, as the proportion of one-third, being the middle rate, was what was most looked to, and probably considered as most equitable, that proportion was agreed to. Calculating that proportion of advantage, he would now state how it operated upon a balance of 10,000,000 7. By the former advance of 3,000,0007, at three per cent. when the legal interest was five per cent. the public gained an advantage of 60,0001, a-year, which was equi valent to a capital of 1,290,0007. which was to be computed towards the amount of the total benefits realized at present. In addition to that, ought to be taken also the amount of balances then in contemplation, according to Mr.Thornton's evidence,which was 2,500,000. This amount of baLances was to be deducted from 10,000,0001. and left 7,500,000l. which was the amount upon which the present arrangement was to be calculated. The arrangement now entered into, gave to the public, besides the 500,000 7. of unclaimed dividends, one half of the reduced balance after the arrangements made by Mr. Pitt. Then there was to be added the 1,200,0007. in consequence of the arrangement entered into by the noble lord op. posite, which made the advantage to the public considerably more than a moiety of the benefit derived by the bank. If some would say, that the 2,500,0007. agreed for by Mr. Pitt, according to Mr. Thornton's evidence, should not be deducted from the total balances of 10,000,000%, he submitted, thai, on the full, consideration of all the circumstances, the agreement now submitted was as fair a participation of the profits of the bank as the public could expect, under the report of the committee of finance. Having stated these circumstances, as to the manner of reforming the allowances of management, it remained for him only to say, that the precise benefit to be given to the public was an advance of three millions without interest, during the war, and tilt six months after a definitive treaty. Thus far the bank had given its fuil sanction to the arrangement. On the next head, the bank had acceded so completely, that what he had to submit would be found so fair and equitable between the public and its creditors, and so perfectly competent to the right and powers of the house, that there could be no difficulty of arranging and agreeing to it without the consent of the bank. He alluded here to the unclaimed dividends. This, like the other parts of the present arrangement, originated in the report of the committee of finance. But the manner in which the ac count of unclaimed dividends had been called for by that committee, had rather produced an increase in the calculation upon which the loan was grounded. The unclaimed dividends, according to the report of the committee, amounted on the 8th of July to 986,5731, and at the lowest period of some antecedent years, they had not fallen below 900,007. This calculation had been taken on the day before payment, whereas it ought to have been taken on the day after. In demanding 500,000l. for the public, in addition to 376,759. advanced under the act of 1791, provision was to be made that the balance balance ready for the payment of the public creditor should not be reduced below 100,0007.; and according as any reduction below that sum should take place, a proportion of the 500,000l. should be refunded from the exchequer to make up the deficiency. The de finition of an unclaimed dividend was, one that had lain in the bank undemanded from the day of payment of dividends before the last. The bank, in agreeing to pay 500,0001. out of the surplus of this species of dividend, would have exceeded the amount of the precise fund; and therefore the governor and directors would not undertake to go so far without the consent of the proprietors of bank stock in general courts. It was impossible to ask the bank to make the advance out of such a fund on its own authority. But when the power of the public came to be considered, with respect to the money due to its creditors, it ap. peared that the public provided sufficiently for the security of all demands, when a constant balance of 100,0007. was reserved, never to be reduced below that amount, without a constant reparation of the deficiency. These were two of the three heads of arrangement completely sanctioned by the bank; the third was sanctioned in principle; and though the house had to make the arrangement between the public and the public creditor, without the intervention of the bank, there was no doubt of the equity of the arrangement, and therefore the house could have no difficulty in acceding to and confirming it. On the first head, the public would have an advantage of 3,000,0007. on account of management, which would be an annual saving of 65 or 70,000. This was so obviously beneficial, that there was no necessity to expatiate on it. The public, he was sure, would receive this, as well as the other parts of the arrangement, with satisfaction; and he would add that the agreement, while advantageous to the public, was fair and equitable to the bank. Others may look to greater advantage to the public; but he was sure the public interest would be found to be fully attended to on a fair consideration of the whole of the cir cumstances. He regretted if any body should see cause to complain; but he hoped for the ge neral approbation of the house. He moved a resolution, purporting, that 500,000. be advanced from the unclaimed dividends, in addition to 376,7391. advanced before from the same fund; but that this new advance be made in such a manner as always to leave 100,0007. in the bank applicable to the demands of arrears on unclaimed dividends; the said 100,0001. to be always made up, in case of deficiency, by repayments out of the exchequer from the said sum of 500,000%. Mr. Bankes agreed with the right hon. gentleman, that it was most just that the country should avail itself of the profits arising from its own money, without infringing the faith due to the public creditor. The large rate of allowance which the bank enjoyed for the management of the national debt, he strongly condemned. Even in 1786, the report of the auditors of public accounts stated, that the business could be done for 2007. in the million, and this at a period when the debt was comparatively small. Great as was his respect for the illustrious man who at that time presided over the finances of the the country, he could not help thinking that he had made an improvident bargain on this subject. He did not like any thing that drew the bank into too close a connection with the ministry. He wished them to feel mutual good will, but to be perfectly independent of each other. Were he asked, however, Would he adopt the bargain such as it was, or change the mode of managing the debts? he would answer, That so many difficulties and inconveniences must result from such a change, that, inadequate and disadvantageous as the terms were, if they were the best that could be obtained, he would acquiesce in them rather than set the whole business afloat. Mr. Tierney, after an elaborate speech, in which he considered all the bearings of the subject, said: The bank directors consented to lend the country three millions, which, in his apprehension, would not cost them three pence. Did they mean to increase their notes for this purpose? If so, it was a strong argument against the step; and he certainly did recollect, although he would not draw any inference from the circumstance, that about the time of the renewal of the bank charter, a report was prevalent, that above a million of small notes had been issued from the bank beyond the ordinary circulation. If they did not mean to increase their notes, did they mean to distress the trade of the country, by refusing to discount the bills of the merchants? This would also be a strong argument against the step. On the face of the affair, there appeared a clear profit resulting to the bank, on the management of the national debt, of about a hundred thousand pounds. Why this, in addition to the advantages they derive from the use of the public balances? He knew that the bank was at a great expense for clerks, for buildings, &c. but this expense ought to be defrayed from the last-mentioned profits. He repeated his wish that the subject should be referred to a committee. He believed no committee could be found, which would not tell the right hon. gentleman that he had not taken half enough in interest, and that he had taken too much in principal. With respect to the unclaimed dividends, there was a great deal of truth and justice in what the right hon. gentleman had stated. Perhaps it was politic that the bank directors should make a show of resistance on this point, lest the public should suspect that they had got too good a bargain on the other points. He thought they owed great obligations to the right hon. gentleman, who had certainly granted them what no other man would have done; but he would take another opportunity of expressing his sentiments on this business, not having yet had time duly to examine the papers on the table. It was a most important subject, and deserved the most serious attention of parliament. Mr. Samuel Thornton declared,` that whether they gave a loan of three millions, or an annual sum of ahundred and fifty thousand pounds to the public, would be immaterial to the bank; but, in his opinion, from the former the public would derive the greater advantage. He denied the posssibility of supplying the loan by an issue of notes. the hon. gentleman look at the quantities of notes at present issued, and then let him lock to the quantity issued subsequent to the payment Let |