The Sun.
London, England, 1825-12-15 00:00:00

BANK AFFAIRS IN 1797.

According to writers describing such poriod—
the year 1797, will be ever distinguished in the Annals of the
Bank. The vast sums which had been drawn from the Bank,
at that time for the public service, induced the Directors, even
as early as Dec. 1794, to express their uneasiness to the Chan -
cellor of the Exchequer (Mr. PITT.) In 1795, after resolv-
ing to limit their advances upon Treasury Bills to the sum of
509,0001., they informed the Minister that it was their wish
" that he would arrange his Finances for the year in such a
manner as not to depend on any further assistance from them."
In April and June they again found it necessary to remonstrate
with 31r. Pitt; and on the 30th of July they acquainted him
that they were determined to " give orders to their cashiers
to refuse payment of any Treasury Bills which would ex-
tend the advance beyond the above sum." Notwithstand-
ing this resolve, the pressing solicitations of the Chencellor
of the Exchequer, enforced by " the probable distress which a
refusal might occasion in the then. alarming state of public af-
fairs," led the Directors to make additional advances. On the
last day of December, in 1795, the Directors adjudged it neces-
sary to limit the amount of the daily discounts to a pro rata
proportion, in all cases where the bills and notes sent in for dis-
count exceeded a fixed sum. It afterwards appeared, however,
that the actual amount of the discounts in the ensuing }rear ex-
ceeded the total of 1794 by 4,640,000/., and that of 1795 by .
2,930,0001. ; the whole amount of the discounts in 1796 being
13,698,0001. On the 24th of Feb. 1797, the Directors felt it
requisite to send a deputation to the Minister, to represent to
him the vast drain that had been made upon the sperie, " and
to ask him how far he thought the Bank might go on paying
cash ;" and when he would think it necessary to interfere, be-
fore their means were so reduced as might be detrimental to the
public service ? In consequence of this application his Majesty
who was then at Windsor, was requested to come to town im-
mediately, to preside at a meeting of the Council ; and on Sun-
day, Feb. 26, a Council was held at St. James's, the result of
which, and another meeting held directly afterwards, at the resi-
dence of the Chancellor of the Exchequer, was the following
Requisition, or Order, addressed to the Bank :
At the Council_ Chamber, Whitehall, Feb. 26, 1797.

By the Council, &c. Present.—The Lord Chancellor (Thur-
low,) Lord President the Duke of Portland, Marquis Corn-
wallis, Earl Spencer, Earl of Liverpool, Lord Grenville, and
Mr. Chancellor of the Exchequer (Pitt) :
" Upon the representation of the Chancellor of the Exchequer,
&c., and in consequence of the ill-founded and exaggerated
alarms in different parts of the country, it appears that unless
some measure is immediately taken, there may be reason to
apprehend a want of a sufficient snply of cash to answer the
exigencies of the public service. It is the unanimous opinion
of the Board, Sec., to forbear issuing any cash in payment,
until the sense of Parliament can be obtained on that subject,
and the proper measures adapted thereupon, for maintaining
the means of circulation, and supporting the public and com-
mercial credit of the kingdom at this important conjuncture :
and the Directors are required, on the grounds of the exigency
of the case, to conform thereto, &c." This order was promul-
' gated by the Bank Directors on Monday morning, accompanied
with a notification of their own, adding,. that " the general
concerns of the Bank were in the most prosperous and affluent
situation, and such as to preclude every doubt as to the security
of its notes ; and " that the Directors meant to continue their
usual discounts for the accommodation of the commercial in-
terests, paying the amount in Bank notes, the dividend warrants
being payable in the same manner." Parliamentary inquiry fol-
lowed, proving, amongst other matters,that the " total amount
of outstanding demands on the Bank on the 25th of Vebruary,
was only 13170,39014" and that " total amount of the funds
for discharging those demands (over and above the permanent
debt due from Government of 11,686,8001.) was on the same
day 17,597,2801. leaving a surplus of effects belonging to the
Bank of 3,826,8901., beyond the total of their debts, &c." The
accounts of the Bank of England were not only then,for the first
time,fully developed to the public,but the like has since been the
case by the returns regularly made to Parliament each Session.
In 173, for the first time, and the fact is particularly men-
tioned in the " Life of Abraham Newland," the extent of the
Bank's floating paper, and of its credits and debts, was promul-
gated to the world ; also, the value of the precious metals in
its vaults made known, and publicity given to the sum of
its discounts to the mercantile world, and to the amount
of int assistance to- the Government.. In the Lord's Report
on that occasion, it is mentioned that the unusual drafts which
the Bank had lately experienced, were " owing, in a great
measure, to the demands from the country, such demands being
indirectly made through the.medium of the London Bankers."
Whilst the alarm was at its height, the Bank was repeatedly
crowded, day after day, by persons who wished, as they said,
to secure some value for that paper, which, it was apprehend-
ed, was falling into complete discredit ; and the Spanish dol-
lars, which, to meet the exigencies of the case, had been
stamped with a miniature head of his Britannic Majesty , and
passed for As. 9d. each), could scarcely, at first, be sapped
fast enough to meet the ipereasing demands. Within a few
days, however, so great is the versatility of the human mind,
" all transactions of every kind went on (to quote Anderson's
Annals of Commerce), as if nothing had happened; for people,
in ge, eral. Oki not perceive, at 'met Dot immediately, that there
was any difference," &c.

Pit ICE SEVENPENCE.

PROVINCIAL BANKS.