remarking expressly, that "Since that that of increasing their cash and bullion, of year the case is different, and no such stipu- preventing the productive quality of the same lations exist. All the subsequent loan acts, balances when enlarged to the extent that and those for funding exchequer, navy, and they now are, or of other balances which victualling bills, have left the contract open, have been added. The circumstance of the reserving a power to the treasury to make bank gaining a profit by the management of any such compensation as should be reason- the public debt, appears to have been in some able."-Secondly, by the act 40 Geo. III. degree adverted to; but the propriety of the c. 28. the bank charter was continued until rate of allowance then subsisting did not 1st August 1833, on condition of three mil-come particularly under consideration. The lions being advanced for the public service, documents necessary to form a correct opiwithout interest for six years ending 5th nion upon the complicated concerns of this April 1806: the sole right of banking as a extensive business, were probably not fully corporate body, and the other privileges, are before either of the two parties at the time of fully recited and confirmed; but nothing is this agreement; it is obvious, that they expressly stipulated with regard to the rate cannot be collected without considerable and of allowance for managing the debt-The cir- detailed investigation, nor digested without cumstances attending this negociation are re-industry and attention; and the pressure of lated in the evidence of Mr. Thornton, who other duties may well account for a want of was at that time governor of the bank, and leisure for so laborious a research at the pefrom whom the suggestion of renewing the riod of the renewal of the charter. The charter originally came. He states, that the other balances of public money do not ap various sources from which the bank derive pear to have entered into Mr. Pitt's calcu profit, in consequence of their exclusive pri lation, as they were at that time of trifling vilege, and of their connexion with govern- amount, and the probability of any such inment, were enumerated by Mr. Pitt, who crease as has actually taken place in the bamade a claim on the part of the public for a lances drawn from the exchequer, in consedirect participation in the profits, according quence of the great augmentation of revenue to a fixed proportion; and that the claim, (an increase from an average sum of 24 milthough not admitted in its full extent by him- lions to an average sum of five or six milself on the part of the company, was ult-lions) was not adverted to, and can hardly mately agreed to; that a calculation was be supposed to have been in contemplation. formed upon the basis of such participation; Supposing all the suggestions which your and that the interest of three millions, for committee have made with a view of di six years, was given to the public as the fair minishing the balances in the bank to be result. The authority therefore of Mr. Pitt, adopted, the amount of balances still remainand the consent of the then governor of the ing will probably more than double the bank, established a general principle of par- amount of those which existed in 1800, or ticipation in those profits of the bank, which which could then be contemplated as likely to arise from their exclusive privilege, and exist at this time; and therefore, if the inten from the balances of public money in their tion of Mr. Pitt not to withdraw the balances hands, and whether the participation be sup- of exchequer money, or those arising from posed to be in the fixed proportion of 1-4 the accumulation of the then existing sinking 1-3 or 1-2, it cannot fail to be extremely fund, without compensation, should be adconsiderable. In one of the conversa-hered to, that intention will not be frustrated, tions upon this subject, it appears to have the unexpected enlargement of the same ba been distinctly assumed on one side,and to have lances, and the addition of so many others, been admitted on the other, that the govern- forming much more than compensation in ment balances in the bank which were question. Thirdly, the last agreement with drawn from the exchequer (estimated then the bank which it will be necessary to notice, by Mr. Pitt, as they nearly were, at two was in 1806, 46 Geo. III. c. 41. when the millions and a half on an average), and the three millions, which ought to have been regrowing balances of the commissioners for paid on the 5th of April, were continued as a the sinking fund, were productive of profit, loan to the public until six months after the and an expectation is said to have been given, ratification of a definitive treaty of peace, at that they should not be withdrawn from the an interest of 31. per cent. which is to be bank without compensation. The produc- considered as a gift of 60,000l. per annum, so tive quality of some of the government ba-long as the war continues. Whether this lauces being admitted, it is not easy to con- bargain was concluded upon an examination ceive that the bank have any method, except sufficiently comprehensive of the general si

tuation of the bank, is not now the question; be considered as an intended compensation in but the transaction is most material in ano-part for the benefit which the bank derive ther view, as it evinces that the agreement from the use of public money. 3d,-A sum made in 1800, was not considered either by of three millions was lent to government, as those who acted upon the part of the public, has been already stated, without interest, for nor by the bank directors themselves, as a six years from 1800, as the price of the rebar against further participation, whenever newal of the bank charter; and it was agreed the increase of their profits derived from the in 1806, that the same should be sent at 31. public, and the circumstances of public af- per cent. during the continuance of the war. fairs, might, upon similar principles, make Another direct advantage derived to the pubsuch a claim reasonable and expedient. Af-lic consists in the receipt at the bank, of the ter a summary recapitulation of the advan- property tax upon the dividends, and the tages which the bank derive from their char- prompt payment of it into the exchequer, ter, and from their connection with the pub-without charge, or extra allowance; by lic, it will be proper to enumerate the bene-which means all delay is obviated in the colfits which the public receive from them in lection of a large portion of the war taxes, return. 1st, A large profit on the manage- and the expence of officers is saved. The ment of the public debt is enjoyed by the stock transferred to the commissioners for bank; and, 2dly, the interest arising from reducing the national debt, and on account between 11 and 12 millions of government of the redemption of land-tax, is not charged balances lying in their hands. 3dly, They by the bank with any allowance for manage. have whatever profit is to be derived ment; which two sums amount to about from their paper circulation, amounting to 184,000,000l. exclusive of South-Sea annui16,621,3907. the issue of which resuits from ties. The practice of making advances upon the exclusive powers given to them by certain instalments of the public loans, on the their charter. It may be remarked, how-security of the receipts, is a considerable acever, that it is a circulation of which they commodation to the subscribers, and enables carefully limit the amount, and on account government to contract for loans upon terms of which, as well as with a view to the ge- somewhat more advantageous than could be neral demands of the state, they are subject done if that facility were not afforded. The to the burthen of ordinarily maintaining a Bank, however, receive in return the legal large stock of cash and bullion, and of pro-rate of interest, as they do also upon all transviding, except during the suspension of pay-actions with the government, except those alments in cash, all the gold and silver used ready stated. The accommodations derived for the coinage of money. The advantages by the public from its connexion with the which government, on the part of the pub- bank, have been carried, in some years, to a lic, receives in return, are the following: very large amount; and it must always be 1st,-The capital (11,686,000.) of the considered as an object of the greatest consebank is lent to the public at the rate of quence to maintain the permanence of an 31. per cent. The benefit derived from this establishment of such opulence and credit, loan, amounting at present to 233,7207. is which, by the judicious conduct of its own not stated in the annexed evidence, as ha- affairs, has contributed so materially to extend ving been particularly adverted to in the con- the commercial prosperity, and to maintain versations which took place between Mr. the public faith of the country. Your comPitt and the governor of the bank, on the oc-mittee cannot conclude their report without casion of the renewal of the charter, but the bearing testimony to the favourable disposicontinuance of this benefit to the public is tion so often manifested on the part of the secured by the act. 2d,-Advances are bank towards the public service; and they made to the extent of 2,750,000l. upon the entertain no doubt of the same readiness to annual land and malt taxes, or the duties accede to any equitable arrangement that substituted, at an interest of 4. per cent. may be proposed under the present circumThe established custom of lending to this ex-stances.

tent, at a moderate interest, must undoubtedly

Auckland, Lord, 84, 229, 482, Harrowby, Lord, 366, 526, 665,

INDEX OF NAMES:-HOUSE OF COMMONS.

Abbot, Right Hon. C.; see Speaker. |
Adam, W., 721, 727, 737
Addington, J. H. 61, 662, 675,
707, 950

Anstruther, Sir J. 674

Attorney-General (SirV. Gibbs), Canning, G. 62, 163, 526, 341,

Babington, T. 981

Bankes, W. 20, 22, 178, 460, 506,

514, 568, 669, 705, 708, 747,
741*, 1062, 1072, 1153, 1158
Barham, J. 65, 135, 746, 845,
976, 1006, 1055*, 1070
Barry, J. 826

Bastard, J. P. 304, 940
Bathurst, B. 330, 472, 545, 650,
738, 879, 966

Biddulph, R. 699, 715
Binning, Lord, 941
Bourne, S. 203, 219, 514, 678,
688, 799, 853, 1010, 1102
Boyle, D. 698, 725, 917, 1044
Brand, T. 284, 699, 969
Browne, D. 641, 734, 737,

Romilly, Sir S. 327, 334, 704, 800; Wilberforce, W. 101, 138, 159,

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