THE CHR@NITCLE, 
dence before the Committee. By 
law, no man is to take more than 
51. percent. intereft for money lent 
or advanced by him; and this re- 
ftriétion is underftood to apply to 
bankers in the bufinefs of difcount- 
ing; fo that in time of war, when a 
much greater intereft than 51. per 
cent. can be made of money, upon 
government fecurities, the difcounts 
which merchants obtain from bank- 
ers and other individuals, are ne- 
ceffarily much diminifhed, and they 
are forced, on that account, to re- 
fort direétly to the Bank. 
Some of the perfons whom the 
Committee examined on this part 
of the fubject, have expreffed a 
ftrong opinion of the inconvenience 
produced by the conduct of the 
Bank in diminifhing their notes in 
circulation, and in reftricting their 
difcounts. 
One of thefe perfons is of opinion 
that an increafed quantity of bank 
notes, proportioned to the increafed 
occafion for them, muft tend to pre- 
vent a demand for guineas rather 
than to promote it; and that if the 
Swed of notes iffued is very con- 
derably lefs than the occafions of 
the mercantile world require, a run 
upon the Bank will be the confe- 
guence. He is of opinion alfo, 
that the Direétors of the Bank do 
not avail themfelves of the full ex- 
tent of their credit; and that the 
caution neceflary to be obferved by 
private bankers in the amount of 
their bills, does not apply to the cafe 
of the Bank of England, for feveral 
reafons which he affigns. A great 
quantity of bank notes, in his opi- 
nion, is abfolutely neceffary for the 
circulation of the metropolis; and 
“that in this refpect it is immaterial 
whether thefe notes are iffied for 
advances made to government, or 
109 
in difcounts to private perfons; ex- 
cept, that in the laft cafe, thofe 
whofe bills are difcounted to a 
greater extent, may fuppofe that. 
more reliefis granted to them. He_ 
allows, however, ‘that 2s the Bank 
difcounts, even in time of war, at 
5l. per cent. there may bea greater 
difpofition to borrow of the Bank at 
5l. per cent. than it may be prudent 
always for the Bank to comply 
with. : 
Another of thofe gentlemen is of 
opinion, that the refolution of the 
Bank to reftri@ their difcounts, ex- 
cited an alarm and diftruft that led 
to an increafe of the drain of their 
cafh; that it has contributed alfo to 
the forced fale and depreciation of 
public fecurities, and to other em- 
barraflments occafioned by an in- 
fufficient fupply of bank notes and 
cafh; which fupply has not kept 
pace with the demand arifing from 
the employment and circulation of 
active capital, particularly for the 
laft fifteen months: And he alfo is 
of opinion that it would not fignify 
maierially to the public, whether the 
quantum of bank notes introduced 
into circulation was created by dif- 
counting bills for the merchants, or 
by advances to government. 
The Committee have judged it 
right to ftate the caufes afligned by 
thefe gentlemen, of the diftrefs that 
has lately prevailed from the want 
of futficient means of circulation 
in commercial tranfactions. The 
Committee, however, do not mean 
to decide whether the Bank Direc- 
tors might not have folid reafons for 
their conduét in this refpect, or to 
conyey any opinion on this doubtful 
and delicate queftion; but conceive 
it their duty to call the attention of 
the Houfe to a point of fo great 
importance, and refer the Houfe to 
the 
