4o8 A. D. 1797. 



fion to draw on them for any fum beyond that Hmltation. And at 

 laft they acquainted him (30'" July 1795) that they were determined 

 to give orders to their cafliiers to refufe payment of any trcafury bills, 

 which would carry the advance beyond that amount. Neverthelefs, 

 the chancellor of the exchequer obtained further advances from them, 

 which were ' granted with extreme relu6lance on their part on his 

 ' prefling folicitations, and ftatement that lerious embarraffments would 

 ' arife to the public fervice, if the bank refufed.' 



It would be tedious to enumerate all the applications of the govern- 

 ors of the bank to the prime miniiler, urging a fpeedy diminution of 

 the advance made by the bank, and deprecating further demands. Suf- 

 fice it to fay, that on the 10"' of February 1797 the government was in- 

 debted to the bank, according to a ftatement delivered to Mr. Pitt, as 

 follows. 



Arrears of advance on land and malt taxes 179-1 ^337,000 



Ditto ditto 1 795 49 1 ,000 



Ditto ditto 1 6g6 2,392,000 



Exchequer bills on vote ot" credit . . . . , 9(JS,800 



Ditto on consolidaled fund 179(5 1 ,323,000 



Ti'easury bills paid at the bank 1 ,6/4,6-15 



7,186,443 

 Besides arrears of interest due, &c 400,000 



The diredors of the bank reprefented to the minifter, that, if the 

 loan of ^^1,500,000 to be raifed in this country for Ireland, which was 

 then in contemplation, fliould proceed, the greateft part of it would be 

 remitted in hard cafli, which would bring ruin upon the bank, and 

 probably compell them to fhut their doors ; that at any rate they mufl 

 diminifli their advances to the treafury, and leflen the cuftomary ac- 

 commodation to the merchants in the way of difcount. 



About this time there w\as much talk of an invafion of this country 

 from France : and it was fuppofed that many people in all parts of the 

 country were defirous of fecuring as much as poflible of their property 

 in gold coin in their own poflellion. Certain it is, that very heavy de- 

 mands were niade upon the country banks, and that two banks in New- 

 caftle were obhged tc flop paying in cafh. The country banks were 

 thereupon obliged to make large demands for hard money upon the 

 bankers in London, who were their correfpondents, which confequently 

 obliged them to drain very large fums in hard cafh from the bank. 

 This run upon the bank had been progrellively increafing. But parti- 

 cularly in the v/eek beginning with Monday the 20'" of February it ex- 

 ceeded that of any preceding week ; and the demands on the Friday 

 and Saturday were larger than thofe of the four preceding days taken 

 together. 



On Friday (24'") the committee of the whole court of directors, 

 alarmed at tlie rapid diminution of the cafli in their coffers, defired the 



