other objects. Mr. Pitt observed on this, that the welfare of the Bank, we must suppose, was an object of equal importance to him as to us. The Governor then added, that though he did not engage for the Court, if Mr. Pitt could promise that two millions of the sum now asked for should be applied to extinguish so much of the advance on the Treasury Bills, he believed it might be acceded to. Mr. Pitt replied, that he could not answer for so large part being paid immediately; but that he would, on this information, draw up a new letter to the Court, to be considered next Thursday; and he wished to see the two Governors at 12 o'clock on Tuesday next, to submit to them the plan of his letter: and the Governor and Deputy promised to wait on him at that time accordingly.

Answer to No 7.

AFTER Mr. Pitt had read this paper, with great attention, twice, he began by expressing his satisfaction and approbation of the measure of communicating such matters to him; saying, That he most certainly would frame his arrangements in a manner that might enable him to remove our fears, and prevent unpleasant consequences; and that he would endeavour to do this in such a manner as should produce no alarm; srtongly recommending to the Court of Directors to use every possible precaution to prevent that also.

The Governor then said, That he hoped Mr. Pitt did not conceive it to be the intention of the Court to refuse the advance of the land and malt 1796; but only that it was their wish to protract it for some time. Mr. Pitt said, He understood it so, and should avoid applying for it until it might be more suitable to the Bank. He also said, He should certainly reimburse a million of the Treasury Bills, and repay the 1,100,000l. as soon as the accounts were made up; and, if necessary, the 1,400,000 remaining should be reimbursed.

The Governor mentioned to him the drain of Cash to Ireland, the calls for the West India armament, and the probability of soon perceiving those that will be occasioned by the claimants of the neutral ships being reimbursed in all which he seemed to concur. Then the Governor stated to him, that the price of gold being so much above the value of our Guineas, must necessarily impress his mind with the unavoidable consequences. The Chancellor of the Exchequer viewed this in a most serious light.

The Governor then mentioned the probability of the claims of the American ships taken in the West Indies soon coming to a hearing, and which, he said, from report, would amount to near four millions. Mr. Pitt agreed that appeals were soon to be made, but he did not think the amount would come up to such a sum. The Governor then resumed

the subject of the Treasury Bills; and hoped, that after the meeting of Parliament, Mr. Pitt would so arrange matters, as to prevent their continuing to be paid by the Bank in the manner lately adopted. His reply was, that this object would soon cease; their amount seemed to have impressed his mind with a design to discontinue the service that occa sioned them; the troops were about to return home. He candidly acknowledged, that the expense of our troops on the Continent had been enormous; and intimated that the bent and operation of the war, as long as it did still continue, would be naval, and in the West Indies.

The Governor then made his acknowledgments to Mr. Pitt, for the indulgence of so much time as he had given to him and the Deputy Governor. The Chancellor of the Exchequer said, He was going out of town to-morrow for a week, and at his return would be glad to see the Governors again, if any thing material should occur.

Appendix, No 10.

Bank of England, 27th March 1797

Appendix, AN ACCOUNT of the Treasury Bills due to the Bank at the End of each Month since the 5th January 1795, and of the Sums repaid to the Bank in each Month since that Time.

N° 10.

Appendix, N° 11.

AN ACCOUNT of the Amount of all Advances for Bills of Exchange accepted by Order of the Right Honourable the Lords Commissioners of His Majesty's Treasury, made payable and paid at the Bank of England, and not repaid on the 1st of January 1795; and of the farther Advances, and of the Repayments, from the 1st of January 1795 to the 28th February 1797.