heavy outlays by the British Government. In 1795 the bank
desired the chancellor of the exchequer to make his arrangements for the
year without 'any further assistance' from the bank. This was again
urged in 1796, and the bank appealed again to Mr. Pitt.

'The only reply from Mr. Pitt was a request for a further
accommodation, on the credit of the consolidated fund, which the
court refused to sanction, until they had received satisfaction on
the topic of the treasury bills, and requested Mr. Pitt to enter
into a full explanation on this subject, which was not even touched
upon in his letter. This resolution being communicated, Mr. Pitt
wrote to the governor and deputy-governor on the 12th August, that
'they might depend upon measures being immediately taken for the
payment of one million, and a further payment, to the amount of one
million, being made in September, October, and November, in such
proportions as might be found convenient. But, as fresh bills might
arrive, he was under the necessity of requesting a latitude to an
amount not exceeding one million.' About the same period the court
'desired the governor and deputy-governor would express their
earnest desire that some other means might be adopted for the
future payment of bills of exchange drawn on the treasury.' (_Vide_
'History Bank of England,' pp. 114, 115.)

The circumstances of the nation and of the bank were known to the
capitalists and to the people. Hence various causes of uneasiness and
distress. The bank loaned the public treasury seven and a half millions
in the years 1794, 1795, 1796, and the more they loaned to the
exchequer, the less they could loan to the people. Thus followed a
diminution of gold in the bank, and hoarding by the people. Gold was
exported more freely to the Continent, and reduced accommodation was
given to the merchants. Finally, on the 26th February, 1797, the king's
council passed an order for the suspension of cash payments.

The bank was on the eve of suspension in the year 1847. On the 25th of
October the cabinet authorized a violation of the charter, thereby
acknowledging the inability of the bank to maintain specie payments.
This order of Lord John Russell inspired fresh confidence, and the bank
immediately recovered strength, and reduced the rate of interest from 8
per cent. in October to 7 per cent. in November, to 6 and 5 per cent. i