THE NATIONAL DEBT AND THE SINKING FUND 695 
succeeded in restoring mercantile credit. The restriction on 49.0% 
cash payments was continued, when the crisis was past’, so ’ 
that the Bank might be free to provide a generally accept- 
able paper currency, and save the commercial world from and am 
further disaster. The discretionary power vested in the “ued in 
Directors served as a safety valve. It was extremely con- rots sro: 
venient to traders to be able to count on facilities for requisite 
borrowing, without having their claims to consideration ed 
automatically limited in consequence of the extraordinary id alloyed 
demands which Government made for military purposes. 
258. Such were the immediate effects of the finance of Much of 
the period upon commerce and industry; it must be remem- eis 
pered, however, that a great part of the burden of the deferred. 
expenditure was deferred. and has been borne bv subsequent 
1 The following Resolution was agreed to by the Court of Directors of the 
Bank on Thursday the 26th October, 1797: 
“ResoLvEDp, That it is the opinion of this Court, That the Governor and 
Company of the Bank of England are enabled to issue Specie, in any manner that 
may be deemed necessary for the accommodation of the Public; and the Court 
have no hesitation to declare, that the affairs of the Bank are in such a state, that 
it can with safety resume its accustomed functions, if the political circumstances 
of the country do not render it inexpedient: but the Directors deeming it foreign 
lo their province to judge of these points, wish to submit to the wisdom of 
Parliament, whether, as it has been once judged proper to lay a restriction on the 
payments of the Bank in Cash. it may, or may not. be prudent to continue the 
same.” 
“Your Committee having further examined the Governor and Deputy Governor, 
as to what may be meant by the political circumstances mentioned in that Reso- 
ition, find, that they understand by them, the state of hostility in which the 
Nation is still involved, and particularly such apprehensions as may be enter- 
sained of invasion, either in Ireland or this country, together with the possibility 
there may be of advances being to be made from this country to Ireland; and that 
from those circumstances so explained, and from the nature of the war, and the 
avowed purpose of the enemy to attack this country by means of its public credit, 
and to distress it in its financial operations, they are led to think that it will be 
expedient to continue the restriction now subsisting, with the reserve for partial 
issues of Cash, at the discretion of the Bank, of the nature of that contained in 
the present Acts; and that it may be so continued, without injury to the credit of 
the Bank, and with advantage to the Nation. 
“Your Committee, therefore, having taken into consideration the general 
sitnation of the country, are of opinion, that notwithstanding the affairs of the 
Bank, both with respect to the general balance of its Accounts, and its capacity of 
making payments in Specie, are in such a state that it might with safety resume 
its accustomed functions, under a different state of public affairs; yet, that it 
will be expedient to continue the restriction now subsisting on such payments, for 
such time, and under such limitations, as to the wisdom of Parliament may seem 
it.” Appendix. Third Report, in Reports, x1. p. 192.