§ On the order of the day for the second reading of this bill,
§ Mr. Elliceobserved, that in a return from the Bank of England, he observed the following note:—"This account is exclusive of all exchequer bills and Irish treasury bills purchased by the Bank, whether advertised to be paid off or not." He wished to know whether this note referred to exchequer bills held by the Bank, which had been advertised to be paid off, and which that establishment had not sent in? And secondly, whether they had been so detained in consequence of any understanding with government?
The Chancellor of the Exchequersaid, that it sometimes happened, that when exchequer bills were advertised for payment, the public received for them either money or other bills. In the same way, the Bank had continued to hold exchequer bills over. The note to which the hon. member had referred was common to all returns relating to the advances made by the Bank to government; the exception was always made.
§ Mr. Ellicebegged to explain his reason for putting the questions. The chancellor of the exchequer, on a former night, had said that government had paid off 5,000,000l. out of 8,000,000l. due to the Bank: if the payment had been made, and the Bank at the same time withheld exchequer bills that in due course would have been paid off, so far it would amount to no payment. Was he to understand that the two transactions did not interfere with each other?
The Chancellor of the Exchequeradded, that the two transactions did not inter- 428 fere. When he had spoken of 5,000,000l. due to the Bank having been paid off, he meant to say, that all the advances to government by the Bank had been reduced by that sum.
§ The bill was then read a second time.