SECRET COMMITTEE ON THE STATE OF THE BANK OF ENGLAND APPOINTED. (Hansard, 2 February 1819)

The Earl of Liverpool
said, he rose in pursuance of notice, to move for a Secret Committee to inquire into the State of the Bank of England, with reference to the resumption of cash payments, at the period prescribed by law, and into other matters connected with the subject. In doing this, he had no hesitation in stating that it had been his most anxious wish that the resumption of cash payments should take place with the least possible delay, that no time whatever should be lost in returning to our ancient policy, as soon as circumstances would possibly allow. It would be in the recollection of their lordships that on the opening of the session he had stated his opinion that circumstances would not permit the return to cash payments at the period prescribed by law, but that if that should prove to be the case, it was intended by his majesty s government merely to propose the continuance of the restriction till March next, and that if it should in the mean time be thought requisite still to continue the restriction committee should be appointed in the next session to investigate the subject, 203 previous to any determination being come to. Subsequent to his making that declaration, he was induced, as he before stated, to change his intended course, and to propose the committee in the present session, instead of the next. Under these circumstances, it was his earnest wish that the inquiry should be as large and as extensive as possible. It was with this view that he had inserted general words in the motion, which would embrace all the questions that related to the subject, without in the least fettering the committee, but leaving them to take their own course in the way they thought best calculated to render the inquiry most effectual. The result of the investigation could alone be rendered satisfactory to the public, or justice done to the subject, by thoroughly examining every branch of the question. Having thus proposed an inquiry in the largest possible sense, he did not think it would be proper for him to enter now into any discussion of the subject. It was most desirable, with a view to a thorough and impartial inquiry. With a view to the whole of this subject being examined in every point of view, and completely sifted to the bottom, that noble lords should come to the investigation, forgetting as much as possible the opinions they might have declared, on whatever side, upon this question, and with a determination to obtain every information upon it that could be procured, in order to arrive at the best and most expedient result. It was an unavoidable inconvenience attending the investigation, that they could not have upon the committee noble lords who had not on one side or the other declared an opinion upon the subject; but they need not increase that inconvenience by now prematurely entering into the discussion, or delivering any opinion. It was his most anxious wish that a thorough and complete investigation should take place of every branch of the subject, and with this view he now moved, "That a Secret Committee be appointed by ballot, to consist of thirteen lords, to inquire into the state of the Bank of England, with a view to the resumption of cash payments at the period prescribed by law, and to take into consideration any other matters connected therewith, with power to report any information which they may think fit to be communicated without injury to the public interests, with their observations thereupon."

The Earl of Lauderdale
thought, from 204 the wording of the motion, that the committee on reporting information to the House, would be precluded from making any observations, except upon the information so communicated, although they might have important observations to make, arising from evidence which they might not think it expedient to communicate.

The Earl of Liverpool
said, he did not think it advisable, in the present stage of the question, that the committee should be authorized to deliver an opinion; nor did he mean that they should be confined to the mere reporting of evidence; he had, therefore, adopted the middle course of allowing them to report such observations as they might think necessary to explain any parts of the evidence, or that they might think of importance.

The Earl of Lauderdale
was still of opinion that the words of the motion would preclude the committee from making observations upon any part of the evidence, except the information they actually reported.

§ The Earl of Harrowby
observed, that the words of the motion were the same as those used in 1797, on the appointment of a secret committee, of a similar description, and they had not given rise to any difficulty.

The Earl of Liverpool
was only anxious that the committee should have the fullest powers to inquire, and full liberty to report their observations. He had no objection, therefore, to strike out the word "thereupon," which would, at all events, leave the committee completely at liberty to make such observations as they should deem meet.

The Marquis of Lansdowne
, in agreeing most fully in the propriety and expediency of the motion, also cordially agreed with the noble earl, that the members of the committee should come to the inquiry without any reference to their previous opinions, but with a determination to enter upon the fullest investigation of the subject, and only after a thorough inquiry to come to a conclusion upon the evidence. With regard to its being a secret committee, some communications from the Bank might require secrecy, but otherwise the whole subject, in all its branches, was so completely before the public, that he could see no necessity whatever for secrecy. The state of the Bank of England too, he considered a very subordinate part of the inquiry. He had no doubt 205 whatever of the solvency of the Bank, or of its complete ability to make good all its engagements; there could be no question upon that point; the main investigation must turn altogether upon other circumstances, which were in every respect amply before the public. He did not mean, however, to take the sense of the house as to whether the committee should be secret or not, but merely to observe, that as to all the most material part of the investigation there was no necessity whatever for any secrecy.