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ment under his contracts, through the agency the time of each issue by letters from their of Messrs Goldsmids. This produced an secretary to the Navy Board, which were iointerview the next day between the Comp closed coufidentially to the Comptroller, and

troller of the Navy, Messrs. Goldsmids, and the produce of the bills was paid to the TreaMr. Glenny, and the plan of drawing navy sorer of the Navy; the letters entered in the bills for the purpose of raising money was Appendix shew bow this business was con thereupon concerted. The first set of ducied, (App. Nos, 6, 7, and 8.)-We these bills for 100.000 1. was drawn on the inquired whether the difficulties in obtaining 23d of Oct, 1800, (App. No. 1.) payable to money for the service of the navy, stated to Mr. Cornwall Smalley; but he disapproving have existed in the years 1800, 1801, and of his name being made use of, these bilis 1802, arose from any unusual deficiencies in were destroyed, and others for the same ibe pavy estimates for those years; the Compa amount were made out in the name of Mr. troller could not speak to the estimates, George Glenny. (App. No. 3.) It was (App. No. 1.) but informed us, that the dilafterwards thought right to make such bills ficulties which led to the adoption of this payable to Messrs. Donaldson and Glenby, plan were owing sometimes to a deficiency of The firm of the house to which Mr. Glenny money in tbe Treasury, and sometimes to the belonged. ---The total amount of these naval supplies being exhausted, which he bebills, issued between the 24th of Oct. 1800 lieved to have been the case in Oct. 180). and the 5th of May, 1802, (App. No. 4.) The Paymnaster of the Navy stated (App. when the practice of drawing such bills was No: 9.) the general occurrence of official discontinued, was 4,300.0001., besides nine difficulties in applications for money, and ty days interest, which was added to give that such difficulties might have occurred at them the semblance of regular bills. There the period u ben these bills were issued; alwas, however, ibis essential difference be though he did not recollect any correspone tween them; the regular büls stated the par. dence of the Treasurer of the Navy with the ticular kind of stores, or services, for which Treasury or Navy Board, which led or rethey were given in payment; these bills ex lated to the issue of these bills. It was pressed only, that they were for "sundry certainly proper that ihe public credit should * paval services." (App. No. 5.)---Not be supported, but we cannot admit that this being aware of any power in the Navy Board measure was indispensably necessary for that to draw bills of this description for the pur purpose; por cau we allow the validity of pose above-mentioned, we sought inforina The reason given for it by the Comptroller, iion from the Comptroller of the Navy on (App. No. I.) namely, that no funds were the subject, (App. No. 1.) but he declived exclusively set apart for the payment of to answer the question put to him, under ninety.day bills, the amount being uncer. that clause of the act of parliament by which tain ; it is in the nature of the thing that ab we are appointed, which provides, ihat no estimate should be uncertaio. All ibe suppersou shall be obliged to answer any ques. plies for the navy are aonually voted by partion which may tend to criminate him, or liament on estimate, and the amoubi puid expose him to pains or penalties; referring by ninety-day bills, forming no inconsidera. us for the authority under which he and the ble part of the nary expenditure, must of Navy Board had acted. 10 his Majesty's order course be included in the general provisioa in council in June, 1796, for regulating the for navy services.---We were led by the Julies of the several members of the Navy examination (App. Nos. 1 and 5.) of the Board, and to the patent by which they are comptroller and chief clerk in the office for appointed.--- From these documents no bills and accounts, to imagine that the adsuch authority is derived, nor do cue conceive vantage which might accrue by the jaterest the Navy Board can, without the express au on the bills, from the time of their date to thority of Parliament,- issue bills to raise mo. the time of their being, negotiated, was to be ney to be applied to the service of the naty, or the remuneration to the brokers for their any other service. -It is not meant by the trouble ; (App. No. 10.) but by an account observations which our duty requires us to afierwards laid before us, we found, that they make on this transaction, to intimate, that it had made the usual charge of one-eighth per was undertaken with any indirect view, or to cent. commission, and had given credit to charge any abase in the execution of the

government for the joierest on the days plan, after it was resolved upon; it is the elapsed before the bills were negotiated. The measure itself which we have to notice. amount of Messrs Goldsmid's coimmission It is proper likewise to state, that these bills on the negotiation of these bills was 5,875 under the of

-On examinipg Messrs. Goldsmid's ac Commissioners of the Treasury, signified: at count, it appicared in the first catcy, that

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ING THE INTEREST
TRANSPORT BILLS.

they had not given credit to the public for days in the calcolation of interest, ihat until the lull amount of the produce of the bills at rule had been deparsed froin in reckoping the time of negotiating them. Bor this is the interest on the bills ssurd onder the 34th stated by Messrs. Goldsmids (Ano No 11.) of his present Majesty, and which was done to have arisen from their hrog advanced at she suggestion of the officers of the Navy the money before the bills were actually ne Board; but the rele now again adopted in gotiated. This circumstance could 1101 be the Victualting Office was consistent with discovered from any thing on the face of the that universally observed in respect na bills account. We are of opinion, that all ac of exchange; to which, excepr in the incounts rendered to the public boards, should stance of the shree days grace usually taken, be made out with such particularities as may they understood these bills were, as nearly as be necessary to a clear exhibit of cach item, possible, to be rendered similar: that they which will greatly facilitate the examination conceived their mode to be conforinib'e to of the accounts.

the act of parliament, and ibat it had noloc

casioned the slightest remonstrance from any LOSS ARISING FROM THE MODE OF PAY persons receiving or holding their bills. To

this letter no answer appears to have been

returned. - In pursuing different lines of By an act of the 34th of his present Ma. conduct on the same occasion, both cho jesty, cap. 21, 'it is enacted, that after the boards could not be right; and, as the in5th day of April, 1794, all navy and victual. terest of the public was committed in the ling bills shall be made payable on a certain question, it might have been expected that 3 day, not later than fifteen months from the reference would have been made to the sudate of each bill; and that the interest on perior board for a decision, particularly by such bills as shall carry interest, shall com ihat board whose conduct, if erroneous, submence from the day on which the said bills jected the public to a loss. ---It does not, shall be registered. And by a subsequent however, appear (App. No. 14.) that this act of the 371h year of his present Majesty, difference produced either reference or incap. 26, it is directed, that all navy, viciual quiry; and the rule adopted by the Navy ling, and transport bills, shall be payable on Board, of making the ninety-clay bills paya certaid day, to be expressed in each bill, able on the eighty-ninth day from the date, which day shall not be latér than three ca continued in practice in that and the TransJendar months from the day of the date port Office until the month of Dec. 1501.-thereof; and that every such bill shall carry On the 12th of that month a minute (App. an interest after the rate of three pence and No. 15.) from the committee of accounti one halfpenny per ceotum per diem, to com (one of the committees into which the Navy mence from the day of the date of each bill. Board is divided) stating, that doubts bad --Upon the passing of the last act, the been suggested of the propriety of the mode commissioners of the victualling transmitted in which vinety-day bills issued from that to the Nayy Board an account of victualling office had been made out, was referred to bills payable in course, wbich had been re the board at large.--In this minute the gistered in the ajonth of Jan. 1797, noring committee set forth the propriety of their them to become due in ninety days from the present inode of proceeding. grounded on the day of the date, 'which day was not included. established practice of their office, and the -The Navy Board, on receipt of the ac necessity of keeping faith with the mer. count, stated their objections to ihis method chants, who had been used to this mode of of computation in a letter to the Victualling computing the interest on their bills. They Board, (App. No. 12.) in which they ob also express their doubis whether any saving served, that all bilis made out under the wouid accrue to the public from the day's sarpe act, sbould be uniform in all their interest in question, on a presumption that terms; that 'on all occasions dependent on the contractors reckon upon it in the terms rime; it was customary to includ: both the of their contracts; yet, notwithstanding these first and last day; that this mode of con reasons offered in favour of die existing pating interest on the navy bills had pre practice, the committee refer to the couside. vailed during the late act, was followed in ration of the board, wherber it might he prohe Transport Office, and was in conformity per at ibat time. " to depart froin ibe anvith the present act. The commissioners “ cient_usage of the office, and make an al. . of the victualling, in reply, (App. No. 13.) "teration in the computation of the time orcibly controvert these positions. They " the ninety-day bills are made out to run, in tate, that it had always been the custom of " 'conformity with the Viciu_hing Othice, heir office pat to include the first and last " and the custom of merchants in discount

*ing bills."--In consequence of this mi- | Victualling Board they were before fully ac, sute ihe Navy Board, upon the 18th of the quainted with, and had rejecied, is saine monil, came to a resojution, that the certainly the rule in the paying of wages, naiy bilis issued in future should not bear sjlaries, &c, as observed by the Navy Board, interést for the day on which they are dated, to include both days, but nothing is gained agreeably to the practice with regard to es by this to the person receiving such payment, chegner bills, and bills made out at the Vic. as his qime is afterwards seckoned from the tualting : ffice, and direct this change to day next to ibat included in the former accomunence on the following day, Pre. count, so that in the course of the year be vica Iy to on" having any knowledge of the is only paid for three hundred and sixty-five above minute and resolution, we had desired days į but by the Navy Board's mode of information of the Navy Board as to the making the ninety days interest payable ma causes of the rejection, and subsequent adop The eighty-ninth day, a person might co:aia tion, of the mode in use at the Vicruriling three hundred and sixty-nine day, interest Office, of excluding the day of the date in in ihe course of the year; or, by following reckoning the interest on the winety-day up that mode, a day's interest might be bills. The rejection of thai moie is no gained every time individuals changed their otherwise accousied for, (App. No. 16.) security, provided the money was again lebt than by observing that they did not sce rea on the day of its being received. ---The son, on receiving the letter from the com faith to be preserved with persons whose missioners of the victua'ling, 10 change the contracts were pending, is a circumstance constant practice of their office since the much insisted upon in the Navy Board's let first establishment of navy interest bills, and ter to us, and in the inigule of the Conwhich extended to all paynients of salary, mittee of Accounts. In order to judge what pensions, full or half-pay, and all other al. influence that consideration could have had lowances issued from that department. The upon the resolution of the Board at the Teasons assigned for the subsequent altera lime it was carried into execution, we called tion, are, that an uniformity might pervade for an account, shewing whai standing cob: the several public board: from which bills of fracts had determined beiween The 1st of a similar description are issued; and that October and 19th of December, 1801, (the when the time arrived at the conclusion day on which the alteration, took place) and of the late war, that many cootracts an account of such as were then in force, were put up, and many more were in and continaed to be so for twelve monits. tended to be so, it was thought a good op By the return made to our precept. (App. portunity for makiog an alteration in the No. 17.) it must appear how line the conmode of paying the interest on navy bills, sideration of keping faith with the con which could noi, without imputation of tractors could bave influenced the decision departing frun an universally understood of the Navy Board, as only two ciorach, custom, be altered whilst the contracts

of small consequence, bad terminated with. were pending. It is likewise intimated to in the first-mentioned period; and one hun. be immaterial wheiber the bills were paid dred and twenty-three contracis were reone day sooner or later, the sum paid for maining in force a year after the change, the interest being the same in one case as beyond which time we thought it useless 10 the other. We sball now make some re carry our inquiries ; and the change being marks on the above proceedings of the Navy ordered to take effect the day after the se Board, and afterwards observe on the bills solution, operated immediately upon all drawn by the Commissioners of Transports. these contracts, contrary to what was al

Although the Navy Board might have leged to be the common understanding of been uninformed of the general practice of the parties.--I further appeared, by the computing the discount on bills of exchange, examination of the Secretary in the Navy and the mode of calculating interest on ex Board, that although the contractors were chequer bills, yet, when the Victualling not consulted on the alteration, they did not Board so strongly pointed out to them that object to or complain of it, confirming in they were in error, and that error injurious this respect what bad been observed in the to the public, we think they should have in letter of the Victualling Board, stituted an inquiry : had they done so, they Commissioners of Transports, (App. No. 16.) must have come to the same conclusion then

in answer to our application to them on the which they did afterwards and on the same subject, informed us, that they had allowed grounds ; for the method of computing in interest both for the day on which the bills terest on exchequer bills was the same in,

were dated, and that on which ihey became 1797 as in 1801, and the practice of the payable, because the persons to whom poze

Tbe

FOR SECRET NAV-L SERVICES.

nients were mad e by ninety day bills were, duce dissatisiaction, and will in general be in strictness, entitled to their money upon the found to be injurious to the public interest. completion of the services performed ; but that an interval of several days almost in MONEY UMPE ESTED BY THE NAVY BOARD, variably occurred whilst their accounts were under investigation, and the bills preparing : On examining the bo ik containing the and because, according to their construc registry of bills issued by the Navy Boord, tion of che act of parliament, they con we discovered vhat considerable sums had ceived it to have been intended that the been advanced, by way of impresi, during bills should be so paid. ---If the Transport the late war, for ihe performance of secret Board thought themselves justified in their naval services. The imprest against one practice by their construction of the aci, of these parties,

amounting to 100 000). they should not have departed from it wilha | baving bren taken off, and the account out legal advice, or proper authority. If a closed in the books of the Navy Office in a coinpensation, in proportion to the delay, manner wbich appeared to us irregolar, was looked for by the contraciors, one day's we enquired into the circumstances of the interest was not sathcient. It would seem transaction -- From the examination of that this Board followed the course taken by the Comptroller of the Navy, (App. No. 1.) the Navy Board, and altered their practice we learned that this sum had been advanced when they found that the Navy Board bad by the Navy Board, in consequence of diresolved upon a change. We rather rections given by the Lords Commissioners think the contractors did

not look for of the Treasury to the Comptroller, which any anticipation of payment, as a compen Wore marked “ Most Secret;" that 5,0001, sation for the loss of time whilst their ac had been repaid into the hands of the Treacounts were passing, some delay in which surer of the Navy, and that the remaining must necessarily occur, and that it had not imprest of 95,0001. had been cleared, or then, nor has since bad, any weight with taken off, by ibe direction of the Lords them in regulating the prices at which they Commissioners of the Treasury, signified made their tenders to government.

The by their secretary's letter to the Navy Board, following is the amount of ninety-day bills, (App. No. 21.) dated the 1st of May, 1801, issurd between the 26th of Dec. 1799, and ---By His Majesty's Order in Council top the 19th of Dec. 1901, at an interest of regulating the Navy Office, dat:d the sth of three-pence halfpenny per cent. per dar, June, 1790, the Comptroller of the Navy is allowed both for che day of the date and the autborized to execuie, such secret naval serday of the payment of ile bills:

vices as may be directed by the First Lord Issued by the Navy Board

of ine Admiralty for the time being; and, (App. Nos. 19 & 20)419,747.835 11 11 after the services are performed, the Comp: Transport Board 6,305.976 117 troller is required to comin'unicate his orders,

and his proceedings thereon, to the Navy £26,053,812 3 6 Board for their concurrence.

In case a

majority should disapprove of any part Loss of one day's interest

of his conduct, they are to submit the on the above sum

£3,799 10 3 whole, with the reasons for such disapproAlthogh the loss of between 7 and soul. bution, to the First Lord of the Admiralty, per annum adds little to the amount of the whose decision thereon is to be considered national expenditure, yet it is because the as final.-- Upon this order in council, in: Becessary expenditure is so great, that all structions were drawn up by the Lords possible care shonld be taken to avoid any Commissioners of the Admiralty for the iniproper increase of it, such as we think conduct of the Navy Picard. and they were this to bave been. To the public, one day's directed to conform thereto by their lordinterest on pinety, operating on so many ships' order of the 1700 of Aug. 1790, ia

was a consideration ; 10 each in which there is an omission that we think dividual it was not. ---..We think it right in it right to notice. ---It is not stated in that observe, whenever a difference of opinion

orüer, under whose directions or age's orily' may arise between the Naval Boards on the the Coniptrolier is to perform the secret construction of an act of parliament, or any

services therein-morniioned ; the order raus other general regulation, that such ditle thus: “ All contracts are to be made by tbe rence of opinion should be laid before the “ Board at large, those for secret services Lords Cominissioners of the Admiralty, for is only excepied, which are to be entrusied their decision thereon, as the pursuing of o to ile Comptroller, who is hereby au. different lines of conduci must tend to pro: " thorized to execute such dary." Whereas

millions,

Supplement in aiu. 15, Tol. III - Price Tod.

in the order in council, after stating that Lord of the Admiralty, at the time the last contracts of every kind are to be made by advance was made, and when the imprest the Board at large, those for secret services was taken off, (App. Ņo. 23.) was altoexcepted, which are to be entrusted to the geiber uninformed of the transaction. Comptroller, it is expressed, " "That the Notwithstanding the time which has elapsed " secret services above nieptioned should be since the advance of the moory, and the

performed under the authority of the First injunctions of the order in council, we find « Lord of the Admirally for the time being." that the Complroller has not communicam! This oniission should be rectified, as we are to the Navy Board his proceedings in itin of opinion, it is of considerable importance business, or even made tbem acquainted conté that the several subordinate Boards should the nature of the service performeil

. The have precise information not only of the reason given by the Comptroller for this extent of the authority vested in them, but departure from his instructions is, that the of the authority under which they are lo act. service is of so dilicate a nature, that he - The Navy Board, by their patent of does not think it prudent to make the cirappointment, are required to follow such

cumstance public. After this declaration orders and instructions as they may from we forbore to inquire into the purposes to 'time to time receive from the Lord High wbich this money had been applied, and, Admiral, or the Commissioners for executing of course, have no evidence of the nature the office of Lord High Admiral for the of the services performed; yet we bare tine being; and it does not appear that they reason to believe, that they were of such a are authorised to follow directions which nature as to come within the description of may be given to thein by any other depart naval services. There are circumstances, meot of government. It is, however, sta: connected with the public interest, which ted by the Comptroller and the Secretary, have induced us to withhold the pames of (App. Nos. 1 & 14) that the Board have the parties to whom the money was ad. been in the constant practice of recciving vanced, and the nature of the service to and following directions from the Lords which we apprehend it had been applied ; Commissioners of His Majesty's Treasury, but, as the only security which the public in certain cases, which they have anume. have for the propriety of the disbursements rated. It also appears, by the account en of public money by the Comptroller of the tered in the Appendix, No. 4. That 16,0001. Navy, which may be considered of a secret have been advanced by the Navy Board to nature, is the ultimate investigation of the Messrs. Hammersley and Company for the Navy Board, to which all transactions of performance of a secret naval service, which this nature are directed by the order in was directed by one of His Majesty's prin- council to be submitted, upon the complecipal Secretaries 'of State. If ii be judged tion of the services, we tbink so salutary : expedient that the Navy Board should follow regulation ought not to be departed from the directions of any other department of -By the account entered in the App. Eovernment than that under which they are No. 4, it will be seen that other sums bare placed exclusively by their patent, we think been advanced by the Navy Board for the they should be furnished with specific au performance of secret paral services; but as thority to that'effect ; and that they should These services are not yet terminated, we in no case depart from their instructions can only recommend, that as soon as they without the sanction of the Lords Comrs. of are completed, the communication, directed the Admiralty. It is stated by the Comp by His Majesty's Order in Council, be made troller, that the services for which the sun to the Navy Board. in question of 100,0001. was advanced, were (Signed) Ch. M. POLE. not performed under his orders, but under

Ewan LAW. the directions of the Lords Commissioners of

JOHN FORD. the Treasury, by whose authority the im

NRY NICHOLLS.

(1. s.) prest was cleared, without any account of

WM.MACKWORTU PRAED. (1.5.) the expenditure of the money being render. Office of Naval Inquiry, ed to the Navy Board. --It is most pro. No. 24, Great George Street, bable that a communication of the circnm. 4th Marcb, 1505. s'ances of this transaction was made to the First Lord of the Admiralty at the time of

APPENDIX. advancing the first part of this money; it No. I. THE EXAMINATION OF SIR AN. does not however appear, from bis Lord.

DREW SNAPE HAMMOND, BT. COMPship's examination, that he directed the

TROLLER OF THE NAVY'; TAKEN UFO measure ; (App. No. 22.) and the First

OATH, THE OTH OF JUNE, 1904.

(1.5) (L.5.) (1.8.)

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