The constant drain of gold to the continent under Pitt's administration again began to affect the Bank of England as it had formerly done in 1793. On the previous occasion the difficulty had been got over by the issue of Exchequer Bills. Since that time the financial state of the country had been going from bad to worse. A run on country banks set in, resulting in demands being made on the Bank of England, which threatened to exhaust its reserve. At this crisis the Bank applied to the government. Pitt, with his usual promptitude, summoned a council, although it was Sunday (26 Feb., 1797), and a proclamation was issued suspending cash payments until Parliament should decide what should be done. The next day a meeting of the leading merchants of the city was held at the Mansion House under the presidency of the lord mayor. They at once grasped the situation, and unanimously consented to accept bank-notes as legal tender.[591] The Order in Council was subsequently approved by Parliament, and though intended only as a temporary expedient, the Act then passed continued in operation for twenty-two years, the resumption of cash payments not taking place until May, 1819. [Sidenote: Naval victory off Cape St. Vincent, 14 Feb., 1797.] At a time when England seemed on the verge of bankruptcy, she seemed also likely to lose her supremacy at sea. A plan was set on foot for a junction of the French and Spanish fleets, whereby an overwhelming force might be brought into the English Channel and an invasion rendered comparatively easy. Both the king and the citizens expressed the greatest confidence in the navy,[592] although there were not wanting signs of discontent among the seamen. Fortunately the Spanish fleet was intercepted by Sir John Jervis off Cape St. Vincent; the British sailors forgot their grievances in the presence of the enemy, and a signal victory was won (14 Feb.), for which Jervis received the thanks of the City and a sword of honour, whilst Nelson and others serving under him were voted the Freedom and gold boxes.[593] [Sidenote: Address of the livery, 23 March, 1797.] Although the Common Council--_i.e._, the City in its corporate capacity--were satisfied that the king had done all that was possible to procure an honourable peace, the livery were far from content. Again, they drew up an address to the king demanding the instant dismissal of his ministers, and once more they made an attempt to get their address received by the king on the throne. The king, however, stood out, and all that the livery could do was to pass resolutions in their Common Hall to the effect that they had always possessed the privilege they claimed, and that it had never been questioned "except under the corrupt and infamous administration" of those who were responsible for the American war.[594] [Sidenote: Mutiny at the Nore, May, 1797.]