In 1803 the existence of the Royal Institution was in peril. This is apparent from a letter written by Sir John Hippesley, in 1820, to the President of the Board of Agriculture suggesting an amalgamation of the two societies. He said: ‘I recollect with pain that when I was of the Committee of Managers in the year 1803 (scarcely three years after the date of the charter) our capital was exhausted and the corporation was 3,000_l._ in debt, insomuch that a proposal was then made at the board to shut up the house of the Institution and to bring all the effects to a sale for a discharge of its debts. Fortunately a better determination prevailed. A liberal subscription among the members immediately took place. The debt was paid off and near 3,000_l._ was invested for a time in the public funds. I say for a time, as unfortunately the Institution since that period has not been exempted from the pressure of the general difficulties of the times, and has had to struggle with their severity while its efforts nevertheless have not relaxed in fulfilling the great objects of its establishment. To your Lordship I need not insist upon the extent of these efforts nor the credit due to the general management as well as to the eminent talents and exertions of the able professors and lecturers who have so justly maintained the high scientific celebrity of the Institution in every part of Europe.’ On January 17 Lord Kinnaird, Mr. Bernard, and Mr. Auriol made their first report. They proposed to continue the existing scientific establishment alone; to reduce the workmen, the printers, and the domestics; and to appoint a sub-committee to watch the expenditure. Two thousand pounds were wanted for immediate payment of bills, and the managers, visitors, treasurer, and secretary subscribed 100_l._ each, to be repaid to them without interest. The committee asked for more time in February to prepare the accounts of the Institution. Early in March an accountant was called in ‘to arrange the accounts from the first.’ The result of this investigation is best seen in a report which was drawn up by Mr. Bernard, and which was presented by the visitors to the proprietors, May 2, 1803.