'Mr. Pitt thence went immediately to the King, and the same evening a Cabinet Council was held at nine o'clock, which sat until midnight; when an answer in writing, by his Majesty's command, was dispatched by Mr. Pitt to the Prince, informing him in general terms, that, in case his Royal Highness thought proper to withdraw the motion intended to be made, the next day, in the House of Commons, everything should be settled to his Royal Highness's satisfaction. Agreeably to this, the motion was, the next day, withdrawn by Alderman Newnham, as being no longer necessary; after which, to the infinite surprise of the House, the Minister rose up in his place, and said that he could not see, for his own part, that the motion was then either more or less necessary, than it ever had been; and added, in answer to Mr. Rolle's question, that no terms of any kind were settled, but that matters remained in statu quo.
'This proceeding, being related to the Prince, his Royal Highness, the same night, wrote a letter, with his own hand, to Mr. Pitt, requiring an immediate explanation of the extraordinary speech delivered that day in the House of Commons. Mr. Pitt, in answer, requested leave again to wait upon his Royal Highness. Accordingly the Minister went on Saturday, at noon, to Carlton House, and had another long conference with the Prince, in which his Royal Highness (in order to prevent any more mistakes) gave to Mr. Pitt, in writing, his proposals, which were in substance:—1. The Prince of Wales to have his debts paid off, in part, at least. 2. To have a sum granted sufficient to finish Carlton House. 3. To have such moderate increase made to his annual income, as may be sufficient to prevent his running in debt in future.
'With these propositions Mr. Pitt took his leave, and on Sunday, despatched them by a special messenger to Windsor, to the King; who, on Monday last, returned his answer, signed in form by his Majesty's own hand. This answer was on the same day delivered by Mr. Pitt to the Prince at Carlton House, and is nearly to the following effect:—1. That his Majesty was glad to find the Prince of Wales ready to submit his accounts to inspection. 2. That it would be necessary for the Prince, not only to ascertain the whole amount of his debts, but, also, the particulars thereof, with an exact account of how each debt was incurred. 3. That the Prince shall engage not to run in debt in future. 4. That, upon the specifications above required, would depend his Majesty's determining upon whether he should agree to the payment of the whole, or any part of the Prince of Wales's debts. 5. That his Majesty cannot think any increase of income necessary, so long as the Prince of Wales shall remain unmarried. This answer cannot be supposed to have been, in any way, satisfactory to the Prince of Wales.
'However, nothing was said upon the business in the House, either on Monday, or Tuesday, and nothing on those days was done farther than that the Prince, on Tuesday, sent his commissioners, Colonels Lake and Hulse, with Mr. Lyte, his Treasurer, to Mr. Pitt, with all his accounts, etc., etc., for the inspection and information of his Majesty.'
The account of the Prince's debts which was furnished to the House is as follows:
SCHEDULE OF DEBTS
| Bonds and debts | £13,000 |
| Purchase of houses | 4,000 |
| Expenses of Carlton House | 53,000 |
| Tradesmen's bills | 90,804 |
| ———— | |
| £160,804 |
Expenditure from July, 1783, to July, 1786.
| Household, etc. | £29,277 | |
| Privy purse | 16,050 | |
| Payments made by Col. Hotham, particulars delivered to His Majesty | 37,203 | |
| Other extraordinaries | 11,406 | |
| ——— | £93,936 | |
| Salaries | £54,734 | |
| Stables | 37,919 | |
| Mr. Robins, etc. | 7,059 | |
| ——— | £99,712 | |
| ———— | ||
| £193,648 |