The Sun.
London, England, 1839-07-26 00:00:00

THE SUN, LONDON. FRIDAY, J

630.000/ the public paid an annual charge of 115,284/
This could be paid off, on giving notice. The averuge
interest on the two capitals was about four and a half—
rather less.—(Mr. O'Connell—"4l 7s 6d.'") Yes; and
certainly it was more than the country ought to pay
(" Hear, hear," from Mr. Hume.) But he wished to
state the services of the Bank of Ireland. He proposed to
the House to allow him to bring in a 13111 reducing the
future charge to the public from 4/. 7s. 6d. to three and a
half per cent. That would make a reduction in favour of
the public—the difference between 93,000/. and 115,000/.
about 23.0001. But perhaps Gentlemen might say that it was
t o much still ropey 93,000/.—(" Hear," from Mr. Hume. )
Would the lion. Member secure him better terms? if he went
into the market for 3.000,0001. to pay off the debt to the Bank
—would he raise that sum at 31 per cent. ?—(llear,
hear.) At the best times he could not have hoped to
heve done it. Let the Hon. Member look at the price
which he (the Chancellor of the Exchequer) was forced
to pay for the West Indian Loan before the pressure,
and compare it with the present arrangement. But he
would consider with the advantages which the Bank de-
rived from the public, the services which they per-
formed for the public, and also if there were any indi-
rect advantages which the public had a right to plead
against those services of the Bank. Now, the Bank of
Ireland carried on the whole funded operations of the
country free from any charge whatever to the public.
The Bank of England had, at the last renewal of their
Charter, made a considerable reduction in the amount of
their charge; a reduction of 120,000/. a year; still every
one knew that the Bank of England received now a consi-
derable sum nor the management of the public affairs.
The whole of the Government business was transacted by
the Bank of Ireland, without any charge to the public
whatsoever, although it carried on all the operations con-
nected with the Bank of England. And the Bank of Ire-
land had this additional operation to carry on: it not only
remitted money to the provinces from Dublin, but it re-
mitted also from Dublin to London, and received a return
subject to a charge ou remittances from the Bank of Eng-
land, of one-eighth per cent., and did this free from any
charge. The expense the Bank of Ireland was at, in
the management of the public debt, was—forty-two
persons, salaries 15,000/. per annum, and the expense of
conducting other public business, was 7,000/. a-year. So
that the Bank was subject to the charge of 23,000/. a
year, independent of the charge on remittances to and
from the Bank of England and all, without any charge to
the public. He could now state the balances in the hands
of the Bank of Ireland. It; former times these balances
were very considerable. In the years 1814 and 1815, for
instance, they amounted to about two millions. Of later
years, since the establishment of the new system in the
Exchequer, it had been the object of the Government to
prevent the accumulation of balances, and to bring the
public money to account as speedily as possible; and there-
fore the balances had been reduced more than one halt.
In 1814, they were 2,210,000/. ; in 1815, 2 660,000/. ; in
1837, only 933,000/. ; in 1838, 979,000/. So that the
balances, from which so much profit had been derived, had
been practically diminished one-half during the interval.
lie therefore would inform the House that he proposed
to reduce the interest from 4/. 7s. 6d. to 31 per cent.
—that the Bank charged nothing for transactine
the public business—and that the balances of pith-
ltc money, had been reduced to more than one half.
But there was another transaction which he must bring
under the consideration of the House. The House was
le are that by Act of Parliament 900,000/. had been raised
by Exchequer Bills for the payment of the Irish tithes.
These Exchequer Bills had been advanced as a loan, and
the terms of the Act prescribed repayment. He endea-
voured to enforce that repayment. He contended that it
was only just to have a repayment. The House however
(he made no complaint, it was a noble act of generosity
'it their part) agreed to remit the whole of that sum.
Gentlemen on both sides of the House joined in it. The
Government resisted it as lung as it was able; and un-
toubtenly the concession was net made with his acquies-
cence or approval. But those Exchequer Bills remained
outstanding.—( Hear, hear ) By the condition of
:he Act the Bank of Ireland was authorized to make
advances upon this nine hundied thousand pounds. They
had been standing with the B ink ; hut these Exchrquer
Bills had not entered into the rnerket, and the Govern-
ment could pay them off at par. He proposed, under the
arrangement which he now asked the leave of the House
to effect, to fund that amount of Exchequer Bills on the
terms established in the Savings' Banks; creating stock to
the amount of these bills, and transferring it to the Bank
of Ireland, the bills being delivered up. The effect would
be to cancel that amount of the public debt, without the
country being at any expense as to the premium upon these
bills, and he believed the arrangemeto would be most ad-
vantageous to the public, and that it was the only way in
which, under existing circumstances, the demand could be
:net. Gentlemen would recollect at all even's, that for
:his amount he was not at all responsible, that in fact his
apposition to it was overruled by the House. He had now
stated the transactions between the Bank of Ireland and
the Government—( Mr. Hume, " The unclaimed died-
dendl—that was not important—it was included in the
900 0001 and odd, to which the balances at the Bank were
now reduced,—( Mr. O'Connell, " 36.000/. ")—but the two
last years were to be relied upon, as the diminution was
tot accidental, but the consequence of an improved system
of receiving the revenue at the Exchequer without allow-
ing any balances to accumulate. The Chancery balance
too (we understood) had been invested in stocks, instead of
being permitted, as formerly, to accumulate in the Balk.
There was one other point on the pecuniary arrangement
which it was right to mention. Under Act of Parlia-
ment 2,000/ had been charged upon the Bank, to pay the
expyrices of certain officers in the Court of Chancery,
which offices having now ceased to exist, he did not think
it reasonable to continue the charge any longer. It might
be interesting to the House to hear that the Bank of Ire-
land—and he thought they deserved great credit for it—
had taken such pains to improve their notes, that forgery
was very rare indeed. In the course of four years, with
a large circulation, they bad not lost more than about
7001. through forgeries, while, as to the management of
the public debts they had lost 11.000/, by forgeries. lie
had thus stated the nature of the.arrangement which he
proposed to make with the Bank of Ireland. He now
proceeded to what was a more gratifying part of his duty.
It was with pleasure he stated the measures which he
should recommend as likely to greatly improve banking
interests other than those of the Bank of Ireland. Great
as had been the casualties and pressures of 1836, and the
proved misconduct of the Agricultural and Commercial
Banks of Ireland, the pressure on the banks had afforded
the greatest possible evidence of the solidity of the prin-
ciples of a well-regulated Joint-stock system.--( Hear )
Whatever had been doubted before, never had a system
been brought to a severer test than had the system of
Joint-stock banking in Ireland in 1836, and it had not
only stood the trial, but proved undeniably that this sys-
tem of banking, if properly conducted and managed by
men of business, was susceptible of the most useful appli-
cation.—( Hear, hear.) Having then felt himself com-
pelled to refuse within the metropolitan districts certain
privileges, which he thought inconsistent with the public
interests, he had undoubtedly looked most carefully whe-
ther he could not, consistently with his duty, propose to
Parliament certain changes in the law which might prove
beneficial to the existing Joint-stock Banks in Ireland, and
he thought that he could, without breaking down the prin-
ciples which he had stated. First, then, the Joint-stock
Benks in Ireland were subject to extreme disadvantages
at present; they had not the power of appointing, as
others had, public officers through whom they could
sue and be sued ; neither could they register their share-
holders ; they were obliged to re,ort to the appointment
of trustees for the conduct of business, which was ex
ceedingly inconvenient and prejudicial to their affairs.
proposed that these banks should have till those privileges
granted. They would then stand in Dublin perfectly free
as to general banking, being only restricted from issuing
'totes payable on demand. As to Joint-stock Banks not
:within the metropolitan circle, they had now, by
connivance, houses of business in Dublin, and he proposed
that what was now sufferance, should be legal. He pro-
posed that they, as well as the non-issuing Joint-stoek-
Banks should have conferrred upon them the power of
drawing and emeer,ing bills, and engaging in that respect
in the bus'aenis of remittance and exchange—but if it
ia
ll well b
cwo-erriseeetiorenheeegehrea.n..dilb7e7jtehraati ttehreinre wheoukldnewbefuslnl the
bank post hills, payable to order, or after date, substituted
for those upon demand, and that thus it would be im-
possible to preserve the exclusive circle in the metropo-
lis ; he therefore proposed that a limitation should be
placed upon this issuing of hills, tending to confine
them to remittances anti prevent them front entering
into city circulation. The limit he proposed was 10/.
in value, and ten days in time. He forgot to state, that
he intended to propose to the flouie, to impose on the
Bank of Ireland the necessity of making returns of their.'
lisbilities and assets, in the same manner as the Bank of
England,--( Hear, hear.) He was not prepared (whatever
might be his opinion) sufficiently, as to tholaw upon ,
Joint-stock Banks, to propose the same provision respect-
trig those in Irelsnd, when it did not apply to those in
Ireland. Now be entreated the House not to be led away
by the idea that this measure would be the keeping up of
a " monopoly," as it was called, of banking business in
Ireland. It was no such thing. The banks within the
metropolitan district were free as to the general business
of banking ; their wein restriction was as to the non-issue

of paper—promissory notes payable on demand. The
Joint-stock Banks, non• issuing►, might discount, hold de-
posits, and transact other banking business. Take the
case of Drogheda. What was there under this system to
prevent the people, if the accommodation in Dublin was
not sufficient, establishing a bank in Drogheda ? Nothing
in the world; the only restriction was on the issuing of
notes. It was a perversion to say that he was contend-
ing for a monopoly of banking business, but for a mono-
poly of creating paper within the metropolitan district.
There was no country which had suffered more from bad sys-
tems of banking than Ir.l,land. He hal himself seen instances
of farmers and of the poorer classes being ruined by the
failures of banks. And if any thing war d .po to encou-
rage over issues, and excite speculation, the carne disasress
would occur, and the amount of responsibility which Par-
liament would incur would be greater almost than by any
other Legislative measure —( Hoar, hear.) He had
known, under the old system, notes for shillings, for six-
pences, for three• pent e—nay, for three half-pence
cheques unaccepted—notes pa, able a few days after date,
with no date—notes payable at sight, without acceptance;
arid other cases still more absurd and delusive. It might
be said that this was under the old system ; but under the
present system instances equally absurd and disastrous
could be produced, as the evidence relative to the
Southern B ink of Cork, and the Agricultural and
Commercial Banks would prove. The Joint-stock
Banks certainly were beneficial ; but cases had been known
of eleven notes being off,red for ten of another bank—
and thus on forced issues raising prices in one market
higher than in another ; and the mischief had been such as
to involve the Joint-stock Banks in distress by these
iniquitous speculations. The application of the Joint-
stock Binking principle might certainly be beneficial ;
but could not be recommended as the panacea for all
evils, as the cases of Norwich, and the Northern and Cen-
tral Banks proved They were the best security against
ultimate loss. But it was idle to imagine that they could
be a protection against those enormous evils which had