The Sun.
London, England, 1834-07-08 00:00:00

PROSPECTUS.-NATI
LA/,

ONAL BANK of IRE-
qD.

COMMITTEE :
Geo. Evans, Esq., ALP. M. O'Connell, Esq., M.P.
Fitz-Stephen Ffrench, Esq. IR. L. Shell, Esq., M.P.
M.P. J. R. Todd, Esq., M.P.
C. Fitz. Simon, Esq., M P. N. A. Vigors, Esq., M.P.
C. S. Forger, Esq., M.P. J. R. Elmore, Esq.
J. Grattan, Esq., M.P. E. F. Green, Esq.
D. O'Connell, Esq., M.P. R. Sutton, Esq.
C. O'Brien, Esq., M.P. Thomas Vigne, Esq.
D. Roche, Esq., M.P. Wm. Wilkinson, Esq.
Previous to the, year 1825 banking in Ireland was a monopoly,
enjoyed exclusively by. the Bank of Ireland. In the following
year the Bank of England was curtailed of its extensive privileges,
and since then the system of, banking in both countries may be
said to be places upon a more solid foundation. The disasters so
frequently occurring amongst private bankers were often a serious
inconvenience to whole districts, which were not only ruined by a
failure, but, in consequence, often deprived of the utility of a bank-
ing establishment.
Scotland had long felt the practical benefit of a sound banking
system, to which may be traced the rapid development of agri-
cultural and commercial prosperity, and other exciting causes being
absent, the growth and improvement in her moral and social
condition. In these respects it would be difficult to calculate the
inestimable benefits which a joint stock system of banking has
conferred upon Scotland.
It was natural after the injury which the panic of 1825 occa-
sioned (and which may in no small degree be attributed to our
unsound state of banking in England), that the attention of the
public should be directed to the security of the Scotch system.
Some public spirited individuals had made the attempt so early as
1822, but the privileges of the Bank of England proved too great
an obstacle to their patriotism ; and it was not till after the occur-
rences in 1825 that the legislature formed the determination to
grapple with these monopolies, and place England and Ireland on
a footing of equality with their sister country. To the panic,
therefore, the effects of which will be long remembered, the public
are in a great degree indebted for the establishment of a sounder
system of banking than had yet prevailed in either kingdom.
It may, therefore, be taken for granted, that the experience of
Scotland has proved the beneficial results of Joint Stock Banks,
whether as regards the security they afford to the public, the
confidence they inspire as to their stability, or the healthy influ-
ence of credit, which, by encouraging productive industry, admi-
nisters to its wants, and to the constant expansion of national
prosperity. To the numerous stockholders in the Scotch Banks;
which include the landowners and the wealthier classes of the
community, Joint Stock Banking. has been a source of immense
profit, as the value of an original investment has in more than one
instance trebled, and been, in all, considerably enhanced.

, .
The local Joint Stock Banks which have sprung up in England
have succeeded beyond the most sanguine calculations of their
founders; notwithstanding the limited resources they possess,
compared with the capital and credit of a national establishment.
The shares in the local Joint Stock Banks of England are now
selling in the market at the following premiums, which are founded
on the dividends paid upon their capitals:-
- •

Manchester and Liverpool District Bank, 75 per cent. prem.
Lancashire Banking Company 6O ditto
Westmoreland Bank
' Bradford Commercial Company
Huddersfield
Leeds Company 4O ditto
Saddleworth Company 62% ditto
Provincial Bank of Ireland 92 ditto
Ireland is a country, of all others, peculiarly suited for a profit-
able employment of capital. First, because the state of credit,
owing to the want of a sound banking system, has been such as to
tempt capital, by yielding it a high rate of interest, which is six per
cent. Secondly, because a truly national system of banking would
encounter less competition than prevails in Great Britain. And,
thirdly, because a sound principle of banking would ensure a wider
circulation to its paper and credit, by which last, alone, a bank
can be made useful to the public, and profitable to the shareholders.

The Bank of Ireland and the Irish Provincial Bank, with the
exception of three local Companies in Dublin and Belfast, enjoy at
present the undisputed monopoly of banking, without the ability,
from the nature of the principles on which they are founded, to
confer any decided advantages on Ireland, in return. The annual
amount divided by the Bank of Ireland, is 270,0001. (exclusive of
bonusses which have been added to the capital) and the declared
profit in the last year of the Irish Provincial Bank was 56,3161.
18s. Bd. on their trading capital of 500,0001. This last bank
was established in 1825---it was unquestionably very much required,
and has, so far as it has been able to extend itself, conferred
great benefits on Ireland. This, in a great measure, is to be attri-
buted to its connection with English capital, which inspired great
confidence, and materially contributed to the development of Irish
credit. But the Irish Provincial Bank has not succeeded in be-
coming, notwithstanding it has been established nine years, a
National Bank. In this time it has only extended itself to
twenty-one towns in Ireland, arising, most probably, from the
defective principle on which it is established ; and which multiplies,
with every additional branch, the details and difficulties of ma-
nagement, otherwise it would be difficult to account for the tar-
diness it has displayed in its movements. It appears, therefore,
impossible that the Irish Provincial Bank can extend itself much
farther with equal safety, and, at the same time, insure good
management. As far as it has done so, it has been highly pro-
fitable to its proprietors ; but as nothing is more certain than that
competition will follow success, to foresee it is of vital import-
ance in the beginning. The Irish Provincial Bank seems to have
lost sight of this, and omitted to unite itself with a body in Ire-
land, with whom to share its profits, as well as to fortify itself on
a principle, by which resistance could be made to inevitable com-
petition--a competition based on success, the best temptation and
security to capitalists.

It is not, however, likely that the Irish people would remain
for any length of time deprived of a national system of banking,
or capitalists fail to secure a field which has proved so productive,
and which conducted upon an enlarged scale, is more certain to
increase the advantages of investment.

In founding the National Bank of Ireland, so as to deserve the
name of National Bank, two leading principles, entirely overlooked
in the Irish Provincial Bank, must be adopted, viz. :-
Ist. The power of extension, without increasing at head-
quarters the labour of management.
2d. To insure its success against competition by providing tha
means of defence.

The plan of extension of the National Bank of Ireland includes
a system of self-management, and an union with a large body of local
proprietors where each branch is formed, upon a principle, which
will stimulate its exertion by increasing its direct interest in its
own success. _ .

It is proposed that each branch shall have a separate capital pro-
portioned to the extent of its business, one half to be subscribed by
resident shareholders, so as to identify their interest with their
own establishment, and the other half to be subscribed by the
National Bank of Ireland, whose connection with each branch,
whether its separate capital consists of 5,0001. or 50,0001. will
afford it the credit of whatever capital (however large) the National
Bank of Ireland may have actually paid up at the time,
• It is proposed to commence this undertaking with a „Capital
of One Million, which, as the branches extend, will be increased by
fresh issues of Shares, at a Premium, to new subscribers ; the
premium, on each extension of capital, to go to the original pro-
prietors. This premium will be calculated on the actual success of
the undertaking, and capitalists who may be disposed to set up a
rival bank, will be enabled by the constant enlargement of the
capital, to embark in the National Bank of Ireland without running
the race of competition.
- - - •

The following are the terms and conditions of subscribing:—
First. That a Company shall be formed in London, to extend
to Ireland the benefit of a sound banking system.
Second. That a Bank be formed in each town in Ireland, where
practicable by law, and which offers a prospect of success to the
operations of the Company.
Third. That the object of the London Company shall be to
connect itself with Shareholders exclusively interested in the suc-
cess of each local establishment.

Fourth. That the principle of the Bank shall be the division
of profits of each bank, with such local shareholders in Ireland. The
capital of each branch to be subscribed equally, by shareholders
on the spot and the Company in London.
ball be

Fifth. That the capital of the London Company 51
1,000,0001. in shares of 501. each, to be called the Original Capital,
which may be increased as the business of the Company extends :
but the premium, on any addition,to go to the first subscribers.
Sixth. That the Bank shall be formed as soon as half the
capital is subscribed.