The Sun.
London, England, 1804-06-15 00:00:00

EXTRACT

FROM MINUTES OF EVIDENCE

Taken before the-Committee appointed to inquire into the
State of Ireland, as to its Circulating Paper its Specie and
Current Coin; and the Exchange_ between that part of the
United Kingdom and Great Britain.
The Right Hon. I 0 HN FOSTER, in the Chair.
(Continued from our Riper of Yesterday.) •

WALTER BORROWES, ESQ. AGAIN EXAMINED—.
Says, there is some part of his Evidence Ite
wishes to elucidate, viz.
As to the effeas of making large payments of
loans, and ether causes between England and Ire-
land, during. the absence of a common meditior, I
conceive that such payments can only be made from.
England to Ireland to the extent of the balance of
debt against Ireland, and that beyond that point it
is impossible to go ; because, when the claims which
England has on Ireland have been employed in this
way, either by drawings from Ireland or remit.
tances from Londnn, that then the power of this
Country to possess itself of Irish medium ceases,
and Ireland not having a bullion market, and Eng-
land not having specie in circulation ; that it would
be impossible, supposing for instance of a loan
which should exceed by i,000,0001. the Balance of
debt against Ireland, to remit it by any human con-
trivance while the restriaion continues. Dublin,
in such a case, becomes a Vienna, or any other place
on the Continent to which it might he necessary to
transmit, from political causes, a loan or a subsidy ;
that in transmitting such loan or subsidy, the ba..
lance of trade against the Continent can alone he
employed, and beyond that, bullion or coin must
be resorted to. Bank sdf England Paper could not
be purchased in Ireland after the debt of Ireland to
England was extinguished, because ind;piduals could
not afford to lock up their money in it, and it is
not a common medium in Ireland. Goods could not
be resorted to, because I haVe already supposed the
market - to be filled with its usual supply, and the
cost of such goods included in 'the balance of trade;
that the loans in England for the service of Ireland,
and the loans in Ireland which have been remitted
from England, and which may average z,500,0001,
yearly since 1797, I conceive to about meet. the ba-
lance of debt which has enabled England to trans-
mit them. This principle must be extended further
to the case of loans ceasing from Great Britain to
Ireland, .and the debt of Ireland annually to he the
same ; an impossibility arises out of it to Ireland
to pay this debt, unless a common medium be esta-
blished between the Countries, either of specie or
guineas, or paper, and the absentees cannot by any
.possibility receive remittances for their rents in
such a state of things, or the merchants for the goods j
sent into the Country.
- • How would a common medium remedy the case
stated, of a -continual balance annually arising
against Ireland ?—ln the first instance, by transfer- '
ring a portion of that common medium- to England,
equal to the extent of the debt, which would not,
produce any great inotease of the exchange, and by
reducing .the quantity of guineas or other meiltuin
remaining in Ireland, would have the effott of
checking' imports, and encouraging exports, to the
same degree as under the present system of money
intercourse without a common medium, is produced
by the intervention of a high exchange (which is
stated by others to diminish imports and encourage
exports, but denied by me) and must gradually
operate to do away an unfavourable balance of debt
against Ireland, and gradually to restore an equili.
brium in the intercourse between the Countries.
By a common medium, I allude to a common me-
dium paper, to arise from a consolidation of the
Banks, or to the issue of specie by the restrietion
being taken off. lam still of opinion, that a corn.
mon medium of paper could be procured by the con,
solidation of the Banks of England and Ireland, and
that it would add to per cent, to the income of all
Ireland, paid in Bank of Ireland Paper, whether
spent at home or abroad, beyond its present value,
considering it to be depreciated to per cent. agree..
able to the rate of exchange; and that it would
curb the depreciation of paper, and lower the pre-
sent rate of exchange to par, from which it could