The Sun.
London, England, 1804-05-26 00:00:00

Have you heard the opinions delivered by Mr.
Borrowes,'particuiarly as to the consolidation of the
two Banks ?—I have ; certainly the consolidation of
the two Banks would make their notes passable in
both Countries, and reduce the course of exchange ;
. but I conceive the measure almost imprafficable ;
and certainly, if the consolidation took place, it
might at periods prove very prejudicial to the com-
mercial interests of Ireland ; I should conceive no
such consolidation could take place without the
• power of administration of the whole was placed in
one Court of DireCtors. If that Court, supposing
it to be the Court of Diredors of the Bank of Eng-
land, were to give a limited credit to Ireland,
however liberal, it would not answer the effed of
permanently lowering the exchange, as by an un:
favourable balance of debt, the notes from Ireland
might, come over so rapidly as to diminish the cir-
culation required for Ireland ; and I know of no
method by which it coilld be replenished, but from
the Bank of England sending over more, or giving
the Diredors of the Bank of Ireland power of
issuing more notes, as the notes then already issued
for Ireland should come into the Bank of England
for payment. A limited credit might be detri-
. mental to the interests of Ireland, as it would pre--
vent the Court of Directors .of that Country, let the
necessities of Government or the Merchants should
want even temporary assistance beyond the credit
given, from making any issue for the purpose. If
the Diredors of the Bank of Ireland had the power
of an unlimited issue, as the necessities of Ireland
might require, it would be in truth giving them the
same power as the Court of Diredors of England
had. It has in the examination before this Com-
mittee been frequently mentioned, that the Direc-
tors in England had on several occasions limited
their discounts, of course with a view to di-
minish their notes in circulation, should a consolida-
tion take place ; the reasons that induced them to
limit their circulations, would also lead them to give
similar diredions to the Court of Diredors in Ire-
land. The measure of diminishing their circulation
here might be prudent and wise ;
,but if the Banks
were not connected, the same reasons might not
prevail in Ireland, and the mercantile interest might
feel themselves aggrieved in finding their discounts
limited, or.their currency reduced, without any ne-
cessity on their part; for instance, in 1797, when
it has been stated- that the Bank of. England reduced
the issue of their Paper, the,Direaors of the Bank
of Ireland were enabled, by the then state of Ex-
change, to import large sums of Guineas into Ire-
land, which by a consolidation of the Banks could
not have been permitted by the Court of Directors
in England, as they naturally would have looked
to the interest of the Bank in England, of which,
under any form of consolidation, the Bank of Ire-
land could only be a branch.
Might not much of the notes issued in or for Ire.
land, in case of such consolidation, come over to
England, and remain in private circulation, with-•
out the Court of Directors for England having any
knowledge of it, in consequence of no demand being
made upon them I—Certainly, as these Notes would
be sent in payment of debts to all parts of Great
Britain. If there was a power of an unlimited is-
sue to the Court of Directors in Ireland, any re-
striaions in England in the issues would prove
futile, as there is much reason to believe, persons
distressed for discounts in Loudon, would send
their pdwer to Ireland, notwithstanding the charges,
to be discounted there, and thereby obtain the
Bank of England Notes, which were refused
them in London. I have heard of another plan of
the union of the Banks, which seems to me no fur.
they to differ from the.consolidation, than making
it a joint instead of a single account ; a third plan
has been mentioned, of the Banks mutually paying
each other's Notes ; but upon a supposition that the
high rate of exchange is to be attributed to the
balance of debt against Ireland, the Bank of Ire-
land Notes would be brought to the Bank of Eng-
land in considerable sums, by which, of course, the
Bank of Ireland would to such amount incur a debt
with the Bank of England. The disadvantages of
this measure to the Bank of Ireland wou4l
that they would be paying interest on their Notes
in England, because it would be certainly fair
to demand such interest for their Notes, given
in exchange for Irish Notes, 'as they Would hive
been entitled to had .they advanced those Notes

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