The Sun.
London, England, 1845-04-26 00:00:00

I E

adopted last session by this House. I repeat we may
adopt that measure without in the slightest degree affecting in-
juriously the commercial interests of those countries.—
( Hear, bear.) The position of Ireland and of Scotland
is in some respects the came ; and I shall just state
the position of Ireland, in repect to its banking establish-
ments, before I enter upon the general question. I will
point out the difference which exists in respect of the bank-
ing establishments in the two countries. In Ireland ycu
have what you have not in Scotland, a National Bank. In
Ireland you have a bank holding a charter,r which is
eiermin-
able upon six months' notice. The
sernment have the
_.en with the Beek of Ireland:
cif. its
nheat bank the eatlutieie pri-
jri it now enjoys, ht Ireland you have,
pavnoild: :rev iot‘fhodd,ri,aswsoilnvging
".;ne whole, eight banks of ies'tie. There arc no private banks
of issue in that esseentry. There is the Bank of Ireland and
seven other banks at issue. There are joint-stock companies,
There are, in addition to the Bank of Ireland, the
Provincial Bank, the National Bank, three joint-stock
banks of issue at Belfast, and two others, making, on
the whole, seven banks of issue, being joint•stock companies.
independent of the Bank of Ireland. Now, in Inland the
general law of banking requires deep consideration. There
are statutes of the Irish Parlament still in force in that country
—or, at least, which are doubtful whether they are in force
or not—which place joint-stock banks, and the partners in
them, on a different footing from that in which they are placed
in this country. These enactments come into con-
flict with that Act which passed some years since.
in the Imperial Parliament, and under which joint-stock banks
in Ireland are regulated. Her 31ajesty's Government intend
to consi.fer the hearing of those several enactments, and at a
more leisure moment to take steps to amend and consolidate
them into a general law. But I will not, on the present
occasion, divert the House by any detailsirom the main subject,
upon which I am now addressing them. I am perfectly aware
that the general law in Ireland is in an imperfect and compli-
cated state. The Bank of Ireland acts as the banker of the
Government, and. conducts the general payment of the
dividends ; has the management of the debt, and
conducts the general business of the country. The
capital of the Bank of Ireland is 2,769,000/. The debt
from the Government to the bank is a rather smaller amount,
being '2,630,0001.; and we pay the back interest of 31 per
cent. The Bank of Ireland has certain exclusive
privileges. The privileges of the bank are that so
joint-stock bank in Ireland can have a house or place of busi-
ness in Dublin, or within sixty-four English miles of Dublin
No joint-stock banks can issue bills or promissory notes in
Dublin, or within sixty-four miles of that city ; and no joint-
stock bank being within the limit of eixty-four
miles could issue a promissory note for a less sum
than fifty pounds. Now, I am bound to say,
that these are a description of exclusive privileges which have
been very much complained of in Ireland.—( Hear.) There
are in that country other banks of great respectability, which con-
duct their business in a manner that has hitherto given very
general satisfaction. In those joint-stock banks, which are
limited to seven in number, the whole extent of joint-stock banks
in Ireland with which we have to deal, there are 4,000 share-
holders, and the number of customers carrying on business with
those hanks exceed the number of shareholders by
many thousands. Now it must be admitted that the
city of Dublin is a place of resort to many of those who had
shares in those joint-stock banks which are compelled to be
situated at so great a distance from that city. Dublin was
the seat of the vice-regal court—it was the seat of the
courts of law, and a great emporium fur the Irish people
in many other respects. Besides this, it was a great inconveni-
ence to many persons, strangers and others arriving in Dublin,
to find that if they have drafts or demands of any other descrip.
tion upon any of those joint-stock banks in the country, they
are told that there are no branches of those banks in Dublin.
Now, I must own that in my opinion, provided you give good
security against an excess of issue, it would be of great advan-
tage to the Irish people to withdraw those exclusive privileges;
to establish joint-stock banks within 64 miles of Dublin, and in
fact to confer upon them all those advantages that the Bank
of Ireland now possessed without limitation.—( Hear, hear.)
I am bound to say that nothing can be more liberal than the
manner in which the Bank of Ireland has acted in reference to
the subject. The governors and directors of that establish-
ment have intimated to me that they were perfectly
ready to consent to the relinquishment of those
privileges, provided that the joint -stock banks should
be subjected to the same limitations that controlled
them ; and if so, they then saw no reason why other
banks should be prevented from establishing themselves
in and near Dublin. lf, then, this House confined the
limitation of the issue of those banks in the man-
ner suggested by the Bank of Ireland, and which
appeared to the Government to be but just, we can see no
sufficient reason why those principles should not be removed.—
( Hear.) 1 am bound also to to say that the establishment of
the Bank of Ire'and, consisting, fir the most part, of persons
prreessing the Protestant religion, the governors and directors
have intimated to me their desire that that portion of the oath
taken by those entering into their service, which could not
conscientiously be taken by Roman Catholics, should be abo-
lished—( Cheers)—and they have further intimated to me,
that it is their wish that there should be no form of oath dis-
qualifying a Roman Catholic from becoming a gover-
nor or a director of that establishment.—(Cheers.)
I would confine it simply to the oath which is to be adminis-
tered to ascertain the amount of property, and I would do
away with the peculiar privilege of the different oath which is
administered to a Roman Catholic and to a Protestant director
of the Bank of Ireland. When a Roman Catholic director
is appointed for the Bank of Ireland he is sent into
another room to have a different oath administered
to him. By this Bill I propose to do away with the distinction
which is thus drawn between a Roman Catholic and a Pro-
testant director. I hope the lion. Gentleman opposite (Mr.
Fox Mule) will not disapprove of that arrangement.—( Hear.)
With respect to the custom which has hitherto prevailed, I
propose that the Bank of Ireland should still remain
the banker of the Government, and I propose
that the money which has hitherto been owing
to the Bank by the Government should still continue at the
same rate of interest as has hitherto been paid for it. In con-
formity with that prinicple, I intend that the credit shall still
continue the same, and that the rate of interest shall be three
and a half per cent. per annum for ten years to come, and that
the same rate of interest should be paid on any excess of
expenditure over receipts on the part of the Government.
I am thus giving my support to the same principles which I
considered it necessary to allow when 1 last year introduced my
measure with respect to the Bank of England. I conceive
that this is due - in consideration of the willingness
of the Bank of Ireland to relinquish their exclusive privileges,
and I propose that the debt should continue as I have said, at
the same rate of interest for ten years longer—l propose to
introduce into the proceedings of the Batik of Ireland the same
rule which has been applied to other banking establishments,
and I intend to subject the Bank of Ireland to the same weekly
return which is made by the Bank of England. 1 propose
that the Bank of Ireland shall publish a statement
weekly of the whole of their affairs—of the amount
of their issues the increase or decrease of their
circulation, and of the amount of bullion at the time
within their coffers. 1 propose, in fact, that the Bank of Ire-
land shall make a precisely similar return to that which' is
made by the Bank of England, and which has given so much
satisfaction to the whole of the trading and commercial
community, and which has been a cause of such
justifiable confidence to the country. The banks of
Ireland will by this means be placed in some respects with he
banks in England and Scotland. The position of the banks
o iScotland is at present in some respects different to that of
the banks in Ireland or in England. I prorose first to state
what is the general position of the banks in Scotland, and in
some respects they differed from other banking establish-
ments. I will then go into the circumstances of those backs.
In Scotland there are altogether nineteen banks. In Scotland,
as in Ireland, there is no controlling power. There are four-
teen companies which have the privilege of issuing notes. I do
not know whether it would not be unfair to make comparisons
between the two parts of the United Kingdom upon this sub-
ject. But I can say this, without the least wish to
shock the feelings or the prejudices of Ireland, that I have
no intention of injuring either. I mean what I say.—( Cheers. )
I will not attempt to f tter the discretion of Parliament—but
allowing that privilege to exist in its present state, I will not
propose any vexatious interference with it.. I do not propose
to establish any proportion between notes above and below
51. I will leave to the banks of Ireland and Scotland the
privilege which they' possess of issuing notes under 51., without
any restriction as to the proportion which their notes bear to
notes representing a higher value. The batiks of Ireland and
Scotland will thus have two advantages—they will have the
advantage of a monopoly of issue, by being protected from
oppositi-.n ; and they will also retain the privilege
which banks in this country were compelled to
relinquish twenty years ago, the privilege of issuing notes of
5/. 1 will leave them in the possession of those privileges,
proi osing to apply to them exactly the same principle which
we applied to the joint-stook batiks of this country. I pro-
pose that we should ascertain the amount of circulation which
has taken place for some past period, just as we did with re-
spect to the joint-stock banks, and not to impose any limita-
tion in the amount of the future issue of paper, but only
requiring that for the issue beyond a given amount, that
issue should take place in gold. I repeat, that
is the principle which we have applied to joint-stack
honks and private banks in this country. We ascertain the
amount of issue for a certain period before the 27th of April,
and we limit the future issue to that amount, permitting them
to issue for the future the excess above that amount in
promissory paper of the Bank of England, which
Bank of England paper was issued upon gold. I do not wish
to introduce into Scotland or Ireland any compulsory paper
tender; we propose to clear the doubt as to whether
the paper of the Bank of England is a legal
tender. The most eminent legal authorities in Ireland
are, I am told, of opinion that Rank of England paper is
not now a legal tender for gold. I think it right that
there should be no doubts en the subject, and that
we should clear up and declare whether or no the
Bank of England wales should be a legal tender.
Therefore, I have every reason to believe that it would he
more acceptable to the Banks in Scotland that, their excessive
circulation should issue on specie, rather than on paper of the
Bank of England. So far as the public are concerned, it is a
matter of indifference to them whether it should be upon Bank
of England paler, or on gold ; yet, still, as there would be an
objection to the issue of that paper in Scotland, I propose that
the excess of circulation in Scotland beyond the permitted
amount shall be issued on specie, and not necessarily on the
paper of the Bank of England. I believe it to be perfectly
just to establish that principle also in Ireland. Let us bear in
mind that we have a guarantee of the stability of our paper
circulation in this part of the United Kingdom beyond
what practically exists either in Ireland or Scotland.
We have generally diffused over England and Wales a great
specie circulation. The Bank of England can now issue no
paper beyond 14.000,000/., except upon gold. We have not
security for the equivalent of papt•r and gold, but
we have this additional guarantee, that there is a
great basis in specie for our circulation, on account of the
almost universal diffusion of coin throughout every part of
England and Wales. It might be difficult to estimate what is
the amount of gold circulation current in this part
of the kingdom. I do not know that it is necessarily
connected with my subject, but it is a question of interest to
determine what is the amount of our gold circulation. There
has been issued in gold coin from June, 1816, to the month of
June, 1842, about 60,116,000 sovereigns—since June, 1842,
there have been issued from the Mint to the Bank
17,013,000 sovereigns ; since 1842 the Bank put into circula-
tion 11,000.000 out of those 17,000,030. Now, it is ex-
ceedingly difficult to form a satisfactory opinion as to the
amount of gold circulation which remains in the kingdom.
But, judging from the amount of light sovereigns
which have been paid at different periods into the bank the
proportion which they bear to the total amount of sovereigns
taken in is as follows :—ln 1639, of the total amount
of sovereigns paid into the Bank, 211 per cent.
were rejected as below the legal weight ; in 1840,
28 per cent, were rejected; in 1841, 27 per cent. ; in
1842, 331 per cent. A proclamation was issued in
June calling in those sovereigns; and from the 10th of June,
1842, to the 31st of December, 1843, the amount of light
gold coin withdrawn from the circulation was 11,137,000/.
Now, if we estimate this at the rate of 33/. per cent. upon the
t_r_niNtiyornwvi.aerriief:f rgeoumi
naereas thirtyeinal
called
droc
circulation,
ihpaiotrintoy
total amount of the whole circulation, this will show that the
total amount of gold circulation diffused through aut the coun-
bankers, at the period that th:issue of notes oHear, hear. )
f
permitted, which were in circulation
thirty-five
va
makeenEdm oil
fl otahnnse.
m estimate(uamount
below
oc o.
notes
ftheow t
ae
was
below 51. issued by the Banlen' nglaatndt,heartiiiim leeythpartiv:ee
I issue of small notes Waal
prohibited, 1 do not believe that we

should come to a very different conclusion. I admit that
the data which we have furnished U 3 for the purpose
of forming an olioion upon this subject are very vagud and
uncertain, but I tsink we shall not be far wrong if We esiitasete
the amount of grill in circulation at present at thirl3
to
thirty-five millons. I stn bound, however,
state that tie data on which this
is founded are very imperfect.
. out whatever sum may
be, there can be a;siimate
coubt but this general diffusion of a gold
_..0-oration does give great stability to the piper, cOse
rency of this country', titsd
.adde gltaraiit4 to that
eecuritys trore. Olen taken in conjunction with the
Aft of last sessi4n, which does not exist in Scotland or
Ireland. Now I -impose with regent te the Scotch and Irish
circulation to takethe average amount of issue of each bank at
a certain deflate period; and I propose de ItlVs,'
to them the same erenera! p;iileipie which we
applied to t!see tuglish banks in the last session.
sleiToanded nodeposits by way of security—we required no
amount of gold tomeet the issue then in circulation, but we
did take security •o meet any increase in the issue. —(Hear,
hear.) Now, I propose to apply the oiame principle te the
Scotch and Irish banks. The emstion then arises, libm what
period are these everegeS to he taken ?—( Hear, hear.)
Now I peopcne, as regards both countries, Ireland and Scst-
land, to ascertain he average amount of circulation from the
period which has eapsed since the first announcement of this
measure—that is to say, since the 27th of April last. This ',As
a period of thirtees lunar months. Now 1 !snost that the
variation in the amount of the issues of the Scotch
banks is very areal at different periods.—( Hear, hear. )
In May and in November the amount of issue exceeds the issue
at other periods. I believe that as far as Scotland is concerned
it is a matter of indifference if the average is taken fur two
years, or far one year, or for six months; for if we look at the
two periods of extended issue it would be a matter of
great indifferi nee to Scotland whether we take
a period of one year or a period of six months for the calcula •
tion of our average--the amount of circulation would in such
case be nearly the same. I think it but just, as far as the
public interest is concerned, to extend the average over the
whole period, and nut to confine it within the limit of six
months, because the two or the three last months will have a
larger issue as compared with the former, or commencement of
the period. I propose to take the average of 13 lunar months,
commencing with the 2.‘ th April, 18.15. During that period,
according to my proposition, the amount of the issue, taken on
the average, will regulate the circulation.
To questions from lion. Members on the Opposition side,
Sir H. PEEL said, the average shall extend over the
whole time. Now it will make a material difference in Scot-
land whether we take the whole period in the manner
now proposed, or give the return of the average amount of
issue in the several days.
.That might give the average amount
of notes in England, but in Scotland the practice is very dif-
ferent. By the Act of 1841, a weekly return of the notes
issued by each bank is required to be given in, made
up to the last day of the week, became the system of
restraint which has long prevailed in Scotland, by exchanging
the notes which have been issued from each bank, prevents
the danger of an excessive circulation, and gives at certain
periods the different circulations of each bank.
I propose that a return of the amount of
notes issued from each bank, on the last day of business in
the week, shall be taken, for it will make a material
difference in the amount of Scottish circulation, whether
yeti take the daily averages of notes, or whet her
you take the return on the last day of circulation.
And that is the reason. I apprehend, why the amount of circu-
lation appears in Scotland so low. The return if you entirely
rely upon it, must be a fallacious one. It would appear from
the return made on the last day of the week, that the amount
of notes in circulation in Scotland, does not exceed
the amount which might be taken at any other period. What
we propose therefore is, after having defined the amount whirls
each bank shall issue, you shall for the future require each bank
to certify the amount of its weekly issue—or
rather the amount of its issue as it appeared on
the last day of the week. Thus, in Scotland, as in Ireland,
you sill take the period of four weeks, and determine the
average of that period of four weeks. If the average of the
four
weeks does not exceed the amount of the permitted
issue in that case, no restraint whatever will be imposed on the
bank. But if the issue for the four weeks exceed the permitted
amount, in that case the excess, whatever it may be, shall be
issued in specie. If, as I said before, the bank should issue within
the limited amount, in that case no inquiry will be made. Of
course we are bound to see that every bank, if it should issue
more than tl e limited amount, is able to pay its notes in specie
on demand. We do not propose in the slightest de-
gree to interfere with that obligation. A sense
of their own security should and ought to im-
pose on the banks the obligation of keeping suffi-
cient funds, but provided they keep the issue within the
average of the last thirteen months, we shall make no
inquiry. We should trust to their own discretion,
and we propene to apply the some rule as that
which exists in Ireland. We estimate the average amount of
issue of each bank in Ireland, including the Bank of Ireland,
of the last thirteen months, and we permit each bank to continue
its issue within-that period.'" But if they should be in excess
we shall require thst excess to be founded on sufficient se-
curity. Now, we are willing to trust to the honour of the
Scotch and Irish banks as to the retention of their
powers. We propose that they shall return to the
Government the amount of specie held by them, and we
propose to give the Government the power of inquiry. I
believe it has never been found necessary to exercise this
in England, and I have every reason to hope that there
will be just as little necessity for the exercise of it in Ire-
land as in Scotland. ( Hear, hear. ) We will
require from each bank a return of the amount
of the weekly issues, and also a return of each de-
scrip' ion of issue, distinguishing between the 51. notes and all
those above 51. ; and also a return of the amount of gold held
by each, but that, of course, shall he a confidential
communication to the Government, who require it be-
cause they deem it absolutely necessary that they should
be put in possession, of the fullest information of the actual po-
sition of each bank. The Government will also require the
fullest information in reference to the position of all
the partners of those banks, just as we do at present in
this country. Of course, 03 I have already stated, the return of
the amount of gold held by each bank will be a confidential
communication for the use of the Government alone, and no pub-
lic use whatever will be made of it. But in case that any bank
should issue beyond their limit, it will then be necessary
to publish a statement to the effect that the Irish Bank has
issued beyond the amount of specie which it holds, without at
the same time stating to what amount, We will publish a
statement to the effect that the bank has exceeded its issue,
hut we will take care that it holds gold to the amount of that
excess, and, of course, the usual monthly publication
will be made from the Stamp-office. I do not know that I have
omitted any point that I ought to have touched upon; but if
there be any Hon. Member opposite who has any question to
ask me, I shall be most happy to answer him.
[Here an Hon. Member, whose name we could not
learn, put a question to the Right lion. Baronet
which was inaudible in the gallery.]
Sir R. PEEL—The question put by the Hon. Member is,
if in the event of a bank exceeding its issue, would it be re-
quired that the excess of specie should be exclusively in gold ;
or, would it be equally satisfactory if part of it
were in silver ? I la' g to say that 1 do think
it would be of great advantage to permit silver to form part of
the specie.—( Hear, hear.) Because, in the first place, silver
will be a legal tender for any suns to the amount of I/. ; and, in
the next place, it will be impossible for any bank to procure
silver without paying, the full value for it. It will greatly
facilitate the commercial transactions of the country.
Mr. COLLETT—As the Right Hon. Baronet has alluded
to the issues of the Bank of Ireland, and as he is aware that
the amount of the issues has a material influence upon business
of all kinds, I would wish to ask him what is to be the extent
of these issues?
Sir
rßeregulations B.
PEEL—lpropose to subject the banks of Ireland to
the am in this respect as those imposed by the
tmheaatsutrhee
of last
debt
of the Government should continue for
year on the Bank of England. 1 have stated
ten years. That will
With
necessarily a portion
of the Z•apital of the bank. With respect to other portions of
that capital, I propose to place the Bank of Ireland precisely
on the alms footi" as other banks. If they issue beyond
the prescribed amount, I propose that they shall
oSTIO 21.,000,000/., I would, and they possess
only do it on the basis of the specie which they
hold in their coffers. Suppose, for instance, that the issue of
Bankthe
specie ie h
their
grant them the privilege of ',sums to the extent of that specie,
1 would not permit them to issue beyond the prescribed
amount except upon sound grounds. Now, I conceive that
this principle yid be applicable to any other bank, as it
will give increased security to the country and tend to
confirm the stability of all barking concerns to which it
iir" coffersland should
tothe be
amount 3 000. :
may be applied, and I am satisfied that it
will tend to promote the general prosperity of the banks
both of Scotland and Ireland—that it will in no way inter-
fere with their modes of conducting their business, or
interfere with the pl in or order. of those banks, while
it will, at the same time, in no - way prevent them
from giving the same amount of accommodation to
their customers. Now some of the banks in Scotland
already hold considerable amounts in specie. I believe
that some of the banks in Scotland do not hold
less. at the present moment, than. one-fourth of their whole
issue, and some not less than a fifth in specie. Now, let us
see as hat will be the effect of these new
regulations on the whole amount of issue of
the banks in Scotland. I hold in my hand a return of the cir-
culation in Scotland during 13 months ending in March 1845,
and I find by that return, that on the 27th April, 1844, the
amount was 2,714,00(11.; in the week ending May 25th of
that year it was 3,041,000/. ; and in June it was 3,117,0001. ;
and the highest amount which had been issued was returned
for the week ending on the 7th of December, 1844. In the
week which ended on the 12th of October, of the
same year, the circulation was 2,937,0001., and in the
week ending the 7th of December, in the same
year, the amount was 3,486,000/., being an amount of
excessive issue, in that week, of nearly 500,000/. I
am aware that this appears an excessive issue from these banks,
as compared with other banks ; but it is well known that at that
period of the year the issues are larger than at any other time.
And in consequence of the peculiar circumstances of this
country, I believe it is a fact that the issue in November
every year amounts to nearly half a million more
than it does at any other period of the year.
The average circulation of the Scotch banks, taking the total
•
amount of thirteen months, is 3,041,000/. That is
the amount the Irish and Scotch banks are permitted
to issue. Suppose they were allowed toissue
500,0001.
in excess of that amount. What they are required to do is,
i
merely to hold one•sixth of their circulation n specie. If they
hold the amount of 3.000,01'01. among them, they will be
enabled to issue 500,000/. above that sum. This
is the principle upon which the banks of England aro regu-
lated, and is it too much to ask them—retaining, as they, do,
the privilege of issuing 1/. notes—that they should retain in
their coffers such an amount of specie as that which we ask?
Suppose the wants of the country should increase,
and that the circulation should reach 4,000,000/.
would it not be desirable to have such an amount of coin in
the coffers as would secure stability and prevent a disastrous
shock ?—( Hear, hear.) There is nothing so delusive as
to think that this arrangement would cause inconvenience
the transaction of business. I will give you a good specimen
of a bank conducted with due regard to this stability. A bank
of the highest respectability, and which is under no obligation
to contract its circulation, whose members are men
of the highest respectability, and whose business
Is conducted in a most unexceptionable manner_
I meals the Provincial Bank of 1 reland—that bank
is, as I said before, a most prosperous concern, and
attracts the general confidence of the public. I do not by this
imply that other banks in Ireland are nut equally
solvent and respectable ; but this is the only bank which has
furnished me with an amount of its circulation. The amount
of the issue of the Provincial Bank in Ireland, taking the
circulation up to the first Saturday in March, for several suc-
cessive years, and comparing the amount of circulation
with the amount of specie in gold and silver held
by that bank, except an arranoement with the Bank of Ireland,
is as full iws : —On the first Saturday it " in March, 1838, .had a
circulation of 350,000/. ; on the same day it held a deposit mph!
of 305,000!., and in silver of 40,000/., that is, 350,000 /.in
/. n specie ;
in 1840, on the same day, the notes issued amounted to
860,0001—the amount of gold laid by in the bank was
3,31,000/., and the amount of silver 62,000/. ; in 184. 1, the
amount of notes was 832,0001., and the amount of silver so
large an amount as 70,000/. being a
deposit in specie
of 391,, 00/. Thus the average amount of specie retained in
the coffers of the Provincial Bank of Ireland was nearly
ono-half of its whole circulation, and this, be it reasembercd,

entirely voluntary on the part of the Bank. On the
first Saturday in March in the preterit year the amount of
notes issued was 1.0-16,0001 t, and the amount of gold held by
the Rants 30,0004, anil the eittotint Of siliet 20,0001., the
total m ,unt loeing 42d,0001., vo'untarily held by that
banlc—a bank which, as he said before, had given the greatest
sallsfacti n to its "proprietors Isnd to the public.
In those cases there was no such eorreApOnding amount. f.
3 cute to i sue but I require that 4.14' 're shdli
be,. a ,*irtititt altoiint of speCie to support
issue. Now I propose, in order to give ample time,
that this shall not take effect until the month of
January next, and I feel perfectly certain that in
England and Ireland, without the least disarrangtment, the
bankers. will be enahlisil to irialFe condecting
'ail-airs under the new regulations in that time.
What will be the bearing of this in Ireland? In the case of
all the Irish banks, there has been a rapid increase of circula-
tion since April last. In the case of the Bank of Ireland,
the circulation of that bank increased from 3,600,0r0/.,
as it stood in April last;. to 3,90.0,y09/., at whir it
,qtbl'l prefselit. The alggiikale circulation of the other
banks increased from 2,357,000/. at which it stood in April
la,t, to 3,105,0001., at which it stood at present.
If lie compared the increase from August last year,
to the 29th of March in the present year, the
increase of circulation of the Irish. banks other than the
Bank of Ireland has been from 1,974,000/. to J,105,000t.
Now, I should object against taking the last three months in
Ireland as a foundation by which to determine the fu-
ture amount of issues. —(Cries of " Hear, hear.") I said
that in the case of Scotland that amount was matter
of comparative unimportance, because I am bound
to admit that there has been no excess of circulation
in Seot.and ; but seeing the rapid increase of the circu-
lation in Ireland, I think that I am perfectly justified
in extending the average over the whole year.
At the same time I arr. not prepared to say that
this increase has taken place for the purpose of
obtaining any undue advantages. There has been a
great increase; but I think it has principally arisen
from this circumstance--namely, that the returns have been
Made with greater accuracy of late than they used to be.
The information which has been supplied to us within the last
few years has been more accurate. A portion of this increase
arises also from the gratifying fact that we have had a good har-
vest, and that we have had an increased demand for capital in
Ireland. All these circumstances have increased the demand
for circulation in Ireland, and augmented the issue of promis-
sory notes. Now. take the case of the Provin-
cial Bank of Ireland. This will nut operate on
that establishment in the slightest degree. That
bank has a reserved fund of 400,0001., which will afford a suf-
ficient security for an increased amount of issues, if such
should be necessary. I believe, with regard to the Belfast
bank, and with regard to the National Bank, that the same
circumstances 'prevail. They have each a reserve of specie
that will enable them satisfactorily to work this measure, with-
out deranging their circulation. The amount of the issue
of the Bank of Ireland at present amounts to 3,706,0001.
The amount of the circulation of the other banks of Ireland
amounts to 2,565,0001. ; making the total issue of bank-notes
for Ireland 6,272,0 0/. Now it is possible this question may
arise—in England, in the case of the bankruptcy, or the with-
drawal from circulation of its notes by a provincial bank,
it is permitted to the Bank of England to step in
and supply the void. Now we take the permitted eir-
cu'at ion in Scotland at 3,441,0(V/. But suppose
the case should arise of the bankruptcy, or withdrawal of one
of the Scotch banks, how is the void to be supplied ? In Eng-
land, the Bank of England can supply the void on giving secu-
rity for two-thirds of the issues. But as the jurisdiction of the
Bank of England does not extend to Scotland, I may be asked,
if a void should occur in Scotland, how is it to be filled up ? I
suppose that a bank fails, and that 200,000/. is withdrawn
from circulation Now the issues of the other banks not
being restricted, this would impose upon Scotland the
necessity of providing an additional supply of gold. We can-
not in Scotland adopt the same means which we do in Eng-
land. Now I propose in Scotland, as we have r.o
other establishments except joint-stock banks-1 pro-
pose in Scotland and in Ireland to permit the
union and incorporation of tke two joint-stock banks.
I repeat that I will permit in Scotland and in Ireland, too,
joint-stock banks to he incorporated, and I am of opinion that
this permission will give a more ample security for their sta-
bility.—( Hear, hear.) The permission for two joint-stock
banks to be incorporated will, I am of opinion, provide an
ample remedy against any derangement in their monetary cir-
eulatien.—(Hear, hear.) I am not aware that there is any,
poiut connected with this question, which I have omitted to
state to the House. I think it will be seen that I have accorded to
Scotland and Ireland the principle which applies to joint-stock
banks in England. I require no obligation from them. I ask
for no interference further than this, that they do not exceed
their limits, and that their issue be justified by the specie they
can command. I propose nn limitation to their issue, provided
always they have deposited a sufficient amount of specie to
warrant that issue. It Parliament will sanction this measure
they will do much towards the establishment of the circulation
in the United States. A guarantee will be given for the
amount of 'the banking circulation, nor will that certain
amount be exceeded, excepting it be justified by the
amount of specie at the disposal of the bank. You
will be adding a guarantee that that circulation will be
only limited on •secure principles, calculated to give
prosperity to the countries to which the measure shall
be extended. Some years ago, when the Bank of England
made strenuous endeavours to substitute a gold currency for a
paper circulation, I speak of 1836 and of 1839—and, if it be
necessary, I shall be enabled to show that it is but just to im-
pose upon Ireland, and to impose upon Scotland, the same part
of the burden—a burden, I admit, to be borne by them in
very unequal proportions—of being prepared to meet the de-
mand which any sudden politioal panic or commercial struggle
might cause. I think this might be done to a very great ex-
tent without interfering with any one interest in the State, and
without diminishing to any extent the legitimate accommoda-
tions which have been heretofore granted, or can be expected
by the agricultural or any other interest in Scotland or in Ire-
land ; and, I do hope that, upon reflection, you will
permit the Bill to be printed, that its enactments
may be known, and when we next come to its consideration, I
expect that you Gentlemen of Scotland, end you Gentlemen
of Ireland, will admit that the Bill gives security to our
general circulation without, at the same time, affecting any of
the interests which you naturally and justly cherish.—(Loud
cheers.)
The Bight Hon. Baronet sat down at twenty-eight minutes
past seven o'clock.
After Sir ROBERT PEEL moved the resolution,
Mr. CHARLES WOOD said that he did not wish to enter
into any discussion at present, but he merely wished to
ask the Right Hon. Baronet a question which would make the
position of the banks in Scotland quite clear. With reference
to the 235. bank-notes, he wished to know whether the Right
Hon. Gentleman intended to interfere with them, or to leave
them as they were?
Sir R. PEEL said that he did not wish to prevent their issues,
without acquainting those who were interested in the matter.
And though he thought it would be an improvement to sup-
press the issue of 255. bank-notes, he would reserve to himself
the opportunity of acquainting the interested parties.
Mr. CHARLES WOOD wished to ask the Right Hon.
Gentleman whether his intention was to continue the returns
of the Scotch banks as they at present were ; whether it was
his intention to compare the monthly average with the
yearly limit, or whether they were to be called upon to make a
confidential return of the amount of specie which they held
at all times, and if this monthly average was within the
yeas's 1 imit it was to be considered satisfactory, but, on
the other hand, if it was to exceed the yearly limit,
it was to be considered unsatisfactory.—(Hear, hear.)
The banks in Scotland generally held a quantity
of specie, averaging from one-fourth to one-sixth, he might say
one-fifth, of the specie which was in circulation. If he were
right in that assumption, that one-fifth of the circulation was
at present held by the banks in Scotland, he would ask whe-
ther they might extend their circulation one-fifth beyond the
yearly limit?
Sir R. PEEL said that that was the principle which
prompted them in England to issue 800,0(30/. beyond the
yearly limits, but if that were exceeded by 500,0001., then
they were liable. It was precisely the same in Scotland.
They dealt with Scotehrnen in the same way as they did with
Englishmen—they required that they should be responsible fur
the extent of issue.

Mr. C. WOOD said that be did not wish to argue the
question, but he wanted to know whether there should be a
publication of the average of each four weeks' circulation, and
whether that was all they were to have.
Sir R. PEEL said that he had net entered into any engage-
ment with respect to the returns with any Scotch banker; he
would reserve to himself that which he might think proper to
inquire into. He would require from the Scotch banks the
same returns as he required from the English ; all the neces-
sary information would be given, and the names of the parties
concerned should be publi'hed.—' Hear, hear.)
Mr. FOX MAULE rose to thank the Right Lion. Gentle-
man opposite for the very clear and distinct explanation which
he had given of the measure which he intended to bring before
them. He thought that it would be wrong in him to give any
opinion under the circumstances ; but he could not help
saying :that it was not so dangerous as they expected ;
but he would wish the banks to remain as they were
and that this matter would he settled upon amicable terms, and
without interrupting that confidence which Scotland had, in
its long-continued and unimpeached system.—( Hear, hear.)
He came down to the House under the impression that it would
be for the benefit of those who were interested in the measure,
and that an explanation should go down to Scotland to that
effect, without any ulterior steps being taken. With regard to
that, his opinion was altered. He thought there could not be
any objection to the Right Hon. Gentleman bringing in his
Bill, and in its printed form they would be better able to judge
of it. All he had to say on the present occasion was, that on
assenting to the introduction of the Bill, he did not conceive
they wore bound to any f the details contained in it. He said
that it was not for him to enter into the particulars of the
plan. He did not think, however, that it would in any way
affect the currency in Scotland that it would not
impose upon the banks of Scotland to hold one sovereign
more than was necessary for their responsibility, and it
would not add to the security of the banks. He thought
from the way they were about to deal with those establish-
ments that in this country there would sooner or liter be one
bank of issue for England, Scotland, and Ireland. He thought
it was his duty, if the Right lion. Baronet at the head of
her Majesty's Government harboured such an opinion, to
refer him to a work of one of the ablest writers on currency—
namely, the Secretary for the Horne Department, in which it
is stated that nothing could be more dangerous than such an
establishment. He would ask, before he sat down, post-
poning all freedom of discussion till the time they should
have the Bill before them, whether considering the
throe millions should be paid upon a capital of upwards
of 100,00/. that that three millions, so limited in its amount,
was perfectly sufficient for the security of the extensive trade
of Scotland ? He would also ask if any bank should fall short
of its monthly average, and another hank should exceed it,
whether that should not be held as the test? He thought
that there should be an aggregate average, and that if it did
notexceed three millions, or whatever was the stated maximum,
it should be a proof that there was no excess. He should say
no more than that the Right Hon. Baronet, in his opinion, re-
deemed the pledge which he had made more in souls(' than in
substance.
Mr. COLQUHOUN wished 'to express his thanks to her
Majesty's Government for the discretion they had used. If
there was to be an interference it should he of a limited nature,
and from what he gathered from the observations of his lion.
Friend he :considered that her Majesty's Government had ex-
ercised a remarkably sound discretion on this measure, and also
on that of the Scotch poor-laws. He thought that the ar-
rangement might act in some degree badly in agricultural dis-
tricts, yet that in towns the plan which was proposed was
perfectly fair. He thought that at certain periods it would
press sorely upon the commercial and agricultural interests.
Mr. HUME would assure the Right lion. Baronet that he
Caine down to the House expecting that he would do more, and
that 'ne would do mischief, bat he was now convinced that he
would be able to carry out all the proposals except that in
point already referred to. It appeared by the evidence taken
from two very intelligent men, that in two periods of the year,
when parties came down to the Highlands for the purpose of
trafficking, it was of the utmost importance that the issue
would not be limited to what was proposed. The Jtight Hon.
Baronet would find that in taking the averages they were not
at all times equal. That was the objection -which he
would make ; and as it was a mere matter of detail
he was sure the Right Hon. Baronet would concede :to it. He
defied the banks of Scotland to issue 10,000/. more than the
wants of the people. The issue of Scotland would tosssain as it
was, He thought that it was of great import= to 461 ind

that there be no increased it•sne. Ireland would then come
under the same system as Scotland, and he was per-
fectly satisfied that they would have none of those ir-
regularities which arose from the existence of monopolies.
Mr. BARING way inclined to agree with the merits of the
measure of the Right Hon. Baronet, but he should reserve
his opinions upon the details until another stage of the Bill.
Mr. SHEIL approved of the measure to far as it related to
Ireland. _

Mr. WARBURTON asked if banks making an excessive
be afigwvd to pay their notes when 40s. in value in

issue “ ,

silver? • would be no alteration in
Sir R. PEEL replied that there ..
the,present system of paying in gold.
After a N..% wdrdi troth Mr. litrme and Mr. STEwi.7.l
WORTLEY the resolution was agreed to.
The House then resumed, when the report was received,
and a Bill conforming with the terms of the resolution was or-
dertd to be brought in.
MAYNOOTH. _

On
.the order of the day being read for the House going
into Cilttliiiittb€ Its vine the grant tti Maynooth,
Mr. Fox Maule Mr. La*, girl gtoratt, Mr. Spooner,
Mr. Hume, Mr. liright, Mr. B.nnerman, and eitfal other
Hon. Members, presented petitions against the grant.
On the question being put for the speaker leaving the chair,
Sir R. PEEL rose to ask his Hon. Friend the Recorder fer
the City of London, if he woo it coo tent to postpore mo-
tii.,n of -shich he had given notice until a later stage of the Bill?
It was quite imfiossible, after hearing a lengthened address oil
so fatiguing a question, that his Hon. Friend could secure the
attention of the Houee then, and he therefore hoped his Hon.
Friend would accede to the gen-ral wish of the House, and
postpone his motion until they went into Committee on the
Bill.

Mr. LAW said he was prepared to accede to the request of
the Right Hun. Baronet; but stated that, in Committee, he
would give notice that, on the bringir•g up of the report, it was
his intention to move that it be received that day six months.
The House then went into Committee.

On the question being put 0-At 30,00'.1 be voted to her
Majesty, out of the Consolidated Fund, to defray the expense
of purchasing lands, and erecting such buildings as might be
required for the College of Maynooth,
Alr. LAW gave notice that on the bringing up of the re-
port, he would move that it be received that day six months.
The resolution was then agreed to, and the House having
resumed, the Chairman reported progress, and the report was
ordered to be received on Monday.