The Sun.
London, England, 1845-06-10 00:00:00

land. This was a great boon, he conceived, to the people of
Ireland, and he thought it might be safely granted. In Scot-
land the banks kept but little gold. Indeed, he might say,
that the business was done in that country upon gold. He was ;
free to confess that as yet no loss had been suffered by the
country or the banks, but yet it was unsound in principle that
there should be no requirement of having assets to meet the
claims made upon them. Practically, he might say, there had
been no gold kept in Scotland. In -Ireland, he believed, the
banks had conducted their business most creditably, and had
always a large amount of specie to meet their circulation. He
believed that in the Bank of Ireland there was at least
400,0001., and at Belfast there bad been banks inferior to
no existing banks in Ireland for the soundness of the
system, and proving the excellence of the principle
of always obliging banks to meet their issues with gold,
and he believed that the establishment of this principle would
have the effect of increasing the issues rather than contracting
them. The banks would not be obliged to keep so great an
amount of gold as they would otherwise require. They would
not have so great a stake in the risk of the country. He be-
lieved that, owing to the branches of the Bank of Ireland, they
were obliged to keep 'BOO,OOO/. at the head. office, and the
Provincial Bank of Ireland kept a proportionate amount. In
addition to this, they were obliged to keep a quantity of stock
both at the head-office of the Bank of Ireland and also at the
Provincial Bank. For the relief which this 811 would give
them from the competition, and thus enable them to extend
their issues accordingly, all he asked was, that a provision
shoull be made to the full amount of the issues, and this was all
the restriction he required—a restriction equally required
by the safety of the country, and the convenience of the banks
themselves. That was the position which he took, and he
believed it to he a sound one, and he should resist every at-
tempt to change it. With respect to the two periods which
had been named, during which he had assumed the averages,
one commenced twelve weeks before the 27th of April, and
the other embraced twelve months before that time. This
appeared at first sight a little unfavourable to Ireland; but he
would do away with this, and take the same period with re-
spect to Ireland as he had taken with respect to Scotland,
and increase the amount of circulation which that
would have made it in the first instance. He
thought that, by this measure, he was conferring a great boon
upon Iceland, and he hoped that it would b so received
in that country. He hoped that the Irish Members in that
House would not stoop to any minute criticism, but that they
would take the measure as a whole. He had intended to assi-
milate the position of England, Scotland, and Ireland, and he
had clone so as far as circumstances would allow. He believed
that it would prove a great means for the extension and im-
provement of commerce and agriculture, and would, at the
same time, have the effect of adding a beneficial security which
they had never hitherto enjoyed, and that the banks themselves
would, in the course of another year, allow that the measure
had been productive of all the utility which he had anticipated.
Mr. ROCHE said that the Right Hon. Baronet had en-
deavoured to make out a case by showing the mischievous ten-
dency of the present system, and by carrying them back to
that period of horror ; but the state of things at the time the
fifty banks had failed had been entirely altered. He
had also pointed them to the period of 1837,
yhen the Agricultural Bank of Ireland had failed,
But he had omitted to inform the House that the public had
not suffered anything from that failure. The question was not
as to either the extent of the circulation or not, but whether
they were to have one Government bank of issue. As to the
whole question of the circulation, for that he was not compe-
tent; but the question he had to consider was, what right had
the Right Hon. Baronet to interfere with the currency of Ire-
land at all? The Right Hon. Baronet had allowed that the
banks of Ireland had been stable—that, to use his own words,
they were most respectable, and had conducted their opera-
tions with great prudence and ability, and that only six of them
had failed. What pretence, them, was there for interfering
with them? Could he assert that there had been any excess
of paper issue ? Could he prove that the business had not been
propetly managed ? The Honourable Member for Coventry
(Mr. Williams) had stated that the systems of banking
in Scotland and England ought to be assimilated,
but he had at the same time allowed that the increase of
trade and commerce required an increase of the circulating
medium. What were they doing at this time ? They had
allowed that it was necessary that for the prosperity of the
country, railroads and all the other national improvements
should be introduced, but how was this to he effected without
an increase at the same time in the circulating medium ?
Why should they take with one hand, what they gave with the
other ? There were two banks in Dublin, the Royal Bank of
Ireland, and the Hibernian Bank, which were located in
Dublin, which all allowed to have conducted their business
in a most creditable manner, and to have paid reasonable
dividends according to the amount of their capital, and yet
which were allowed on all hands to be unable to become
banks of issue. He thought that these banks ought to enjoy
the advantage of the enlarged issue, without the
restrictions which the Right Hunourable Baronet imposed.
But it was not his intention to offer any impediment to
the Bill going into Committee, as the object which he should
oppose would come before them in the clauses, and when these
were before them' he should certainly move amendments on
several of them, as he thought the measure would thereby be
rendered snore agreeable to the feelings and interests of the
people of Ireland.
Mr. WADDINGTON said that he thought the measure
would require much to render it palatable for those for whom
it was intended. He thought that Ireland ought to be put on
a par with Scotland, which he thought to be of great impor-
tance in the present rising, thriving, and promising condition
of Ireland. When they were applying the principle of these
two Bills to Ireland they ought to keep in mind the peculiar
circumstances of each country.
Sir R. FERGUSON complained that in the limits chosen
by the Right Hon. Baronet opposite, he had cut down exces-
sively the circulation of the Irish banks ; whereas he had given
to the Scotch banks all the advantage of their own statements.
The limitation of the circulation would operate materially to
the repression of industry, and to the injury of the general
interests of the country. The Hon. Gentleman then went
into numerous statements of monetary items, upon which he
founded his opposition to the Bill.
Lord CLEM ENTS hoped that the House would not sup-
port such partial and injurious legislation as was attempted in
this Bill.

Mt. S. CRAWFORD said that the object of the Bill was
to assimilate Ireland to E:.gland, in monetary matters. Eng-
land was in a h,gh state of prosperity, and did not require the
aid of bank notes to stimulate ita industry. Ireland was in a
very different position, and he objected altogether to the pro-
posed restriction. He had no objection to place a wholesome
restriction upon the issue of bank paper ; but he thought this
measure would go to the extent ot restricting the circulation
below the wants of the people. He would reserve to a future
occasion what more he had to say upon this subject.
Mr. WYSE had no objection to a careful restriction of the
issue of bank notes. But he thought that Ireland, with a po-
pulation of 8,000,000, and a circulation of 7,000,000/., should
have, at least, as large a ❑umber of banks of issue as Scotland,
which had a population of only two millions and a half.
The House then went into Committee upon the Bill.
On the reading of clause 1,

Sir WM. SOAIERVILLE rose to move, pursuant to no-
tice, a series of amendments, of which the following was the
first and principal, and that to which he first applied himself :
" And whereas there have existed in the city of Dublin, for a
series of years now last past, and still exist therein, two Joint
Stock Companies trading as bankers, one known as the Hiber-
nian Joint Stock Banking Company, and the other known as
the Royal Bank of Dublin, but which said two Banking Com-
panies being united in covenants or partnership exceeding the
number of six persona, and residing and having their establish-
ments or houses of business within the distance of fifty miles
of Dublin, were not, before the passing of the said Act of the
seventh and eighth year of the reign of her Majesty, nor are
they now, entitled to borrow, owe, or take up any sum or
sums of money on their bills or notes payable on
demand, or to make and issue such bills or notes accord-
ingly payable on demand : And whereas said two Joint-
Stock Banking' Companies, on the 6th day of May,
one thou:and eight hundred and forty-tour, were there-
fore not lawfully (or at all) issuing their own bank notes,
and it would be of injury to said Joint-stock Banking Com-
panies if the power of becoming banks of issue was withheld
from them respectively when extended to several banks to
trade hereafter as banks of issue within the City of Dublin and
sixty-four miles thereof ; and it is therefore expedient that
the said two Joint-stock Banking Companies should be autho-
rised by law to become banks of issue in Ireland, as if the bad
been banks of issue on the sixth day of May, one thousand
eight hundred and forty-four, anything contained in said re-
cited Act, passed in the seventh and eighth year of the reign
of her present Majesty, to the contrary in anywise notwith-
standing." In support of this paragraph of kis resolution he
went into a history of the banks to which it refers, and
quoted largely from the Parliamentary evidence relating
to the operations of the Bank of Ireland.—(Hear, hear.)
He then referred to the establishment of the Belfast Banking
Company, the Northern Banking Company, and other joint-
ttock banks in Ireland, with their branches. This state of
things, continued the Hon. Baronet, caused the Bank of Ire-
land to establish branches also, and, in 1825, it established
twenty-three branches, but of these, six only were within the
described circle of sixty-four miles, affording accommodation
to a population of 1,300,000, the richest and most flourishing
portion of the people of Ireland, while, outside the circle, there
were no less than 131 branches. A great deal had been said about
the Scotch system, but the case which he detailed to the House
in reference to the Bank of Ireland, would, he considered,
make it abundantly apparent that there was no analogy what-
ever between the system in the two countries. The Scotch
bankers never had a monopoly to contend with, as they had in
Ireland, and, therefore, he did not see how Hon. Members
could refer to them in proof of the proposals of joint-
stock banking in that country. He should like to
know what effect it would have if the Hon. Baronet
would introduce an Act to confer a monopoly on any bank
within sixty-four miles of London ? Would he not have an
opposition from the bankers and merchants of London that
would quickly defeat such an attempt? The shares of the
banks to which his clause referred, and which had suffered so
much by this monopoly, had fallen 15 per cent. And he con-
sidered that these two banks had a stronger claim than any
other banks of Ireland to the benefit of any advantages which
were intended to be conferred upon the banking system of
Ireland. He would rather throw himself, however, upon the
Right lion. Baronet than upon the Scotch Members of the
House, whose assistance he expected, with the hope of pro-
curing that modification of the clause which was the object of
his amendment. The Hon. Baronet concluded by moving the
following amendment :—‘• That in clause 1, and line 5, after
the word thereof,' shall be inserted, c and also so much of the
said recited Act of 7ch and Bth of her present Majesty as pro-
hibits, after the passing of that Act, any other person than a
banker, who on the 6th day of May, 184-1, was lawfully issuing
his own bank-notes in any part of the I'nited Kingdom, as far
as same may be held to include in its enactment said
Hibernian Joint-stock Company and said Royal Bank."
The Hon. B..ronet had distinctly proved that joint-stock banks
had bean established' in Ireland, under circum-tances more un-
i _aa
vdtur.ble than :try joint concern in that country, and which
hats realised a liberal remunerating interest on the capital in-
The circulation did not depend upon the issue of
notes, but upon the prosperity of trade in general. It was
proposed to repeal the enactment of last session, and which
applied to the whole kingdom, as preliminary to the passing of
the present Act, and‘ in the restrictions contained in that mea-
sure both Engla'n(mandkScotland were included but the Hon.
Barenot asks us to particular exception fur two hanks
in Ireland. It should be at;nsidered whether it would be expe-
dient, under the circumsteaiisces., to admit these two banks to
the particular privilege of notes to the amount of no
less than 9a0,000/. in additsiuolnngt
did
de other advantages they
possessed. The Gentlemano.oilt_nstoote.ksebeamnktso
abenaawbaline:
that though there were no other
(c.lirculation of notes
there exis;eil private bankers, to wlglii,oct
aa
to the
banks.eorisi-
was desirable, and who possessed as
deration of the House of Commons as atihmo
Those banks had established themselves entirelyesxue,rt:(llwle:r the
proilt
fos-
tering (tare of the Bank of Ireland, and an
had resulted on all their transactions. When the Ibnint.
Gen-
tleman told the House that the hanks had suffered great losses,
owing to the depreciation of their shares, and time ought
to be given them on that account. He would reply, that all
the banks in Ireland, included within the circle, had suffered
to a certain degree a depreciation in their shares. The Bank
of England had felt the effects of depreciation. on the occa-
sion of the discussion of last year. The shares had fallen front
207 to 203,1 t. The shares of the Hibernian Bank had also
fallen from 37 to 3 /I. It was urged, because these two joint-
stock banks had suffered a greater depreciation, as contra-dis-
tingui-hrd from the Royal Bank, that they had a claim to re-
lief. The Royal Bank and other banks hail fallen in a limited
degree, but not to so great an extent as would give any cause
for alarm, when the measure should come into operation. If