Star.
London, England, 1803-05-04 00:00:00

IRISH DANK RESTRICTION BILL.

Lord Avec LAND moved the Order of the Day for the fe
cond reading of the Bill for continuing the reftridtion on the
CA Payments of the Bank of Ireland. On the queftion being
put that the Bill be now read a fecond time,
Lord KING rote to Rate his object ions to it. He tbould not,
however, attempt to detain their LordlLipe attention on the
genre.) arguments that had been urged again) the principle
of the Bill, and which had been fo often repeated, when a
fimtlar meafure was propofed fur the Bank of England. He
Mould on the prefent occafion endeavour to confine himfelf
to the effects which, In his opinion, it had produced, and
was likely to continue to produce in Ireland. He mutt beg
leave, however, in the firft place, to anticipate the objection
that was ufually retorted to, and which alerted that the ill
cried, of which he had to complain were not imputable to the
prefent Bill, but to the number of country banks, and the quan-
tity of paper that was iffued by them. Whatever might be
Paid of the country banks, he, for one, was convinced of their
utility. Among the number of advantages of which they were
produelive, he might fairly affirm, that they afforded great faci-
lities to trade in the interior of the country, that they were Ids
liable to forgery than the National bank notes,becaufe the per-
tons who circulated Country bank notes did fo in the byline-
,' dote Inanity of thole by whom they were iffued, and up-n the
itToert of them would entirely fall whatever lots might arife
from forgeries. They excited, betides, a fpirit of competition
' which made the Directors of the National Bank more cautious
and circumfped in the whole of their conduct. There obler-
vations might appear digrefave, but in his mind they were fuf-
ficiently connedted with the queftion, as they tended to (hew
that to them were not owing the inconveniencies which arofe
from the propofed reltridion. Indeed there inconveniencies
were juftly and obvioully to be attributed to other caufes.—
! The principal inconserdeocies and ill cited.' to which he al-
luded, were thc depreciation of Irina Bank notes, and the very
low Rate of the exchange againft Ireland. To the continued
reftridtions on the Gni payments of the Bank, and to the dil-
-1 cretionary power repofed in the Directors of the Irith Bank to
. lower the ftandard of the currency cf Ireland, theft difadvasu
tages were chiefly to be afcribed. What mutt their Lordihips
think, when, upon examining the papers now on their Lord-
, Rips' table, they Would find, that In 1797, previous to the firft
reftridtion on the Bank, the amount of the noon then io
circulation did not exceed fix hundred and fifty thoufand
pounds, while in the month of January, do 3, it appeared
that they amounted to more than two millions and a half.
—Did not this exorbitant increafe in the iffue of notes abun-
dantly account for their depreciation, and for the unfavourable
Rate of the exchange againit Ireland, and likewife it no doubt
argued a very great abufe on the part of the Diredlors of the
Bank of Ireland, of the diferetionary power with which they
were entroftcd. To this Immo-nit blue of paper mutt alto be
imputed the almoft total difappearance of gold in the country.
Scarcely a guinea was to be Peen—or if gold was to be obtain-
ed, it was only by purchafing it at a great premium, which
alone was fufficient to prove that the paper currency was de-
predated. The evils that mutt- accrue to the commerce
and credit of the country from this deprecilltioo mutt be
obvious to their Lordfhips, but what kind of remedy could
be applied to them, it was not tinily eafy to difeover
By the law as it now flood, the Bank of England was obliged
to pay their Bills in the currency of England; but as the cur-
rency of England was now Bank of England notes, it was his
opinion, that the Bank of Ireland Otani be compelled to pay
their notes in Englifh notes, at intervals of fix months. The
intcrpofing of that interval might prevent any fudden incon-
venience arifing to the mercantile teanfadions of the country
from loch an arrangement. It was his intention to propofe
tome claufe to that effect; foe be was thoroughly convinced that
the reltrldlion, as it now flood,enoraraged an increafed Me of
paper, and the increafed ifue of to the enormous amount
which he had already Rated, its depreciation, and
that depreciation injured the credit and difturbM the commerce
of the country. On there grounds be thought himfelf juftftled
in difapproving of the mature.
The Earl of I-issues, after complimenting the noble Lard
on the seal which he manifefted for the interetts of Ircland,co-
tend into a vindication of the condudt which the Diredorsof
the Bank of Ireland had invariably purfued—a condudt which,
in his opinion, fo far from having incurred any reproach, was,
on the contrary, entitled to the lbleieft naffs His Lordatip
next entered into a long detail of arguments to prove that the
Bank of Ireland had not iffhed more paper than they were war-
ranted In doing by the increafe of their capital, mad by the late
increafe in the commerce and the population of Ireland. That
the capital of the Bonk of Ireland was increafed about a million
and a half, be had the belt authority to siert, and that the com-
merce and population of Ireland had of late yon confiderably
'lsere-did, was a fad with which their Lordibips mutt all have
the &Wadden to be acquainted with. That (peck had direct.
peared in a great meafure from Ireland, and that the balance of
trade was at different dines confiderably againft her, be was not
prepared to deny, but there difadvan erne from very dif-
ferent nub* from thole to which ages
they were aferibed by the
Noble Lord. Of the fecurity and folvency of the Bank of Ire-
land, there could not be the finalleft doubt. It had withftood
`leveret (hocks than ever any ftmilar eltablifitment bad been ce-
ntred to. An 'milk fleet had at one time been moored in the
harbours of Ireland for nine days; the enemy at another time
had penetrated into the very bowels of the country, and the
Conftitution and Government were &Mailed by one of the molt
atrocious rebellions that ever eon' the frame of any Govern-
ment ; yet the credit of the Book of Ireland Rood unthaken
amidft all tinge difficulties and dangers. To other casks, there-
fen, mull he traced the difadvantages and ineonveniencies of
which the Noble Lord complained. And, indeed, the balance
of trade and the unfavourable Rate of the exchange could he
inlay accounted for on other pounds. It was, unhappily, but
too notorious, that the debt of Ireland was increafid in a more
than equal proponion to the increafe of the MR Bank Notes.—
The Loans by which that debt was accumulated, were for the
molt part railed in England, and the into e* upon them was
to be paid in England, and in Engtis currency. This, com-
bined and co-operating with a variety of other eaufes,prodtaced
the unfavourable: halm= of trade and exchange between the
two Countries, and the depreciation of the lei% currency, on
which the Noble Lord had fo much infifted. No doubt it were
to be witted that form remedy might be applied to the evil.—
He knew it to be in the contemplation Obis Right Hos. Friend
(Mr. Corry) to (Wont fame plan ro that effed to his Majefty's
Minified" This mob be thought himfeff bound to fay, in
anfwer towhee had fallen front the Noble Lord, and be hoped
that their Losilltips would pardon his haying fo long trefpatiod
OD their time.
Lord Arco ta no perfedity coincided in the reafoning adopt-
ed by the Noble Lord who (poke Lift, and contended, that al-
though with wiped to other countries the kith Bank notes meth,
appear to have (offered Come depreciation, yet It was certain
they had undergone no interior depreciation, or that their value
was not dimlnillted in any transfer or tranfadies carried on
within the country.
The Marquis of Sitoo fpohe in (amour of tie fairedon of the
Bank of Ireland, but was ready to allow that the notes of the
Bank of Ireland have (offered a depreciation when they were to
be exchanged for guineas, which treat a variety of castes, were
exceedingly knee in Ireland.
Lord Kora in explanation Paid, that when be talked of the
depreciation of bank Dotes, be had in view their =change for
guineas. - - -

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The queftioe for the laved reeding of the 1111 vves thee
agreed to, and the Bill was ordered to be seeneeittesl es Mayf-
air.