Banking in Ireland - Its mischief and oppression - Divided into three periods - History of each - Banking before the establish-ment of the Bank of Ireland - Thence to the introduction of joint-stock Banks - Subsequent history - The Bank of Ireland a close monopoly, like the Bank of England - Its history and profits - Its excessive circulation prompts the private Banks to increased issues - They all fail - Particulars of these misfortunes - Improvements effected by joint-stock Banks - Constitution, assets, liabilities, dividends, etc. of the Hibernian, Provincial, National, Agricultural, and Belfast Banks.

Banking in Ireland, like most things Irish, was formerly mixed up with no light or inconsiderable portion of mischief and oppression, but has of late received its fair share of the improvements which the liberal influence of the age, has so properly extended to many of the settled institutions of that valuable section of the United Kingdom.

The Irish Banks now carrying on business, are the Bank of Ireland; the Hibernian and Royal Banks; the Provincial and National Banks of Ireland; all joint-stock companies; as are also the Northern, Belfast, and Ulster Banking companies. The private Banks are those of Latouche and Co., Balls and Co., and Boyle, Low, and Pirn, all three in Dublin, and the second a Bank of issue with a small circulation1.

The facts of the case divide the history of Banking in Ireland into three distinct periods, namely, first the progress of Banking before 1783, when the Bank of Ireland was chartered; secondly, from 1783 to 1824, when joint-stock Banks were introduced; and, thirdly, the period between 1824 and the present time. By recapitulating the principal events of these three intervals, we shall be able to contrast the effects of one state of things with another, and fairly decide how far there are grounds for maintaining, that the trade and commerce of Ireland have improved under one or the other.

The literary history of the monetary affairs of Ireland, may be held to begin with Wood's halfpence, and the celebrated Draper's Letters. Banks arise where commerce flourishes and money accumulates. The inferiority of Ireland, notwithstanding her large resources, in point of commerce and wealth, at the beginning of the last century, is shown in nothing more decidedly than the simple fact, that there was nothing deserving the name of Banking business at that time in the country. Nor was the little that was then done, well done. Laurence, who published in 1682, his odd compound of political economy and religious controversy, entitled, The Interest of Ireland, in its Trade and Wealth, stated, complains of the number of single Banks, or exchangers, who had failed within a few years, and estimates the damage they had caused at 50,000l.

1 I have taken this chapter from a pamphlet entitled "Remarks on the renewal of the Bank of Ireland charter, with a sketch of the history of Banking in Ireland, by George Lewis Smyth; London, H. Hooper."

The idea of a public Bank in Ireland was suggested by the commercial distress of the year 1720. The project formed for the purpose is deserving of passing notice, as an evidence of the degree of intelligence prevailing in the country at that period on matters of political economy, and also because the account given of it by Sir J. Sinclair in his history of the revenue, and Mr. Wakefield in his political survey, are slight and incorrect. Its first patrons were the Earl of Abercorn, Lord Boyn, Sir R. Gore, Bart, and others, who petitioned the crown for a charter in 1720. They proposed, by reason of the great scarcity of silver coin, to raise, on the security of their estates, a joint-stock of 500,000l. which as the best means of attaining solidity, they engaged to invest in land, and supply the public with commercial paper at no higher price than five per cent. The application was favourably received and recommended to the notice of Parliament in the Duke of Bolton's speech from the throne in 1721. The Commons affirmed the proposal, but took care to show that they were not prepared to enter upon any loose, or ill-digested legislation. They expressly stated, that, unless the foundation of the Bank was solid and good, and under proper regulations and restrictions, it would not contribute to restore the credit, or support the trade of the country. Leave was given to bring in the heads of a bill, which proceeded as far as a Committee, in which it was lost upon a close division2.

This failure has been hastily ascribed, by some English writers3, to the ignorance of the majority of the Irish house of Commons. But there are reasons for believing that the Commons of Ireland were not so very ignorant of the subject, or of the wants of their fellow-countrymen, as has been represented. The truth appears to be, that the project of a public Bank was no sooner broached than it was seized upon - as every other plan for the improvement of that country has, from that day to this, been seized upon, and destroyed - by place-hunters and jobbers, as their proper game; and was ultimately lost by the corruption which their ill-disguised intrigues revealed very early in the proceedings. Lord Abercorn's petition for a Charter was met by a counter application from Lord Forbes and others, who desired to erect a Bank with a million capital. The placemen and Government retainers, having a contest before them, began to talk of a consideration for the privilege, and were offered 50,000l. by Lord Forbes's party, who also professed their readiness to make their Bank generally useful to Government. Lord Abercorn and his friends, on the other hand, refused to give any money, or to devote the Bank they sought to establish to the convenience of Government, sensibly asserting, in express terms, that it was the proper business of Parliament to provide money, as there might be occasion, for the public service; but that individuals offering to perform such an office cannot act consistently with the interests of the nation4. The two applications were referred to the Lords Justices, who made a report to the Lord Lieutenant distinctly in favour of the Abercorn project. A commission was then issued under the great seal for receiving voluntary subscriptions to establish a Bank, to which, upon the amount being raised, a Charter was to be granted; but, in the mean time, the house of Commons had taken alarm at the plotting and corruption by which the scheme had already been tainted: they feared, and not without reason, that the circumstances of the country did not admit of the establishment of a Bank which would discharge its functions independently, and they naturally dreaded the consequences which must ensue, if the circulating medium should come to be at the disposal of the minister of the day. Under these impressions they rejected the Bank bill, with some strong declarations of dissatisfaction and alarm.

2 Journals of Commons of Ireland, 1721.

3 Sinclair, Hist. Rev. vol. iii.; Wakefield, Political Survey of Ireland) vol. ii.