considerable magnitude, yet from the very great number of persons engaged in them, the produce which one individual brings to market is so very small, that without a circulating medium adapted to the circumstances, they could not be carried on.

"That from the facts above stated, it is of the utmost importance to Ireland that the merchants and traders who deal in its produce should be supplied with that species of circulating medium which is adapted to the wants of the people, and which can only be supplied under proper regulation by societies or copartnerships, such as your memorialists represent.

"That notwithstanding the state of things here mentioned, which can be proved to the satisfaction of the legislature, if need be, the memorialists are given to understand that the measure which is now before parliament for restraining the issue of notes under five pounds in England, is at no great distance of time to be extended both to Scotland and Ireland; and if the memorialists are rightly informed, it is the intention of government to propose that its operation in Ireland shall take effect sooner than in Scotland.

"That in these circumstances, your memorialists feel it to be their duty to represent in the most earnest manner to his majesty's government, the great hardship, if not injustice, with which the proposed measure will press against the Provincial Bank of Ireland, which has been so recently established under the sanction of the legislature, given expressly for the benefit of Ireland, by encouraging the introduction of British capital into that country, and which, without such sanction and encouragement, never would have been established; for if this measure be carried into effect, the Provincial Bank must instantly be deprived of any sufficient means of reimbursing itself for the heavy expense to which it has been subject in preparing that very relief to Ireland which it was the object of parliament to administer, and the country must in consequence be denied the advantages which would be conferred on it by its permanent establishment; and should the paper of the Provincial Bank be withdrawn, a monopoly would be given to that of the Bank of Ireland, which, though issued locally at the branches of that bank, is convertible at Dublin only.

"That this measure is altogether uncalled for in Ireland, where there is not the smallest complaint of an excessive issue of paper, nor any overtrading, or inordinate spirit of speculation. It is not only uncalled for, but universally deprecated, as being pregnant with the most serious mischief, and calculated to crush the rising spirit of industry in that country, by taking from the manufacturers and others the means of employing the population, and so to produce ruin to persons engaged in trade and agriculture, and amongst the lower classes discontent, disorder, and rebellion.

That your memorialists therefore trust, that when the case of individual hardship in which the society whom your memorialists represent are placed, in consequence of their following up the views of the legislature in promoting the welfare of Ireland, and still more when

the ruinous effects which would spread so widely amongst the already distressed population of that country have been fairly pointed out, his majesty's ministers will not persist in introducing into parliament a measure fatal to Ireland, and calculated to suspend all the benefit now beginning to be felt, from the liberal policy of the legislature in improving the banking system in that part of the united empire. "Which is submitted,

London, March 2, 1826.

"E. FLETCHER, Chairman.”

THE REPORT OF THE SELECT COMMITTEE OF THE HOUSE OF COMMONS,

IN REFERENCE TO THE CIRCULATION OF PROMISSORY NOTES IN IRELAND.

"With respect to the circulation of Ireland, the enquiries of your committee have been less extensive than those which they have instituted with respect to Scotland.

"The first law in Ireland which restrained the negociation of promissory notes, was an act passed in the Irish Parliament in the year 1799.

The preamble recites, that various notes, bills of exchange, and drafts for money, have been for some time past circulated in lieu of cash, to the great prejudice of trade and public credit; and that many of such notes made payable under certain terms, with which the poorer classes of manufacturers and others cannot comply, unless by submitting to great extortion and abuse. It adds, that the issue of such notes has very much tended to increase the pernicious crime of forgery; and the act proceeds to apply to notes between the value of five pounds and twenty shillings, similar restrictions to those which had been applied to such notes issued in England by the act which passed in the year 1777. It permits, however, during the suspension of cash payments by the Bank of Ireland, the issue of bank post bills, bills of exchange, and drafts under certain regulations, for any sums not less than three guineas. This act did not extend to the Bank of Ireland.

"In 1805, this and some other acts which had passed in the interim, relating to the issue of small notes, were repealed; and notes under twenty shillings, which had been previously admitted under certain regulations by the act of 1799, were declared void.

"There is at present no law in force imposing any limitation to the period for which notes for a sum not less than twenty shillings may be issued in Ireland.

"A tolerably correct estimate of the amount of promissory notes, above and below five pounds, circulating in Ireland, may be formed from the subjoined returns made by the Bank of Ireland, and by other banks at present established in that country.

Bank of Ireland notes.-An account of the average amount of the Bank of Ireland notes of five pounds and upwards (including

bank post bills) for the years 1820, 1821, 1822, 1823, 1824, and 1825.

(Irish currency.)

Notes and post bills of five pounds and upwards £3,646,660 19s. 6d.

"An account of the average amount of the Bank of Ireland notes under the value of five pounds (including bank post bills) for the years 1820, 1821, 1822, 1823, 1824, and 1825.

(Irish currency.)

"Notes and post bills under the value of five pounds £1,643,828 Os. 5d.

"It appears from the evidence that a practice prevails in Ireland of issuing notes for the payment of sums between one and two pounds, for three guineas, and other fractional sums.

"Your committee see no public advantage arising out of this practice and they are of opinion, that it ought to be discontinued, as it tends to dispense with the silver coin, and practically to exclude it from circulation.

Your committee hesitate in the present imperfect state of their information, to pronounce a decisive opinion upon the general measures which it may be fitting to adopt with respect to the paper currency of Ireland.

Although they are inclined to think that it would not be advisable to take any immediate step for the purpose of preventing the issue of small notes in Ireland, their impression undoubtedly is, that a metallic currency ought ultimately to be the basis of the circulation in that country.

It will probably be deemed advisable to fix a definite, though not an early period, at which the circulation in Ireland of all notes below five pounds shall cease; and it is deserving of consideration, whether measures might not be adopted in the interim for the purpose of ensuring such a final result by gradual though cautious advances towards it."

A SUMMARY OF THE EVIDENCE,

GIVEN BEFORE THE COMMITTEES OF THE TWO HOUSES OF PARLIAMENT, AS TO THE EFFECT OF ABOLISHING THE SMALL NOTE CIRCULATION IN IRELAND.

1. Small currency is necessary to carry on the commercial transactions of the country.

JOHN ACHESON SMYTH, Esq. Agent for the Belfast Bank at Londonderry.

"In Lancashire, I believe all the raw materials is bought in large parcels, and by bills. In Ireland, the raw material is all bought in small parcels, and all in small notes. In Lancashire, there is only cash wanted to pay the workmen; but we want it both to pay the workmen and to buy the raw material. The provision and grain

that we send to England are also bought in small notes, and we are reimbursed by drawing bills for our shipments."-Com. Report, p. 77.

PIERCE MAHONY, Esq. Solicitor to the Provincial Bank of Ireland.

"If the banks were prevented issuing notes under the amount of £5, would any inconveniences arise in conducting the trade of the South of Ireland ?-The trade of Ireland generally, and especially in the South of Ireland, would be greatly inconvenienced, and the growth of manufacturers would be decidedly checked, if not desroyed by such a measure. From the great subdivision of land in Ireland, and particularly in the South and West (where the population is almost exclusively agricultural) the produce is disposed of in small portions scarcely ever representing £5, and almost universally under that amount. I am of opinion, that the withdrawal of all notes under that amount would have the effect of curtailing the accommodation the banks now afford to the public to a ruinous extent; and that the trade of the country under such circumstances would not afford profitable employment for banking capital to any extent; and therefore, I should anticipate the withdrawal of such establishments, except perhaps at Cork and Belfast. In the South and West of Ireland, from the nature of the provision and corn trade, the chief demand for notes or for gold commences in October, and continues until March, when that trade is nearly over for the season. From March until October the butter trade is almost the only one in the South and West of Ireland; and as that trade would not employ all the capital that is required in the winter season, the effect would be, if sovereigns were substituted for small notes, that the extra supply required for the corn, beef, and pork trade, must remain idle in the banker's chest, or be remitted at great risk and expense for employment elsewhere during the summer and autumn.

"Do you think if a metallic circulation was adopted that there would be a difficulty in maintaining that metallic circulation?-I do; because the trade in the South and West of Ireland is periodical; the remittances from those districts of Ireland would force the gold away at certain periods, and it must be returned at others with considerable expense to meet the trade of the country."Com. Report, pp. 250, 251.

2. A gold currency would be more inconvenient than notes, and would not be so well liked by the people.

LEONARD DOBBIN, Esq.* Agent for the Northern Banking Company of Belfast, at Armagh.

"Do the people of the North of Ireland manifest any wish for

*This gentleman is now agent for the Bank of Ireland at Armagh, and M. P. for that place.

gold in preference to notes, or for notes in preference to gold?—They decidedly prefer notes, and the weavers have refused to carry gold out of the market lately.

"Can you assign any reason for this preference?—There are many reasons that I could assign. The bank notes are now the established currency; the people are perfectly acquainted with them. If a man should lose notes, or a house be robbed, or if there is a forgery, it would be much better for them to trace notes than it would gold. I have often assisted poor people in tracing notes that were robbed, and forged notes, whereas the gold could not be traced so readily. Another reason I would give is this, guineas became light, and were troublesome to the people. When standing beam there was a shilling charged, and when lighter than standing beam, two shillings and sixpence; and when gold was scarce, and bank notes not a legal tender, the land agents refused to take any thing but gold, the tenants were obliged to pay from one shilling to four shillings on a guinea discount. Some agents would only take gold."-Com. Report, p. 243.

J. A. SMYTH, Esq. Linen Merchant, and Agent for the Belfast Bank at Londonderry.

"I am in the habit of employing my linen buyers to go to the country markets, and I must supply them with the week's money before they start, perhaps five hundred or a thousand pounds; they have to go through the interior of the country, and do not return for a week. They make their purchases all in small quantities, and it is more convenient for them to carry notes than gold."-Lords' Report, p. 7.

ARTHUR GUINESS, Esq. Director of the Bank of Ireland.

I conceive that with the persons who handle the circulation of the country, there is a decided preference in favour of small notes over cash in every respect. I speak from mine own experience; for I remember perfectly well, before the restriction upon cash payments, when gold was a great inconvenience in trade. I speak of those who handle the currency of the country, among whom I think the preference is in favour of the small notes as more convenient, more portable, and less liable to counterfeit. I conceive these to form the general ground of preference."-Com. Report, p. 237.

3. The profits of the banking establishments would be so much diminished that they could not extend the same accommodation to the agricultural and commercial classes.

W. P. LUNNEL, Esq. Director of the Bank of Ireland.

If the notes under £5 were prohibited, would the profits of the Bank of Ireland be materially affected by such prohibition?--I should expect that they would suffer: they must sacrifice a certain profit.