the actual demand for them rendered ne

cessary, as to lower their value in the proportion of the excess.

By examining then this argument, it appears, that had the insecurity of Ireland been sufficiently felt, the currency of specie would have been maintained throughout all Ireland, instead of a part only of it; and further, that the actual error which has been committed in every other part of the kingdom, except the North, was that of placing too much, even a most culpable credit, in the utility and value of Bank paper.

OF THE REMEDY OF THE HIGH RATES

OF EXCHANGE.

IN looking, to a remedy for the evils which have been the consequences of this degraded state of the currency, originating, as it has already been shewn, directly from the misconduct of the Directors of the Bank of Ireland; it is necessary, in the first place to investigate the powers of which they are in possession.

The coinmercial dealings of nearly all Ireland being transacted by Bank paper, and the Bank of Ireland being by its capital, and the powers that have been vested in it by Parliament, the principal engine in the system which maintains the supply of circulation, it must necessarily form a considerable feature in exposing the effects of the depreciation, and in the inquiry concerning an appropriate remedy.

As parliament, by relieving the Bank of Ireland from the obligation to pay in specie,

have taken away the only control that can exist over its issues; as they have made the paper of the Bank of Ireland, in some instances, a lawful tender; as it has admitted of the payment in it of the taxes; as it has given to it a species of banking monopoly, and by it so decided a superiority over the paper of other banks, as that of placing private Bankers under the necessity of paying in it their own paper; and as the Bank of Ireland is the deposit of whatever, money belongs to Government, the administration of its management must have great influence upon the state of trade, the credit of its paper, the value of the currency of the country, and the rates of the exchange. But, however great its authority and enlarged its control over the commercial world, by the nature of its first institution, inferior indeed were its powers at that time in comparison with those attributes with which it is now invested by the restriction of cash payments. It is no longer under the ne

cessity of filling the humble character of a cautious mercantile company, calculating the extent to which its dealings may be increased according to the capital it possesses to give them security; nor regulating its proceedings by the apprehension of failure, or the hazard of commercial speculation; but in full possession of an unconditional power of regulating the cur

rency

of the kingdom; of increasing its profits at pleasure, by even making such issues of paper as may depreciate that currency; and of preventing or imposing upon the State those evils which must result from yielding to or resisting the temptation of gain. This power of issuing the medium of circulation, which, whilst specie was in circulation, was the immediate prerogative of the crown, is now wholly vested in the hands of the Bank directors. In the official character of these gentlemen, a portion of the former duties of his Majesty's ministers is united with those of a trader, and their conduct must necessarily be at all

times wavering between the instinct of mercantile gain, and the duty they owe the public.

These are circumstances which were the immediate result of the restriction. Though of a nature not likely to produce a very correct management of the currency of Ireland, much injury might have been avoided, by upright and intelligent

measures.

Instead, however, of measures of this description, the directors appear to have acted upon very questionable considerations, in conducting the affairs of the Bank; very worthy men, as members of society, possessed of great individual probity, honour, and integrity; but, most probably, fully convinced that they discharged their public duty most correctly, and most ably, by taking every opportunity of promoting the interests, and increasing the profits of the corporation which they represented. Had the slightest attention been applied, by parliament, to their conduct,