BANK. 



405 



British currency in the year 1810, when the exchange 

 between London and Dublin settled again at about 

 par. The loss that Ireland has sustained by the 

 failure of banks may be described in a few words. 

 It appears by the report of the committee en Irish 

 Exchanges, in 1804, that there were at that time in 

 Ireland fifty registered banks. Since that year, a 

 great many more have been established ; but the 

 whole have failed, one after the other, involving the 

 country from time to time in immense distress, with 

 the following exceptions : first, a few that withdrew 

 from business; secondly, four banks in Dublin; 

 thirdly, three at Belfast ; and, lastly, one at Mallow. 

 These eight banks, with the new provincial bank, 

 .and the Gank of Ireland, are the only banks now 

 existing in Ireland. In 1821 , in consequence of eleven 

 banks having failed at nearly the same tune, in the 

 preceding year, in the south of Ireland, government 

 succeeded in making an arrangement with the bank 

 of Ireland, by which joint stock companies were al- 

 lowed to be established at a distance of fifty miles 

 (Irish) from Dublin, and the bank was permitted to 

 increase its capital 500,000. The act of 1 and 2 

 Geo. IV. c. 72. was founded on this agreement. But 

 ministers having omitted to repeal in this act various 

 restrictions on tiie trade of banking that had been 

 imposed by 33 Geo. II. c. 13., no new company was 

 formed. In 1824, a party of merchants of Belfast, 

 wishing to establish a joint stock company, petitioned 

 parliament for the repeal of this act of Geo. II. ; and 

 an act was accordingly passed in that session, repeal- 

 ing some of the most objectionable restrictions of it 

 (the 5 Geo. IV. c. 73.) In consequence of this act, the 

 northern bank of Belfast was converted into a joint 

 stock company, with a capital of half a million, and 

 commenced business on the 1st of January, 182-5. 

 But the remaining restrictioas of 33 Geo. II., and cer- 

 tain provisions contained in the new acts of 1 and 2 

 Geo. III.and5Geo. IV. obstructed the progress of this 

 company, and they found it necessary to apply to 

 government to remove them ; and a bill was accord- 

 ingly introduced, which would have repealed all the 

 obnoxious clauses of the 33 Geo. II., had it not been 

 so altered in the committee as to leave several of 

 them in force. In 1825, the provincial bank of Ire- 

 land commenced business, with a capital of two mil- 

 lions ; and the bank of Ireland has of late establish- 

 ed branches in all the principal towns in Ireland." 

 The capital of the bank of Ireland at its establish- 

 ment in 1783 amounted to 600,000 ; but it has been 

 increased at various periods ; and has, since 1821, 

 amounted to 3,000,000. At present no bank having 

 more than six partners can be established any where 

 within 50 Irish miles of Dublin ; nor is any such bank 

 allowed to draw bills upon Dublin for less than 50, 

 or at a shorter date than six months. This enactment 

 seems to amount to a virtual prohibition of the draw- 

 ing of such bills. The bank of Ireland draws on 

 London at twenty days' date. She neither grants 

 cash credits, nor allows any interest on deposits. She 

 discounts at the rate of 5 per cent. The provincial 

 bank and the northern banking company grant cash 

 credits, and allow interest on deposits. It appears 

 from the statements given in the report of the com- 

 mons' committee of 1826, that the average value of 

 the notes and post bills of the bank of Ireland of 5 

 and upwards in circulation during the five years end- 

 ing with 1825, amounted to 3,646,660 Irish currency, 

 and that the average value of the notes and post bills 

 under 5 in circulation during the same period 

 amounted to 1,643,828 Irish currency. The aver- 

 age value of the notes of all descriptions issued by the 

 other banking establishments in Ireland, in 1825, 

 amounted to 1, 192,886. In 1828, the currency of 

 Ireland was assimilated to that of Great Britain. 



Previously to that period, the currency Df the for- 

 mer was S per cent. les valuable tlian that of Ue 

 latter. 



Bunk of France. The bank of France was esta- 

 blished, in 1803, by the union of three private hiink- 

 ing institutions of Paris, with a capital of 45,000,000 

 francs, with the exclusive privilege of issuing bills 

 payable to the bearer for fifteen years. In 1808, the 

 bank was invested with the right to establish provin- 

 cial branches, some of which have been established 

 in the commercial towns of the kingdom. This, like 

 the bank of England, is a bank of deposit, discount, 

 and circulation. It discounts paper on which there 

 are three responsible names. Like the bank of 

 Stockholm, it makes loans upon pawns ; and, like 

 that of England, it discounts, or, in other words ; 

 makes advances upon, the public taxes. It is strictly 

 a public institution, as the government appoints the 

 governor, with a salary of 60,000 francs, \vlio is re- 

 quired to be a stockholder to the amount of 50,000 

 francs, and the two deputy-governors, with a salary 

 of 30,000 francs each, who must each own stock to 

 the amount of 25,000 francs. These officers appoint 

 the inferior officers of the institution. In 1807, the 

 capital was doubled, being then raised to 90,000,000 

 francs, and the charter extended to forty years. The 

 original charter provided for a reserved fund of all 

 the surplus profits for the year over eight per cent, 

 on the capital, and there remained, after the expira- 

 tion of the first year of its operation, a surplus of 

 4,185,937, making, with the eight per cent, dividend 

 to the stockholders, a profit of about twelve per cent. 

 The excess over eight per cent., the second year, 

 was a little larger still. This bank is. like that of 

 England, closely allied to the government, to which 

 it made immense advances in 1806, for the prosecu- 

 tion of the war against Austria, and was thereby re- 

 duced to embarrassment, which spread temporary 

 distrust, and occasioned numerous bankruptcies. 

 But, on the fortunate termination of that war, the 

 resources of the bank were replenished, and its credit 

 re-established. Its affairs were now administered 

 with great success, and with a powerful influence 

 upon the industry of the kingdom, until, in 1814, the 

 large advances again required by the government 

 brought the institution anew into temporary difficulty, 

 and occasioned an order of the government, limiting 

 its specie payments to 500,000 francs per day, and 

 prohibiting the payment of more than 1,000 francs 

 in specie to any one person. But, as small notes are 

 not put into circulation, and a great part of the cur- 

 rency of the kingdom is specie, the bank was soon 

 enabled to resume specie payments in full, and its 

 affairs have, since that time, been conducted with 

 uninterrupted success. It appears, from an account 

 of this institution, published in the Moniteur. that, in 

 1828, the discounts were 407,226,391 francs, yield- 

 ing an interest of 2,519,492 francs, being about 

 947,200 francs less than those of the preceding year. 

 The loans on pledge of bullion produced an interest 

 of about 94,720 francs. The bank has coined, from 

 1820 to 1828, about 118,400,000 francs. The great- 

 est amount of bank-notes out at any one time was 

 210,000,000 francs. The amount of bullion and 

 coin in the coffers of the bank, at the same time, was 

 240,000,000 francs. The number of shares was 

 69,000, on each of which 1000 francs were originally 

 paid into the bank ; but, in 1828, their value in the 

 market was 1810 francs. The number of sharehold 

 ers, Jan. 1, 1827, was 3536. The reserved profits 

 were, in 1828, 8,480,598. Of the other banks of 

 Europe, that of Genoa was formerly one of the most 

 important Among the principal banks of the pre- 

 sent time, not previously mentioned, are the follow- 

 ing: those of Altons, Berlin. Copenhagen, Madrid, 



