120 BANKS. 



IRISH JOINT STOCK BANKS, \Z00-\90U 



The year 1797 marks an epoch in the history of the Bank of England and 

 the Bank of Ireland. In that year, in view of war and the state of public 

 credit, they were both authorised to suspend cash payments. An Order in 

 Council was issued, Sunday, February 26, prohibiting the Bank of England 

 from discharging its notes in specie. On March 2, 1797, the Lord Lieu- 

 tenant (Earl Camden) and the Privy Council determined that — 



" to prevent a want of a sufficient supply of cash to answer the exig-encies of 

 the public service," the Directors of the Bank of Ireland " should forbear 

 issuing any cash in payment until the sense of Parliament should be taken on 

 the subject." 



On the same day, having received this proclamation, the Bank authorities 

 published a notice, in which they state — 



*' the g"overnor, deputy-governor, and Directors of the Bank of Ireland, in 

 court assembled, think it proper to comply with the above order, and to sus- 

 pend the payment of specie at present; but a^e happy in being able to inform 

 the public that the situation of the Bank is strong, and its affairs in the most 

 prosperous situation; and that the governors and directors will accommodate 

 the public with the usual discounts, paying the amount in bank notes." 



At a meeting of the Dublin merchants and traders, held under the presi- 

 dency of the Lord Mayor (Mr. Thomas Fleming), in the Mansion House, 

 March 3, 1797, it was unanimously resolved to accept the notes of the Bank 

 of Ireland, and of the several other bankers, in discharge of all sums that 

 might be payable, and to use their utmost endeavours to make all their 

 payments with bank paper. The result of the Privy Council regulation, 

 repeated and enforced by the Bank Restriction Act, was a great and an- 

 nually growing increase in note circulation on the part of the Bank of Ire- 

 land, accompanied by a correspondmg expansion in the note issues of the 

 private banks ; and a disastrous impetus was given to the formation of these 

 concerns. 



With the suspension of cash payments in this country coincided the 

 appearance, in great numbers, of small notes, issued by some bankers, for 

 such sums as is., is. 6d., 2s., 2s. 6d., Js. Qd., gs. ; and this, too, was the suc- 

 cessful era of the forger. Bank of Ireland notes were repeatedly counter- 

 feited, till the Directors adopted the Oldham process of note-production. 

 In every way they then did what they could to protect the inexperienced 

 pubhc. In 1 818, as the Annual Register informs us, they sent agents 



