§ The Chancellor of the Exchequer moved the order of the day for the second reading of this bill.
Mr. Maberlysaid, it he understood the bill correctly, if was to enable the company of the Bank of Ireland to increase their capital to a certain extent, and to allow a greater number of individuals to embark in any One private banking concern than; was now permitted in Ireland. The right hon. gentleman, as an equivalents for suffering the Bank to extend its capital was to borrow 500,000l. until the year1838 at 4 per cent interest. This he had represented as a measure of economy to the country; but, so far from being economical, it was one that would create Considerable expense. For several years past, various sums of money had been negotiated with the Bank of Ireland although it was not the cheapest market for that purpose. In fact, at the Very time when the government were paying 5 per cent interest for money borrowed in Ireland, they were procuring sums from England, at the rate of 3 and 4 per cent per annum; so that the Bank of Ireland, instead of having done the public business for nothing, as had been alleged, was receiving a large bonus. Considering the demands the Bank of England had to pay, the sum received by the Bank of Ireland was much larger. The Bank of England received 270,000l. for the payment of the dividends to the public; and he would be able to prove that, in five years, the Bank had received a bonus of 241,000l. in consequence of the rate Of interest at which the right hon. gentleman had borrowed money from that body.
The Chancellor of the Exchequersaid, that the present, as a mere pecuniary transaction, required no defence. It was borrowing 500,000l. for 17 years, at 4 per cent. subject to all contingencies that might affect the money market. But the principal object he had in view was, to enable Ireland to carry on the banking system with greater advantages than she at present enjoyed,—an object which he thought it was worth attaining, even if some pecuniary loss were sustained.
§ Mr. Humesaid, that if the interest of money increased to 5 or 6 percent, the bargain would be advantageous; but, if it remained stationary, the country would be burdened with an unnecessary expense of one per cent.
Mr. S. Ricesaid, the subject ought not to be viewed as a matter simply of a pecuniary nature. It ought to be considered as an effort to call into action the natural advantages of Ireland. The measure, as far as it went, would, he was convinced, be one of unmixed benefit to that country.
§ The bill was read a second time.