Lords Sitting of 2 June 1820

FAILURE OF BANKS IN THE SOUTH OF IRELAND.
The Marquis of Lansdownewished to ask the noble lord opposite whether his majesty's government had

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received any information on the unfortunate situation in which the south of Ireland was at present placed. The greatest distress, he understood, prevailed throughout the southern districts of that country, owing to the failure of some of the banks, which deprived persons in business of all means of carrying on trade. One principal bank had failed for about 300,000 l., and would not, it was supposed, pay a shilling in the pound; and the others were not yet in a condition to go on in the ordinary course of their business. In this state of extraordinary embarrassment, he could not help hoping that the Bank of Ireland would be able in some degree to prevent the calamity from increasing, and he wished to know whether his majesty's government intended to take any steps for that purpose.
The Earl of Liverpoolwas in some measure apprized of the unfortunate circumstances to which the noble marquis had alluded, but he had as yet received no official communication on the subject. He was, therefore, not prepared to say what it might be thought advisable to do, or whether his majesty's government would think fit to interfere in the case.
The Earl of Lauderdaleexpressed his regret at the distress to which the question of his noble friend referred, but was at the same time of opinion, that no precedent more fatal in political economy could be set than that of the interference of government in the credit of the country by holding out assistance to individuals. The Bank of England had, in cases of commercial distress, sometimes interfered, because it was its interest to support commercial credit, as far as support could with propriety be given by that establishment. Let the Bank of Ireland therefore imitate the conduct of the Bank of England, and act in the business on commercial principles.
The Marquis of Lansdowneassured his noble friend that he was far from calling for the direct interference of his majesty's government. All that he meant to suggest was, that in case the Bank of Ireland should be desirous to do that which its own interest dictated, namely, to supply the vacuum in the circulation occasioned by the failures to which he had alluded, government would not withhold such assistance as might be necessary to facilitate the operations of the Bank. The necessity of the case was great, as at present, where the failures had taken place, there
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was no circulating medium, and no means of barter or carrying on trade. He was, however, certainly very far from wishing that his majesty's government should interfere to give assistance in the way his noble friend supposed.