§ Order of the Day for the Second Reading read.
§ THE EARL OF ST. GERMANS moved the second reading of this Bill, the object of which was to remove the restriction by which the Bank of Ireland were now prevented from advancing money on real property by way of mortgage. There was no such restriction imposed on the Bank of England or the Bank of Scotland, and the effect of the Bill would therefore be to put the three establishments on precisely the same footing in this respect.
§ Moved, That the Bill be now read 2a.
1948§ LORD MONTEAGLEthought the present restriction imposed on the Bank of Ireland was a wise one, and ought to be continued. A bank should always have money in the readiest and most available form, so as to be in a position to meet its engagements without delay. It was a total misapprehension of the true principles of banking to lend money where it was not immediately available. If the Bank of Ireland was in a position to lend its capital on the landed property of Ireland when land was so much depreciated there, it would not be for the benefit of either the landlords of Ireland or the Bank of Ireland itself. The Bank of Ireland was the pivot on which all other credit rested; and they could not reduce the value of its security without damaging public credit. He was ready to admit that the Bank of Ireland had hitherto conducted its business with great prudence, and did not believe that this Bill would induce a departure from that conduct; but he thought it very unwise to give them an unlimited power of investing their money on the security of real estate.
THE EARL OF DONOUGHMOREsaid, the noble Lord appeared to forget that the Bank of Ireland was not the only banking corporation in that country, and that it only furnished one-third of the note circulation of the country. It was unjust that the Bank of Ireland should be subjected to a restriction which was not imposed on the other banking establishments with which they were brought into competition. It was matter of common complaint that landed proprietors of Ireland could not obtain accommodation from the Bank on the best security, a landlord with a rent-roll of £5,000 had the greatest difficulty in getting a bill discounted for a few hundreds, while small traders could get their bills discounted to the amount of thousands at little or no expense. The restriction which the noble Lord called wise and salutary, was placed on the Bank of Ireland so long ago as 1782—about the period when an Act was passed to prevent Roman Catholics from lending money on mortgage of land. In a country where agriculture was the principal interest, everything ought to be clone to facilitate the employment of bankers' capital on land.
§ THE EARL OF ST. GERMANSsaid, the objections urged were immaterial. It was a simple matter of justice to remove from the Bank of Ireland a restriction to which no other banks were subjected.
§ Motion agreed to.
§ Bill read 2a accordingly; and committed to a Committee of the Whole House Tomorrow.
§ House adjourned at Six o'clock. till To-morrow, half-past Ten o'clock.