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Frank Aiken accused the banks of economic treason

  • 12-09-2010 4:57pm
    #1
    JuliusCaesar
    Registered Users, Registered Users 2 Posts: 4,885 ✭✭✭


    Frank Aiken accused the banks of economic treason when the Irish banks refused to buy government bonds.

    I was told this the other day but can find nothing on the web. Has anyone information about this?


Comments

  • #2
    donaghs
    Registered Users, Registered Users 2 Posts: 2,820 ✭✭✭donaghs


    I had heard that the Irish government found it very difficult to deal with the Irish banking sector, especially in the first two decades of Independence when the banks allegedly took a very condescending attitude to the new government. You don't normally read about about such issues in most Irish history which is often mainly concerned with political issues.

    In Joe Lee's "Ireland 1912-1985" there's some good material on this sort of thing. In this google books link, on page 287 Aiken gets into a rage about the banks lending to the Irish government at a rate much higher than UK banks lend to their government, calling this "an act of undeclared war upon our people". Aiken seemed alone in wanting to bring to banks under greater state influence.

    Some more good stuff in Lee's book about the previous Cosgrave 1920s govt attitude to banks:
    "Government financial policy, which amounted to virtual abdication in favour of established financial interests, consolidated support for the regime in the financial community. Industry and Commerce had reservations about this approach. When the Bank of Ireland sought power 'to take or concur in taking all or any steps which appear to the directors to be necessary or desirable for ... avoiding or helping to avoid disturbances prejudicial or which might be prejudicial to the financial interests of the community', Thomas Barrington observed that

    I have seen nothing in the remote or recent history of the Bank of Ireland to inspire the hope that its directorate possesses either the capacity or outlook to exercise such powers wisely or even intelligently ... the government are the proper custodians of the financial interests of the community and it would be a sorry day for the country when they surrender expressedly or by implication their obligations in the matter to any body of bankers however reputable.239

    239 PM P25/A/37, Bank of Ireland Bill, 1929, T.J. Barrington memo, 2 December 1928."


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