MORTGAGE BANKS 
 
 PROYIDING EMPLOYMENT IN IRELAND. 
 
 LETTER TO LORD JOHN RUSSELL, 
 
 C. H. BOWEN, ESQ. 
 
 DUBLIN 
 
 JAMES M'GLASHAN, 21 D’OLIEE-STREET. 
 

 Dablin; Printed by Edwa 
 
MORTGAGE BANKS, 
 
 ETC., ETC. 
 
 My Lord, 
 
 Before I offer to your consideration the annexed 
 letter, addressed to a public body, called into existence 
 by the simultaneous perception in men occupying various 
 positions in Irish society, of the rapid approach of urgent 
 and general calamity, I feel it incumbent upon me to 
 establish a just claim to your Lordship’s attention, and 
 this 1 shall endeavour to do, by adverting as briefly as I 
 can to the policy proposed to be adopted by your adminis¬ 
 tration in dealing with the first and greatest of those ex¬ 
 traordinary difficulties in which the affairs of Ireland, are 
 so deeply involved; with reference to this—the destitute 
 condition in which a large portion of the Irish people has 
 been suddenly left by the occurrence of an unforeseen and 
 unavoidable misfortune—it has been pronounced “that 
 the poor of Ireland shall hereafter be permanently sup¬ 
 ported by the land, and the land alone; it has also been 
 proved and allowed, that this can only be rendered pos¬ 
 sible by the provision of adequate reproductive employ¬ 
 ment. The task of providing for three-fourths of the 
 pauperism of the country is the portion of this burden im¬ 
 posed upon the Irish landowners by the existing poor-law. 
 That they cannot perform their task, unless they be aided 
 in the acquirement of the requisite capital by legal enact¬ 
 ments, has been virtually admitted by your Lordship, and 
 what I would now endeavour to prove is, that the measures 
 propounded for such purpose, namely the “ Land Improve- 
 
ment Act,” and the “ Sale of Encumbered Estates” and 
 the “ Landlord and Tenant” Bills, are neither adequate 
 to enable, nor competent to compel these persons to fulfil 
 the duty imposed upon them by law; that consequently it 
 will be requisite to supply capital by other means; that 
 such means as would afford it to those who must neces¬ 
 sarily be entrusted with its application, upon the most 
 equitable terms, and least fettered with injurious restric¬ 
 tions, would be the best; and that such end may be more 
 advantageously attained by some method similar to that 
 employed in Prussia, and described in the annexed letter, 
 than by any other. The sum required in Ireland in 
 1847, for the purpose of merely keeping in existence that 
 portion of the population who could not obtain subsistence 
 by their labour, amounted to £6,407,212, expended in 
 what may be called “ out-door relief,” under the acts 9 
 and 10 Viet. c. 107, and 10 Viet. c. 7, and it was adminis¬ 
 tered to as many as 3,020,712 individuals. That the 
 number which will hereafter require to be supported by 
 additional employment or out-door relief, will be little less, 
 I fear we may but too reasonably conclude. It is true, many 
 perished by famine and by fever, but their ranks are already 
 filled by others reduced to pauperism, and the deduction to 
 be made from the most destitute class on account of emigra¬ 
 tion, is comparatively small. Of course, it will be said 
 that the cost of provisions has, in the present year, fallen 
 one-half; but, on the other hand, is it to be contemplated 
 that so large a portion of the people can be permanently 
 restricted to such a measure of subsistence as that obtain¬ 
 ed by, them last year ? This would he utterly incompa¬ 
 tible with any scheme for national improvement. The 
 value of a pound of meal per diem was the average means 
 of living afforded to each individual throughout that period. 
 As the wages of labour, can a less sum than the value of 
 two pounds be allotted hereafter ? Should this reasoning 
 be correct, the cost of the extra employment which must 
 
5 
 
 be afforded in this and probably in a few succeeding years, 
 Avill amount to little less than the before-mentioned sum of 
 £6,407,212. From w'hence must such extraordinary aid 
 be looked for ? I doubt not that, upon turning to the 
 “ Digest of Evidence upon the Occupation of Land in 
 Ireland,” your lordship will be satisfied that there is little 
 hope of its ever being afforded, if not through the instru¬ 
 mentality of the proprietors of the soil. You will there find 
 it deduced, “ that there is an absolute deficiency of capital 
 amongst the farming classes for the profitable cultivation of 
 their lands;” and “ that this deficiency is increased by dis¬ 
 inclination, particularly amongst the small farmers, to in¬ 
 vest on their farms such money capital as they possess.” 
 I would here ask your Lordship, has the poor-law proved 
 efficient in counteracting this feeling so difficult to over¬ 
 come ? I think you will learn upon inquiry that it has 
 not, but, on the contrary, has greatly strengthened it. 
 And is there any solid ground for expecting that the pro¬ 
 posed “ Landlord and Tenant” Bill will be looked upon 
 by the farming classes as holding out a sufficient induce¬ 
 ment for an enlarged outlay, in the present unsettled state 
 of rural affairs ? So far as we may judge from the recep¬ 
 tion it has met with at their hands, such a result can hardly 
 be anticipated, be the intrinsic merits of the measure what 
 they may; but on this matter, the opinion of one who ap¬ 
 pears to enjoy an ample share of official confidence, may 
 perhaps be offered as conclusive. The following words 
 are those of the author of the “ Irish Crisis,” which ap¬ 
 peared in the Edinburgh Review of January, 1848 :— 
 “ The fact is, that the main hope of extrication from the 
 slough of despond in which the small holders of the centre 
 and west of Ireland are at present sunk, is, from the en¬ 
 terprise, and capital, and improved husbandry of the class 
 of owners commonly known by the name of landlords.” 
 But the question to which I would more particularly con¬ 
 fine myself, is the possibility that the task imposed upon 
 
6 
 
 Irish proprietors can be performed, unless a large measure 
 of assistance be afforded them. The net annual value of 
 their united property, by the poor-law valuation, is 
 £13,187,421; but supposing it to be 17 or 18,000,000, 
 when the vast deduction on account of moilgages, judg¬ 
 ment debts, annuities, and other charges tt^^ave been 
 made, what will be the residue available to the present 
 proprietors wherewith to meet their liabilities under the 
 existing law ? Supposing rents to be paid, £7,000,000 
 would, I believe, be a high estimate; but such is far from 
 being the case. Must not, then, such a fund prove utterly 
 insufficient? And what are the sources opened, or pro¬ 
 posed to he opened, whence may be drawn the additional 
 capital required to maintain the law ? We will see. There 
 is the 1st and 2d Wm. IV. c. 33, the terms of which 
 proved to be so little advantageous, that but three persons 
 availed themselves of its provisions, one of these being the 
 late lord lieutenant of Ireland; the £1,500,000 loan, the 
 whole of which has been appropriated, but of which it is 
 probable that not £1,000,000 can be expended this year; 
 and two other measures in contemplation—the one, “ the 
 Landlord and Tenant Bill,” of which I have already 
 spoken; the other, “a Bill to facilitate the Sale of 
 Encumbered Estates.” 'With regard to the latter, 
 there are two classes upon which the operation of such 
 a measure will require to be distinctly considered—those 
 whose encumbrances would require for their liqui¬ 
 dation little less than the entire produce of the sale of 
 their estates, should they be brought into the market at 
 the present moment—and those whose properties are bur¬ 
 dened in various proportions averaging one-half. In the 
 case of the first-mentioned parties, any act which does 
 not altogether set aside the present laws affecting real 
 property, will certainly remain inoperative, as it must be 
 expected that every conceivable means of defeating its 
 object will be had recourse to by them, and I may add. 
 
7 
 
 with justice, when the ex post facto character of recent 
 legislation, as regards their interest, is fairly allowed. 
 And, in that of the second—I think it will be found that 
 the difficulties inseparable from a sale, and the depreciated 
 value at which it will be possible to effect one, while the 
 circumstances which call for the enactment of this bill 
 remain in force, will be causes amply sufficient to prevent 
 any use being made of its provisions, so long as it can be 
 possibly abstained from ; to the obstructions threatened in 
 other quarters, upon the introduction of a similar measure) 
 last year, allusion need not here be made, but for the 
 reasons given, I think, “ a Sale of Estates Act” can do 
 little service at the present moment, although measures 
 to facilitate the transfer of landed property will hereafter, 
 without doubt, be productive of incalculable benefit to 
 Ireland. That such is the impression upon your Lord¬ 
 ship’s mind, I believe I am not wrong in assuming—but 
 will not the creation of a fair market for the seller, be not 
 only a just, but an indispensable preliminary to any 
 attempt to compel the sale of land by its present pro¬ 
 prietors? With relation to its fitness to effect this, I 
 would here suggest inquiry into the system of mortgage 
 banks established, partly for such purpose, in Prussia— 
 and, in corroboration of my own opinion on the subject, 
 may quote the words of Mr. Pierce Mahony, a very 
 eminent solicitor, and person of great experience in such 
 questions. In his evidence before Lord Langdale, respect¬ 
 ing the registration of deeds, he said, “ in short we might 
 by such reform, make land, and interests in land, a j]ortion 
 of the currency, and available as a part of the capital of 
 this great empire—until that is accomplished, the price of 
 land will fluctuate greatly; at one period, it will (as at 
 this moment in Ireland) he unsaleable —whilst, in times of 
 commercial prosperity, it will attain too high a value.” 
 Upon a superficial view of the subject, it may appear that 
 the establishment of mortgage banks would impede the^ 
 
operation of the Sale of Estates Bill, but upon closer 
 exaininatioh, I think it would be found to promise a 
 directly contrary effect; it would lead, in the first instance, 
 to a consolidation of the encumbrances upon estates, 
 which would greatly facilitate the making-clear title, and 
 the arrangement of other preliminaries, tending to enable 
 a seller to make an advantageous bargain. It would not 
 only bring property into the market in the most favourable 
 condition—but, likewise, at the most desirable moment. 
 Should steps not be taken to ensure these results, any 
 measure calculated to compel a simultaneous sale of nume¬ 
 rous estates, will surely be attended with ruinous litiga¬ 
 tion, and most disastrous consequences; hostile feelings 
 win be excited to a degree sufficient to deter capitalists 
 from an attempt to purchase, and to make the sale of land 
 aU but impossible—money transactions will all, more or 
 less, be thrown into confusion—and the administration of 
 the poor-law be rendered wholly impracticable. That 
 these anticipations of the evil consequences of a compul¬ 
 sory sale of estates are not exaggerated, it is hardly 
 necessary to attempt the proof, such ample information 
 on the state of real property in Ireland has already been 
 afforded through innumerable channels, not only to your 
 Lordship, but to the public at large. Supposing, how¬ 
 ever, that there be a difference of opinion as to the pro¬ 
 bable effects of the bill in question, if unaccompanied by 
 ancillary measures—it will, at least, be conceded that 
 immediate relief can in no degree be hoped for from its 
 operation—while, daily and hourly, it is becoming appa¬ 
 rent to every one that the poor-law cannot be maintained, 
 or the people preserved from the deepest destitution, 
 without the most extraordinary exertions be made, and in 
 a great degree, voluntarily made, by the present proprie¬ 
 tors of the soil. A large majority of these are willing to 
 do their utmost, to preserve the population, and to save 
 the country—and that they have already made most praise- 
 
worthy efforts to do so, has, in spite of a greater amount 
 of unfounded assertion and inveterate calumny, than was 
 ever before brought to bear upon an individual class, 
 been atlength, though tardily, admittedby theBritishpublic. 
 Is it not, then, both just and prudent to second the exer¬ 
 tions of Irish landlords by every method that reason may 
 sanction? The principle of the “ Loan for Improvements 
 Act,” is favourably spoken of in every quarter; but its 
 effects cannot be very extensive, and its utility is consi¬ 
 derably curtailed by the delays, difficulties, and expenses 
 inseparable from a system of official and centralized admi¬ 
 nistration ; whereas the establishment of mortgage banks 
 would furnish capital on advantageous terms, not only for 
 drainage, but for every species of improvement; would 
 save the delay and expenditure above alluded to, and at 
 the same time would free the executive from troublesome 
 and responsible business, and the exchequer from demands 
 for loans and advances, which will otherwise be made upon 
 it to an amount as yet not dreamt of. But it is not the 
 case of encumbered estates alone that should now be taken 
 into account. Where rates are soon likely to amount to 
 ten shillings in the pound and upwards, what hope is there 
 for extrication from general insolvency, if capital be not 
 speedily provided for profitable employment ? Has any 
 measure been as yet proposed, which offers a prospect of 
 such useful results as those obtained by mortgage banks 
 in Prussia? That this subject is sufficiently important to 
 merit a careful inquiry, the following extract from an article 
 in the Edinlurgh Review, that will be subsequently re¬ 
 ferred to, may, I trust, show. “ So firmly had these banks 
 taken up their position in the monetary world, in the years 
 1837-40, that they were all enabled to reduce their rate 
 of interest to 3^ per cent. The value of their notes had 
 at that period increased to 12,000,000.” Notwithstanding 
 this large increase, and the gradual reduction of the inte¬ 
 rest, the price of these securities (or Pfandbriefe) has been 
 
10 
 
 higher, and subject to less fluctuation in the European mar¬ 
 ket, than that of almost any state securities. “ Of these, 
 f found their way into the hands of capitalists, and the 
 remaining f continued to serve as a very popular cur¬ 
 rency.” If such have been the results of this measure in 
 Prussia, are its consequences in Ireland likely to prove 
 less beneficial? Is not a larger amount of circulating 
 capital called for here, and would not mortgage notes offer 
 an advantageous temporary investment to all who had 
 money in their hands, at the same time that they would be 
 the means of enlisting numbers in an interested defence of 
 law and order, and of disseminating a wholesome respect 
 for the rights of individual property ? As to the great 
 economical question of the basis of currency, I do not 
 mean to entertain it here. What is at this moment taking 
 place in France may alter your Lordship’s estimate of the 
 value of a convertible currency, and prove to the world 
 whether or not the “ bullion theory” could stand an hour 
 of trial, should needs be. It may also suggest what might 
 he the advantage in this country of a currency partly based 
 on land, under circumstances which at present seem (at 
 least to its inhabitants) to be all but inevitable. 
 
 There temains one other point to which I would call 
 your Lordship’s attention, before your perusul of the fol¬ 
 lowing letter—that is, the great facility for the organisation 
 of the system proposed which the Ordnance Survey, to¬ 
 gether with Mr. Griffith’s valuation, afford, and the abun¬ 
 dant means which exist for providing every requisite secu¬ 
 rity for the property, both interest and capital, which 
 would thus be represented by mortgage notes. Believing 
 at least that your Lordship will see the necessity for doing 
 something, “ and that matters cannot remain as they are” 
 in Ireland, 
 
 I have the honor to subscribe myself. 
 
 My Lord, 
 
 Your obedient servant, 
 
 CHARLES H. BOWEN. 
 
 Dublin, April 6tli, 1S48. 
 
PRUSSIAN MORTGAGE BANKS. 
 
 TO THE. MEMBERS OF THE IRISH COUNCIL. 
 
 Gentlemen, —Altliough a menber of your society, I take 
 leave to address you by letter, as being tbe most convenient 
 manner in which, at the present moment, I can invite your 
 attention to a subject, that, looking at the general condition of 
 property in this countiy, appears to me to be well worth your 
 consideration, though as yet hut casually noticed by the Irish 
 press. It is the means wdiich were adopted by Prussia, when she 
 found herself reduced to a condition in some respects similar to 
 that of Ireland at the present day, to remedy two of these evils 
 by which her diflSculties were greatly aggravated, and her resto¬ 
 ration to a healthy state effectively impeded : these evils were, a 
 want of sufficient circulating capital, and the embarrassed position 
 of a large proportion of her landed proprietary—similar causes, 
 in a similar manner, are now' offering notorious impediments to 
 the improvement of this country. 
 
 Of the establishment of mortgage banks, the measure to 
 which Prussia had recourse, a succinct, but correct account was 
 given in an article, published in July last, in the EdinbimjhRevieiv; 
 hut as the original scheme, presented to the king of Prussia, 
 which subsecpiently led to the formation of these institutions, has 
 not been fully set forth, I shall offer to you, as the best method of 
 promoting the object I have in view, a rough but literal transla¬ 
 tion of a few pages of Herring’s work on “Agrarian Legislation” 
 in Prnssia, in which it is transcribed at length. Having treated 
 on other matters affecting the condition of landed property, the 
 author proceeds to say : 
 
 “ But all this was as little avail, in affording a remedy for the 
 want of money, as it was in promoting the restoration of the 
 ruined estates in the manner expected by the king. To effect 
 this, a merchant named Biihring presented to him the follow'ing 
 plan;— 
 
 “ Shewing, in what manner, and by what means abundance of 
 money and credit can be created throughout the country; and 
 how, in the most secure manner, it can be undertaken, to afford 
 relief to the ruined nobility. 
 
 “ The true wealth of this country consists in ready money and 
 landed property. The latter is in more than tenfold proportion 
 to the former ; and were a part of it only brought into circulation. 
 
12 
 
 in a healthy manner, it would amply suffice to generate credit 
 and prosperity throughout the entire extent of the kingdom. To 
 effect this, it would be necessary to form a general board (General 
 Landschafts Kasse), which (but without compulsion) should in¬ 
 stitute a valuation, on a settled plan, of all the ‘ Estates Nol)le,’ 
 enter the same into a registry, and lend to the owners on mort¬ 
 gage, one-half or two-thirds of the full value, wherewith they 
 might pay off their oppressive creditors. These payments would 
 he effected in the.following manner :— 
 
 “ 1.—Mortgage-notes (Hypotheken-Coupons, or Pfandbriefe), 
 or whatever it were pleased to call them, would be created, 
 ‘payable.to bearer,’of the value of 500 or 1000 dollars, and 
 bearing interest at 4 per cent. The interest and capital of the 
 same being guaranteed by the signature of the ‘ mortgage board,’ 
 on the security of the mortgaged estates; with these notes the 
 board would pay over the half, or two-thirds of the value of the 
 estate as might be determined upon. 
 
 “ 2.—^The mortgager, as owner of the estate, would pay half- 
 yearly per cent, interest to the mortgage hoard; but the hoard 
 would only pay 4 per cent., and that yearly, to the holder of tlie 
 note; with these notes the debtor would pay off his creditors, 
 and this being done under supervision of the board, the old lien 
 on the estate would be cancelled. 
 
 “3.—^The ^ per cent., or 1 per cent.,* would remain available 
 for the liquidation of charges and salaries, and the gross sum 
 remaining over and above from this source, as well as from the 
 use of the half-year’s interest, would form a reserved fund, des¬ 
 tined to make good accidental losses—such as death of stock, 
 damage by hail, fire, failure of crop, and war; for under such cir¬ 
 cumstances, the noble would otherwise be rendered unable to 
 meet the interest due, and in that case the estate would be ruined : 
 for security in such case, a valuation should be immediately had, 
 and the loss made good out of this fund—as a matter of course, 
 the damage would be estimated in proportion to the loan, and the 
 full valuation of the estate; finally, in what relates to the valuation, 
 the ‘ finance principle’ (Kammerprinzipien) should be adopted as 
 a basis. 
 
 “ Should your Majesty be so gracious as to advance a capital 
 for the support of this undertaking, the interest of it might also 
 he devoted to the same purpose. The estate of any one not pay¬ 
 ing his interest promptly should at once be sold. I would not 
 admit of any administration, for an eternal curse appears to rest 
 upon this course of proceeding. 
 
 “4. —It should be provided, that touching feudal estates, the 
 consent of the three persons next iu remainder (Lehuvettern) 
 * T.—All apparent mistalie. 
 
13 
 
 should alone be necessary—or, what would be still better, a fee- 
 simple (Lehnstamni) should be established. 
 
 “ 5.—^That no arrangement with creditors (Konkurs) be per¬ 
 mitted to take plaee—and that the capital and interest of these 
 notes should remain alw'ays unaltered. 
 
 “ 6.—Since, for this great and important undertaking, no ready 
 money would in reality be required, unless at the first start, it 
 might be desirable, that your Majesty should appropriate a fund 
 to this occasion, otherwise the bank, which can easily pro¬ 
 cure money enough at 3 per cent., might undertake the cashing 
 of these notes, payable to bearer; and, for doing so, draw the 
 4 per cent, into its own coffer : to prevent this, the bank should 
 be obliged to issue the notes upon demand, agamst I'eady money, 
 and the amount of interest due upon them, so long as any of 
 them remained in its hands—otherwise, all the interest would be 
 drawn by the bank, and the country ruined. 
 
 “7.—All this paper can be made payable to bearer, and its 
 convertibility into cash insured equally, as in the case of a bank¬ 
 note—for it is impossible to suppose that sums, too large to be 
 paid in money, will be demanded—and in a short time it will be 
 found that the paper will be sought at a premium, for which 
 reason it were quite unnecessary to inscribe on the note the 
 name of either the mortgager, or the estate. 
 
 “ This important undertaking could at once be carried into 
 operation, without complicated arrangement, since every one 
 would be at liberty to avail himself of its assistance or not, as he 
 might please, and no guarantee by the state would be requisite. 
 The mortgage board would be guarantee sufficient, and it, with 
 its mortgage property, and facdity for obtaining a prompt ad¬ 
 ministration of justice, would be in a position to offer ample 
 security for its liabilities. 
 
 “ 8.—It should be prohibited under the severest penalties, for 
 any one to send these notes out of the kingdom ; and also for 
 any foreigner to purchase them, either in his own person, or 
 through the agency of a native, and draw the interest out of the 
 country, under pain of forfeiting the capital—one-half to go to 
 the informer, and the other to the general mortgage board; 
 hence, it would arise, that the foreigner would spend his interest 
 in the country, and the matter would regulate itself, and prove 
 much more beneficial, than if a capital, even at the lowest interest, 
 were negociated out of the country ; whereby, in a certain time, 
 the whole negociated capital would leave the kingdom in the 
 shape of interest, and afterwards the land itself, in its quality of 
 property, in as much as the entire capital would remain a debt 
 payable out of the country. For example:—In Holland liabili¬ 
 ties on land bear only 2^ per cent, interest, and cannot be imme¬ 
 diately converted into money, as these notes can. 
 
14 
 
 “ How much more valuable) then, must these notes be which 
 bear 4 per cent, interest, and are changeable at any moment 
 into ready money: would not the Dutch imperceptibly draw 
 away all our notes, and make us the authors of our own ruin ? 
 
 “ 9.—These notes would become current like money, in all 
 trading transactions and purchases, together with the interest 
 due upon them, to the time of transfer. But in order not to 
 occasion loss to the Post, 1^ per cent., Porto, should be charged, 
 otherwise the Post would be too great a sufferer by the trans¬ 
 mission of ready money. 
 
 “ Should it at any time be desired gradually to withdraw this 
 paper in a safe and effectual manner, which, according to the 
 principles of political economy, should be done, the precaution 
 should first be taken to prohibit the receiving by capitalists more 
 than 4 per cent, interest, on first mortg-ages on land. 
 
 “ As soon as, in accordance with this scheme, an abundance 
 of ready money had been created by means of these notes, the 
 rate of interest would naturally fall; the owners of property 
 would have the opportunity to borrow money from capitalists, at 
 4 per cent, and under ; in this way, moreover, no discharge by 
 the general mortgage board would be requisite; they would take 
 mortgage notes—not money; would hand them into the aeiieral 
 mortgage board, and thereupon their mortgage would be extin¬ 
 guished; and thus would these notes altogether disappear, and 
 this by^the agency of the per cent., or, still better, the 1 per 
 cent, interest, required by the mortgage board, above that de¬ 
 manded by.the private capitalists. It is a sure and incontrover¬ 
 tible axiom that no single measure can be framed, which shall 
 equally benefit every member of the state; that it is no less ne¬ 
 cessary to guard against over-abundance, than to be careful to 
 provide against deficiency ; otherwise ready money shall lose its 
 value, and the words of the proverb be verified: ‘Tn the end is 
 the purse worth as much as the money.’ 
 
 “ The great end of financial economy, and that which a state 
 mnst never lose sight of, is to maintain money, land, and manu¬ 
 factures, relatively one to the other, at an equitable and well ad¬ 
 justed value ; without this will the best system of management 
 fail,- and one and all go to ruin together. 
 
 “ It might still be said, will those landed proprietors benefit by 
 this scheme, who are already in debt to the amount of or more, 
 of the value of the land ? From what has already been stated, 
 this will readily appear, that 
 
 (а) They will derive from it this benefit, that as money be¬ 
 comes more plenty, their creditors will become less extortionate. 
 
 (б) And supposing a Commission of Insolvency to take 
 place, in that case the estates would fetch 20 or 30 per cent, more 
 in the market, when purchasers were aware that they could 
 
procure on loan one-lialf or two-thirds of the valuation ; whereas 
 at present, under an insolvency valuation, they are depreciated to 
 that extent that often scarcely half the mortgage creditors are 
 paid, whereas, under this plan, on the contrary, even should 
 there not remain a surplus, such an occurrence could never take 
 place. 
 
 “ But to devise any scheme that shall be effective for the as¬ 
 sistance of those who are over head and ears in debt, without 
 making them a present of money, is a thing impossible. The 
 greater part of the nobles are looked upon as almost ruined, so 
 far as their estates are concerned, upon which in consequence of 
 a want of sufficient stock causing a deficiency of manure, the 
 harvests are from year to year becoming less productive.' How, 
 then, is the interest due by them to be paid'!—Their lands are 
 being deteriorated and are sinking in value from day to day. 
 The tenants are fallen back upon, wdio, in case of failure of crop 
 and loss of cattle, ought to receive assistance from their lords, 
 now unable to maintain themselves. From whence, then, in the 
 end shall the aids (Prastanda) due by them to the King 
 come ?—By the decline of agriculture, a loss accrues, not to the 
 landed proprietor and peasant only, but to the King as well as to the 
 entire state. It were desirable that your Majesty would, at your 
 pleasure, extend this plan to lands occupied by houses, in large 
 towns throughout the country, which might be easily accom¬ 
 plished : by this many hundred law-suits woidd be put an end to, 
 and such fearful numbers of innocent persons would no longer 
 be made miserable and wholly ruined in their circumstances. 
 This undertaking might be rendered one of the utmost impor¬ 
 tance, with regard to the prosperity of the entire kingdom, were it 
 to be earned out honestly and with proper care, and in its result 
 would affect an internal arrangement of the state at large, which 
 would go near to surpass the most sanguine e.xpectations. 
 
 “ This scheme was not carried into execution, but at a later 
 period gave rise to the establishment of the ‘ District Mortgage 
 Bank’ (Pfand-Credit Institute), which was instituted by edict in 
 Silesia, 9th July, 1770, in Brandenberg, 15th June, 1777, Pome¬ 
 rania, 13th March, 1781, East Prussia, 25th September, 1787, 
 and West Prussia, Feb. 22nd, 1797. 
 
 “ However, as all these institutions were established wholly at 
 variance with the original plan of Biihring, in omitting the pro¬ 
 vision of a sinking fund, by means of which they would, without 
 doubt, have proved extremely beneficial, since they would have 
 extinguished themselves after their required aid had been af¬ 
 forded, they accordingly became for the land proprietors nothing 
 more than vast, privileged, and easily available loan banks, en- 
 com’aging, in every possible way, the incurring of debt. For the 
 landed proprietors had only to make application, the stamp for 
 
preparing the mortgage note being always at hand, and the dis¬ 
 trict officials only awaited the application to grant it with the 
 greatest readiness; they postpone the appointed time for the 
 inquiry of the special commissioners; they calculate the value 
 of the estate; hereupon they prepare the valuation and their 
 mortgage notes, and then there remains nothing further for the 
 proprietors to do, than to take the latter, at what moment, and 
 in what sums he pleases, until his estate has become mortgaged 
 to the ‘ District Loan Bank,’ to the amount of one-half, or at 
 most, two-thirds of the valuation. 
 
 “ Unquestionably the danger of such a spendthrift institution 
 was perceived by the western provinces of the kingdom, and ac- 
 cordmgly they made no use of it.” 
 
 Gentlemen, as my present purpose is, as I have already stated, 
 merely to draw your attention to the subject matter of this 
 letter, I shall not trouble you with any comments of my own, 
 upon the manner of dealing with it pursued by the Prussian 
 Government, but shall rest satisfied should I succeed in eliciting 
 the opinion of persons better versed in law and political economy 
 than I am, upon the probable result of the adoption of such a 
 measure in Ireland, as well as upon the modification of the 
 Prussian plan, which might be required to render it applicable 
 to the peculiar circumstances of the country, and prevent the 
 abuse of it to which Herring more particularly alludes, but which 
 I omitted to remark, was subsequently rectified in Germany by 
 a recurrence to the principles of the original scheme. 
 
 I have the honor to be. 
 
 Gentlemen, 
 
 Your obedient servant, 
 
 C. H. BOWEN. 
 
 Dublin, November 22nd, 1847.