AN IRISH DOLLAR

Dominion, Volume 26, Issue 70, 15 December 1932, Page 8

AN IRISH DOLLAR

Not much surprise will be occasioned if the report proves correct that the Free State is planning an independent currency with an Irish dollar as the central unit. That would be simply part and parcel of Mr. de Valera’s policy of separatism. A proposal for a central bank in Dublin with an independent currency is in fact included in Fianna Fail’s official programme. It would, however, add to the world’s mirth if it were discovered there was no Gaelic equivalent for the word “dollar.” People are laughing at the story, lately published, of how Mr. de Valera fell into a similar pitfall adroitly prepared by Mr. Lloyd George in the Irish negotiations ten years ago. The nimble Welshman knew his Gaelic and guilelessly asked the American-Spanish-Irishman the Irish word for “republic.” Mr. de Valera was taken aback, consulted his “ambassador,” Mr. O’Brien, and finally had to confess there was none. To which Mr. Lloyd George blithely answered: “The truth is that we Celts never have been republicans, have we?” Under an Act of 1927 the Irish pound is anchored to sterling and there is therefore no exchange rate between Britain and the Free State. When Britain was forced off the gold standard 15 months ago, the Free State had to go with her. Naturally there were rumblings from the extremists in Dublin. The fact was held to prove that the Free State was still in leading-strings to Britain and, while she remained financially dependent, must continue to be dominated by the “ancient enemy.” Here was another stick providentially provided with which to beat the Cosgrave Government. Moreover Mr. Cosgrave had met the threat to sterling by appealing to the nation to support the pound by preferring British goods next after Irish. Certainly that was the commonsense thing to do, to put business in the way of the Free State’s only considerable customer. As for going off gold along with sterling, that served Irish exporters to a nicety. If the Irish pound had appreciated along with the currencies of, say. the United States, France, Holland, and Belgium, Free State exporters would have been placed at a disadvantage in the British market, as were those of these other countries. Denmark was quick to see where her interest lay and speedily abandoned gold in favour of sterling. Danish bacon, butter and eggs are direct rivals of Irish, and the Free State farmers might and probably did consider it good fortune that they were linked with sterling. Such ordinary business considerations could not be expected to influence fanatics like Mr. de Valera who has always preferred the shadow to the substance. If he remains in office, the Free State will probably desert sterling to set up still another dollar, political theories will again be served, and economic welfare again ignored.