lisation. Parliament would
pay the piper but could not call the tune.

IRISH CREDIT NOT SUFFICIENT.

There remains the alternative of the new Irish Parliament financing the
operation. This it must do by means of payment in cash to the selling
shareholders, for reasons which will be hereafter stated, unless it
wishes to start its career by a scheme of spoliation, which would not
merely rob the shareholders (who are mostly Irish), but would destroy
the credit of the Irish Government. Mr. Redmond has recently
acknowledged that a large number of Irish railway shareholders are good
Nationalists; and it is certain that a great portion of the ordinary
stock is held by Irish farmers and traders; and much of the preference
and debenture stocks are also held by Irish charities, convents,
diocesan trustees, and monastic institutions. These persons will expect,
and justly expect, cash on a compulsory purchase, on basis of market
value, or capitalisation of dividend, so as to secure the same return of
interest.

Could the Irish Government borrow L50,000,000, and at what rate? To
borrow at a higher rate than the present return on Irish railway
capital, namely, 3.77 per cent., would be to incur a loss on working the
railways, from the outset, which Irish ratepayers or taxpayers would
have to make up. The net receipts, at the time of the Commission's
Report, were, in round figures, L1,600,000, and thus to borrow
L50,000,000, even at 4 per cent., would mean an annual loss of L300,000
a year, even if there were no sinking fund. A 10_s._ per cent sinking fund
would increase the total annual loss to L550,000.

But, could an Irish Government Guaranteed Railway Stock be issued at 4
per cent.? Would Ireland's credit stand better than that of Hungary,
whose 4 per cent. gold _rentes_ stand at 92, or of the Argentine, which
has to borrow at nearly 5 per cent.? There are grave doubts whether the
large sum required would be subscribed at all, at even 4 1/4 per cent,
or 4 1/2 per cent. basis. It is not likely that English investors would
take up such a loan, seeing that they have consistently fought shy of
Irish investments, and they are not likely to change their views upon
the break up of the Union.

It may be said that the sum required could be raised in Ireland--that
patriotic feeling would stimulate the operation, and the large sum of
money (over L50,000,000), lying on deposit at the Irish banks may be
referred to as available. Patriot