The Free State Banking COmmiision .
Rumour has been busy in Dublin on the question of the Irish Government's- financial ,policy and the possi- bility of a decision to separate the Free State pound from sterling, to which it was linked by the .Currency Act. The basis of the rumour is; .firstly, a somewhat cryptic Utterance by the Minister of Finance, Mr. Sean MacEntee, iii which he anticipated attempts create financial.panic ; and secondly, the announcement of a' commission to inquire into Free State banking, currency and cogitate matters. The personnel of the commission is extra. ordinarily diversified, including civil servants, bankers, general business men, trade unionists, agriculturists, a Bishop; and some distinguished economists, of whom Professor Gregory is one. The composition of the commission suggests' that the intention is to proceed -with caution: The opinion in expert circles in Dublin is that it is intended to set up'-an independent Central Bank in Dublin which will divorce the Free- State pound from the- British and allow its value to fall to some lower ratio—say, 15s. The purpose of such 'a scheme is fairly clear. Mr. de Valera's Government -aims at a self- sufficient State with imports reduced to a very low total. As long as it was making big purchases of plant for new industries it could- not afford to depreciate the Irish currency; but having completed many such purchases it now hopes to stimulate the export of cattle and other agricultural produce under new exchange conditions, and also to attract foreign tourists by the favourable rate of exchange. It probably assumes that the British would not defeat the former object by raising import duties, since the object of these duties is not to exclude Irish goods but to collect the value of the annuities withheld.
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