THE IMPACT OF HENRY PARKER-WILLIS AND THE FEDERAL RESERVE ON THE INSTITUTIONAL DESIGN OF THE IRISH CURRENCY ACT 1927

Abstract

ABSTRACTThe Anglo-Irish Treaty of 1921 provided monetary independence to the newly established Irish Free State. The existing historiography views Irish monetary and banking policy post-independence as following British precedent in terms of the structure and design of state monetary institutions. However, this article considers how Professor Henry Parker-Willis's experience of establishing the United States (US) Federal Reserve system in 1913 had a direct impact on his work as chair of the Irish banking commission in 1926. This research highlights that Parker-Willis played a significantly more important role in formulating the Irish Currency Act 1927 than is currently recognized. It further identifies that Parker-Willis's design for a wholly independent, non-political Irish currency commission was primarily based on his disillusionment with the political interference then evident in the management of the Federal Reserve system. This article, therefore, challenges the dominant view that Irish monetary institution building in the 1920s automatically followed British precedent, but rather identifies the direct influence of US monetary structures on the development of Irish institutions. This is an internationalist dimension not recognized in the existing historiography.