The Bank of Ireland suspends gold payments on February 26, 1797. In the late 18th century, cash is king, whether it be gold or silver. If one has no gold or silver, one has no goods, unless one is a member of the 10,000 or so landed aristocratic families who are allowed to run up debts.

At the end of the 18th century Britain is at war with France. The British government requires gold above all to conduct its war with Napoleon. There is not enough to go around. There is not enough gold in the vaults of the Bank of England to adequately fund the war, much less for sending any of it to Ireland. Therefore, in 1797 the Bank of Ireland is obliged to stop issuing gold that it does not have and rather rely on well established banknotes to keep money in circulation. A few weeks later the stance taken by the Bank is approved of by Irish legislators in the Irish Parliament.

The withdrawal of gold and the increased issuing of notes leads to the establishment of a number of private banks in Ireland who are allowed to issue their own notes. In 1799 there are eleven private banks. By 1803, this number has increased to forty-one. Many of these banks subsequently fail and destroy the lives of their customers. The partners who run these financial institutions are identified on the banknotes they issue. Therefore their clients can see the names, but not the addresses, of the men who have financially destroyed them when they fall into liquidation.