ALEX Salmond and Alistair Darling are correct when they state that an independent foreign Scotland could continue to keep the pound sterling as its currency.

There is a precedent. Southern Ireland broke away from the UK in 1921 but retained sterling as its currency for decades. But a major problem developed. The Bank of England influenced exchange rates, public borrowing, interest rates, inflation and more and after 1921 did not take into account the different requirements of the Southern Irish economy. Eventually Southern Ireland had to launch its own currency - the punt - which had lesser value than the pound sterling. As a result many people in Southern Ireland lost out. I fear exactly the same loss would eventually apply to Scots if the pound sterling were retained after a decision to become independent. The assurance that sterling would be retained has only a temporary benefit.

Lord Kilclooney,

Mullinure, Armagh.

I READ your independence referendum analysis with great interest ("The big question: Pensions", The Herald, August 27). Being a retired teacher, I simply checked on the small, independent country just next door. The Republic of Ireland Department of Education figures show the average annual pension for an Irish teacher is €30,262 (primary) and €29,865 (secondary). In addition,on retirement, they get a tax-free lump sum of one and a half times their salary.

The Irish Republic's finances are now back on a sound footing. Indeed, the international money markets have more confidence in Ireland than they do in the UK, saddled with a record £1.5 trillion national debt (annual interest a mere £70 billion). The Irish Government currently borrows on the global bond market at lower interest rates than the UK Government.

Tom Johnston,

5 Burn View, Cumbernauld.