CHAPTER X.
NEW SOUTH WALES, 1838-1850.
1. Gipps.—In 1838, when Governor Bourke left Australia to spend the remainder of his life in the retirement of his native county in Ireland, he was succeeded in the government of New South Wales by Sir George Gipps, an officer who had recently gained distinction by his services in settling the affairs of Canada. The new Governor was a man of great ability, generous and well meaning, but of a somewhat arbitrary nature. No Governor has ever laboured more assiduously for the welfare of his people, and yet none has ever been more unpopular than Gipps. During his term of office the colonists were constantly suffering from troubles, due, in most instances, to themselves, but always attributed to others, and, as a rule, to the Governor. It is true that the English Government, though actuated by a sincere desire to benefit and assist the rising community, often aggravated these troubles by its crude and ill-informed efforts to alleviate them. And as Sir George Gipps considered it his chief duty to obey literally and exactly all the orders sent out by his superiors in England, however much he privately disapproved of them, it was natural that he should receive much of the odium and derision attendant on these injudicious attempts; but, on the whole, the troubles of the colony were due, not so much to any fault of the Governor or to any error of the English Government, as to the imprudence of the colonists themselves.
2. Monetary Crisis.—During twelve years of unalloyed prosperity, so many fortunes had been made that the road to wealth seemed securely opened to all who landed in the colony. Thus it became common for new arrivals to regard themselves, on their first landing, as already men of fortune, and, presuming on their anticipated wealth, they often lived in an expensive and extravagant style, very different from the prudent and abstemious life which can alone secure to the young colonist the success he hopes for. In Sydney the most profuse habits prevailed, and in Melbourne it seemed as if prosperity had turned the heads of the inhabitants. The most expensive liquors were the ordinary beverages of waggoners and shepherds; and, on his visit to Port Phillip in 1843, Governor Gipps found the suburbs of Melbourne thickly strewed with champagne bottles, which seemed to him to tell a tale of extravagance and dissipation.
3. Land Laws.—Whilst many of the younger merchants were thus on their way to ruin, and the great bulk of the community were kept impoverished by their habits, the English Government brought matters to a crisis by its injudicious interference with the land laws. The early years of South Australia, and its period of trouble, have been already described. In 1840 South Australia was on the verge of bankruptcy, and the Wakefield policy of maintaining the land at a high price had not produced the results anticipated. Now, many of the greatest men in England were in favour of the Wakefield theory; and, in particular, the Secretary of State for the Colonies—that is, the member of the British Government whose duty it is to attend to colonial affairs was a warm supporter of the views of Wakefield; so that when the people of South Australia complained that their scheme could not be successful so long as the other colonies charged so low a price for their land, he sympathised with them in their trouble. “Who,” they asked, “will pay one pound an acre for land in South Australia, when, by crossing to Port Phillip, he can obtain land equally good at five shillings an acre?” To prevent the total destruction of South Australia, the Secretary of State ordered the other colonies to charge a higher price for land. New South Wales was to be divided into three districts. (1) The Middle District, round Port Jackson, where land was never to be sold for less than twelve shillings an acre. (2) The Northern District, round Moreton Bay, where the same price was to be charged. (3) The Southern District, round Port Phillip, where the land was of superior quality, and was never to be sold for less than one pound an acre.
A great amount of discontent was caused throughout New South Wales by this order; but South Australia was saved from absolute ruin, and the Secretary of State declined to recall the edict. In vain it was urged that a great part of the land was not worth more than two or three shillings an acre; the answer was that land was worth whatever people were willing to pay for it. For a time it seemed as if this view had been sound, and land was eagerly purchased, even at the advanced prices; in 1840 the amounts received from land sales were three times as great as those received in 1838. But this was mostly the result of speculation, and disastrous effects soon followed; for the prices paid by the purchasers were far above the real value of the land. If a man brought a thousand pounds into the colony and paid it to the Government for a thousand acres of land, he reckoned himself to be still worth a thousand pounds, and the banks would be willing to lend him nearly a thousand pounds on the security of his purchase. But if he endeavoured, after a year or two, to resell it, he would then discover its true value, and find he was in reality possessed of only two or three hundred pounds: every purchaser had found the land to be of less value than he had expected; every one was anxious to sell; and, there being few buyers, most of it was sold at a ruinous price. Men who had borrowed money were unable to pay their debts, and became insolvent. The banks, who had lent them money, were brought to the verge of ruin; and one of the oldest—the Bank of Australia—became bankrupt in 1843, and increased the confusion in monetary affairs. In order to pay their debts, the squatters were now forced to sell their sheep and cattle; but there was scarcely any one willing to buy, and the market being glutted, the prices went down to such an extent that sheep, which two years before had been bought for thirty shillings, were gladly sold for eighteenpence. Indeed, a large flock was sold in Sydney at sixpence per head. Fortunately, it was discovered by Mr. O’Brien, a squatter living at Yass, that about six shillings worth of tallow could be obtained from each sheep by boiling it down; and, if this operation had not been extensively begun by many of the sheep-owners, they would, without doubt, have been completely ruined. So great was the distress that, in 1843, the Governor issued provisions at less than cost price, in order to prevent the starvation of large numbers of the people.
Yet, the Secretary of State in England knew nothing of all this, and in 1843 he raised the price of land still higher, ordering that, throughout all Australia, no land should be sold for less than one pound an acre.
4. Immigration.—It is not to be imagined, however, that the English Government ever took to itself any of this land revenue. Every penny was used for the purpose of bringing immigrants into the colony. Agents in Europe were appointed to select suitable persons, who received what were called bounty orders. Any one who possessed an order of this kind received a free passage to Sydney, all expenses being paid by the Colonial Government with the money received from the sale of land. The Governor had the power of giving these orders to persons in New South Wales, who sent them home to their friends or relatives, or to servants and labourers, whom they wished to bring to the colonies. Now, Governor Gipps imagined that the land would continue to bring in as much revenue every year as it did in 1840, and, in the course of that year and the next, gave bounty orders to the extent of nearly one million pounds. But in 1841 the land revenue fell to about one-twentieth of what it had been in 1840; so that the colony must have become bankrupt had it not been that more than half of those who received bounty orders, hearing of the unsettled state of the colony, never made use of the permission granted. Governor Gipps was blamed by the colonists, and received from the Secretary of State a letter of sharp rebuke.
As for the immigrants who did arrive in New South Wales, their prospects were not bright. For a long time many of them found it impossible to obtain employment. Great numbers landed friendless and penniless in Sydney, and in a few weeks found themselves obliged to sleep in the parks, or in the streets, and, but for the friendly exertions of a benevolent lady, Mrs. Chisholm, who obtained employment at different times for about two thousand of them, their position would, indeed, have been wretched.