The arguments advanced by the Northern and Central separationists are similar in character, and if recognised as valid in the case of the Centre, must be doubly so when applied to the North, owing to its greater distance from the capital and the difficulty of communication with many of its outlying districts. The boundaries adopted by the separationists are those laid down by the Real Property (Local Registries) Act of 1887, under which the Province was divided into three parts, of which the Northern contains 255,000, the Central 223,000, and the Southern 190,000 square miles.

The claims of the Centre, to which I have been able to give more attention, as I spent some time in that district, are based not only upon alleged unjust apportionment of expenditure, defective administration, and financial hardships endured under the protective tariff for the benefit of Southern manufacturers, but upon the inherent and inalienable right of a community of free British people. It is pointed out that Central Queensland is in a more advanced position than were Victoria and Queensland at the time of their separation from New South Wales; that it returns less members than the city of Brisbane and the country within a radius of ten miles of it; and that the Northern and Central members, even if unanimous in favour of separation, would only number twenty-seven as against the forty-five representatives of the South, and are bound, apart from the constitutional aspect of the question, to look to the intervention of the Imperial Government. The most important utterance from this source is the reply of Sir Henry Holland, now Lord Knutsford, to the Northern deputation, in the course of which he said that "there is no instance of recent years, since the Colonies attained the greatness they have, of the Imperial Legislature passing an Act interfering with the administration of one of those great Colonies, except at the request of the Colonial Government. Therefore I say it is difficult, if not undesirable, to deal with such a question as this unless we have the authority, on a desire expressed on the part of the Colonial Legislature, or unless there is some case made out which is absolutely overwhelming;" and Mr. Chamberlain recently stated, with reference to Central separation, that, even if local agreement had been reached, the difficulties and risks attending any attempt to divide the Province were, under existing circumstances, very great. He clearly appreciated the hostile feeling that would be aroused throughout Australia by any interference on the part of the Imperial Authorities with the internal government of an Australian Province. As the separationists do not hope to obtain a majority in the Queensland Assembly, they are likely to be ardent advocates of Federation, especially if a clause be inserted in the Constitution which would enable the Federal Government to subdivide a Province without the consent of its Parliament.

The Southern members are influenced by the fear that, under separation, they would lose the Northern and Central markets. To meet this objection, a resolution was moved in the Assembly by one of the members for Rockhampton that the separation of Central Queensland was desirable, but on such terms that the interchange of natural products between the two Provinces should continue to be free from tax or duty; but the proposal, which was seen to be fraught with endless difficulties, has not been regarded seriously. The question has also arisen in what manner the liability for the public debt would be distributed in the case of separation, but it is contended that the matter would be settled under the Imperial Act of 1861, under which both Provinces would jointly be liable for the whole debt, and machinery is provided for arbitration as to the proportion of it which would be borne by each of the Provinces.

The necessity for some form of decentralisation has been recognised, and partially acted on, by successive Ministries since 1877, when a Royal Commission was appointed to inquire into the best means of bringing about a more equitable distribution of the revenue. The system of Local Government, introduced in 1878 and extended in the following year to rural districts, lessened the direct control exercised from Brisbane, and handed over to elective Municipal Councils and Divisional Boards the expenditure of the revenue raised for local purposes. In 1887 local registries of titles to real estate were established at Townsville and Rockhampton, and Sir S. Griffiths introduced a Financial Districts Bill, to divide the Province into three districts and to provide for separate accounts of revenue and expenditure. The Bill was not passed, but separate returns have since been published, which do not, however, give a full statement of the contributions of the different districts to the revenue. In 1892 the same Minister introduced a Constitution Bill, in which he proposed to place Queensland under a federal system of Government, a General Assembly of the United Provinces, and three Provincial Parliaments. In the course of discussion the number of Provinces was reduced from three to two, to the exclusion of the Centre, which was to retain its connection with the South. The Bill passed the Assembly, and was thrown out by the Council, principally on the ground that it had not been supported by the statutory two-thirds majority. The Central Separationists were naturally opposed to the Bill in its amended form, and public opinion in the North was equally hostile. It was pointed out that the expenses of government would greatly be increased, even more than under territorial separation, and that the powers of the Provincial Parliament would be so limited, in the absence of control over the railways and the customs tariff, that the North would not enjoy the enhanced prosperity which, under an entirely separate Government, would make it indifferent to the additional expenditure. The appointment of a judge of the Supreme Court to reside at Townsville, and, since last year, at Rockhampton, has lessened the expenditure and loss of time involved in legal proceedings initiated in the Northern and Central Districts. In the Ministerial measure dealing with the election of delegates to represent Queensland at the Australian Federal Convention, which failed to become law owing to an insoluble deadlock between the two Houses, it was proposed that, of the ten delegates, three should be elected by the Northern and two by the Central Parliamentary Representatives, a greater proportion than would be warranted by their respective populations as compared with that of the South. The Premier, Sir Hugh Nelson, defended the liberality of this proposal on the ground that "it is of the utmost importance that in any federal constitution provision should be made for the division of existing Colonies and the terms on which such divisions shall take place;" adding that "the Northern and Central districts have a perfectly legitimate aspiration: they are looking forward to the day when they will be formed into separate states."

The above remarks embody the views of many South Queenslanders who look forward to eventual separation, but are not prepared to advocate it at present; the Central separationists, on the other hand, contend that the question is ripe for immediate settlement, and, as a proof of popular feeling in the matter, point out that ten out of the eleven representatives of Central Queensland are pledged to separation, and that numerous petitions were handed to the late Governor, Sir Henry Norman, on the occasion of his tour through the district. Personal observation and inquiries directed to all with whom I came in contact, have convinced me that the enthusiasm for separation is greatly on the wane in the Centre, owing to the strength of the Labour Party, which, in 1896, carried a majority of the Central seats, and to the inevitable reaction which succeeds a period of excitement. The owners of property and tradespeople of Rockhampton have everything to gain by a change which would make their town the capital of a province; the miners at Mount Morgan and the shearers are indifferent, though the latter, judging from a conversation which I had with some twenty of them, have a vague idea that under separation the Labour Party, of which they are supporters, would be in a stronger position; and the pastoralists, who direct the principal industry of the community, are practically unanimous in their opposition: they have obtained the railway which has opened up the Western Downs, and they dread the predominance of the Labour Party and of Rockhampton, the inhabitants of which, they maintain, have shown little regard for their interests.

As regards the feeling in the North, I have been told by one of the Northern members, himself a supporter of separation, and by others, that the agitation is at present dormant. The election of local men has been promoted by the payment of members; previously most of the Northern representatives were inhabitants of Brisbane, who were out of touch with the feelings and interests of their constituents. Material and political considerations also have exercised great influence. The sugar planters, ardent advocates of separation as long as the importation of coloured labour was forbidden, have been staunch supporters of the Union since the removal of the prohibition and the passage of the Sugar Works Guarantee Act. On the other side, the Labour Party, who share in the hatred of coloured labour which is common to the working classes throughout Australasia, opposed separation while it was likely to lead to its legalisation, but have been encouraged by their present strength, the tenure of seven seats out of sixteen in the Northern district, in the belief that, if they obtained separation, they might hope again to exclude it, and would have an opportunity of giving effect to their general political views.

The "Kanaka" question has been so fully discussed in the press and in numerous pamphlets, that the Imperial and Provincial Acts, which first aimed at the protection of the islanders, may be dismissed with the remark that they are admitted in Queensland to have had abundant justification. The conditions have been made successively more stringent until, at the present time, it is almost impossible that any Kanakas should be taken against their will, ill-treated on the voyage, or oppressed upon the plantations. Government agents, to give a brief summary of the Acts, accompany all recruiting vessels and are bound to see that the islanders understand the nature of the agreement into which they are about to enter, as to rate of payment, and duration of service; that every return passenger is duly landed along with his property at his own village or district, and that the islanders receive the prescribed provisions and clothing on the journey, and are otherwise treated in accordance with the regulations. Inspectors receive the vessels upon their arrival in Queensland, superintend the signature of the agreements, and, generally, are responsible for the welfare of the labourers during their residence in the country. In the case of sickness employers are bound to provide proper medicine and medical attendance, and they may be called upon to contribute towards the maintenance of a hospital. The contentment of the labourers may be inferred from the fact that a large proportion re-engage themselves upon the expiration of the term of three years, and that, of the 1,305 who were landed during the year 1895, 250 had previously been employed in Queensland. As the result of frequent intercourse, the conditions are well known in most of the islands from which the labourers are recruited. According to official figures, the number of islanders in Queensland increased in 1895 from 7,853 to 8,163, of whom nearly two-thirds are in the districts of Mackay and Bundaberg; all are employed on the cultivation of sugar, with the exception of a few at Thursday Island, who are engaged in the bêche-de-mer and pearl-shell fisheries.

It would seem that the only valid objection which can now be made against the system, except by those who disagree from the whole thing on principle, is, that it may lead to the gradual depopulation of some of the islands by the withdrawal of a considerable proportion of the adult males of marriageable age. It may be noted, in this connection, that the islanders have also been recruited for Guatemala, if not for other countries.

The mode of cultivation and the treatment of the raw material have been modified during the last few years. At first the cane was grown solely in large plantations, each of which possessed a separate mill and treated only its own produce; but as prices fell and the local demand was overtaken, more scientific methods began to prevail. It was found, on the one hand, that the cane could be treated most economically on a large scale; on the other, that few plantations were sufficiently extensive to keep a large mill at work during the whole season. To meet these conditions, central mills were constructed and the land was in many cases subdivided, and let or sold on a system of deferred payments to farmers, who were encouraged to cultivate it in small areas, and to send their cane to the factories. The interests of the mill-owner and the farmers should be identical; the former is anxious that his mill should be worked to its full capacity, and has every inducement to dispose of his land upon terms favourable to cultivators; the latter have a sure outlet for the disposal of their produce. In 1894, fully 40 per cent. of the 80,000 acres under cane was cultivated in areas of ninety acres and under. An impetus was given to this movement by the temporary prohibition of the importation of islanders, which compelled planters to consider the possibility of an alternative to coloured labour, and by a vote of £50,000, by means of which two central mills were erected for groups of small farmers. The success of these mills induced the Government to pass the Sugar Works Guarantee Act, under which "any company which can give the Government security in land, has the requisite cane crops growing for a fair season's mill work, and can show that it has an area of land capable of supplying the mill with a full crop, can obtain the sanction of the Government to accept a tender for the erection of a factory, the State guaranteeing the interest and the redemption of the debentures issued in payment for it. By this measure the country has not only supplied the means for the steady development of the industry, but has taken, in its belief in the soundness of the enterprise, a direct interest in it. No surer guarantee can exist than this law, that the Parliament of Queensland will in future safeguard the prosperity of an undertaking in which the State has so keen an incentive to protect itself from loss."[[1]] The contingent liability incurred by the State in the year ending June, 1895, was £157,000, and in the preceding year £44,000: the amount is likely to be increased, as the construction of seven additional mills has been conditionally approved of, but, under an amending Act of 1895, is not to exceed a total of £500,000. The Premier sees no reason to suppose that, with proper management, any of the new factories will fail to meet their liabilities to the State.

Under these circumstances the question arises whether coloured labour will permanently be necessary, the answer to which depends upon the ability of the white man to become acclimatised in a tropical country. "If the white man," to quote a prominent Queenslander, "can live and work and bring up his children in the tropics of this continent, then assuredly the time will come when we shall require coloured labourers to cultivate our cane no more than do the continental sugar-beet farmers require coloured men to do their field work. Where can we look for proof of the European's ability to work and live in the heated North? He works on railways and in mines now, but there is an entire lack of evidence that his children and his children's children can continue to do so with unimpaired health and vigour. Again, it has to be seen what will be the normal death-rate in the North. It has been heavy, but we have yet to estimate the lowering of that rate as the malarial swamps are drained, and the dense tropical scrubs cleared away.... Time alone can solve this question thoroughly, though it may be permitted one to say that so far there is ample reason to think that the evidence is accumulating in favour of the European's ability to permanently inhabit and cultivate our tropical lands. There is some satisfaction in noting, for instance, that, despite the increased settlement in Northern Queensland, the death-rate for the Colony has fallen from 22.97 Per 1,000 in 1884 to 12.08 in 1894."[[2]] The rate of mortality among the Kanakas is reported officially to have been 40.62 per 1,000 in 1894, and 29.64 in 1895. Their employment is absolutely prohibited in the mills, and is restricted to certain forms of work upon the plantations. The Government are anxious to replace the Kanakas gradually by white labourers and to settle the tropical littoral with a population of small farmers. This object, however, it is contended, cannot be attained without the temporary employment of coloured labour. Another aspect of the question may be noted: granted that white men cannot at present do all the work upon the plantations, Kanakas are preferable to Orientals, whether Chinese or Japanese, who would remain permanently in the country. Even in Queensland, though less than in the Southern Provinces, such a state of things would be regarded as eminently undesirable.