One great reason why the squatter is better off now than he ever was before is that capital has confidence in the occupation. Thus the individual is more secure than he was. And large institutions have been formed that make it their business to finance for the squatter. These institutions have their one, two, or three millions of English and Scotch capital, and they are managed by men of great colonial experience, who know it is bad policy to do other than support a deserving pioneer right through. Their capital is indeed subscribed for the purpose of making stations drought-proof, and their record shows that the system is highly profitable. An enormous amount of the annexation of the desert which is now going on has English and Scotch gold as its basis; and this union of home capital and of colonial enterprise is as happy and as effectual a form of federation as can be desired.

The following remarks on squatting are contributed by [Mr. G. A. Brown], author of the standard work, Sheep Breeding in Australia: 'It is curious that the first settlers in Australia firmly believed the country to be quite unfitted for rearing wool-bearing sheep. For fully a quarter of a century the hairy sheep of India and the Cape of Good Hope were bred by the colonists; and it was not till Captain McArthur sold Australian grown merino wool in the London market at the rate of 5s. per lb., that the sheep-owners became aware of the splendid industry that awaited development. Merino sheep then became the rage, and large sums of money were spent in importing the finest specimens of the breed from the purest flocks in Germany. In a few years Australia took her place at the head of the list of fine wool-producing countries, and has held it ever since. The world never before saw merino wool so soft, so bright, or so long in staple. It produced a revolution in the manufacture of woollen fabrics, and it brought within the reach of the artisan cloths of a quality that only the wealthy could afford in the previous century. This great work has been effected by the Australian squatters.

A Merino Sheep.

The management of live-stock in the old squatting days was thoroughly patriarchal. The sheep were kept in flocks varying from 800 to 2000 head, according to the character of the country, tended all day by shepherds, and inclosed at night in hurdle yards. As a further protection against lurking blackfellow or prowling dingo, a man slept in a small wooden portable cabin, called a watch-box, close by the sheep. It was no uncommon thing for the men to be roused up two or three times during the night; but, as they had plenty of time to sleep during the day, this was thought no great hardship. The shepherds led an inexpressibly dreary life; they were out at daybreak, and, having turned their sheep in the proper direction, they followed them all day, seldom exchanging a word with a human being till they returned to the hut at night. Many of them became eccentric, or, as the working bushmen called it, "cranky," and were quite unfit for any other occupation. As the stock increased, the whole flock could not be fed from the home station, round which the grass was usually reserved for the horses and working bullocks; huts were then erected from three to ten miles or even farther away, according to the size of the station or run, as the leaseholds were called. At these huts, known as out-stations, generally two flocks of sheep were kept, a hut-keeper being employed to cook for the shepherds and shift the hurdle yards every day, so that the sheep might have a clean bed.

'In the old days the country was all unenclosed from one end to the other. Vehicles were scarce—there were few coaches, and occasionally a gig would be seen on a main road. The ordinary mode of travelling through the country was on horseback. On arriving at a station the usual plan was to ride up to the principal hut, ask for the proprietor, and announce your name; an invitation to stay all night followed as a matter of course. Hospitality was a duty that was most religiously performed by almost every squatter. There were a few exceptions, and they were branded with the prefix of "hungry" attached to their names, and, being known, were avoided alike by horsemen and footmen.

'Improvements in bush life were being steadily made when the discovery of gold brought the country prominently under the notice of European countries. The old pastoral life, with all its rustic charm and quietude, disappeared as thoroughly as if it had never been. In the rush and turmoil that ensued many of the old squatters were ruined, while others, more lucky, succeeded in making immense fortunes. Over the greater portion of Victoria and a considerable area of New South Wales the land has been converted into freeholds, and squatting is confined to Queensland, and the vast sultry plains of Northern, Central and Western Australia. In these countries the areas held under leasehold from the Crown are of immense size, many of them being capable of carrying 300,000 sheep in good seasons. These great runs are all fenced in and subdivided by wire fences. The sheep are run in paddocks often containing over 20,000 acres. As there are few watercourses the stock are watered by means of immense excavations, called tanks, containing an area of 10,000 cubic yards of water when filled. Large as they are many of them were dried up by the long drought of 1885 and 1886. The result has been that the holders of these great pastoral properties have suffered heavy losses. I passed by one cattle station in Queensland, four years ago, on which 60,000 head of cattle were grazing. Since then, so severe has been the drought, the stock has been reduced by deaths from starvation to 20,000 head. The deaths of stock on the sheep stations in the same district have been equally heavy. When the seasons have a fair average rainfall in these hot districts everything goes well, and squatting is the most profitable occupation in the colonies, but when a series of dry years set in the squatter's lot is a heartrending one. He can do nothing for the poor creatures he sees slowly starving to death, while overhead, month after month—ay, and year after year—there is the cruel clear sky and the bright hot sun steadily withering up all life. The birds and wild animals die in thousands, and the few that still live are so feeble that their wild nature seems gone out of them. This last drought is not an exceptional event. Since Central and Northern Australia have been known, the country has suffered from periodical droughts; but every year the skill of the squatter is exercised in providing fresh supplies of water for his stock, and that is the great requisite in this climate. Given a good supply of water, and it is wonderful what a little food will keep sheep alive on the plains of Central Australia. I have seen sheep in excellent condition on country that to all appearance was absolutely bare of grass. A stranger would not believe that any animal could support life on such scanty pastures.

'Under the new order of things that followed the discovery of gold many large freehold estates were put together by the old squatters, and then it was found that a different style of management was required to make the properties pay interest on the capital expended on them. The runs were fenced and subdivided, dams were constructed on the watercourses, and where the country was too flat for dams tanks were made for supplying the stock with water. Good houses were built, and fine gardens and pleasure-grounds formed. As the proprietors of these estates became wealthy, they erected houses that for size, style and convenience would rival the pleasant homes of the country gentlemen of England. Often in a country that a score of years ago was considered a remote district in the back country, one will now meet with a handsome mansion surrounded by extensive gardens, pleasure-grounds and plantations. Where in the old squatting days water was often very scarce, there is now ample to irrigate a garden, and indeed water is usually laid on all over the modern squatter's establishment.

'Over a large area of New South Wales and Victoria the surface of the country was covered by a dense forest of the eucalypt called the box-tree. They were of medium size, and their timber was of little or no value. Having surface roots, they robbed the soil of all substance, and the result was that the box-forest country was always bare of grass. It was noticed by a few observant bushmen that the soil in these forests was excellent, and a few experiments were made in the way of clearing the land. The result was satisfactory, but felling the trees was too expensive to practise on a large scale, while the stumps were very apt to throw up a number of vigorous shoots that did as much harm as the parent tree. What use to make of the box-forest country was a puzzle, and most people regarded it as worthless. At this time a firm of squatters astonished their neighbours by purchasing a block of 20,000 acres of box-forest, at £1 per acre, that the Surveyor-General of the colony declared was not worth 2s. 6d. per acre. The plan they adopted for killing the box-trees was one that had only lately been tried. It consisted in cutting a notch round the tree through the bark and into the sap wood, to prevent the sap rising. This plan, called 'ring barking,' when performed at the proper season, effectually kills the tree, and it has since come into general practice all over Australia. I have ridden over the estate in the box-forest that was formed by the squatting firm mentioned, and where, years ago, there was not a blade of grass to be seen, is now a fine pasture, that even in indifferent years will keep a sheep to the acre.