He was succeeded by Mr. Philp, who assumed office on 7th December, 1899. There had been a drought in most parts of the West for a year or two previously, but wool prices were high, and better seasons were anticipated. The country had almost recovered from the blow sustained in 1893. Federation threatened some loss of revenue, but compensation was looked for in the enhanced prosperity resulting from interstate free trade. But for the two first years of the twentieth century there was everywhere in the State a very deficient rainfall, and in most inland parts absolute droughts. The double loss to the Treasury through Federation and parsimonious Nature was very serious. Mr. Philp made reductions in public service expenditure, but kept loan expenditure at the normal level, sanguine that when the change came there would be a swift recovery, and hesitating to add to the depression by suspending the construction of railways and other public works. Though by the end of June, 1903, the accumulated deficit exceeded a million sterling, and the general election of 1902 had given the Government a rather diminished majority, there appeared to be no apprehension of a crisis even when Parliament met for its second session in July, 1903. But the weight of successive deficits and the protracted tenure of the "Continuous Ministry" inspired a general desire for change; and, in September, Mr. Philp suddenly found himself without adequate support as the result of a number of influential Government supporters joining forces with the members of the Labour party.
A new Ministry was at once formed, the Speaker, Mr. Arthur Morgan, resigning the chair and assuming the Premiership, Mr. William Kidston joining him as Treasurer. With a policy of retrenchment and reform the new Administration entered upon its career sustained by a strong backing of public opinion. Retrenchment had already been initiated by the late Government, and it was continued by Mr. Morgan and his colleagues. The bottom of the depression having been touched with the break-up of the drought, the financial year 1903-4 closed with a merely nominal deficit. In the next session, which opened in May, 1904, the Government encountered so much opposition that a dissolution was granted in July. So strongly were the constituencies in favour of the retention of office by Ministers that their party numbered 55 in a House of 72 when the new Parliament met in September, and the Government in that and the three following sessions were accordingly able to carry many of their measures of reform.
In January, 1906, the death of Sir Hugh Nelson created a vacancy in the Presidency of the Legislative Council. The Premier, who had earned a reputation during his four years' occupancy of the Speaker's chair for an intimate and comprehensive knowledge of parliamentary procedure, was generally designated as peculiarly fitted to succeed to the position of President; and, having resigned both the Premiership and his seat as a member of the Assembly, he was translated to the Legislative Council.
Mr. Kidston then became Premier. On the 11th of April, 1907, the Assembly's term having almost expired by effluxion of time, a dissolution took place, and a general election followed. The two chief objects for which the coalition between Liberals and Labour members had been brought about in 1903—sound financial administration and electoral reform—having been secured, disintegration had commenced to set in in the Government ranks. On the one hand some of the Liberals were desirous of reunion with their former associates led by Mr. Philp, and on the other the more extreme section of the Labour party adopted a socialistic platform, thereby causing their more moderate colleagues who followed Mr. Kidston to break with them before the election. The respective manifestoes of the Premier and the leader of the Opposition, issued some weeks before the dissolution, were found to embody practically the same policy in so far as vital measures of legislation were concerned. Both emphasised the necessity of having in office a Ministry possessing the steadfast support of a united following if full effect were to be given to their programme. The result was disappointing, for when the new House met in July the Philp party numbered 29, the Government party 25, and the Labour party 18. After a fight over the choice of the Speaker and Chairman of Committees, the Labour members gave a general support to the Government, but comparatively little progress could be made in consequence of the uncertainty of that support. The Legislative Council rejected several measures which both the Government and the Labour party were very anxious to see placed on the Statute-book. With a view to taking concerted action to overcome the veto of the Council on democratic legislation, Mr. Kidston made overtures to the Labour party for an offensive and defensive alliance in Parliament and at the polls. The Labour party replied that they were unable to give any assurance on the subject. Mr. Kidston then advised His Excellency, Lord Chelmsford, to recognise the principle that there resided in the Crown the power to nominate to the Legislative Council such a number of new members as might be required to overcome obstruction, and that the power should be exercised if, in the opinion of His Excellency's responsible advisers, such a course became necessary. The Governor declined to accept this advice, and the Premier resigned on 12th November.
ROCKHAMPTON 1. Quay Street, from the North Side.
ROCKHAMPTON 2. Custom House, Quay Street.
ROCKHAMPTON 3. East Street.