Prices of all sorts of things throughout Melbourne are somewhat above London figures, but they have been established a long time and nobody complains of them.

Our friends continued their walk to the Yarra River, up whose waters Batman and Fawkner sailed when they came here to found the city. Its native name is Yarra-Yarra, but the double word is rarely used by the inhabitants of Melbourne in speaking of the stream. Of itself, it is not a river of much consequence, as originally all but very small vessels had difficulty in ascending it. It has been dredged and deepened, so that craft drawing not more than sixteen feet of water can ascend it to Prince’s Bridge, the spot where our friends reached the stream. Vessels requiring more water than that must remain at Fort Melbourne, about three miles further down. There are several other bridges crossing the river at different points. Near Prince’s Bridge our friends saw several passenger steamers crowded with people, on their way to their homes down the bay.

On their return towards the hotel our friends loitered among the shops, and especially among those in what are called the Arcades, of which there are four, modeled after the Arcades of London and the “Passages” of Paris. They are delightful places to lounge in, whether one is in search of purchases or not, and the three strangers were in no hurry to get through them.

One of the arcades is known as the Book Arcade, and the shops inside of it are almost wholly devoted to the sale of books. Harry remarked that he judged the Melbourne people to be a reading one, otherwise there would not be so much space devoted to the sale of books. The youths had a brief conversation with one of the proprietors, who told them that it was one of the largest book stores in the world, in fact, he did not know of any other as large as that. “We can give you anything you want,” said he; “everything is so arranged that we know just where to lay our hands on any book that a customer wants.”

Melbourne is a great source of supply for all the interior of Victoria. In the wholesale shops there were great quantities of goods intended for up-country use. “There were,” said Harry, “tons and tons of clothing destined for the mines or for sheep and cattle runs, and great quantities of tea, sugar, and other provisions, together with saddlery, harnesses, and ironmongery in great quantity and variety.”

“We observed,” wrote Ned, “that between every two wide streets there is a narrow street running in the same direction. I believe you will find the same arrangement in many parts of Philadelphia, and also in the new part of Boston. The original intention of the surveyor was that these small streets should be used as back entrances for the buildings on the larger ones, but this intention has not been carried out in the development of the city. Formerly these narrow streets took the name of the wide ones, with the prefix ‘Little’; for example, the one between Collins and Bourke Street being known as Little Collins Street. Most of them are now called lanes, and are spoken of as Collins Lane, Latrobe Lane, and the like, and many of them are devoted to special lines of trade. Flinders Lane, between Flinders and Collins Streets, is the principal locality of the wholesale dealers in clothing, and Bourke Lane is largely occupied by Chinese. We are told that the renting prices of stores along these lanes are very high, probably greater than either Batman or Fawkner ever dreamed they could be in their wildest moments.

“When we returned to the hotel we found an invitation for us to dine at one of the clubs, the gentleman who gave the invitation having called during our absence. We dressed as quickly as possible, and went at once to the club house, where we dined on the best that the city afforded. Melbourne is a great place for clubs, quite as much so as London or New York. Nearly everybody belongs to a club, and many gentleman have two, three, or more clubs on their lists. Nearly all of the clubs have lodging rooms for bachelor members, and the popularity of the institution is shown by the fact that most of these rooms are constantly occupied.

“Life at a club is somewhat expensive, though less so than at a first-class hotel. One gentleman probably stated the case very clearly when he said that life in a club house is pretty much as each individual chooses to make it. He could live economically or expensively, according to his preference. He could dine on the choicest or on the plainest food, and could entertain liberally or frugally. ‘There is no necessity,’ he added, ‘for a man to waste his money because he lives at a club, but there is no denying the fact that a club affords temptation and opportunity to do so.’

“During dinner the subject of horse racing came up, and our host said that he did not believe there was any city in the world where so large a proportion of the population was interested in equine sports as Melbourne. ‘On Cup Day,’ said he, ‘that is, on the day of the annual race for the cup which is given by the city of Melbourne, people come here from all parts of Australia.’

“‘Everybody who can afford the time and expense is reasonably sure to visit Melbourne, and a great many come here who can hardly afford to do so. Hotels and lodging houses are crowded to their fullest capacities for several days before the great event. When Cup Day comes, it is like the Derby Day in England. Half the population of Melbourne goes to Flemington, when the race is run, and nearly all the scenes of the great Derby Day in England are repeated. The winner of the Melbourne cup is greeted with the heartiest cheers at the close of the race, and if he is put up for sale on the spot, he is sure to bring an enormous price.’