That the colonists should have been thus forced during so long a period, in spite of all their efforts, and contrary to the desire of their government, to tolerate a medium of circulation possessing no intrinsic value whatever, and dependent solely on a general, constrained, and tacit consent for its support and duration, is, I should apprehend, one of the most forcible proofs which it is in the nature of things to adduce, in illustration of their present poverty and wretchedness. It is impossible to offer a more satisfactory demonstration of the inferiority of their means to their necessities. Important under every point of view as is the establishment of a safe currency, such is the irresistible pressure of their debts, so much is their expenditure superior to their revenue, that they can devote no portion of it to the most urgent purpose of domestic economy: the whole is absorbed, and does not suffice to procure those articles of foreign supply, which are absolutely indispensable to civilized life.

By the last intelligence from the colony it appears, indeed, that a company has undertaken the establishment of a colonial bank, and obtained a charter for this purpose from the governor; but I should imagine they cannot possibly succeed in creating a permanent medium of circulation. The constant run that their bills will have on them for payment, in consequence of the imports of the colony being so much greater than its income, will soon occasion them to exchange the whole of their capital for the mortgage securities on which they at present issue it; and although this circumstance will not perhaps detract from the profits of this institution, it will render the toleration of the existing currency, if not of undiminished, still of indispensable necessity.* The introduction, therefore, of a safe and sufficient medium of circulation may be still pronounced a desideratum, and one of the first importance to the general prosperity of the colonists. The government in their present distressed situation, is perhaps the only power competent to the accomplishment of this beneficial object, and it is to be hoped that they will no longer delay effecting such a great and substantial amelioration.

[* This is an event which the colonists do not appear to anticipate. It is the general belief that the colonial currency has been crushed for ever; but I am greatly mistaken if that vile medium of circulation will not again revive before the expiration of another twelve-month, unless either the capital of the bank be greatly increased, or its operations be in future confined to the discounting of bills at a short date, to the utter exclusion of the system of advancing money on mortgage securities.]

Amidst the numerous deplorable consequences that have been attendant on this constant state of embarrassment, none perhaps is more deeply to be lamented than the great check which this difficulty of finding a profitable occupation for labour has proved to the progress of population. Mr. Malthus, who has immortalized himself by his essay on this branch of political economy, has so satisfactorily shewn that the increase of population is proportioned to the facility of procuring subsistence, and administering to the various wants of a family, that it is quite unnecessary for me to repeat arguments with which every one ought to be familiar, to prove that this colony has not been exempt from the destructive influence of causes whose operation has been steady and invariable in all ages and in all countries. The inference that this difficulty has been a preventive to marriage, and to the consequent progress of population is self-evident: to be understood it only requires to be stated. But the numerical increase of the colony has been checked in a still greater degree, perhaps by the constant returns from its shores which are daily occasioned by the same causes. What inducement, in fact, exists for any person to remain there who has the power of quitting it? Who would voluntarily become an inhabitant of a country where he has no rights, no possessions, that are sacred and inviolable? And where to this insecurity of person and property are superadded the greatest impediments to the extension of industry? A country of this kind, it may be easily imagined, possesses no allurements for those who have ever breathed a freer atmosphere; and it is not to be wondered at, that hundreds of convicts on the expiration of their several terms of transportation should be continually leaving a country, where the freeman and the slave are alike subjected to the uncontrolled authority of an individual; where the trial by jury is unknown, and an odious military tribunal substituted in its stead; and where there is no representative body to protect them in the enjoyment of their rights, and to secure them either from the imposition of arbitrary and destructive taxes, or from the influence of unjust and impolitic laws.

How far these two great checks to population which I have just mentioned, have operated, may be best ascertained from the last census taken in the colony in the month of November 1817. At that time it appears that the population of all the settlements, whether in New Holland or Van Diemen's Land, amounted only to twenty thousand three hundred and seventy-nine souls. It is not in my power to obtain returns of all the convicts who have been landed at various times in this colony; but as it is now about thirty years since the period of its foundation, very little doubt can be entertained that the total of them must have nearly equalled the amount of the actual population.* The number transported thither for some years past cannot be estimated at less than two thousand annually; yet notwithstanding this vast yearly numerical accession, notwithstanding the unparalleled salubrity of the climate, and the consequent small proportion which the number of deaths bears to the number of births, the population of the colony has been found to advance at a comparatively slow pace. It cannot be supposed that it could ever have been in the intention of the government, that those persons whom the sentence of the law had exiled to these remote shores, should thus be incessantly returning to those scenes, which had witnessed their former irregularities and condemnation. However sincere their reformation, it must be evident that with a blemished character, the difficulty of obtaining employment and procuring an honest livelihood, would be almost insuperable. It has been accordingly found that these unfortunate persons have generally renewed their ancient habits, and ended their career either by falling sacrifices on the scaffold to the often violated laws of their country, or by imposing on the government a necessity for the second, and in many instances for the third time of re-transporting them to this colony, where, if sufficient encouragement and protection had been afforded them in the first instance, they would have gladly remained, and have continued good and useful members of society.

[* This conjecture has been verified by a publication which has lately appeared from the pen of the Honourable Henry Grey Bennet, M. P. intituled, "A Letter to Lord Viscount Sidmouth on the Transportation Laws; the State of the Hulks, and of the Colonies in New South Wales." From this it appears that from May, 1787, to January, 1817, the number of convicts transported thither amounted to seventeen thousand; so that the entire increase which has taken place in the population in the course of thirty years, both from emigration and births, cannot be estimated at more than four thousand souls, so numerous have been the returns of convicts after the expiration of their sentences.]

It is here but candid to confess, that one of the leading causes why so many of this class are continually quitting the colony, has been their desire to rejoin their wives and families. This motive, however, no longer exists; since in a dispatch from the noble secretary of state for the colonial department, to Governor Macquarie, of which the receipt has been for some time past acknowledged, it was directed that "returns should be occasionally sent home of such convicts as may have applied for permission for their wives to join them; and that it should be therein stated whether such persons have the means of maintaining their wives and families, in the event of their being allowed to proceed to the colony." Measures have been already taken to carry the humane intention here manifested by his majesty's government into effect; and many hundreds who would otherwise have quitted the colony, will now remain there, and thus both the permanency of their reformation will be guaranteed, and the march of colonization greatly accelerated. Generous Britain, not more renowned in arts and arms, than in mercy and benevolence; may thy supremacy be coeval with thy humanity! Or if that be impossible; if thou be doomed to undergo that declension and decay, from which no human institutions, no works of man appear to be exempt, may the records of thy philanthropy hold the world in subject awe and admiration, long after the dominion of thy power shall have passed away! May they soften the hearts of future nations, and be a shining sun that shall illuminate both hemispheres, and chase from every region of the earth the black reign of barbarism and cruelty for ever!

While the existing system of government is thus rapidly undermining the general prosperity and freedom, and presenting the greatest checks to the progress of colonization, it is but natural to conclude from the pertinacity with which it is maintained, that it is at least productive of some beneficial results to the power to which it owes its origin and existence. It were a species of political anomaly to suppose that any order of things diametrically opposite to the interests of the governed, should be persisted in, unless it were attended with some positive advantage to the governors. Ridiculous, however, as in every case perhaps but the present such a supposition would be, it is verified in the instance of this colony; since the system pursued there, is not only destructive of the vital interests of the inhabitants at large, but at the same time, burdensome to this country, and contraventory of the very intentions with which this settlement was established. This assertion I shall shortly prove, and then leave it to more sagacious politicians than myself, to demonstrate the consistency of what appears to me the most absurd and incongruous paradox that is to be met with in the history of governments. And first that the present system is burdensome to this country, and what is worse, must become every year still more so, is evident from the gradually progressive augmentation which has taken place in the expenditure of this colony. From 1788 to 1797, the total expence was £1,037,230, or £86,435 per annum; from 1798 to 1811, it amounted to £1,634,926, or £116,709 per annum; and from 1812 to 1815, both inclusive, to £793,827, or £198,456 per annum. In 1816, the expence was £193,775 10s. 8¾d. and in 1817 it was £229,152 6s. 3¼d. being nearly treble the annual amount in the year 1797. This estimate, indeed, includes the cost of transportation; and the rapid increase that has taken place of late years in the sum total, has been in a considerable degree occasioned by the great increase in the number of criminals sent out to the colony; but still that there has been a regularly progressive augmentation to the internal expenditure is quite incontrovertible.

It requires no great portion of discernment to foretel that while the present prohibitory system remains in force; while the colony is alike prevented from profiting by its natural productions, and from calling into life the artificial ones of which it is capable, that it must continue an increasing burthen and expence to the power on which it is dependent for support, and which thus unwisely restrains its exertions. If the consideration of the benefits which this country might eventually derive from encouraging the growth and exportation of such products as this colony might furnish; if the prospect of finding at no very remote period in a part of our own dominions, various raw materials essential to the fabrication of some of our staple manufactures, and for which we are at present wholly dependent on foreigners; if, in fine, the certainty of extending, instead of destroying, a market for the consumption of those manufactures themselves, be not motives of sufficient weight and cogency to draw the attention of his majesty's ministers to the impolitic and destructive order of things, which prevents the accomplishment of these desirable ends; it is at least to be hoped in these times of universal embarrassment, when the cry of distress is resounding from one end of the kingdom to the other, that the desire of effecting a retrenchment in this part of the public expenditure, which has swelled to so enormous an amount, solely from ignorance and mismanagement, will at length excite inquiry, and give rise to a system that will unfetter the colonists, and by gradually enabling them to support themselves, no longer render them an unproductive and increasing burden to this country. It is useless, and indeed absurd, for the government to be sending out incessant injunctions for economy, and to be eternally insisting upon the necessity of effecting retrenchments, which their own impolitic restrictions render impossible. The addition which is annually made to the population of the colony must occasion a corresponding expenditure on the part of the colonial government. The convicts, who are transported thither, were maintained at a great expence while in this country, and cannot be supported without cost there. So long as the avenues to industry and enterprize are closed, it is ridiculous to imagine that the colonists can undertake the maintenance of a body of men, for whose labour they can find no profitable occupation. The expence, therefore, of supporting the great mass of convicts who are constantly arriving in this colony, must necessarily increase in spite of all the exhortations of the government, and all the efforts of the governor, whoever he may be, to carry them into effect. The present governor, indeed, has contrived in some measure to comply with these recommendations of retrenchment with which he has been harrassed; but his obedience has been attended with the adoption of a most pernicious and indefensible system, that of granting too promiscuously tickets of leave to convicts, before sufficient time had elapsed for ascertaining the reality of their reformation, and their title to so important an indulgence. This privilege, which exempts them from the public works, and enables them to seek employment in every direction throughout the colony, it may be perceived, turns loose a set of men, who had been solemnly pronounced to be improper and dangerous members of society; and affords them an unrestrained opportunity of preying upon the industrious and deserving, and of committing fresh enormities, before they have made the atonement affixed to their original offences, and required not more to uphold the distinction which ought always to be drawn between virtue and vice, than from a due regard to their future welfare and regeneration. It is principally to the introduction of the ticket of leave system that the considerable reductions which have been effected of late years in the expences of the colony are to be ascribed. How far this most pernicious and immoral system has been carried, may be seen by reference to the colonial expenditure for the four years anterior to 1816. In 1812 it amounted to £176,781; in 1813 to £235,597; in 1814 to £231,362; and in 1815 it had fallen to £150,087. In the two following years, indeed, it has been seen that there has been a considerable increase of expenditure; but still such has been the extension of the ticket of leave system that notwithstanding four thousand six hundred and fifty-nine convicts were transported between January, 1812, and January, 1817, the expences of the colony for this latter year were £6445 less than for the year 1813; those of 1817 only amounting to £229,152, while those of the year 1813 were £235,597. This violent and unjustifiable mode of retrenchment, however, has not been put into such extensive practice with impunity: it has been attended with its natural and inevitable results, a proportionate increase of demoralization and crime. The proof of this assertion I shall rest on the following government order:--"Sydney, 30th August, 1817. In consequence of the frequent robberies which have been of late committed between Sydney and Paramatta; his Excellency the Governor deems it expedient earnestly to recommend to persons in general to travel only during the day time, and particularly to those who have the charge of loaded carts, to set out from Sydney and Paramatta respectively so early after sun-rise as to be enabled to reach the place of their destination before sun-set. And with a view to afford all possible protection to travellers, his Excellency directs the principal superintendant of police at Sydney from and after Wednesday the 3d of September next, to order two constables from thence to patrole the road every night between Sydney and Powell's Half-way House; and in like manner the principal magistrate at Paramatta to order two constables from that place to patrole the road every night between Paramatta and Powell's Half-way House. The duty of such constables to commence at sun-set and cease at sun-rise, until further orders. "The magistrates are particularly enjoined not to grant passes to convicts either having tickets of leave or otherwise, excepting on actual duty, or in cases of real emergency where the object is satisfactorily explained to the magistrate." This injunction to the magistrates not to grant the ticket of leave-men passes except under particular circumstances would afford the public very little additional security against their depredations; since their total exemption from public or individual employment, places them out of all restraint except such as may arise from the surveillance of the police, which even in Sydney is badly organized, because not sufficiently numerous, and to which in the interior towns and districts it would be a farce to apply the name of "Police" at all.

I am aware that the governor has been induced to this measure in compliance with positive instructions, rather than in conformity with his own judgment. But a system in such direct violation of every principle of justice, morality, and expediency, can never be long tolerated. Its continuance, in fact, would soon annihilate all industry, and convert the colony into a den of thieves and murderers, unfit for the abode of virtue and honesty, and dangerous to the government itself which had authorized it.--It is an extreme which cannot endure, and which is of so violent a nature that it will beget a remedy for itself, and compel the government to recal into its employment, and reduce under salutary restraint, a set of persons, who ought never to have been freed from it till the expiration of their sentences, or, at most, till they had given the clearest proof of a sincere reformation. This system, therefore, of granting tickets of leave to convicts shortly after their arrival, though undoubtedly attended with a considerable saving to the government, is of too immoral and dangerous a tendency to be carried to any considerable extent; so that the expences of the colony great, unnecessarily great as they are, must infallibly increase with the progress of transportation, so long as the grievous disabilities and impolitic restrictions under which the colonists are groaning, remain unrepealed.