Early colonization.
Of the six Australian states, New South Wales is the oldest. It was in
1788, eighteen years after Captain Cook explored the east coast, that
Port Jackson was founded as a penal station for criminals from England;
and the settlement retained that character, more or less, during the
subsequent fifty years, transportation being virtually suspended in
1839. The colony, however, from 1821 had made a fair start in free
industrial progress. By this time, too, several of the other provinces
had come into existence. Van Diemen's Land, now called Tasmania, had
been occupied as early as 1803. It was an auxiliary penal station under
New South Wales till in 1825 it became a separate government. From this
island, ten years later, parties crossed Bass Strait to Port Phillip,
where a new settlement was shortly established, forming till 1851 a part
of New South Wales, but now the state of Victoria. In 1827 and 1829, an
English company endeavoured to plant a settlement at the Swan river, and
this, added to a small military station established in 1825 at King
George Sound, constituted Western Australia. On the shores of the Gulf
St Vincent, again, from 1835 to 1837, South Australia was created by
another joint-stock company, as an experiment in the Wakefield scheme of
colonization. Such were the political component parts of British
Australia up to 1839. The early history, therefore, of New South Wales
is peculiar to itself. Unlike the other mainland provinces, it was at
first held and used chiefly for the reception of British convicts. When
that system was abolished, the social conditions of New South Wales,
Victoria, and South Australia became more equal. Previous to the gold
discoveries of 1851 they may be included, from 1839, in a general
summary view.
Rise of New South Wales.
The first British governors at Sydney, from 1788, ruled with despotic
power. They were naval or military officers in command of the garrison,
the convicts and the few free settlers. The duty was performed by such
men as Captain Arthur Phillip, Captain Hunter, and others. In the twelve
years' rule of General Macquarie, closing with 1821, the colony made a
substantial advance. By means of bond labour roads and bridges were
constructed, and a route opened into the interior beyond the Blue
Mountains. A population of 30,000, three-fourths of them convicts,
formed the infant commonwealth, whose attention was soon directed to the
profitable trade of rearing fine wool sheep, first commenced by Captain
John McArthur in 1803. During the next ten years, 1821-1831, Sir Thomas
Brisbane and Sir Ralph Darling, two generals of the army, being
successively governors, the colony increased, and eventually succeeded
in obtaining the advantages of a representative institution, by means of
a legislative council. Then came General Sir Richard Bourke, whose wise
and liberal administration proved most beneficial. New South Wales
became prosperous and attractive to emigrants with capital. Its
enterprising ambition was encouraged by taking fresh country north and
south. In the latter direction, explored by Mitchell in 1834 and 1836,
lay Australia Felix, now Victoria, including the well-watered,
thickly-wooded country of Gipps' Land.
Growth of Victoria.
This district, then called Port Phillip, in the time of Governor Sir
George Gipps, 1838-1846, was growing fast into a position claiming
independence. Melbourne, which began with a few huts on the banks of the
Yarra-Yarra in 1835, was in 1840 a busy town of 6000 inhabitants, the
population of the whole district, with the towns of Geelong and
Portland, reaching 12,850; while its import trade amounted to L204,000,
and its exports to L138,000. Such was the growth of infant Victoria in
five years; that of Adelaide or South Australia, in the same period, was
nearly equal to it. At Melbourne there was a deputy governor, Mr
Latrobe, under Sir George-Gipps at Sydney. Adelaide had its own
governors, first Captain Hindmarsh, next Colonel Gawler, and then
Captain George Grey. Western Australia progressed but slowly, with less
than 4000 inhabitants altogether, under Governors Stirling and Hutt.
Discovery of gold.
The general advancement of Australia, to the era of the gold-mining, had
been satisfactory, in spite of a severe commercial crisis, from 1841 to
1843, caused by extravagant land speculations and inflated prices.
Victoria produced already more wool than New South Wales, the aggregate
produce of Australia in 1852 being 45,000,000 lb.; and South Australia,
between 1842 and this date, had opened most valuable mines of copper.
The population of New South Wales in 1851 was 190,000; that of Victoria,
77,000; and that of South Australia about the same. At Summerhill Creek,
20 m. north of Bathurst, in the Macquarie plains, gold was discovered,
in February 1851, by Mr E. Hargraves, a gold-miner from California. The
intelligence was made known in April or May; and then began a rush of
thousands,--men leaving their former employments in the bush or in the
towns to search for the ore so greatly coveted in all ages. In August it
was found at Andersen's Creek, near Melbourne; a few weeks later the
great Ballarat gold-field, 80 m. west of that city, was opened; and
after that, Bendigo to the north. Not only in these lucky provinces, New
South Wales and Victoria, where the auriferous deposits were revealed,
but in every British colony of Australasia, all ordinary industry was
left for the one exciting pursuit. The copper mines of South Australia
were for the time deserted, while Tasmania and New Zealand lost many
inhabitants, who emigrated to the more promising country. The
disturbance of social, industrial and commercial affairs, during the
first two or three years of the gold era, was very great. Immigrants
from Europe, and to some extent from North America and China, poured
into Melbourne, where the arrivals in 1852 averaged 2000 persons in a
week. The population of Victoria was doubled in the first twelvemonth of
the gold fever, and the value of imports and exports was multiplied
tenfold between 1851 and 1853. The colony of Victoria was constituted a
separate province in July 1851, Mr Latrobe being appointed governor,
followed by Sir Charles Hotham and Sir Henry Barkly in succession.
Responsible government.
The separation of the northern part of eastern Australia, under the
name of Queensland, from the original province of New South Wales, took
place in 1859. At that time the district contained about 25,000
inhabitants; and in the first six years its population was quadrupled
and its trade trebled. At the beginning of 1860, when the excitement of
the gold discoveries was wearing off, five of the states had received
from the home government the boon of responsible government, and were in
a position to work out the problem of their position without external
interference; it was not, however, until 1890 that Western Australia was
placed in a similar position. After the establishment of responsible
government the main questions at issue were the secular as opposed to
the religious system of public instruction, protection as opposed to a
revenue tariff, vote by ballot, adult suffrage, abolition of
transportation and assignment of convicts, and free selection of lands
before survey; these, and indeed all the great questions upon which the
country was divided, were settled within twenty years of the granting of
self-government.[6] With the disposal of these important problems,
politics in Australia became a struggle for office between men whose
political principles were very much alike, and the tenure of power
enjoyed by the various governments did not depend upon the principles of
administration so much as upon the personal fitness of the head of the
ministry, and the acceptability of his ministry to the members of the
more popular branch of the legislature.
General Australian problems.
The two most striking political events in the modern history of
Australia, as a whole, apart from the readiness it has shown to remain a
part of the British empire (q.v.), and to develop along Imperial
lines, are the advent of the Labour party and the establishment of
federation. As regards the last mentioned it may be said that it was
accomplished from within, there being no real external necessity for the
union of the states. Leading politicians have in all the states felt the
cramping effects of mere domestic legislation, albeit on the proper
direction of such legislation depends the well-being of the people; and
to this sense of the limitations of local politics was due, as much as
to anything else, the movement towards federation.
Agrarian legislation.
Before coming, however, to the history of federation, and the evolution
of the Labour party, we must refer briefly to some other questions which
have been of general interest in Australia. Taking the states as a
whole, agrarian legislation has been the most important subject that has
engrossed the attention of their parliaments, and every state has been
more or less engaged in tinkering with its land laws. The main object of
all such legislation is to secure the residence of the owners on the
land. The object of settlers, however, in a great many, perhaps in the
majority of instances, is to dispose of their holdings as soon as
possible after the requirements of the law have been complied with, and
to avoid permanent settlement. This has greatly facilitated the
formation of large estates devoted chiefly to grazing purposes, contrary
to the policy of the legislature, which has everywhere sought to
encourage tillage, or tillage joined to stock-rearing, and to discourage
large holdings. The importance of the land question is so great that it
is hardly an exaggeration to say that it is usual for every parliament
of Australia to have before it a proposal to alter or amend its land
laws. Since 1870 there have been five radical changes made in New South
Wales. In Victoria the law has been altered five times, and in
Queensland and South Australia seven times.
Immigration question.
The prevention or regulation of the immigration of coloured races has
also claimed a great share of parliamentary attention. The agitation
against the influx of Chinese commenced very soon after the gold
discoveries, the European miners objecting strongly to the presence of
these aliens upon the diggings. The allegations made concerning the
Chinese really amounted to a charge of undue industry. The Chinese were
hard-working and had the usual fortune attending those who work hard.
They spent little on drink or with the storekeepers, and were,
therefore, by no means popular. As early as 1860 there had been
disturbances of a serious character, and the Chinese were chased off the
goldfields of New South Wales, serious riots occurring at Lambing Flat,
on the Burrangong goldfield. The Chinese difficulty, so far as the
mining population was concerned, was solved by the exhaustion of the
extensive alluvial deposits; the miners' prejudice against the race,
however, still exists, though they are no longer serious competitors,
and the laws of some of the states forbid any Chinese to engage in
mining without the express authority in writing of the minister of
mines. The nearness of China to Australia has always appeared to the
Australian democracy as a menace to the integrity of the white
settlements; and at the many conferences of representatives from the
various states, called to discuss matters of general concern, the
Chinese question has always held a prominent place, but the absence of
any federal authority had made common action difficult. In 1888 the last
important conference on the Chinese question was held in Sydney and
attended by delegates from all the states. Previously to the meeting of
the conference there had been a great deal of discussion in regard to
the influx of Chinese, and such influx was on all sides agreed to be a
growing danger. The conference, therefore, merely expressed the public
sentiment when it resolved that, although it was not advisable to
prohibit altogether this class of immigration, it was necessary in the
public interests that the number of Chinese privileged to land should be
so limited as to prevent the people of that race from ever becoming an
important element in the community. In conformity with this
determination the various state legislatures enacted new laws or amended
the existing laws to cope with the difficulty; these remained until they
were in effect superseded by Commonwealth legislation. The objection to
admitting immigrants was not only to the Chinese, but extended to all
Asiatics; but as a large proportion of the persons whose entrance into
the colonies it was desired to stop were British subjects, and the
Imperial government refused to sanction any measure directly prohibiting
in plain terms the movement of British subjects from one part of the
empire to another, resort was made to indirect legislation; this was the
more advisable, as the rise of the Japanese power in the East and the
alliance of that country with Great Britain rendered it necessary to pay
attention to the susceptibilities of a powerful nation whose subjects
might be affected by restrictive laws. Eventually the difficulty was
overcome by the device of an educational test based on the provisions of
an act in operation in Natal. It was provided that a person was to be
prohibited from landing in Australia who failed to write in any
prescribed language fifty words dictated to him by the commonwealth
officer supervising immigration. The efficacy of this legislation is in
its administration, the language in which coloured aliens are usually
tested being European. The agitation against the Chinese covered a space
of over fifty years, a long period in the history of a young country,
and was promoted and kept alive almost entirely by the trades unions,
and the restriction acts were the first legislative triumph of the
Labour party, albeit that party was not at the time directly represented
in parliament.
Bank crisis of 1893.
One of the most notable events in the modern history of Australia
occurred shortly after the great strike of 1890. This was what is
ordinarily termed the bank crisis of 1893. Although this crisis followed
on the great strike, the crisis of two things had no real connexion, the
crisis being the natural result of events long anterior to 1890. The
effects of the crisis were mainly felt in the three eastern states,
Queensland, New South Wales and Victoria, Tasmania and South Australia
being affected chiefly by reason of the fact of their intimate financial
connexion with the eastern states. The approach of the crisis was
heralded by many signs. Deposits were shifted from bank to bank, there
were small runs on several of the savings banks guaranteed by the
government, mortgagees required additional security from their debtors,
bankruptcies became frequent, and some of the banks began to accumulate
gold against the evil day. The building societies and financial
institutions in receipt of deposits, or so many of them as were on an
unsound footing, failed at an early period of the depression, so also
did the weaker banks. There was distrust in the minds of the depositors,
especially those whose holdings were small, and most of the banks were,
at a very early period, subjected to the strain of repaying a large
proportion of their deposits as they fell due. For a time the money so
withdrawn was hoarded, but after a while it found its way back again
into the banks. The crisis was by no means a sudden crash, and even when
the failures began to take place they were spread over a period of
sixteen weeks.
The first noticeable effect of the crisis was a great scarcity of
employment. Much capital was locked up in the failed banks, and was
therefore not available for distribution amongst wage-earners. Wages
fell precipitately, as also did rents. There was an almost entire
cessation of building, and a large number of houses in the chief cities
remained untenanted, the occupants moving to lodgings and more than one
family living in a single house. Credit became greatly restricted, and
all descriptions of speculative enterprise came to an end. The consuming
power of the population was greatly diminished, and in the year
following the crisis the imports into Australia from abroad diminished
by four and three-quarter millions. In fact, everywhere the demand for
goods, especially of those for domestic consumption, fell away; and
there was a reduction in the average number of persons employed in the
manufacturing industries to the extent of more than 20%. The lack of
employment in factories naturally affected the coal mining industry, and
indeed every industry in the states, except those connected with the
export trade, was severely affected. During the crisis banks having a
paid-up capital and reserves of L5,000,000 and deposits of L53,000,000
closed their doors. Most of these, however, reopened for business before
many weeks. The crisis was felt in the large cities more keenly than in
the country districts, and in Melbourne more severely than in any other
capital. The change of fortune proved disastrous to many families,
previously to all appearances in opulent circumstances, but by all
classes alike their reverses were borne with the greatest bravery. In
its ultimate effects the crisis was by no means evil. Its true meaning
was not lost upon a business community that had had twenty years of
almost unchecked prosperity. It required the chastening of adversity to
teach it a salutary lesson, and a few years after, when the first
effects of the crisis had passed away, business was on a much sounder
footing than had been the case for very many years. One of the first
results was to put trade on a sound basis and to abolish most of the
abuses of the credit system, but the most striking effect of the crisis
was the attention which was almost immediately directed to productive
pursuits. Agriculture everywhere expanded, the mining industry revived,
and, if it had not been for the low prices of staple products, the
visible effects of the crisis would have passed away within a very few
years.
Drought of 1902.
Another matter which deserves attention was the great drought which
culminated in the year 1902. For some years previously the pastoral
industry had been declining and the number of sheep and cattle in
Australia had greatly diminished, but the year 1902 was one of veritable
drought. The failure of the crops was almost universal and large numbers
of sheep and cattle perished for want of food. The truth is,
pastoralists for the most part carried on their industry trusting very
greatly to luck, not making any special provisions against the
vicissitudes of the seasons. Enormous quantities of natural hay were
allowed every year to rot or be destroyed by bush fires, and the
bountiful provision made by nature to carry them over the seasons of dry
weather absolutely neglected; so that when the destructive season of
1902 fell upon them, over a large area of territory there was no food
for the stock. The year 1903 proved most bountiful, and in a few years
all trace of the disastrous drought of 1902 passed away. But beyond this
the pastoralist learnt most effectually the lesson that, in a country
like Australia, provision must be made for the occasional season when
the rainfall is entirely inadequate to the wants of the farmer and the
pastoralist.
Federation.
The question of federation was not lost sight of by the framers of the
original constitution which was bestowed upon New South Wales. In the
report of the committee of the legislative council appointed in 1852 to
prepare a constitution for that colony, the following passage
occurs:--"One of the most prominent legislative measures required by the
colony, and the colonies of the Australian group generally, is the
establishment at once of a general assembly, to make laws in relation to
those intercolonial questions that have arisen or may hereafter arise
among them. The questions which would claim the exercise of such a
jurisdiction appear to be (1) intercolonial tariffs and the coasting
trade; (2) railways, roads, canals, and other such works running through
any two of the colonies; (3) beacons and lighthouses on the coast; (4)
intercolonial gold regulations; (5) postage between the said colonies;
(6) a general court of appeal from the courts of such colonies; (7) a
power to legislate on all other subjects which may be submitted to them
by addresses from the legislative councils and assemblies of the
colonies, and to appropriate to any of the above-mentioned objects the
necessary sums of money, to be raised by a percentage on the revenues of
all the colonies interested." This wise recommendation received very
scant attention, and it was not until the necessities of the colonies
forced them to it that an attempt was made to do what the framers of the
original constitution suggested. Federation at no time actually dropped
out of sight, but it was not until thirty-five years later that any
practical steps were taken towards its accomplishment. Meanwhile a sort
of makeshift was devised, and the Imperial parliament passed a measure
permitting the formation of a federal council, to which any colony that
felt inclined to join could send delegates. Of the seven colonies New
South Wales and New Zealand stood aloof from the council, and from the
beginning it was therefore shorn of a large share of the prestige that
would have attached to a body speaking and acting on behalf of a united
Australia. The council had also a fatal defect in its constitution. It
was merely a deliberative body, having no executive functions and
possessing no control of funds or other means to put its legislation in
force. Its existence was well-nigh forgotten by the people of Australia
until the occurrence of its biennial meetings, and even then but slight
interest was taken in its proceedings. The council held eight meetings,
at which many matters of intercolonial interest were discussed. The last
occasion of its being called together was in 1899, when the council met
in Melbourne. In 1889 an important step towards federation was taken by
Sir Henry Parkes. The occasion was the report of Major-General Edwards
on the defences of Australia, and Sir Henry addressed the other premiers
on the desirability of a federal union for purposes of defence. The
immediate result was a conference at Parliament House, Melbourne, of
representatives from each of the seven colonies. This conference adopted
an address to the queen expressing its loyalty and attachment, and
submitting certain resolutions which affirmed the desirability of an
early union, under the crown, of the Australasian colonies, on
principles just to all, and provided that the remoter Australasian
colonies should be entitled to admission upon terms to be afterwards
agreed upon, and that steps should be taken for the appointment of
delegates to a national Australasian convention, to consider and report
upon an adequate scheme for a federal convention. In accordance with the
understanding arrived at, the various Australasian parliaments appointed
delegates to attend a national convention to be held in Sydney, and on
the 2nd March 1891 the convention held its first meeting. Sir Henry
Parkes was elected president, and he moved a series of resolutions
embodying the principles necessary to establish, on an enduring
foundation, the structure of a federal government. These resolutions
were slightly altered by the conference, and were adopted in the
following form:--
1. The powers and rights of existing colonies to remain intact, except
as regards such powers as it may be necessary to hand over to the
Federal government.
2. No alteration to be made in states without the consent of the
legislatures of such states, as well as of the federal parliament.