Produced by Al Haines
AUSTRALASIAN DEMOCRACY
BY
HENRY DE R. WALKER
LONDON
T. FISHER UNWIN
PATERNOSTER SQUARE
MDCCCXCVII
[_All Rights reserved._]
{vii}
PREFACE
The following pages have been written from the point of view of the
year 1896, the greater part of which I spent in Australia. During the
earlier months of the present year I was in New Zealand, but I was
unable to continue my survey of general Australasian affairs.
A result of the limitation that I was compelled to impose upon myself
will be observed in the apparent antiquity of the chapter dealing with
Australian Federation; but this is not so great as might have been
anticipated, the new Federal Convention having drafted a Bill which is
based, to a large extent, upon that of 1891. For purposes of
comparison I have, with the kind permission of the London agents of the
Melbourne _Argus_, included an article in which that newspaper has
summarised the provisions of the new Federal Constitution Bill.
I have also included a brief account of a visit to the Coolgardie
goldfields which, though alien in purpose from the remaining chapters,
may not be without interest as a record of personal impressions {viii}
of a Province which has but recently felt the effects of a budding
prosperity.
It has been suggested to me that I should attempt to discuss
Australasian problems with reference to their applicability to Great
Britain; but I have preferred to leave this task, of which the
importance cannot be overstated, to persons of greater experience, and
to confine myself to a record of Australasian action and to a
comparison of the points of similarity or the reverse between the
several Provinces. It will be seen, however, that, in some cases, as
when dealing, for instance, with the results of payment of members and
with the powers and privileges of Australasian Upper Houses, I have
noted differences of conditions which must render deductions by analogy
a matter of extreme difficulty.
The terms "Liberal" and "Conservative" are used to denote,
respectively, the more and the less advanced parties in Australasian
politics, and must not be taken to imply differences in opinion similar
to those prevailing in Great Britain.
In conclusion, I would only say that my studies would have been
impossible in the absence of kindly communicativeness on the part of
politicians of all shades of opinion; and, on the social side, that I
retain warm feelings of gratitude towards the committees of clubs and
numerous acquaintances who extended to me the cordial hospitality of
kinship.
H. DE R. WALKER.
23, CORK STREET, W.,
_July 25, 1897_.
{ix}
CONTENTS
I.
_LIBERALISM AND LABOUR IN SOUTH AUSTRALIA._
PAGE
Contrast between Western Australia and the Eastern
Provinces--The Constitution of South Australia--The alliance
between Liberalism and Labour--Joint action in the face of
financial depression: Village Settlements, Progressive
Taxation, the direct encouragement of production--The
advocacy of an Elective Executive--The State and
Religious Instruction . . . . . . . . . . . . . . . . . . . . 1
II.
_DEMOCRACY AND ITS SAFEGUARDS IN NEW SOUTH WALES._
The necessity for safeguards against financial extravagance
and political pressure--The Crown Lands Act--The
appointment of independent Railway Commissioners--The
Standing Committee on Public Works--The Public Service
Board--The unemployed, their numbers and treatment--The
democratisation of the constitution--The Labour
Party, its history, successes and aspirations . . . . . . . . 34
{x}
III.
_PROBLEMS OF QUEENSLAND._
The agitation of Central and Northern Queensland for
separation from the South--The "Kanaka" traffic--White and
coloured labour on the plantations--The Sugar Works
Guarantee Act--The irregularity of employment in the
sugar and pastoral industries--The conditions and opinions
of the shearers--Assistance to dairymen and producers
of frozen meat--The Labour Party, its history and
prospects--Criticisms of the Government--The principles of
State action . . . . . . . . . . . . . . . . . . . . . . . . . 54
IV.
_THE LAND POLICY OF NEW ZEALAND._
Differences of conditions between Australia and New
Zealand--The Public Works policy--Taxation on land--The
Land Act of 1892--The Land for Settlements Acts--The
Government Advances to Settlers Acts--The encouragement of
settlement--The co-operative construction of Public
Works--The unemployed--Continuity of policy . . . . . . . . . 82
V.
_CHARACTERISTICS OF VICTORIAN LEGISLATION._
Comparisons between the Australasian Upper Houses--Conflicts
between the two Houses in Victoria--The proposed obviation
of deadlocks--The utility of the Legislative Council--The
antagonism between Town and Country--The Factory Acts, their
justification and provisions--State Socialism: Railways,
Irrigation Works, the encouragement of Mining, Subsidies
and Bonuses, State advances to Settlers--The Unemployed and
the Leongatha Labour Colony . . . . . . . . . . . . . . . . . 121
{xi}
VI.
_THE GROWTH AND DEVELOPMENT OF WESTERN AUSTRALIA._
Constitutional history--The relations of Church and
State--Natural impediments to development--The construction
of railways--The scarcity of water--the promotion of
the mining and other industries--The absence of parties
in Parliament . . . . . . . . . . . . . . . . . . . . . . . . 156
VII.
_DISCURSIVE NOTES ON TASMANIA._
The restriction of the immigration of coloured races--Betting
and lotteries--The adoption of a modification of Hare's
System of Voting--Conflicts between the two Houses of
Parliament--Finance and Taxation--Land Grant Railways . . . . 170
VIII.
_FEMALE SUFFRAGE_ . . . . . . . . . . . . . . . . . . . . . . . 184
IX.
_THE EVOLUTION OF A FEDERAL GOVERNMENT_ . . . . . . . . . . . . 212
X.
_SALIENT FEATURES OF THE AUSTRALASIAN DEMOCRACY._
Indirect effects of the discovery of gold--Causes of the
financial crisis--The origin and extent of State
Socialism--The thriftiness of the working classes--Labour
Representation in Parliament--Parliamentary Government--Direct
Taxation--Conciliation and Arbitration in Industrial
disputes--Protection and its corollaries--The feeling
towards Great Britain--General conclusions . . . . . . . . . . 244
XI.
_A VISIT TO THE COOLGARDIE GOLDFIELDS IN MARCH, 1896_ . . . . . 303
INDEX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 317
{1}
I
_LIBERALISM AND LABOUR IN SOUTH AUSTRALIA_
Contrast between Western Australia and the Eastern Provinces--The
Constitution of South Australia--The alliance between Liberalism and
Labour--Joint action in the face of financial depression: Village
Settlements, Progressive Taxation, the direct encouragement of
production--The advocacy of an Elective Executive--The State and
Religious Instruction.
The traveller who visited Western Australia in 1896 saw a country which
was enjoying, owing to its goldfields, a phenomenally rapid
development, with all its attendant advantages of a large increase in
population, an expanding revenue, and abundance of employment. As he
passed to the Eastern Provinces he found himself in the midst of
communities which had been shaken to their foundations by the fall in
the value of their staple products and the collapse of many banking
institutions, and were putting forth strenuous efforts to restore the
equilibrium between revenue and expenditure and to make a fresh start
upon the path of prosperity. These efforts, varying in detail in
different Provinces, have included the imposition {2} of additional
taxation, provision for the unemployed, and, in some cases, direct
encouragement of production. The policy pursued by South Australia is
of particular interest as her Constitution gives the freest play to
democratic influences.
The House of Assembly is elected on the basis of adult suffrage; the
Upper House or Legislative Council by adults possessing a property
qualification consisting of a freehold of the clear annual value of
L50, a registered leasehold of L20, with three years to run or the
right of purchase, or the occupation of a dwelling-house of the clear
annual value of L25. No property qualification is required in
candidates for election to either House, and the Members of both Houses
are paid at the rate of L200 per annum. Adults, upon reaching the age
of twenty-one in the case of the Assembly or possessing the requisite
qualification in the case of the Council, can claim to be placed upon
the electoral roll and are entitled to vote upon the expiration of six
months after registration; upon removal to another constituency, the
vote can immediately be transferred. Plural voting is forbidden under
heavy penalties, and all the elections, except that for the Northern
Territory, take place upon the same day.
These conditions have enabled the democratic element to obtain a
preponderating voice in both Houses, by a majority of one in the
Council and by a considerable majority in the Assembly. During {3} the
last three years the Government has been in the hands of the Liberals
under the Hon. C. C. Kingston, who has included in his cabinet two
former Premiers in the persons of the Treasurer, the Hon. F. W. Holder,
and the Minister of Education and Agriculture, the Hon. Dr. Cockburn.
The Ministerialists have had the support of the Labour Party, which has
been very successful with its candidates and now holds the balance of
power. It was formed towards the close of the year 1890, after the
failure of the maritime strike, in response to the feeling of the
Trades Unions and other labour organisations that their objects would
be obtained most easily by securing the direct representation of labour
in Parliament. They were influenced also by the rejection by the
Assembly of Dr. Cockburn's proposals for progressive taxation in spite
of promises made by a majority of the members before their election. A
political programme was, accordingly, drawn up, which is the accepted
creed of the Labour representatives, who number six in the Council of
twenty-four and twelve in the Assembly of fifty-four members. It has
successively been modified, as measures previously advocated have been
passed into law, and contains the following principal items: The
cessation of the alienation of Crown Lands by the substitution of some
system of leasing; the remission of the duties on articles not grown or
produced in the Colony, any resulting deficiency in the revenue to be
made up by increasing the tax on {4} land values; redistribution of
seats on the basis of population; the encouragement of local industries
by the extension of the State Export Department, so that producers may
be able to obtain the full benefit of foreign markets; and Federation
on a democratic basis. The Labour Party are opposed most strongly to
the admission of coloured races and to assisted immigration, on the
ground that the former would lower the status of the Australian
workman, and the latter cause the supply of labour to exceed the demand
and bring misery and destitution upon the poor. The relations of the
Labour and Liberal members, which have been most cordial, are based
upon mutual interdependence. The Liberals rely upon the support of the
Labour members; the latter are not strong enough to take office, nor, I
understand, do they wish to do so, and must support the Liberals in
order to be able to mould the legislation to the shape that they
desire. A prominent member of the Labour Party has thus summarised the
position: "The hardest work in connection with some of the measures has
been done by Liberals who, though not members of the Party, are
generally found working in connection with that body. But it must be
conceded that most of the planks which have been carried owe their
early success to the fact of their adoption on the programme of the
United Labour Party, and the persistent advocacy and solid votes of its
members." The policy of the Party has created a great {5} amount of
bitterness in the country, their successful advocacy of progressive
taxation on incomes and land values and of other democratic measures
having led them to be charged with being inimical to capital as such;
but the Speaker of the Assembly, who is a Conservative, has stated in a
recent speech that, "in speaking of the Labour Party, he wishes to do
so with the greatest respect. They are a power in the House, and no
Government could have retained office in the last Parliament without
their support. The Labour representatives were picked men, clever in
debate, unremitting in attention to their duties, and a credit to the
districts they represented." The leader of the Party is Mr. J. A.
McPherson, a native of Aberdeen, who migrated to Adelaide in 1882 and
engaged in the printing trade. He identified himself with Trades Union
affairs, was elected unanimously in 1890 to be Secretary of the Trades
and Labour Council, and still holds that position. He entered the
Assembly at a bye-election in 1892, and is regarded as one of the
ablest and most energetic members of the Labour Party. Mr. McPherson
has a popular supporter in Mr. E. L. Batchelor, the colleague of the
Premier in the representation of West Adelaide, who has risen from
subordinate employment on the Government railways to be, at the age of
thirty, President of the Railway Association and Secretary of the
Party. Mr. Batchelor is a man of broad views and a keen student, and
has brought {6} forward a Bill for the institution of the initiative
and referendum, which he considers to be suited to the small population
of South Australia. The Party are fortunate in their leading men and
show no signs of cleavage, their only serious difference of opinion
having been in regard to the qualifications of Labour candidates. As
long as solidarity can be maintained and the present leaders remain in
the ascendant, no fear need be felt that they will subordinate the
interests of the community to those of their own class, though they
would be the first to admit that their main object is to protect the
working man and to improve his position.
The principal measures of the present Administration, such as the
Taxation Acts and the establishment of the Village Settlements and of
the Produce Export Department, may be said to be the joint product of
the Liberal and Labour Parties, and may be regarded as an example of
the policy pursued by a pure democracy in the face of financial
depression, dislocation of trade, and widespread scarcity of employment.
The object of the Act of 1893 which authorised the formation of Village
Settlements was to prevent men of small means, who found difficulty in
obtaining employment, from leaving the country by affording them the
opportunity of settling upon the land and working it co-operatively
with the assistance of advances from the State. Its main provisions
were, that any twenty or more persons {7} might form an association for
the purpose of taking up a grant of land not exceeding 160 acres per
head; that the work should be done under the direction of trustees
appointed by members of the association from among their number, who
should manage the affairs of the village upon principles of
co-operation and equitable division; and that the Commissioner of Crown
Lands might advance to any such association out of funds provided by
Parliament, an amount not exceeding the sum of L50 for each villager
and not exceeding one-half the cost of the improvements upon the land.
The advances were to be repaid in ten equal annual instalments, with
interest computed at 5 per cent. per annum on the moneys for the time
being remaining unpaid; but the first of such instalments was not to be
payable until after the expiration of three years from the date of the
advance. The formation of settlements on a purely communistic basis
was rendered possible by Section 78 of the Act, which states that "the
rules" (of an association) "may require payment to a common fund or
otherwise as may be determined of all or any part of the earnings of
the villagers whether earned within the village or elsewhere." Twelve
associations were formed, mostly on the banks of the Murray, between
the months of February and August, 1894, but not, with a single
exception, on the lines intended by the Government. The extreme
scarcity of employment and great poverty at Adelaide and in the
neighbourhood in the early part of that year led them to form {8} the
remainder of persons who were almost entirely destitute. They were
necessarily assisted at the start, but did not afterwards receive
advances until the Government Inspector had certified that they were
justified by the improvements made upon the land. The action of the
Government was illegal throughout, as the Act stated expressly that the
advances should be made out of funds provided by Parliament, and no
funds had been voted for the purpose, but it may be condoned on the
ground of the extreme urgency of the crisis. At the expiration of a
year the limit had been reached in most cases, and further advances
were indispensable to prevent the immediate collapse of the majority of
the settlements. The Commissioner of Crown Lands, accordingly,
introduced a Bill in which he asked for authority to increase the
advances, under the same conditions, to L100 per head, and for further
powers of control over the settlements. The Bill, which was hotly
opposed, was not passed till a Select Committee had been appointed to
inquire on the spot into the conditions and financial prospects of the
settlements and had reported in its favour.
The report, which was dated November 14, 1895, and the evidence upon
which it was based, gave a complete picture of the disadvantages under
which the settlers laboured and of the drawbacks of the system of
distribution. The land selected for the villages was such, it was
pointed out, that it could not be cultivated except under irrigation.
This had {9} necessitated the erection of a costly pumping plant, which
the settlers had difficulty in purchasing, as they could offer no
security for payment. When the plant was finally obtained, it was
found, in some cases, to be unsuitable; in others it could not be
properly worked in the absence of a capable engineer. The settlers,
brought together at haphazard by destitution and not by their knowledge
of agricultural pursuits, had wasted much time and labour through
ignorance, incapacity, and insufficiency of proper tools. They had
lacked a strong controlling hand to direct their operations, and had
disobeyed the trustees whom they had themselves appointed; and as the
trustees had little power discipline had been nonexistent, and
quarrels, at several settlements, of continual occurrence. Order had
been restored with difficulty, as the only punishment was expulsion,
upon a decision of the trustees ratified by a vote of the villagers,
and many villagers had voted against expulsion from the fear that they
in their turn might be subjected to a similar penalty. The
arrangements for the distribution of rations also had caused
considerable dissatisfaction and led to disagreement between single and
married men, as the former felt that the latter received a share of the
stores out of proportion to the work they had done. The general system
was, that rations were issued on a sliding scale, according as a man
was single or had a large or small family, and was to that extent
purely communistic.
{10}
The difficulties encountered by the settlers had been such as would
have discouraged most men, but, in spite of them, the total number had
only fallen in eighteen months from 598 to 440, and the majority of
witnesses expressed themselves satisfied with their lot. They admitted
the necessity of further advances, but pleaded that they had a heavy
burden to bear in the cost of machinery, and that their labour,
especially in the planting of fruit trees, could not yield an immediate
return. The financial position was thus summarised:--The Government
had advanced L26,000, the unpaid accounts amounted to about L11,000,
and the improvements were valued by the Commissioner of Crown Lands at
L41,000.
During 1896 the further advances had been expended, but the settlements
had not become self-supporting, and the increased burden of debt and
uncertainty as to the future had caused many of the settlers to become
disheartened and others to leave in despair. On the other hand, the
appointment of an expert to exercise the additional powers conferred
upon the Commissioner and to give advice to the settlers, had led to
the diminution of quarrels and disagreements among them and to a better
direction of their work. In view of these facts the Government decided
to close four of the settlements which had been formed upon land
unsuitable to the purpose, owing to the poorness of the soil or the
absence of facilities for profitable irrigation. It has been {11}
estimated that the remainder have sufficient irrigable land to maintain
a population of about three hundred families, and that they require an
average of about L25 per settler to make them self-supporting. A few
enthusiasts alone believe that any portion of the principal of the
loans will ever be repaid; but the Government will have no cause to
complain if they receive regular interest on the money. Some
difficulty is likely to arise in the disposal of the produce. There is
a considerable market for vegetables on the river, but it will soon be
overtaken by the supply. The settlers will probably devote most of
their land to fruit growing and dairying, and will be able to take
advantage of the Export Department.
The settlers should have a better chance of success in the future, as
loafers are gradually being weeded out, and the process is to be
continued until the settlers shall have been reduced to such as have
shown an honest desire to make homes for themselves and their families
upon the land. This course has been rendered possible by the large
exodus of working men to Western Australia, which has reduced the
pressure upon the local labour market. The Government desire to
approximate all the settlements to the level of Murtho, which alone was
formed of persons who had considerable means of their own. The
settlers, about twenty in number, put an average of L60 each into the
venture and left good situations out of enthusiasm for the principles
of co-operation. They are intelligent, well-educated {12} men and
women who are bound to put forward every effort to be successful, as
otherwise they will be in a worse position than at the start. They
work all the land upon the method of joint cultivation on the ground
that, as different forms of produce are grown, it is of importance to
be able to concentrate the greater portion of the labour at any point
where it may be required, and, under the influence of communistic
ideas, give to all an equal share of the results of their united
efforts. This system would have seemed, from the constitution of human
nature, to be doomed to failure; but an amount of work has been done in
planting and clearing which testifies to continuous and sustained
labour, disagreements have been rare, and the settlers, in conversation
with me, expressed themselves as contented with their lot and confident
of eventual success. They do not regard themselves as recipients of
charity, as they have received advances on the same conditions as
holders of Working Men's blocks; on the contrary, they regard
themselves as pioneers of a new movement, and desire, not only to make
homes for themselves and their families, but to prove that land can be
worked successfully on a co-operative, almost a communistic, basis. If
the Murtho settlers succeed, they will do so by the continued exercise
of mutual forbearance and from the impulse of a common enthusiasm.
The Government appear to have made several {13} grave mistakes of
omission and commission in the formation of the settlements. They
should have caused a survey of the Murray lands to be made before the
selection of the sites, and they should have realised that men, united
only by their destitution, required control and direction, and, as the
majority were ignorant of agricultural pursuits, constant
superintendence of their work. The system of joint cultivation also
was entirely unsuited to the class of men who formed the bulk of the
settlers. It is true that the Act authorised neither preliminary
surveys nor the appointment of superintendents, and stated expressly
that the associations were to be co-operative; but if the urgency of
the crisis may be taken to have justified the Government in making
advances without the sanction of Parliament, it would also have
justified such further illegalities as would have benefited the
settlers and safeguarded the interests of the tax-payers.
A certain amount of co-operation was inevitable if the settlements were
to be formed upon land which could only be cultivated under irrigation,
in the erection of the pumping plant and the use of water. It would
also be advisable in the purchase of seeds, trees and vines, the
disposal of produce and the common ownership of horses and implements
of husbandry. But the land might have been cut up into blocks, in
order to enable each settler to obtain the full benefit of his
exertions {14} subject to payment for the services rendered to him by
the association.
The Government are to be congratulated, however faulty their methods
may have been, upon their attempt to enable the unemployed to make
homes for themselves upon the land, a great improvement upon the policy
of their predecessors, who wasted thousands of pounds upon unnecessary
relief works. They have undoubtedly raised the moral tone of the
settlers, who make a good impression upon the visitor through their
intelligence and sobriety and the happy appearance of their children,
and one cannot but regret that, owing to the absence of direction, much
of their labour has been absolutely valueless. The cynic will say that
the men have every reason to be contented as they are living entirely
upon advances and can rid themselves of all responsibility for the
loans by leaving the settlements; but he forgets that they have
qualified for these advances by hard work and that they never see a
shilling that they can call their own.
The whole question must be looked at from the point of view of the
Australian, who would be horrified at our system, under which indigence
is assumed to be the result of idleness and improvidence and relief is
offered under the most degrading conditions, and expects his Government
to do something to relieve the misery caused by scarcity of employment.
In South Australia, where adult suffrage and payment of the members of
both {15} Houses have made the working classes masters of the
situation, they can compel the Ministry to pay attention to their
wishes. A step in the right direction, was taken when Village
Settlements were substituted for temporary relief works; but any future
scheme, while affording to men the opportunity of regaining a position
of independence, should compel them to prove their worthiness by their
own individual exertions.
The wide application by the Australasian Provinces of the principle of
State action renders them especially liable to violent fluctuations of
prosperity and adversity. As young countries they have borrowed
largely for purposes of development, and have constructed expensive
public works which have greatly increased the demand for labour.
During the recent years of depression the Government have been obliged
to discontinue their operations, and have offered less employment at a
time when the labour market was already overstocked owing to the
contraction of private enterprise. Similarly in the case of revenue:
the receipts from the railways, which are almost universally owned by
the State, vary proportionately with the returns from taxation, which
depend in their turn largely upon the condition of trade. They have
fallen in South Australia from L1,229,598 in 1891-2 to L967,656 in
1894-5, with the result that when the community has been least able,
owing to the diminished returns from other resources of revenue, to
bear additional {16} taxation, further taxes have necessarily been
imposed to meet the interest upon the loans out of the proceeds of
which the railways have been constructed. The Kingston Government,
which took office in 1893, had to face a deficit of L200,000, and
immediately set to work to restore order in the finances. This they
attempted to do by retrenchment, reducing the expenditure by L100,000
per annum, and by the imposition of fresh taxation. Succession Duties,
a tax on the unimproved value of land and an income tax had already
been imposed, a distinction being made in the latter case, between
incomes derived from property and incomes resulting from personal
exertion; but the present Government were the first to introduce the
progressive principle into the taxes on incomes and land values. This
legislation has encountered, as might be expected, the strongest
opposition from the richer members of the community, who protest that a
feeling of insecurity is produced and capital driven out of the
country, but it may be noted that South Australia in 1895 raised money
at 3 per cent. upon exceptionally favourable terms. The Government
were compelled to obtain further funds, and showed their desire to
equalise the incidence of the additional taxes by lowering, in spite of
the opposition of the Labour Party, the exemption from income tax from
L200 to L125 and by increasing the duty on beer, spirits, and other
articles of ordinary consumption. Income tax is {17} at present at the
rate of 4-1/2d. in the pound up to L800, and of 6d. in the pound above
L800 of taxable amount resulting from personal exertions, and at the
rate of 9d. and 1s. in the pound, respectively, on incomes from
property. Incomes between L125 and L425 enjoy exemption on L125 of the
amount. Taxpayers are required, under penalty of prosecution for
perjury for a false declaration, to furnish annually a statement of all
forms of income that they have enjoyed during the past year, except in
respect of any share or interest in a registered company; in this case
the tax, at the rate of a shilling in the pound, is deducted by an
officer of the company before payment of the dividends to shareholders.
The higher rate is not paid on either form of income unless it,
separately, exceeds L800. The tax on the unimproved value of land is
1/2d. in the pound up to, and 1d. above, the capital value of L5,000, and
is increased by 20 per cent. in the case of absentee owners. A general
assessment of all the lands in the Colony is made triennially, each
person's property in each district or township being treated
separately. The assessments are then sorted alphabetically, in order
to discover the total holding of each individual which is the basis
upon which the higher or lower rate of taxation is imposed. Little
objection is taken to the manner in which the value of the land is
assessed; in the majority of cases the owner and the official of the
Government are able to agree as {18} to a fair valuation, and, should
they fail to do so, an appeal against the valuation may be made to the
Taxation Department, and, if an arrangement be not arrived at, to a
Court of Law. The assessment of 1894 led to a large number of appeals,
as the assessors had not realised the enormous fall in value of
agricultural and pastoral land, but all, with a single exception, were
met to the satisfaction of the appellant by concessions voluntarily
made by the Department. Their attention is turned mainly to urban
land, because it is subject to the greatest increase in unimproved
value and returns the larger portion of the receipts derived from this
source. An incidental advantage of the tax lies in the fact that land
held by speculators for a rise in value contributes to the revenue
equally with that on which buildings have been erected. The tax is
recognised by most people as equitable in principle, but its
progressive character has brought upon the Ministry the bitterest
animosity of the landed class, who maintain that it has caused land to
be given up and to become unsaleable, not so much because the present
burden is intolerable but because it is merely the thin end of the
wedge. They point to the programme of the Labour Party in which it is
stated that the duty should be taken off certain articles of ordinary
consumption, the deficiency (which, according to an official estimate,
would be L310,000 a year) to be made up by increasing the tax on land
values, and argue that as the Labour Party hold the {19} Government
under their thumb, they will be able to enforce compliance with their
wishes. It is difficult for a stranger to judge to what extent
possessors of capital have actually been deterred from investing it in
land, especially as several important factors have led concurrently to
a depreciation in its value, such as the fall in the prices of wheat
and wool, the failure of banks which were interested, directly or
indirectly, in large tracts of country, and bad legislation, passed
some ten years ago, under which the runs were cut up into blocks too
small for the successful prosecution of the pastoral industry. The
Government can point to Pastoral Acts which are admitted to be steps in
the right direction, and challenge their opponents to show in what way
they could have raised the L20,000 yielded by the additional Land Tax
with less burden to the community. The Absentee Tax lacks similar
justification, as it only brings in L3,600 a year. It is defended by
the Premier on the ground that the absentee, as regards his property,
has the full protection of the administration of the laws, and should
contribute to the expenditure necessary for the maintenance of the
State; and that he does not do so to the extent of those who live in
South Australia and contribute daily to the revenue by means of the
Customs in all they eat and drink and practically all they put on. On
the other hand it is contended that it is of supreme importance to
attract capital to the Colony and that this principle is recognised
{20} in the case of public loans and Treasury bonds, on which no income
tax is charged, and should also be taken into consideration with
reference to private investments in land. Succession Duty is levied
upon a graduated scale, ranging from 1-1/2 per cent. for L500 to 10 per
cent. for L200,000 and upwards in the case of a widow, widower,
ancestor or descendant of the deceased, and from 1 per cent. for any
amount under L200 to 10 per cent. for L20,000 and upwards where the
property is inherited by a person in any degree of collateral
consanguinity. If the heir is a stranger in blood he pays 10 per cent.
whatever be the value of the property. In order to promote the
diffusion of wealth the rate of the tax is based upon the amount
inherited, not upon the total value of the estate.
In the relief of the unemployed and the imposition of additional
taxation, the Ministry, while choosing their methods, have dealt with
problems which they were bound to face; but they have not confined
themselves to the negative task of coping with existing difficulties.
They have realised that greater commercial activity would permanently
benefit the revenue and add to the demand for labour, and that, in a
country like South Australia, it could only be secured by a wider and
more varied cultivation of the soil, and have, with the hearty support
of the Labour Party, seized every opportunity to encourage production
and develop the export trade. Farmers already had the advantage of an
Agricultural Bureau at Adelaide, {21} with local branches, which
periodically disseminated information, and of an Agricultural College
to which they could send their sons, at a small annual charge, or
gratuitously if they could obtain a scholarship; but they were
hindered, when the fall in the value of cereals compelled them to turn
their attention to subsidiary industries, by the absence of facilities
for obtaining a market for subsidiary products. The limited demand in
the Colony for butter, fruit, and wine offered insufficient inducement
to farmers and small cultivators. Previous to 1893, the total export
of butter did not exceed the value of L1,200, but in that year and in
1894 a bonus was offered by the Government, with the result that butter
of the value of L110,000 has since been shipped. They also formed a
Produce Export Department through which producers can ship their goods
to London, entered into a contract with the Peninsular and Oriental and
Orient Steamship Companies for cheap rates of carriage, and established
in London a Wine and Produce Depot to receive the goods and sell them
on the most favourable terms. A receiving depot has since been
established at Port Adelaide and refrigerating machinery and chambers
have been erected, which enable the Department to receive sheep and
send them as frozen meat to England. Butter, wine, frozen meat, and
fruit have been sent to London through the Department, and in some
cases prices have been realised which far surpassed those which could
have been obtained in {22} the local market. The scheme is not yet
self-supporting, as, though the charges cover the expenses, the
salaries of the additional officials required in the Ministry, and an
annual sum of some L3,500 for the maintenance of the Depot in London,
fall upon the revenue of the country; but this expenditure is more than
repaid by the impetus undoubtedly given to trade which would not
otherwise have been afforded owing to the absence of private
enterprise. The Ministry have undertaken a work in which individuals
would have had little chance of success, and have enabled small
consignors to ship their produce at wholesale rates. Their object also
has been, in the words of the Minister of Agriculture (Dr. Cockburn),
"to afford a guarantee of quality. All goods consigned to the Depot
are examined previous to shipment. If found to be in good condition
and properly packed, they are sent forward to the London manager with a
certificate to that effect. By this system of inspection a barrier is
erected against the export of inferior goods which have an injurious
effect on the reputation of South Australian produce." This latter
point is of great importance and applies equally as regards the injury
that might be done by one Province to another, as the British consumer
regards Australian produce generically, and does not distinguish
between the output of different Provinces. Dr. Cockburn called a
conference in 1896, which was attended by representatives from New
South {23} Wales, Victoria, and Queensland, to consider how far joint
action might be taken to secure uniformity of output. The presence of
a representative from Victoria enhanced the practical character of the
deliberations, as that Province has been the pioneer in the movement
and conducts its operations on a very extensive scale. It was decided
that the respective Parliaments should be invited to legislate in the
direction of uniform inspection of frozen meat, dairy produce, wine and
fruit, the adoption as far as possible of a federal brand which would
be a guarantee of high quality and the joint exhibition of Australian
produce at some leading agricultural show in England. The conference
is regarded as a promising sign of the willingness of the Australian
Provinces to act together in matters of common concern. The
institution of the Produce Export Department is favourably viewed by
the press of South Australia and by the bulk of the community, but,
while it is admitted that the initiative of the State has been
successful, the hope is expressed that, when the trade has been firmly
established, the scope of State action will be reduced and private
enterprise be allowed to step in. Such an attitude shows the prevalent
distrust of State action; in order that it may not be perpetuated, the
middleman is to be invited to absorb a portion of the profits which at
present are gained by the producer.
The present Ministry have also legislated on the {24} subject of
workmen's liens, to protect the wage-earner against an insolvent or
dishonest employer; they have passed a Conciliation Act, to facilitate
the settlement of industrial disputes, and have established a State
Bank to provide for advances to farmers and other producers and to
local authorities. These measures were warmly supported by the Labour
members, who tried, unsuccessfully, to enlarge the scope of the State
Bank by making it a Bank of Issue.
At the General Election in 1896 the Liberals, who were again
successful, advocated certain measures of social reform; continued
economy of administration; the extension of the functions of the Export
Department; Federation on a democratic basis, and the election of
Ministries by Parliament, a proposal which has excited singularly
little interest, in spite of the complete change that it would effect
in the methods of government. The justification for it must be sought
in the local conditions of the Province, which has never taken kindly
to the system of government by party.
The tariff question, which has caused a clear line of division in New
South Wales, has been settled decisively in favour of protection, and
no distinct issue has taken its place at the recent elections. In
Adelaide and the neighbourhood the contest may be said to have been
fought in some sense between capital and labour, though among the
supporters of the Ministry are many men of considerable means; {25} or
between individualism and socialism, but that all are socialists to the
extent of believing in State ownership of railways and State control of
waterworks and water conservation, while the majority are favourably
disposed to the Export Department, and the average man has no definite
ideas on the subject, but views each proposed extension of State action
according to his opinion of its possible effect upon himself. The
success of the Liberals was remarkable, as the South Australians are a
fickle people, and usually overthrow the party that is in power; but it
is suggested that the female vote, which has been given for the first
time, may have been recorded largely in favour of those who had passed
the Adult Suffrage Act. However that may be, the Kingston Government
are by no means sure of an extension of three years, as the ties of
party allegiance are slight except in the case of the Labour members,
and the struggles in the Assembly may resolve themselves, as in the
past, into contests between individual aspirants for office. The
tendency of the last Parliament was in the direction of a clearer line
of cleavage, but this was due to the cleverness of the present Premier,
who included in the Cabinet his two strongest opponents whose
opposition had been the more bitter that it was not founded upon
differences of political opinion. Until that time South Australia had
had forty-one Ministries in thirty-seven years, a constant change of
the responsible heads of public departments {26} which greatly impaired
their efficiency and prevented continuity of administration. The
absence of a stable majority in the Assembly gave the opportunity, and
ambition and love of power the impetus, to continual struggles for
office which were wholly unallied with any baser motives, as Australian
statesmen have obtained an honourable pre-eminence for their rectitude
of character.
The intentions of the Government in regard to the substitution of an
elective executive, which have not yet been definitely formulated, may
be gathered from a speech made by Dr. Cockburn, the principal advocate
of the change, in which he proposed that Ministers, who would continue,
as at present, to be Members of Parliament, should be elected by ballot
by the Assembly at the commencement of each session; that they should
appoint one of their number to be their leader, but should be
responsible individually to Parliament for their respective
departments; and that their corporate responsibility should be limited
to matters affecting the Province as a whole, such as finance or its
relations with other countries. The Governor's prerogative of
dissolution would remain unaffected, but as the House would be brought
into closer touch with the people, dissolutions would be unnecessary
and undesirable. Dr. Cockburn claimed that his proposal was in
accordance with the natural evolution of Parliamentary Government, and
contended that, the area of selection being enlarged, the {27} best men
would be chosen as Ministers from the whole House and the best man for
each office. Ministers would not be called upon to justify proceedings
of their colleagues which in their hearts they condemned, and private
members would be able to exercise greater independence, as they would
not be called upon to sacrifice their convictions to maintain their
friends in office, and, being allowed greater freedom on questions of
legislation, would introduce many bills of an important character.
Intrigue, which was an essential of Party government, would become
disreputable when resorted to for purposes of personal advancement.
The objection that certain members would not work together if chosen to
form an administration was met by the fact that men sat in amity on the
Treasury benches who previously had denounced one another to the utmost
of their power. The distinctive feature of the proposal, therefore, is
the indirect election of Ministers. The people elect the
representatives, who, in turn, are to elect certain of their number to
form the Executive. The first criticism that suggests itself is, that
it is difficult to believe in the rapid elimination of party feeling,
and that it is probable, granted the existence of intrigues among
aspirants for office under the present system, that they would be
increased tenfold when such persons sought to ingratiate themselves,
not only with prospective Premiers, but with a majority of the members
of the Assembly. Again, {28} while it is impossible to foresee all the
results of the change, it may be anticipated that some obvious
advantages would be counterbalanced by incoherence of policy and
haphazard legislation, but that a class of men might be induced to come
forward as candidates who are deterred by their horror of continual
party strife. Dr. Cockburn stated that no amendment would be required
in the Constitution Act, as, after the election of the Ministers, their
names would be submitted in the ordinary way to the Governor. The
present Ministry also favour the biennial retirement of half the
members of the Assembly, in order to secure continuity in its
composition, and the institution of the referendum.