has been on an extravagant scale. The Melbourne Waterworks are {144}
justified by the requirements of the metropolis, but those of Geelong
and of Bendigo and adjacent areas commenced in 1865, and constructed at
a capital cost of L1,427,000, show an annual deficit of L35,000; and
other national works which cost L830,000 are dependent for a return
upon irrigation trusts, most of which are unable to meet their own
liabilities. Apart from this direct expenditure, the State has
advanced L2,438,000 to local bodies, urban and rural waterworks trusts
and irrigation trusts. Adding together these different amounts, we
find the total direct and indirect expenditure of the State to have
been L4,695,000, and we learn from the report of a recent Royal
Commission that the annual revenue is about L68,000, or less than 1-1/2
per cent. upon the capital. As the money bears an average interest of
4 per cent., the loss to the consolidated revenue is at the rate of
L120,000 a year. The expenditure was based upon the principle that the
national credit should be pledged in order that farmers and land and
property owners might be assisted to provide works of water supply
which would accelerate the permanent settlement of many parts of the
Province. Loans had been granted to municipalities before 1881, but in
that year the question was treated comprehensively by the Water
Conservation Act, which authorised the constitution of trusts for the
construction of works of water supply for domestic purposes and the use
of stock. In 1883 the Act was amended so as to include trusts {145}
formed for the promotion of works of irrigation. The Urban Trusts and
local bodies generally have met their obligations satisfactorily, with
the exception of some of the latter, which, instead of striking higher
rates or increasing the charge for the water, appear to have hoped that
the State would step in and relieve them of their liabilities. The
Rural and Irrigation Trusts also have attempted to throw the duty of
paying interest on the cost of the works upon the taxpayers of the
whole province. In the latter case the Public Works Department cannot
be absolved from blame. It is clear from the report of the Commission
that money was advanced to Irrigation Trusts without an adequate
preliminary investigation of the amount of water available or of the
number of settlers who would make use of it. "The public mind was
excited at the time, and the gospel of irrigation was preached from one
end of the Colony to the other. The farmers had been suffering from a
cycle of dry seasons, the price of produce was high, and the prospect
of insuring their crops against the exigencies of climate by means of
irrigation appears to have overruled all prudential considerations.
Schemes were hastily conceived and as hastily carried out. The
question as to whether the cost of the undertaking would be
commensurate with the benefits to be derived therefrom, or whether the
land could bear the burden that would be placed upon it, was apparently
lightly considered, if considered at all." But, according to an
official who {146} had been concerned in the matter, the Department,
far from readily concurring in or urging on schemes, had done its
utmost to restrain the popular enthusiasm. Continued pressure had been
exercised by deputations, generally supported by the Member for the
district, which tried to induce Ministers to set aside formalities in
view of the great necessity for water and of the great benefit that
would ensue. The lavishness of the Department, whatever may have been
its cause, was equalled by that of the Trusts, which in most cases
expended the loan money as expeditiously as possible without regard to
the requirements of the district or the supervision of the
undertakings; they did not realise that they would ever be called upon
to provide for meeting the interest on the moneys advanced to them.
There can be no doubt that the Government overrated the knowledge and
ability of the Trusts, and their recognition of the responsibility
involved in the control of large sums of public money. The Royal
Commissioners recommended that, after Parliament had decided what
concessions should be made, the enforcement of the monetary obligations
should be transferred from the Department to the Audit Commissioners,
who should be vested with powers enabling them to take action to
recover arrears due to the State. They believed that, in the absence
of such a change, the Department, being subject to political pressure,
might make further concessions, and again allow matters to drift into
an unsatisfactory condition.
{147}
The next instance of national expenditure in the promotion of
enterprise comes under a different category: the State has, since 1878,
devoted to the encouragement of the gold-mining industry the sum of
L800,000, which was not intended to give a direct return upon the
outlay so much as to maintain the pre-eminence of Victoria among the
gold-producing Provinces of Australasia. Of this amount L455,000 was
expended in boring, the remainder in subsidies to mining companies and
prospecting parties. But, as in the case of railways and works of
water supply, the Government were confronted by the extreme difficulty
of providing safeguards against the misapplication of the funds.
Direct control by the Minister of Mines was proved neither to yield
good results nor to be satisfactory to the Minister, as he was
subjected to continual pressure from Members of Parliament.
Prospecting Boards were, accordingly, appointed in the seven mining
districts into which the Province is divided, each Board consisting of
five members, the surveyor of the district, a member of the
Mine-owners' Association, a member of the Miners' Association, a member
of the local mining board, and a representative of the municipalities.
These men were authorised to allocate all votes, and, according to a
statement of the present Minister, as they represented different
interests in the mining and different localities, they took a parochial
view of their duties and developed "a kind of unconscious log-rolling"
{148} which caused the grants, in many cases, to be devoted to entirely
unprofitable objects. The expenditure of the L800,000 is believed to
have been of the greatest value to several mining companies, but has
produced a direct return of only L11,526, an amount which would have
been smaller had not the Minister threatened dividend-paying companies
with the forfeiture of their leases unless they repaid their loans to
the State.
The Government have also attempted to increase the export of such
articles as butter, wine, cheese, and frozen meat, for which a large
market is believed to be obtainable in Great Britain. Their policy has
been to foster these industries by means of bonuses to producers,
subsidies to owners of factories, and the free use of cold storage at
refrigerating works, and to enforce a certain standard of quality as a
necessary condition of their assistance. As the industry progresses
the bonus is reduced and finally withdrawn, and charges are made for
cold storage which are sufficient to reimburse the State for its
outlay. Such a course has already been pursued in the most successful
case, that of butter, in which the value of the amount annually
exported has risen from L51,000 in 1889-90 to L876,000 in 1895-6. In
this manner the State is not permanently engaged, but initiates its
expenditure at the highest point and gradually releases itself from the
obligation.
In 1893 the Government were confronted with {149} a large amount of
misery among the working classes, much of it undeserved, which had
resulted from the collapse of many land companies and banking and
building associations. An artificial prosperity, caused by the
inflation of metropolitan values, had created a demand for the services
of a disproportionate number of artisans, who, upon the inevitable
reaction, were thrown suddenly out of employment. Under these
circumstances the Ministry were called upon to do something to relieve
the distress, and passed a new Land Act which offered favourable terms,
in the way of tenure and monetary advances, to those who were willing
to settle upon the land. They were enabled to take it up either
individually or in associations of not less than six persons who
desired to live near each other. At the expiration of a year after the
passage of the Act 4,080 applications had been received, of which 2,122
had been approved, 993 rejected, and 965 were under consideration; and,
in order that the benefit might be immediate, the land had been made
available as speedily as possible and applicants had not been compelled
to wait until blocks had been surveyed. In view of the conditions
under which the settlements were formed it is not surprising to learn
from subsequent official reports that the favourable anticipations
have, in numerous instances, not been realised, owing to the
unsuitability of the soil, the inexperience or physical incapacity of
the settlers, or the absence {150} of a local demand for labour or of a
market for the surplus produce. Many of the associations have been
disbanded as the members were unable to work together harmoniously; and
those that are still in existence have, in almost every case, abandoned
the co-operative principle and are working their blocks on individual
lines. In 1896 the number of resident settlers was 2,127, who, with
their wives and families, formed a total population of 8,802; they had
received, during the three years, advances from the Government to the
amount of L57,000.
The Act of 1893 also provided for the establishment of Labour Colonies.
The movement in this direction originated with a few people at
Melbourne, who saw the futility of periodical doles to the destitute,
which were of merely temporary assistance to them and did not place
them in the way of earning a permanent livelihood. It was also felt
that, in the absence of any system similar to the English poor-law,
which, whatever its evils, relieves the conscience of the community,
ministers were subject to continual pressure, which compelled them to
institute public works for the sole benefit of the unemployed. In 1892
the distress was met, as far as the public were concerned, by the
subscription of a large sum of money, which was distributed through the
agency of the local branch of the Charity Organisation Society; but, in
the following year, the distress being still more acute, {151} the idea
of a Labour Colony rapidly gained ground and was met by the Government
by the grant of an area of 800 acres at Leongatha, some 80 miles from
Melbourne, which enabled the promoters of the scheme at once to
commence their operations. At the outset it had been intended that the
funds should be obtained, partly by private subscription, partly by
_pro-rata_ contributions from the national exchequer; but, in the
absence of popular response, the Government deemed it advisable, at the
commencement of 1894, to take over the entire administration of the
colony, and appointed, as Honorary Superintendent, Colonel Goldstein,
who had been actively identified with the undertaking. Colonel
Goldstein states that the main purpose of the colony, which is based on
a German model, is to give temporary work at unattractive wages to the
able-bodied unemployed in order that they may be prevented from passing
over the narrow line which separates poverty from pauperism. At first
the aged and infirm were admitted, but it was found that employment
could not be obtained for them and that their presence affected the
value of the colony as a means of instruction for a class of men in
whom it is necessary to arouse a spirit of responsible independence.
They are, moreover, provided for by benevolent asylums and other
charitable institutions which receive large subsidies from the
Government. Consequently men beyond the age of 55 years are now only
received in {152} exceptional cases. All applicants are registered,
and, if their alleged destitution is believed to be genuine, are
forwarded by rail to the colony, where they receive free board and
lodging. The colonists are subjected to strict discipline, work for a
week without pay upon probation, and then earn wages which rise to a
maximum of 4s. a week; they receive no money while at the colony, but
may draw certain necessaries, or, if married, cause their wages to be
remitted to their wives. The work is so arranged that the capabilities
of the colonists may be used to the best advantage and that they may be
fitted as far as possible for agricultural employment, which is
obtained for them by means of a Labour Bureau established at the
colony. At the expiration of six months, or upon an accumulation in
their favour of a credit balance amounting to 30s., colonists must,
subject to occasional exemptions, seek employment elsewhere, and may
not be re-admitted under a period of six weeks. In this manner the men
either obtain outside employment while resident at the colony or leave
it possessed of a sum of money which renders them better able to search
for it; they have the alternative of applying subsequently for
re-admittance. The results obtained during the three years have been
of a most satisfactory character; 1,832 men have passed through the
colony since its inception, of whom only 124 have been dismissed for
faults, and none for insubordination; 573 have had {153} remunerative
work found for them, and the remainder have earned sufficient ready
money to enable them to set out in search of employment. There have
been 566 re-admissions of 307 men who have returned from one to eight
times. "The majority of the men," says Colonel Goldstein, "are of the
shiftless sort, who cannot do anything for themselves. As Leongatha is
80 miles from Melbourne, we seldom see the genuine loafer there. The
men who go are willing enough to work when shown how, but they seem
unable to rouse themselves into any sort of vigour, to say nothing of
enthusiasm, until they have been there a considerable time....
Numerous instances could be given indicative of the generally helpless
nature of the men. There can be no doubt that employers, during the
depression, will first reduce their worst men. Of these, many have
sufficient energy to shift for themselves; the rest drift to the labour
colony. Most of them have suffered severely from privation and
poverty, and probably have had their dejected condition further
dispirited by semi-starvation.... After a few months' stay it is
surprising to see the difference in their appearance, and, what is more
to the purpose, their discovery that a new kind of life is opened to
them. Bush-work gives them a healthier feeling of self-dependence than
they ever enjoyed before, especially so for men who have a trade behind
them ready when the chance comes." The total outlay has amounted to
L11,276, {154} which has been expended mainly upon farm appointments,
implements, and permanent improvements, and is represented by assets of
the value of L10,861. The net cost must be regarded as exceedingly
small in view of the fact that, as the great majority of the colonists
are artisans and quite unused to bush or farm work, their labour is
necessarily slow and expensive, and that, as soon as a man begins to be
useful, he is selected for some private employer. The Labour Colony
has, it is maintained, apart from the benefits conferred upon hundreds
of individuals, paralysed the agitation of the unemployed; as long as
it is in existence no able-bodied man need starve.
Finally, a measure, passed in 1896, aimed at the protection of
pastoralists, farmers, and other cultivators of the soil by providing
machinery by which the State might grant loans to them, upon adequate
security, at a low rate of interest, with a sinking fund extending over
a long period of years.
The salient features of Victorian legislation are the strong note of
humanity and the confidence in the wisdom and efficiency of State
action. If this confidence has sometimes been misplaced, there is no
reason to suppose that the Victorians have imposed upon themselves a
burden that they are unable to bear. They are an energetic race, who
have not only developed the resources of their own country, but have
obtained large interests in New South Wales and Queensland. If in the
past {155} they were too much inclined to draw bills upon futurity,
they have had a sharp lesson which has taught them the necessity of
retrenchment and compelled them to reduce their annual expenditure by a
third of the total amount. It is impossible to form an unfavourable
estimate of the prospects, or of the high average prosperity, of a
population of less than 1,200,000 persons, which includes 185,000
freeholders and has accumulated at the Savings Banks L7,300,000 divided
among nearly 340,000 depositors.
{156}
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.
Western Australia received the privileges of Responsible Government
many years after the other Australasian Provinces; otherwise, its
constitutional development has proceeded upon similar lines. The first
Governor was appointed in 1829, and administered the affairs of the
country with the assistance of an Executive Council. Two years later a
Legislative Council was established which consisted solely of the
members of the Executive Council, but it was subsequently widened by
the admission, at first, of unofficial nominee members, afterwards of a
sufficient number of elected members to form a majority of the whole
body. Then an agitation sprang up in the Province in favour of
Responsible Government, and in 1889, after a unanimous vote of the
Legislative Council, a Constitution {157} Bill was submitted by the
Government, considered by the Council, and forwarded to the Secretary
of State for the Colonies. In the House of Commons it met with
considerable opposition, on the ground that the Crown Lands of the
Province should not be handed over to a population of only 46,000
persons. But, upon a favourable report of a Select Committee and
representation made by the Agents-General of the other Australasian
Provinces, the point was decided in the sense desired by the Province,
and, as the Bill passed rapidly through the House of Lords, it received
the Royal Assent in August, 1890.
Under the Constitution the Executive power is vested in the Governor,
who acts by the advice of a Cabinet composed of five responsible
Ministers. They are, at the present time, the Colonial Treasurer and
Colonial Secretary, the Attorney-General, the Commissioner of Railways
and Director of Public Works, the Commissioner of Crown Lands, and the
Minister of Mines. The Premier, Sir John Forrest, holds the offices of
Colonial Secretary and Colonial Treasurer, and the Minister of Mines,
the only Minister in the Upper House, controls the Postal and
Telegraphic Departments.
The Legislative authority is vested in the two Houses of Parliament,
the Legislative Council and the Legislative Assembly. The Council
consists of twenty-one members, of whom a third retire every two years.
They are elected upon a property {158} qualification, and must have
been resident for at least two years in the Province. The Assembly
consists of thirty-three members, who must have resided at least one
year in the Province, and are elected upon a wider franchise for the
period of four years. No remuneration is paid to the members of either
House, but they receive free passes over all Government Railways and,
by courtesy, over those belonging to private companies.
The limitations upon the power of legislation possessed by the
Parliament of Western Australia are similar to those imposed upon the
Legislatures of other Australian Provinces, except that the protection
of the aborigines has been placed in the hands of an independent Board,
nominated and controlled by the Governor. It receives for the
execution of its duties 1 per cent. of the annual revenue of the
country, but cannot carry them out without the active support of
Government officials. The existence of this Board is strongly resented
by Western Australians as an unjust reflection upon them, and as an
imputation that they cannot be trusted to deal in a just and humane
manner towards the natives; and the Premier, voicing the unanimous
opinion of both Houses, has attempted, hitherto without success, to
secure the repeal of the obnoxious section of the Constitution Act.
The attitude of the Government in regard to the relations between
Church and State as affecting the endowment of religious bodies and the
assistance {159} given to denominational schools was, until recently,
that grants should annually be voted by Parliament. But the trend of
public opinion has been in the direction of secular education and the
termination of the payments made to the Churches. The matter was,
accordingly, during the session of 1895, dealt with by the
Ecclesiastical Grants Abolition Act and the Assisted Schools Abolition
Act. Previously the payments to the Churches had been at the rate of
about L3,500 per annum, of which the Church of England received L2,000,
the Roman Catholics L1,000, and the Wesleyans and Presbyterians L360
and L160 respectively. The grants have been commuted at ten years'
purchase, and the capital amount is to be paid _pro rata_ out of the
Consolidated Revenue Fund in two equal instalments to the recognised
heads of each religious denomination. This Bill was passed, with
universal approval, through both Houses of Parliament, but a like
unanimity was not manifested in regard to the Education question. In
fact, early in the session, the Premier had stated that he had no
immediate intention of dealing with it, but his hands were forced by
popular opinion, as manifested by the result of several elections
fought upon that issue. Consequently, after a resolution passed by
both Houses that "It is expedient that the Assisted" (denominational)
"Schools should no longer form part of the public Educational system of
the Colony," and on the report of a Joint Committee, a Bill was
introduced by the Premier into the {160} Assembly fixing the sum to be
paid as compensation, in lieu of grants in aid, at L20,000. In 1894
one-third of the children being educated in the Colony were attending
the Assisted Schools, at a cost to the country of L2,093 for the
Assisted, and L11,356 for the Government Schools. The Bill was hotly
discussed; the Opposition divided over the amount, and were only beaten
by one vote, and it was finally decided that the compensation should be
L15,000. The whole of this money will be paid to the Roman Catholics,
who had alone taken advantage of the system. There is a High School at
Perth established by statute; otherwise little has been done in the
direction of secondary education, and Western Australia has no
University. The advantages of primary education have been extended as
far as possible; any district which can guarantee the attendance of
fifteen children can claim the erection of a school and the appointment
of a teacher; but it is clear that, in a very sparsely inhabited
country, no system can be devised which will reach the whole population.
The policy of the Ministry has been, in the main, one of loans and
public works. They were called upon, at the inauguration of
Responsible Government, to administer an area of nearly a million
square miles, thinly populated and penalised by great natural
drawbacks, such as the scarcity of good harbours, the difficulty of
inland communication, and the absence over large tracts of country of a
{161} sufficient supply of water. These drawbacks the Government have,
in various ways, done their best to overcome.
The principal ports of Western Australia are--on the south Albany and
Esperance Bay, on the west Bunbury, Fremantle, and Geraldtown, and on
the northwest Cossack and Broome. The most important of these are
Albany, a fine natural harbour, which is the point of call of the ocean
liners, and Fremantle, the port of Perth. All have been improved, as
far as conditions would permit, by dredging operations and the
construction of piers and jetties, but very extensive works, for which
the sum of L350,000 has already been allotted, are being carried out at
Fremantle, in the hope of making it a good and commodious harbour for
all classes of ocean vessels. In the interests of safe navigation,
lighthouses have been erected at various points along the coast.