The Great Events by Famous Historians, Volume 17 · Chapter 29Edward Jenks (1)
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It was a remarkable sequence in successful enterprise that brought to light and developed the vast gold deposits in Australia within three years after the great discovery in California. This event "was to change, if not the entire character, at least the rate, of Australian progress." The date of Captain James Cook's exploration of the eastern coast (1770) marks the beginning of a new era in the history of Australia. Cook took possession of the country for Great Britain. From the resemblance of its coasts to the southern shores of Wales, he called it New South Wales, and this name is still retained by one of the States of the Commonwealth of Australia (inaugurated January 1, 1901). The first English settlement (1788) was a convict colony at Port Jackson (Sydney). From the establishment of this colony the development of Australia as a British possession was gradual, but progressive, up to the discovery of the gold-fields, by which it was so greatly accelerated. At first a few pastoral groups occupied the lands near the coast. Many of the newcomers were mere squatters, bent on making money and then returning to England. But gradually small towns and settled industries grew up. Increasing numbers of farmers immigrated, squatters were pushed toward the interior, and a state of social organization began. Up to 1850, however, this nucleus of a new commonwealth had reached no great development.
As in the case of California, long before the great discovery of gold in Australia there had been rumors of its existence in that country. Most of the early stories told by persons said to have found specimens of the metal were scouted. In 1844 the distinguished geologist, Sir Roderick Impey Murchison, having compared specimens of Australian rocks brought to him with other specimens from gold-bearing lands, declared that he found in the former no trace of gold. Two years later, however, Sir Roderick declared his belief in the existence of gold in Australia, and in 1848 he announced that he had seen specimens of gold from New South Wales, and recommended a government mineral survey there. Little attention might have been given to the matter then but for the discovery of gold in California. From the excitement caused by that the "gold fever" spread over the world. Nothing was done in the way of discovery of the metal in Australia until many months had elapsed; but finally results of the utmost importance were obtained.
The story of the great Australian gold discovery is here told in an authentic and highly interesting manner by the historian of the Australasian colonies.
In the year 1851 Edmund Hammond Hargraves, an old settler in New South Wales, returned thither from California, where he had spent about eighteen months in the search for gold. His efforts in California resulted in no immediate prosperity, but he gained much useful practical experience. More than this, as he looked at the natural features of the California gold-fields, a great idea grew up in his mind. Though not a geologist, he appears to have had a quick eye for stratiform resemblances; and the more he studied the peculiarities of rocks and soil in California, the more he became convinced that he knew, in his own colony, a district which presented the same features and which, therefore, might be expected to produce the same results.
Remaining in California only long enough to verify his observations, he returned to Sydney at the beginning of the year 1851. Seldom has such absolute confidence in unverified observation proved so completely justified. According to Hargraves's own account he went without hesitation to a spot on the banks of a little stream known as Lewes Pond Creek, a tributary of Summer Hill Creek, itself a tributary of the Macquarie River, and there at once, on February 12, 1851, found alluvial gold. In April he had so far advanced as to be able to write to the Government offering to disclose his treasures for five hundred pounds. But he subsequently decided to trust to the liberality of the Government, and offered at once to show his workings to the government geologist, an official recently sent out from England to report upon gold prospects. On May 19th Mr. Stutchbury officially reported the discovery of gold in workable quantities at Summer Hill Creek, and by the end of the same month the immigration to the diggings had begun. Hargraves himself took no part in the digging, merely pointing out to others, without reserve, the places in which his experience led him to predict discovery, and instructing them in the processes of washing and cleaning. He was soon made a commissioner of Crown lands, and received a reward of ten thousand pounds.
Now began a period which can have no complete parallel in earlier history, save the almost contemporaneous parallel of California.
For in days when news travelled slowly, and travelling for ordinary men was still slower, in days when governments jealously prohibited the expatriation of their subjects, and only allowed the immigration of aliens under strict limitations, nothing like the Australian gold-rush could have taken place. As it was, everything favored the stampede. The Australian colonies themselves were anxious for immigrants. The European disturbances of 1848 had led many Continental rulers to the conclusion that it was wiser to allow turbulent spirits to go than to attempt to keep them. The new era of industry had completely unsettled the old relationships and awakened a spirit of restlessness. Finally, the recent application of steam to sea-going ships had rendered a rapid decrease in the length of the voyage from Europe a practical certainty. From the moment that the genuineness of Hargraves's discoveries was placed beyond doubt a swarm of pilgrims from all parts of the world set their faces toward the diggings. Many, perhaps the majority, of the arrivals were totally unsuited for the actual work of mining. Some of these turned to other pursuits in the neighborhood, and, in no small number of cases, did far better than the diggers whose gold they received. But thousands turned back in despair after a few days' experience of the hardships of the life; so that, almost from the first, there was an enormous traffic to and fro, and strong division of parties upon the gold question. An extreme view of the effect upon population may be obtained from a comparison of the statistics of Victoria at the close of the years 1850 and 1855 respectively. At the former date the population was under seventy thousand; at the latter, it was upward of three hundred thousand. But no other colony increased to anything like this extent during the gold rush.
The first care of the Government at Sydney, on receiving the official report of the existence of gold, was to decide upon the attitude to be assumed toward the diggers. It was abundantly clear that the establishment of mining industries would mean a great increase of expense to the Government. It was equally clear that, as the law had been declared over and over again in the colony, unauthorized digging on Crown land constituted a trespass, for which the digger was legally responsible. But the Governor was wise enough to see that no threats of prosecution would deter men bent on digging in unoccupied lands, even if it were possible to preserve the lands of private owners from forcible intrusion. The "squatting" question had demonstrated that, beyond a certain point, the theory of Crown occupation of waste lands was liable to break down.
So the government advisers suggested a compromise. Falling back on a still older feudal doctrine, they asserted the indefeasible right of the Crown to all gold found either on private or public lands, but recommended that licenses to dig should be granted on easy terms, which would have the double effect of providing a revenue and of preserving an acknowledgment of the Crown's title.
Acting on this advice, Governor Fitzroy, on May 22, 1851, issued a proclamation forbidding all persons to dig for gold on any lands without license, but expressing the willingness of the Government to grant licenses at a fee of thirty shillings a month to diggers on Crown lands. For the present, the Governor refused to allow digging on private lands without the owner's consent. The proclamation also announced that no license would be given to any laborer or servant unless he could produce a certificate of discharge from his last service. At the same time the Governor established the practice of appointing special commissioners for the gold-fields, charged with the administration of the licensing system and the general maintenance of order in their respective districts. He also strengthened the police force by every means in his power, and then awaited developments.
He had not long to wait. Almost immediately after the issue of the proclamation another gold-field was discovered on the Turon River, also a feeder of the Macquarie, only a few miles from Lewes Pond; and shortly afterward a third was opened up on the Abercrombie, a tributary of the Murrumbidgee, which takes its rise in the Cordillera, south of Bathurst. By the beginning of June, gold began to pour into Bathurst; but Mr. Hardy, the chief commissioner, was able to report an almost idyllic peace and plenty at the diggings.
In the middle of July an event occurred which at once produced a violent attack of gold fever. This was the discovery of an enormous mass of virgin gold, weighing upward of one hundred pounds, by Doctor Kerr, a squatter on the Meroo Creek. Doctor Kerr had been guided to the spot by an aboriginal who had been in his service several years; and, in his excitement, he broke the matrix in which the nugget was imbedded, and thus spoiled what would have been the most magnificent specimen of gold quartz hitherto discovered. Even as it was, the display in Bathurst of a single find of gold worth four thousand pounds was enough to excite the feelings of the inhabitants to a pitch inconsistent with steady industry.
But Doctor Kerr's find raised a point of some interest to the Government. In framing the licensing regulations, the advisers of the Crown had thought only of the possibilities of alluvial mining. Had they even directed their thoughts toward rock gold, they would probably have considered it highly improbable that any explorer should be able to extract the metal without an amount of preparation which he would hardly undertake upon the security of a bare license. But, as it happened, Doctor Kerr had not even a license when he discovered the gold, though he took one out as soon as possible afterward. To strengthen its position, the Government seized the gold in the hands of a firm of shippers who were about to send it to England; but, on the firm's representation, it was released, security being given for the payment of a royalty of 10 per cent, if the Crown should see fit to demand it.
Early in August, 1851, the Governor announced that, for the future, licenses would be held to cover only alluvial gold, and that for rock gold found on Crown land the Government would demand a royalty of 10 per cent., half that amount if the working was on private land. A fortnight later the Government undertook the escort of gold from the diggings to Sydney, thereby adding considerably to the Crown revenue and at the same time obtaining additional power over the gold districts. By the end of August, gold to the value of seventy thousand pounds had been exported from the colony. But these figures were soon eclipsed by those which followed.
The news of the gold discoveries near Bathurst had soon spread through the Australian colonies. The more adventurous of the colonists started at once for the diggings. Others, often encouraged by their governments, who foresaw a constant drain of population in favor of the gold colony, endeavored to find gold within their own limits. Rumors of discoveries were constantly arising. Gold was found at Echuca in South Australia, in the Fingal district of Tasmania, and in the Curumandel ranges of New Zealand. But none of these discoveries could compare for a moment with those which took place within the newly constituted colony of Victoria. Even so early as August, 1851, gold had been worked at a place called "Deep Creek" (or "Anderson's Creek"), not far from Melbourne, but this was soon abandoned in favor of the diggings at Clunes, on the headwaters of the streams which flow north from the great dividing range to the Murray River. A month later, these again were temporarily deserted in favor of the rich Buninyong district, just south of the range, whose chief centre was Ballarat. Finally, at the beginning of October, 1851, the wonderful finds at Mount Alexander, a spur of the Macedon range to the north of Melbourne, were eclipsing all previous discoveries.
Before the end of the year the export of gold from Victoria alone had very nearly reached half a million in value. In two years the population of the Victorian gold-fields almost equalled the whole population of the colony at the close of 1850. Most of the diggers lived in tents, and had absolutely no interest in the colony beyond the mere hope of profit from the diggings. If a more profitable field had opened elsewhere, they would have left at once. By the end of the year 1851 the probable area of future discoveries was pretty well recognized. The gold-fields, with few exceptions, were found to lie on one side or the other of the eastern Cordillera or chain of mountains which, beginning with Mount Elliot in Northern Queensland, follows the coast with remarkable precision till it reaches Port Phillip Bay. But all the more northerly part of this chain was unexplored in 1851, and of course there was room for almost any development within such wide limits.
Warned by events in New South Wales, the governments of the other Australian colonies had made preparations for the crisis. Western Australia was too remote to be much affected; and her newly arrived supply of convict labor rendered her contented. But South Australia and Tasmania suffered severely from the drain of population, which set in toward the diggings.
In South Australia, the effect was in some districts almost as if a pestilence had swept away the men, leaving the women and children untouched. Some of the emigrants really deserted their families, but the bulk were honorable men, and remittances of gold soon began to find their way to Adelaide for distribution among relatives in the colony.
After the comparative failure of the gold-diggings in South Australia, the Government had wisely set itself to secure some part of the prosperity of the gold discoveries for its colony by establishing both land and river traffic routes. In these efforts it was highly successful. Many South Australians made handsome fortunes by sending provisions to the Buninyong and Mount Alexander districts, and the new steamers on the Murray proved a source of profit to the colony which lasted until the development of the railroad system. Unfortunately, this prosperity could hardly be realized at the time, owing to the great scarcity of coined money in the colony. In 1851 the privilege of coining was still jealously monopolized by the mint in London; while the rapid expansion of business in the latter part of that year had rendered the supply of coin in Australia totally inadequate to the demand.
Very soon after the discoveries, Governor Fitzroy had sent home a memorial from the Legislative Council at Sydney, praying for the establishment of a branch mint in that city, and similar applications soon followed from the other colonies. On March 22, 1853, a Treasury minute sanctioned the applications, and colonial mints were shortly afterward established by order in council. But in the mean while the South Australians had got over their difficulty by passing a colonial act authorizing the issue by the Colonial Government of gold ingots, of slightly higher intrinsic value than the coins they were supposed to represent, stamped with an authentic mark. These ingots were not made legal tender, and the only object of the government mark was to guarantee quality and weight. But they were generally accepted in official and commercial transactions, they tided over the crisis of scarcity, and the Home Government, though with due official caution, approved the action of Governor Young.
In Tasmania, the main difficulty arose from the drain of emigrants. In August, 1851, Sir William Denison wrote home urging the transportation of more convicts or "probationers," on the ground that there would be a great demand for foodstuffs by the neighboring colonies, while the supply of agricultural laborers would be shorter than ever. Both Tasmania and South Australia united in deciding upon the continuance of the system by which free emigrants were sent out at the expense of the land fund of each colony, notwithstanding that such emigrants would probably leave for Victoria immediately after their arrival. Of the existence of this contingency there could be little doubt. On January 16, 1852, the Governor of Tasmania wrote: "I have a number of men who have come back from Mount Alexander after an absence from this colony of not more than eight weeks, with gold to the value of one hundred twenty pounds to one thousand pounds." During the five months which followed the writing of this letter, four thousand persons (most of them wage-earners in the prime of life) left Tasmania for Victoria. As the whole population of Tasmania was at this time only about fifty thousand, the matter was serious. Nevertheless, Tasmania tided safely over the difficulties of the gold period, and even was able to help her sorely tried sister.
For it was upon the newly established Government at Melbourne that the strain of the new era most severely fell. The Government at Sydney was an old and tried institution, with traditions of more than half a century, and a staff of experienced officials under an exceptionally able chief. When Hargraves made his discoveries in 1851, the population of the mother-colony was nearly a quarter of a million, exclusive of the Port Phillip district, and such a population meant a government organization of corresponding magnitude. Moreover, the people of New South Wales had always, from circumstances, been accustomed to much governmental control, and did not resent it; while Victoria had been started as a colony whose people were too prosperous and contented to require more than a minimum of guidance. When the gold discoveries suddenly drew into the colony, not merely the most turbulent characters of Australia, but the crews of deserted ships and the general offscourings of the civilized world, and when, overcome by the contagion, the government officials threw up their posts, one and all, and started for the diggings, it became evident that the Lieutenant-Governor had his hands full. Even so early as November, 1851, he began to anticipate trouble from the preemptive clauses of the Crown Lands Leasing Act of 1847, by which the squatters had a right to purchase land in the neighborhood of the gold-fields. The claims of the squatters barred the way, and the squatters themselves looked with small favor upon a class of men whom they regarded as troublesome intruders, and whose proceedings rendered it almost impossible for the pastoralists to procure sufficient labor to carry on their operations. The squatters chose to overlook two important facts; viz., that they had themselves originally acquired their position precisely as the digger acquired his, and that the presence of the digger, if it raised the price of labor, also enormously increased the prices of the squatter's produce.
But more immediate financial troubles began to press upon the Government. It had been necessary, not merely to add largely to the number of the official staff—to provide additional police, commissioners, magistrates, customs officers, etc.—but also to increase their pay in some proportion to the greatly increased cost of living. Even with an increase in their salaries of 50 or 100 per cent, the subordinate officials would not stay. The sight of the reckless and prosperous diggers who came down to Melbourne to spend the Christmas of 1851, and who flung their gold about recklessly, was too much for the feelings of the civilians. They deserted in troops.
On January 12, 1852, Lieutenant-Governor Latrobe wrote: "The police in town and country have almost entirely abandoned duty," and he begged of the Secretary of State to send military aid. In May, 1852, Sir John Pakington replied, promising six companies of the Fifty-ninth Regiment from China, but subsequently decided to send a whole regiment direct from England. A man-of-war was also to be stationed in Australian waters. A still more welcome assistance came in the early part of the year from the Governor of Tasmania, who sent, at Latrobe's earnest request, a body of two hundred pensioners, who had been serving as convict guards, and who might be expected to resist those temptations which, if yielded to, would result in the loss of their pensions. But all this assistance meant money, and the Government soon fell into sore straits.
It is true that at first the revenue rose substantially. Comparing the income for the quarters ending December 31, 1850, and December 31, 1851, respectively, we find, on general account, an increase of eleven thousand pounds, or about 30 per cent., and, on the Territorial account, or Land Fund, an increase of seventy-three thousand pounds, about 100 per cent. Three months later the increase was about 200 per cent. on the general revenue, while the Territorial revenue was about the same. But the latter fact may be accounted for by the transferrence of the fees for gold licenses to the general revenue. It is more important, however, to notice that, though the revenue was rising, expenses were increasing still faster. Not only had the staff to be doubled, or trebled, at a very large increase of pay, but government contracts for public buildings, printing, stores, fittings, and other necessaries could be placed, if at all, only at extravagantly high prices. "No tenders can be obtained for supplies of boots and shoes; orders have been sent to neighboring colonies for them. Old furniture sells at about 75 per cent. advance on the former prices of new; scarcely any mechanics will work." Latrobe estimated the deficit in the revenue of the year 1853 as nearly four hundred thousand pounds, notwithstanding that he reckoned the whole gold revenue of six hundred thousand pounds as available for general expenses.
In his anxiety the Lieutenant-Governor had at first (December, 1851) proposed to double the license fee of thirty shillings a month; but the proposal had provoked such a storm of opposition that he withdrew it. The revenue from licenses was the source of much contention. The Government alleged that it was not taxation, but rent, of Crown lands, and at first devoted it exclusively to the service of the gold-fields. The diggers denounced it as taxation without representation; and the Legislative Council, almost necessarily in opposition to the Government while the latter was administered by nominees of the Colonial Office, refused to make up deficiencies out of the general revenue. Thus the Lieutenant-Governor was placed between two fires. If he enforced the license fees he angered what was rapidly becoming the largest part of the population; if he relinquished them, he left himself without means to carry on the government of the gold-fields.
From this dilemma he was saved by the receipt of a general permission from the Colonial Office, toward the close of 1852, to deal with the gold revenue in the same manner as ordinary revenue. By placing this fund at the disposal of the Colonial Legislature, the Home Government not only removed a great grievance and relieved the hands of the Lieutenant-Governor from the shackles previously laid upon them by the Colonial Office, but it took a substantial step toward the end that was now acknowledged on all sides to be the ultimate outcome of the new discoveries; viz., the introduction of responsible government. The same despatch contained a still more important concession, authorizing the Lieutenant-Governor to devote the remaining part of the land revenue—viz., that arising from sales and pastoral licenses—"to the purposes rendered urgent by the present crisis." As this fund was jealously reserved by the existing constitutions of the Australian colonies, and devoted, under the provisions of the Crown Land Sales Act, exclusively to the purposes of emigration and public works, it will be seen that the Colonial Office took a strong step in sanctioning its diversion. But it must be observed that the expenditure of this additional fund was placed exclusively in the hands of the Lieutenant-Governor and his Executive Council, acting independently of the Colonial Legislature.
With this assistance, the Lieutenant-Governor struggled on amid increasing difficulties till the spring of the year 1853. By this time the agitation against the license fee had reached an alarming height, for the first successes of the new discoveries had passed away, and, although the export of gold continued to increase, it was by no means at its former rate nor in proportion to the increase of population. At the beginning of September, 1853, there were said to be nearly seventy thousand persons living at the Victorian gold-fields, and many of these, in all probability, earned very little more than mechanics employed in settled work. Hence there was a fair ground for an orderly agitation against the amount of the fee; but, unfortunately, the diggers preferred violent measures. There was some excuse for them. They were not represented in the Legislative Council, for they had sprung into existence as a body since the passing of the Act of 1850, and, though a measure had been introduced with a view to giving them the franchise, it had not yet received the assent of the Home Government. In the mean time, therefore, they could not, through their representatives in the Council, effectively criticise either the existing law or its administration. With regard to the latter, there was obviously room for complaint, for the immense increase of business had compelled the Government to appoint an inferior class of officials, and some of these, at least, succumbed to the strong temptations of their positions.
At the beginning of August, 1853, a petition had been presented by the Bendigo diggers, in which they urged the reduction of the license fee and the grant of representation to the diggers. The Lieutenant-Governor returned a pacific reply, but the delegates in charge of the petition were evidently bent on arousing strong feelings, and they held meetings in Melbourne which went the extreme length permissible to loyal subjects. Still, the Lieutenant-Governor shrank from strong measures, and endeavored to remove one ground of complaint by appointing, as a nominee member of the Legislative Council, a gentleman who was believed to possess the confidence of the diggers. The nomination was at once repudiated by the delegates of the latter, and at the end of August an organized attempt was made to resist the renewal of licenses on the old terms. Hundreds of diggers pledged themselves to pay no more than a third of the sum previously demanded, and those who were inclined to yield to the Government's demands were warned that the agitators would not "be responsible for their safety" if they remained at the diggings. The license system had by this time extended, beyond the diggers, to the storekeepers and other tradesmen at the gold-fields, who were making enormous profits out of the diggers, and these, for the most part, unhesitatingly complied with the demands of the agitators, willing rather to pay the fines for breach of the government regulations than to offend their customers. A daring attack on a private escort of gold near Bendigo, which occurred about this time, showed that the colony was on the verge of civil war.
Just at this moment an event occurred which rendered it impossible for the Government to maintain its position unimpaired with the scanty forces at its disposal. In the middle of September, 1853, the total abolition of the license fee was seriously proposed in the Legislative Council of New South Wales. The news flew like wildfire to Victoria, where the diggers had hitherto looked upon the colonial legislatures—in which, it will be remembered, they were not yet represented—as their natural enemies. It seemed to them now that they had everything in their own hands, and it became clearly impossible for the Government, in the existing temper of the diggers, to exact the full amount of the license fee. A proclamation, hastily published with a view to allay excitement, by an unfortunate omission in the printed copies led the public to believe that the total abolition of the license system was contemplated by the Victorian Government. A select committee of the Legislative Council reported unfavorably upon the system. The Government made the best of a bad bargain, and accepted a fee of forty shillings for the three months ending November 30, 1853; and, on the following day, the Legislative Council passed a new Gold-fields Act, which greatly reduced the fees for diggers' licenses, while it substantially increased those demanded for permission to open stores at the gold-fields. It also provided for the grant of leases of auriferous lands, at a royalty of not less than 5 per cent., and gave legal sanction to the customs regarding the "claims" of diggers, which had gradually grown up to regulate the rival interests of neighboring miners. Offences against the act were to be decided upon by the magistrates; but the accused might demand a court of at least two members, and there was to be an appeal to General Sessions.