SOUTH AUSTRALIA. [Concluded from page 36.]

Nelson Examiner and New Zealand Chronicle, Volume III, Issue 113, 11 May 1844, Page 39

SOUTH AUSTRALIA. [Concluded from page 36.]

To return now to the colony itself. We have a despatch from Governor Grey, of date August 20, 1841, on the subject of pauper immigrants. At this time it appears 1,245 souls — one-twelfth part of the whole population of the province — had applied to the Government for employment, in the terms of the agreement made by the commissioners. In carrying out the system which he had previously propounded, namely, not to suffer these immigrants to fall into utter destitution, Governor Grey had reduced the wages to 7s. per week, without rations, for single men; 12s. for a man with a wife, with 2s. 6d. per week for each child, until the sum amounted to 3s. Bd. per diem. The labourers were dissatisfied — they petitioned — a special meeting of magistrates was called, and they recommended a still lower rate of wages. To the further reduction, however, Governor Grey did not immediately accede. Governor Grey's despatch was acknowledged by Lord Stanley on the Ist March, 1842, when a draft for £1,500 upon the Lords of the Treasury, for the purpose of meeting the expense of the immigrants, is made subject of censure. Governor Grey is instructed at once to reduce the wages as proposed by the magistrates, and to discontinue employing any immigrant who refused from a private individual a higher amount of wages than that given by the Government. On the 29th September, 1841, Governor Grey again writes : the number of persous kept from actual starvation by the Government was 1,900.

By a census accompanying this last communication, it appears that at the time there were within the municipality of Adelaide 8,489 souls, while in the whole country districts there were but 6,121 souls.

In October, 1841, the agriculturists of South Australia moved Governor Grey to introduce an act of Council, imposing a duty on grain, &c, the produce of other countries. This he declined doing, and Lord Stanley, in a despatch of May 5, 1842, approved of his having so done.

Again, in October, Governor Grey had to communicate with the Home Government on the subject of the immigrants. The reduction which he had made in their wages caused great discontent, and on two occasions displays of physical force were made. A memorial was presented to him, containing a threatening resolution : this he refused to receive ; and finally another memorial was presented. Governor Grey, however, persisted in the line of conduct he had marked out for himself; and the event, even at this time, showed that he had acted wisely, as the agriculturists were no longer subjected to the payment of an enormously high rate of wages ; but were enabled, having a sufficiency of labour, to carry on their pursuits with some prospect of profit and success. The next despatch, bearing date October 25, 1841, relates to finance. From a comparative statement of the revenue and expenditure for the quarters ending in September, 1840 and 1841 respectively, the following appears : — £ s. d. Total colonial revenue for quarter ending Sept. 30, 1840 . 8,633 14 7 Ditto, 1841 6,766 8 3 Showing a falling off of . .£1,867 6 4 Total colonial expenditure for quarter ending September 30, 1840 43,139 14 6 Ditto, 1841 16,243 2 9 Showing a decrease of expenditure, as compared with the same quarter of 1840, of .£26,896 11 9 And further, it appears that out of this sum of £16,243 2s. 9d., the sum of £6,428 19s. 3d. was on account of destitute immigrants — and the expenditure on account of the Colonial Government, therefore, only 9,814 3s. 6d. " The pecuniary affairs of the colony (says Governor Grey, in this despatch) at present bear a much more promising aspect than I anticipated, and I am almost led to hope that it may be only necessary for me to continue to draw upon the British Treasury for a few more quarters, and only for small sums compared with our past expenditure."

In November, 1841, Governor Grey writes again most encouragingly as to the progress of the colony. He says — " The rapid increase of agricultural operations, and the consequent low price of provisions, the comparative desertion of the town, and the fact that (even at the present low rate of wages) the labourers cannot be induced to emigrate to other colonies, sufficiently attest the healthy progress of this province."

In this despatch a considerable reduction in the police force is announced, also the arrival of a small party of the 96th Regiment. Governor Grey intimates also that he had over estimated the probable expenditure of the Government in the month of July previous, and that, in consequence of. various further reductions he had been able to make, a considerable sa\iog would be effected. Crime was also on the decrease; and, according to the report of the commissioner of police, the public houses were almost deserted. Smuggling and illicit distillation prevailed to some extent; there had never been any attempt to check the latter during previous governments, and spirits were manufactured and sold without any duty being paid or demanded.

On the 12th November, 1841, the number of immigrants employed on public works .was reduced to 500. The fact of there being this number, however, induced Governor Grey to recommend that the commissioners should be cautious not to send others who might overstock the labour market. His Excellency considered that there was a sufficient supply of labour in the colony for twelve months.

On the 14th November, Governor Grey had occasion to address Lord Stanley on the subject of the claims outstanding against the Government on account of transactions which took place before his arrival in the colony ; and stated that he had drawn certain bills upon the Lords of the Treasury to meet a portion of these claims. The bills so drawn, however, were dishonoured, on the ground that they were drawn contrary to instructions; but Governor Grey was instructed to give the holders debentures for their bills, to bear interest from the date on ■ which the billsfwere drawn. In November, 1841, Governor Grey appointed \ 'an Emigration Board, and the consequence was • the detection of much fraud vfthich had been practised on the Government by parties seeking relief. On the 11th January, 1842, the board reported that " the labourers are being absorbed as rapidly as, under the circumstances, could reasonably be expected." On the 22d January, 1842, Governor Grey reported most favourably as to the moral state of the colonists. During the then just past 'quarter the colony had not only been free from crimes of any magnitude, but even petty offences 'had diminished in an almost unprecedented degree. On the 27th January, Governor Grey addressed a despatch to the Secretary of State on the subject of the Survey Department. A great saving had been effected in the expense of surveying, the cost for the six montas previous to the date of the despatch being 7*d. per acre. At the date df the despatch there were 306,215 acres of land surveyed and open for selection. From the abstract of public receipts and expenditure of the province for the quarter ended 31st December, it appears that the total expenditure was £16,603 18s. 4d.; of this the sum of £9,785 ;l6s. 2d. was devoted to the ordinary expenditure of the Government; and £5,818 2s. 2d.to the support of destitute and unemployed British immigrants. The expenditure for the corresponding quarter of the previous year was £40,628 10s. lid., and therefore a saving of £25,024" 12s. 7d. was effected on the last quarter of 1841 compared with that of 1840. The total receipts for the quarter ending the 31st December, 1841, were £5,374 4s. 5d. ; those of the corresponding quarter of 1840 were £7,413 os. lOd., so that there was a falling-off in the sum of £2,033 16s. 5d. ; but this is accounted for by the decrease of the Government expenditure by nearly £100,000 per annum. In acknowledging the receipt of this despatch, Lord Stanley expresses a regret to observe that, even setting aside the heavy disbursements on account of pauper immigrants, the ordinary expenditure of the colony has not yet been brought within the limits of the ordinary Tevenue; and he further states that he has no doubt that this object may be satisfactorily accomplished by attention to the instructions of the Home Government. In the-jmonth of February, 1842, a number of bills whicnh*ad4)een drawn by Colonel Gawler on the Treasury, to meet the expenses of various Government departments, were returned to the colony dishonoured. These bills, at the request of the late Governor, had been indorsed by the heads of the departments for the service of which the bills were respectively drawn, and the] holders threatened proceedings against them as indorsere. This formed the subject of communication with the Home Government, and the Home Government became responsible for the payment of the bills; but declined to give any compensation for expenses to which the heads of departments might have been put on account of the irregularity of such a proceeding as their indorsing those bills. On the 22d February, 1842, Governor Grey again reported on, the subject of unemployed labour. It appears that the number of unemployed labourers had been reduced to 300, 236 of whom were employed on Government works, and of these 116 belonged to trades which it was not probable would soon be required : the others, m alT^robability, would be speedily engaged as- farm servants and labourers, if the agriculturists were enabled to obtain means to employ them. There had been a plenteous harvest, but the agriculturists could not obtain a remunerating price for their produce, and consequently considerable embarrassment prevailed. A number of witnesses were examined before the Council on the subject, and they were all of • opinion that all the labour in the colony would be speedily employed if the settlers jcouldV procure the means; but they did no^agree as to any method by which those means might be supplied. Some were in favour of Government buying up the wheat, so as to put the settlers in funds ; others were opposed to such a course, as interfering with the regular course of trade. The evidence, on the whole, was highly satisfactory, as well with respect to the breeding of cattle and horses, and sheepfarming, as with respect to agriculture. In a despatch relative to the evidence taken before the Council, and after alluding at length to the various causes of the calamities which the colony had undergone, Governor Grey says — " It is difficult to predict the exact period when the colony will be able thoroughly to retrieve itself. Property must first extensively change hands, thai completing the ruin of former holders. It will however come into the possession of the new purchasers at something like its value : their future operations are therefore likely to be successful/ On the 4th April, 1842, Governor Grey was enabled to report that the number of unemployed able-bodied men had decreased to 272, .and that there was a prospect of a still further ■<>and considerable decrease within a few weeks. On the 20th July the number was reduced to 186. A despatch from Ijord Stanley, bearing dajgq 6th September, 1842, communicated to Gov*fe nor Grey the act of Parliament which had beeal

passed for the government of South Australia; also instructions that, in future, the land sales were to be conducted according to the provisions of the act passed for regulating the sales of lands in the Australian colonies ; and intimating that it was proposed to place on the Parliamentary estimates the sum of £27,290, to meet bills drawn by Colonel Gawler, and £32,646 to meet bills drawn, or likely to be drawn by Governor Grey, to meet the expenses of the pauper immigrants. The Lords of the Treasury also transmitted a power to Governor Grey, to issue debentures as security for outstanding claims against the Government, such debentures to be secured: on the revenues of the colony. In August, 1842, Governor Grey transmitted to the Secretary of State the Estimates of Expenditure and Revenue for 1843. The estimated expenditure was £34,083 Is. lOd.*; the estimated ordinary revenue, £31,100, which, with £12,000 from the land fund, would make a total revenue of £43,100.

In October, 1842, there were in South Australia, 19,475j acres of land under cultivation, 13,791* of which were under wheat; the number of horses was 1,560 ; of horned cattle 26,000 ; and of sheep 300,000. In 1840, the land under cultivation was only 2,686 acres, and, in 1841, 7,092 acres.

In October, 1842, Governor Grey had again occasion to write to the Colonial Office. He had been for nine months without receiving any despatches from the Home Government. The Bank of South Australia, which, up to that time had transacted the Government business, refused any longer to purchase Governor Grey's drafts on the Treasury, and but that he was enabled to borrow £1,800 from the Commissariat, the Local Government would have been placed in a situation of the most complete embarrassment. Governor Grey, in his despatch, observes that he had nev«r shrunk from the many difficulties he had to contend with, but that the protracted delay in the settlement of the affairs of the colony pressed so heavily and continually upon him, that both his health and spirits were becoming broken. In October, 1842, Lord Stanley's despatch of March, 1842, in which we before observed the drafts by Governor Grey, on account of outstanding claims, were made subject of censure, reached Governor Grey, and, of course, called forth a reply from himj a portion of which we give as follows : —

" I trust that your lordship will not deem me impatient either of censure or control, if I state, in reply to this opinion of their lordships, that, after having undergone for nearly eighteen months the most harrassing mental anxiety, and having been placed in a position of almost unprecedented responsibility, I had hoped that a very different opinion would have been passed upon my measures. " I have no hesitation in stating that the plain practical question with regard to these immigrants was, whether I should permit upwards of 2,000 British subjects to starve, or support themselves by rapine and pillage, which they threatened in very intelligible language that they would do.

" On my arrival in the province, I found a Government expenditure of about £150,000 a-year being still carried on. 385 persons were employed in the different Government establishments, and a large number of paupers, men, women, and children (including 142 male adults), were supported by the Government at a very high rate of wages ; the men receiving Is. 6d. per diem, in addition to a large ration for themselves, and an extra allowance in proportion to the size of their families.

" The late Governor had, shortly before my arrival here, publicly stated that the commissioners were pledged to find work for these immigrants, which work must of necessity be paid either in money or in kind, at rates sufficient to provide fair subsistence. * * * * *

"At that time there were only about 3,000 acres of land under cultivation, yet in the town was assembled a population of 8,479 people, who were almost wholly supported, directly or indirectly, by the Government expenditure. There were also in the town sixty-three public houses, and one large and one small theatre. This was also the only British colony which possessed no military force to act in aid of the civil power. " Such was the state of things when I landed in the province. *****

" Notwithstanding these adverse circumstances, I had in a few months removed 215 people from the Government Establishments ; these, together with their families, cannot be rated at less than 860 souls. I also immediately reduced the allowance of the pauper immigrants from one shilling aid sixpence per diem, and their rations, to one shilling and two-pence per diem, without rations. I also, by the stoppage of the public works, threw out of employment a large number of mechanics; and, at the close of the first six months, I had effected a saving in the expenditure (as compared with that which was carried on at the time of my arrival) of upwards of £100,000 per annum. * " From the state of excitement which existed at the time of my landing in the province, it was impossible that this could be accomplished without violent opposition. Oa one occasion several hundred men, in an organized body, marched up, to the Terrace at Government House. I was several times threatened with personal violence. Tumultuous meetings were held; seditious language was used. The police were tampered with. I was often warned that some popular outbreak would take place ; and yet, from the-ebsence of a military force, I was for some time left with no adequate means of resisting any attempt that might be made, and yet of such an attempt I was often in hourly expectation. " I still, however, patiently and resolutely continued to make the necessary reductions, soothing and allaying irritation which I felt to be not altogether void of foundation : for the colonists were not themselves responsible for the position in which they were placed. I could not but feel acutely the distress which my reductions occasioned, and I .may state unreservedly to your lordship, that out jjdft my official income of £1,000, I contributed |E393 ss. to charitable purpose*. Indeed, it was jdniy by acting thus as a private individual that I

could encourage myself to proceed in my official capacity with that fixedness of purpose which I felt to be necessary.

" At the time I am writing this despatch, my various measures have [been crowned by complete success. The agricultural returns show that 19,641 acres of land are under cultivation ; and the colony has not only grown grain enough for its own consumption, but corn will be this year largely exported. The number of men on the Government works has diminished from 555 to about 60 ; and, in a fortnight, when the harvest commences, none but those who are totally disabled from disease will be supported by the Government. The town is comparatively deserted; the theatres are closed ; and the accompanying return shows that the number of public houses in the town is reduced from 63 to 38. As a necessary consequence of this state of things, the amount |jof crime has greatly decreased, and the drunken cases are diminished 50 per cent. •

" To this I would venture to add that, when I arrived in the province, none of the measures necessary either for raising a sufficient revenue, or for efficiently protecting it, had been passed ; but that internal distillation was carried on in the very town of Adelaide in the most open manner, without the duty imposed by law on colonial spirits of four shillings per gallon being ever either demanded or paid; and that I have now placed both the system of taxation and the mode in which the public expenditure is conducted upon a firm and efficient basis, having found this by no means the least difficult portion of my task."

Governor Grey, in January, 1843, sent to Lord Stanley a detail of the manner in which he proposed still further to reduce the expenditure, and, by amended estimates for 1843, the expenditure was expected to be £29,689 195. 6d., while the revenue for the same year, was estimated at £31,100.

On the 6th December, 1842, Governor Grey was enabled to report that " every able bodied labourer in the province was in full employment, and that the Emigration Board, having fulfilled the object for which it was appointed, had been broken up. In a deswrtoh, in reply, Lord Stanley directed the thaniefHUier Majesty's Government to be given totne gentlemen composing the Board.

On the 22d January, 1843, Governor Grey recommended a return to emigration, as otherwise he feared an actual want of labour would be experienced, and the progress of the colony retarded. He was of opinion that four hundred immigrants with their families might be disposed of in the course of the next year. Lord Stanley, in reply, regrets that there are no funds available for the purposes of emigration to South Australia.

In August, 1843, Governor Grey received a despatch having reference to that above quoted, in which Lord Stanley says — " I have the satisfaction of assuring you that, in reviewing your conduct of the financial affairs of South Australia, the Lords Commissioners of the Treasury concur with myself in attaching great importance to your services, and are not less ready than I am to acknowledge the zeal, the ability and firmness, which have characterized your efforts to retrieve the colony from the embarrassments in which it was involved. Those efforts have happily been attended with complete success.''

With this extract we close our summary of this correspondence. By the liberality of the Imperial Parliament, South Australia has been relieved of a debt of nearly £400,000 ; by the judicious course adopted, and firmly adhered to, by Governor Grey, the enormous Government has been reduced to one-fifth of what he found it. The British Government has been relieved from the charge for the support of unemployed labourers; the colonists no longer have to pay a ruinous price for labour, and agricultural operations have so extended, that South Australia is rapidly becoming a grain-exporting country. No ordinary mind could have steadily encountered the difficulties which Governor Grey has overcome; and, although annoyed in the pursuit of his object by murmurs and threats on the part of the colonists, and by scarcely concealed censure on the part of the Home Government, he has now the pleasure of having it admitted that his services have been most valuable, and the happiness of seeing the colony in a healthy and prosperous condition, with a revenue which exceeds the Government expenditure, and an extension of productive pursuits rendering the colony independent of foreign countries for the necessaries of life.