CHAPTER IX.

AUSTRALASIA.

I. AUSTRALIA.

Had it not been for the dominating influence of the war the year in Australia would have been memorable for the unfortunate consequences attendant upon a season of short rainfall. The absence of rain was felt early in the year, and by mid-winter it was clear that both small and large holders would suffer severely. The lambing, which, in a great pastoral country like Australia, makes such a notable addition to the national income, was a partial failure, and over wide areas, particularly in the south of the continent, stock owners had considerable trouble to keep their flocks and herds intact. Among the farmers, the wheat growers were the main sufferers. The 1913-14 harvest exceeded 100,000,000 bushels, and was the largest the Commonwealth had produced. The crop which was being garnered at the close of 1914 produced only 26,500,000 bushels. With the single exception of New South Wales, which had a small quantity of wheat available for export, none of the States grew enough grain for their own flour necessities. The partial failure of the rainfall was the more serious because, as a great pastoral and a considerable agricultural community, Australia must otherwise have made very substantial gains out of the high prices for foodstuffs established by the war. At the same time, however, too much attention must never be paid to one season of bad rainfall in Australia. Previous to 1914 the Commonwealth enjoyed an almost unbroken run of exceptional prosperity for ten or eleven years, and there had in that time not only been remarkable development in all primary and secondary industries, but also a very considerable accumulation of wealth by all classes. Fortunately, as the year closed there were heavy and widespread rains, and with excellent prospects of a return to happier conditions in 1915.

The declaration of war against Germany was not taken quite so calmly by the Australian people as by the people of the United Kingdom. The Australians, as a youthful community, naturally exercise less restraint in a time of Imperial stress than the experienced veterans of the Mother Country. Then the high feeling which prevailed in Australia was accentuated by the sense of isolation from other parts of the Empire, and particularly from the seat of war; while the news service dealing with the war was, particularly in the early stages, far less satisfying in the Commonwealth than it was in London. All cable communications were severely censored both before they left the United Kingdom and in many cases again after they reached Australia, and the consequence was that the Australian people were apprehensive lest they should be receiving only information which was favourable to the British cause. It is necessary to mention these facts in order to understand the marked contrast presented by the British people at home and those of the self-governing Dominions in the early stages of the war. The scenes of enthusiasm which attended the departure of the first contingents from Australia found no parallel in the United Kingdom, and the Australian people were at the same time far more anxious and "jumpy."

The Australians are made up to the extent of 97 per cent. of Anglo-Saxon blood, and so there was nothing remarkable in the immediate response to the Empire's call to arms. The young manhood of the Commonwealth fell into line just as naturally and spontaneously as the manhood of London or Edinburgh. Within two or three days of the declaration of war the Commonwealth Government had offered 20,000 troops for service in any part of the world. This offer was immediately accepted by the Imperial Administration, and from that moment until the year closed volunteers came eagerly from every class and every portion of the Commonwealth. The people of Australia entered with special enjoyment into the task of the destruction of Germany's ambitions and the acquisition of her territory in the South-West Pacific. It had always been felt that some of these territories, and especially German New Guinea, were too close to the Commonwealth, and the time might come when they would be the cause of serious trouble between the two peoples. Moreover the flying expeditions which the Imperial Government ordered or sanctioned for the conquest of these enemy colonies, gave an opportunity to the young Australian Navy to demonstrate its seamanship and fighting capacity. Before the war was many days old, the first Expeditionary force, with Colonel Holmes in command, was on its way, under Navy protection, towards the North, and a week or two later the whole Empire was delighting in its initial successes. The operations of this Force were of historic interest, because they marked the first occasion upon which Australians engaged in warfare without the co-operation and support of other British troops.

The rapidity with which the men under Colonel Holmes' command were enrolled and despatched showed the general efficiency of the Australian Defence Force. Recruits were called for on August 9, and by August 18 the Force was embarked under sealed orders "For the Tropics." After a fortnight's training on the Queensland coast, the expedition proceeded direct for the German headquarters at Simpsonshafen, in New Pomerania, or, as the island is more familiarly known, New Britain. It was from Simpsonshafen that German New Guinea and other territory in the vicinity was governed, and the first aim of the Australians was to locate and destroy a wireless station known to be at work upon the island. A small German force supported by a number of natives offered sharp resistance to the advance towards the station, and before the Australians carried the position they lost seven men, including Lieutenant-Commander Elwell, R.N., and Captain Bryan Pockley, of the Australian Army Medical Corps. All resistance fizzled out within a few days, and on September 12 the British flag was hoisted, and possession taken of the Island. Before the end of the month a landing had been effected at Friedrich-Wilhelmshafen, the chief German station upon the mainland of German New Guinea, which capitulated without resistance. Meanwhile other units of the Australian Navy convoyed the little New Zealand Force which took possession of German Samoa; and the Bismarck Archipelago and other islands were captured at about the same time. Then the Japanese took the Marshall Islands, which they have since graciously handed over to the keeping and administration of the Commonwealth. Had the conquest of these Pacific Islands not been overshadowed by the fateful struggle in Europe, more would have been heard doubtless of the extent and richness of Germany's lost colonies. Sufficient for the present to say that they make up a wide area of land teeming with qualities capable of great wealth production. At present the new territory is being administered by resident officials specially appointed by the Commonwealth.

When war was declared there were a considerable number of German vessels of importance in Australian waters or about the coast, and few if any of these escaped the activities of the local Navy. The entry of these ocean captives to the various ports was the signal for outbursts of enthusiasm among the people, who were making prisoners of war for the first time in their history. Australia's first serious mishap occurred in the loss of Submarine A.E.I., which disappeared mysteriously between August 14 and 19 in the Pacific close to the Australian coast. The total crew, made up of thirty-five officers and men, were drowned. It is believed that the submarine foundered owing to an accident.

Meanwhile recruiting was proceeding vigorously for the main Expeditionary Force, intended ultimately for service on the Continent, but subsequently diverted, temporarily at least, to Egypt. In the South African War the Australian troops were made up almost entirely of Mounted Infantry, and a preference was consequently given to young countrymen. In the present campaign, however, the call was chiefly for Infantry, and so the men of the cities had equal opportunity. The response was of the best kind; it was common for remote stockmen to present themselves to the recruiting officers after an overland journey of many hundreds of miles. The first Force to embark represented a complete fighting unit of upwards of 22,000 men, with its proper complement of Cavalry and Artillery and fully equipped in all its branches. Many of the men had seen service in the South African War; a large number were drawn from the oldest of the Cadets, and so were the first-fruits of Australia's system of compulsory military training. As a whole, however, it was necessary that the Force should undergo a few months' training before entering upon active service in Europe, and this training was carried out in Egypt, while the men were at the same time available for the defence of that territory against the Turks.

It was during the transport of the Expeditionary Force to Egypt that H.M.A.S. _Sydney_ had the dramatic encounter with the notorious _Emden_. The _Sydney_ was part of the convoy of the transports, and early one morning there came a wireless call from Cocos Island that a foreign warship was approaching. The _Sydney_ responded immediately, and a few hours later sighted the _Emden_, and forced her to accept battle. In the opening round the duel was fairly even, and the _Emden_ gunners, shooting with great precision, got two or three shots home, without, however, causing the _Sydney_ much damage. Thenceforward, the _Sydney_ showed her superiority, and after a short fight, the _Emden_, very badly, damaged and after suffering terrible casualties among her crew, was broken and beached upon one of the islands of the group. The Australian flagship was at about this time co-operating with Japanese and French battleships in scouring the Pacific in search of the German squadron which had destroyed the _Monmouth_ and the _Good Hope_, and so contributed indirectly to Admiral Sturdee's great victory at the Falklands.

The response to the various patriotic funds was similar to that in other parts of the Empire. Money and comforts of diverse kinds flowed in on a most generous scale. By the end of the year upwards of a million sterling had been contributed; the Commonwealth Parliament voted 100,000_l._ to the relief of distressed Belgians, and the State Governments and a large number of Municipalities also contributed handsomely to the same cause.

_The Commonwealth._--Early in the year Lord Denman resigned the Governor-Generalship owing to ill-health, and was succeeded by Sir Ronald Munro Ferguson, who arrived in Australia in May. Almost the new Governor's first act, and one which led to much controversy, was the granting of a double dissolution to the Federal Parliament at the request of the Prime Minister, Mr. Joseph Cook. Mr. Cook's aim was to put an end to the stultifying deadlock which existed between the House of Representatives, in which the Government had a slender majority, and the Senate, where the Labour Opposition was overwhelmingly dominant. The elections were arranged for September, but immediately upon the declaration of war the Labour party, led by Mr. Fisher, urged that an appeal to the country under the circumstances was undesirable, and that the Government should continue to carry on until a more favourable season for party controversy. This course, however, was not deemed practicable, and the elections were held. The returns gave Labour a majority of 41 to 33 in the House of Representatives, and 31 to 5 in the Senate. Mr. Cook resigned, and a Labour Cabinet was formed as follows: Prime Minister and Treasurer, Mr. Fisher; Attorney-General, Mr. Hughes; Minister for Defence, Mr. Pearce; Trade and Customs, Mr. Tudor; External Affairs, Mr. Arthur; Home Affairs, Mr. Archibald; Postmaster-General, Mr. Spence; Vice-President of the Council, Mr. Gardiner; Honorary Ministers, Messrs. Jenson, Mahon and Russell. Mr. Arthur died before the end of the year, and was succeeded as Minister for External Affairs by Mr. Mahon. Mr. McDonald became Speaker in the House of Representatives, and Mr. Givens President of the Senate. Mr. Fisher in his Budget, presented on December 3, estimated the expenditure for 1914-15 at 37,500,000_l._, which included nearly 12,000,000_l._ to cover the local cost of the war. The revenue was estimated at 23,273,000_l._, and the deficit of 13,000,000_l._ was provided for by a loan of 10,500,000_l._ by the British Government, and Treasury Bills to the extent of 2,588,000_l._ Much gratitude was expressed towards the Home Government for the generous manner in which they came to the financial assistance of the Commonwealth. A loan of 18,000,000_l._ was granted to the Commonwealth for re-loan to the States. Much of this money was required to meet old loans falling due, while the balance was wanted for the vigorous prosecution of railway construction and other public works. In view of the considerable dislocation in private industry owing to the war, especially in mining, it was deemed desirable that both the Federal and State Governments should continue development works during the war, and so avoid unemployment and distress. The Government proposed a slight increase of the Land Tax and a revision of the tariff, with still further preference to British as against foreign goods. Probate and succession duties were for the first time imposed by the Commonwealth. During the year Sir George Reid, the High Commissioner in London, visited Australia, and made a number of notable Imperial speeches, and was everywhere received with enthusiasm. His term of office, which was to have expired early in 1915, was extended for one year. Earl Grey, and Sir Hartmann Just of the Colonial Office, made notable visits to Australia. The tour and Conference of the British Association, which had been so keenly anticipated by the people, were in a large measure circumscribed by the outbreak of the war. A little event of much significance was the launch from the Government docks in Sydney Harbour of a torpedo destroyer which had been built entirely by Australian labour, and, with the exception of the plates, of local materials. At the same time, it was announced that a cruiser and a number of other destroyers were in the course of construction. Following upon the excellent reports which Royal Navy officials in command of the Commonwealth Navy gave of the young native-born Australians who made up the larger part of their crews, this first successful essay into the building of a warship was regarded with the utmost satisfaction. It seemed to have established conclusively that the young Anglo-Saxon in Australia had fully inherited the genius of his forefathers for shipbuilding and seamanship. In a modification of the initial Navy programme laid down a few years ago by Admiral Henderson, provision was made for the construction of two light cruisers and two improved submarines, instead of torpedo destroyers. Considerable progress was made with the various training colleges, naval bases and other matters dealing with the defence system. Sir Ian Hamilton, in his special report upon Commonwealth forces, congratulated the Government upon the fitness of its land defences. He expressed the opinion that the whole of the regular Force and 75 per cent. of the Militia serving at any particular time were sufficiently trained and equipped to engage in modern warfare at forty-eight hours notice, while within another fortnight the balance of the Militia, together with 20,000 members of rifle clubs, could be put into the fighting line.

In _New South Wales_ the drought was not so severe as in Victoria and South Australia. In the wide Riverina district the pinch was severely felt, but on the dairying areas, especially along the North Coast, the season was more favourable and productive than any previously enjoyed, while much of the pastoral country had a fair season. The Labour Ministry continued in office, and having a sound working majority pushed on actively with legislation. In January a new Ministry was formed as follows: Premier and Treasurer, Mr. Holman; Chief Secretary and Minister for Mines, Mr. Cann; Attorney-General and Minister for Justice, Mr. Hall; Lands, Mr. Trefle; Works, Mr. Griffiths; Public Instruction, Mr. Carmichael; Agriculture, Mr. Ashford; Labour and Industry, Mr. Estell; Vice-President of Executive Council, Mr. Flowers; Honorary Minister, Mr. Hoyle. The Treasury estimated the revenue for the financial year at 18,380,000_l._, an increase of 2,120,000_l._, and the expenditure at 18,342,000_l._ In October, however, Mr. Holman, in the course of his Budget speech, estimated that owing to the reduced earnings in consequence of the war, there would be a shortage on the year of 340,000_l._ To overcome this he proposed a temporary supertax on incomes and a tax on motor cars. The Government awakened much controversy by its decisive actions in connexion with the war. As a precaution against the operation of market manipulators, the whole of the available wheat supply was seized. The Government also announced its intention and provided the necessary purchasing machinery to take over the whole of the wheat crop then ripening at an arbitrary price of 5_s._ a bushel. The Government also took active steps to encourage the cultivation of a large wheat crop for the ensuing season. Towards this end farmers were guaranteed a minimum price of 4_s._ a bushel for their grain, and it is expected that as a result of this measure the area sown will show an increase of 1,000,000 acres, and that the crop, given a moderate season, will exceed 60,000,000 bushels. The best record to date is 37,000,000 bushels for 1913-14.

In _Victoria_ the chief political event was the unexpected resignation of Mr. Watt as Premier in favour of Sir Alexander Peacock. Mr. Watt at once announced his intention of taking an active part in Federal politics, and entered the House of Representatives at the general election. Sir Arthur Stanley was sworn in as State Governor in February. The Premier announced a definite sustained policy of railway construction at a cost of from 600,000_l._ to 700,000_l._ a year. At the general elections in November the Liberals retained office with a majority of 43 to 22 over the Labour Opposition, all Ministers being re-elected. The Treasurer in his Budget Speech in December estimated the revenue at 10,600,000_l._ which was an increase of 3,000,000_l._ within twelve years. He pointed out that the total loans of the State amounted to 66,000,000_l._ of which no less than 27,000,000_l._ were now held by the Victorian people themselves. There was no increase in taxation for the present year, but income and stamp duties would be slightly raised within the next four years. It was claimed that the State shipbuilding yards and coal mines had paid their way, and justified the policy which led to their establishment. The season was extremely unfavourable, probably the worst Victoria had ever experienced. The shining exception was upon the great irrigation districts in the north, where the settlers, with their unfailing supply of river water, had a year of very heavy production, and reaped the full advantage of the high prices prevailing for all kinds of produce; in fact, the great illustration afforded of the value of irrigation was a big compensation for the failure elsewhere, as Victoria still has available wide areas of irrigable land, and further supplies of water which can be conserved. The appreciation of irrigation was shown by the fact that even before the season closed there was a rush for the possession of the watered lands still in the possession of the Government.

_Queensland._--Major Sir Hamilton Goold-Adams succeeded Sir William MacGregor as Governor. Queensland enjoyed a remarkably good season, quite escaping the shortage of rainfall in the South. The pastoral industry was particularly prosperous, and as the war enhanced wool values and promised also to increase the price of meat, the State never had a brighter financial aspect. Early in the year, Mr. Denham, the Premier, visited England, where he arranged for the conversion of maturing loans, and was gratified at the confidence the London money market displayed about Queensland's national assets. During the year no less than 9,000,000 acres of land were taken up by new settlers, an increase of 2,000,000 acres over the previous year. Nearly 4,000,000 bushels of maize were raised, and the sugar product reached 2,420,000 tons. Altogether the outlook in the big tropical State could scarcely be brighter.

_South Australia_, like Victoria, was seriously affected by the drought, and the wheat crop, which is so important in the State, was very light indeed, while many settlers had great trouble to avert serious losses among their live-stock. Sir Lionel Galway succeeded Sir Day Bosanquet as Governor. Mr. A. A. Kirkpatrick retired from the position of Agent-General in London after some years of successful work, and was followed in that position by Mr. F. W. Young. The Treasurer, Mr. Peake, in his Budget Speech in October, estimated a surplus of 4,000_l._, and indicated that should there be a deficit in consequence of the drought and the war, it need cause no concern, as there was on hand an accrued surplus from the recent good years of upwards of 1,000,000_l._ As in New South Wales, Victoria, and Western Australia, there was every indication of farmers extending their wheat areas in the ensuing year in anticipation of high prices.

_Western Australia._--A general election in October resulted in Labour being again returned to office. Mr. Scaddan again became Premier, Treasurer, and Minister for Railways; Mr. Collins, Minister for Mines and Water; Mr. Joseph, Minister for Lands; Mr. Walker, Attorney-General and Minister for Education; Mr. Drew, Colonial Secretary; Mr. Angwin, Minister for Public Works; Mr. Jabez Dodd and Mr. R. H. Underwood, Honorary Ministers. Nearly 300 miles of new State-owned railways were opened for traffic in December, and at the same time there was a similar length in course of construction. In every direction the Government pursued an active policy of development works. Western Australia has an area of nearly 1,000,000 square miles, and at present the population is only a little more than 300,000. The season was against agricultural production, and the wheat crop was only a little above one-third of that of the previous year, when it reached 13,500,000 bushels. As a rule, however, Western Australia enjoys a very regular rainfall, and the settlers, undeterred by the set-back, pushed on vigorously with their clearing and other pioneering. Mr. Justice McMillan was appointed Chief Justice in succession to Sir Henry Parker, and the Very Rev. Cyril Golding Bird, Dean of Newcastle, was consecrated Bishop of Kalgoorlie.

_Tasmania_ enjoyed a fairly good season. Substantial headway was made in production, especially in orcharding, which industry continues to thrive because of the keen demand which awaits its produce in the United Kingdom, and other parts of the Old World. There was keen political fighting, in consequence of the rival parties being almost equal in strength. The Liberals under Mr. Solomon were defeated in the Legislative Assembly by one vote in April on a No-Confidence motion by Mr. Earle, the Labour leader. Mr. Solomon asked for a dissolution, which was refused by the Governor, and he then resigned in favour of Mr. Earle, who formed a Cabinet as follows: Prime Minister and Minister for Justice, Mr. Earle; Chief Secretary and Minister for Mines and Labour, Mr. Ogden; Minister for Lands, Public Works, and Agriculture, Mr. Belton; Treasurer and Minister for Education and Railways, Mr. Lyons; Mr. Justice Nicholls became Chief Justice in succession to the late Sir John Dodds; and the Very Rev. R. Stephen, Dean of Melbourne, was consecrated Bishop of Tasmania.

_Northern Territory and Papua._--Interest in the development of these two great new possessions was largely suspended on the outbreak of war. The failure of the first attempt of the Federal Government to settle the Northern Territory in small areas has not yet been succeeded by any new scheme. It is now generally recognised that there will be very little farm settlement until the country is better served with railways and marketing facilities. Towards this end railway construction was proceeded with upon a small scale, and the proposal to connect the Territory by an overland line with Southern Australia was farther advanced. It is now fairly certain that this railway will be constructed in the course of a few years. The few stock owners who now occupy the richest portions of the country with great grazing stations were favoured as usual by a good rainfall and abundant pastures. Some of these pastoralists possess from 35,000 to 70,000 head of cattle, and with meat at its present price they are enjoying excellent returns.

In _Papua_ the proximity to German territory caused much excitement among the new planters, although between the German and the Australian settlements there lies a wide and almost impassable area, made up of mountain and tropical jungle. Considerable stretches of land were cleared and added to the area under cultivation, and a number of the settlements are now approaching the period of productivity. The Administration continued its well-established policy of dealing generously with the settlers, and kindly but firmly with the natives; indeed the colonisation of British Papua, so far as it has gone, is proving an interesting exception to most of the settlement in Australasia, inasmuch as good feeling is being maintained with the natives, while substantial headway is being made with the pioneering. The commencement of railway buildings gave a new note of civilisation to this grand tropical domain.

II. NEW ZEALAND.

Up to the outbreak of war New Zealand was passing through one of the most satisfactory years in its history. For instance, Customs returns had never been so high as during the six months which ended in June, while the Minister for Finance was able to announce a surplus of 427,000_l._ The overflowing Treasury encouraged the Government to grant still easier terms to new settlers, so as to bring the possession of farms within the reach of farmers' sons and industrious labourers who had accumulated savings. The construction of new railways and other public works was actively promoted. An interesting political event was the re-entry of Sir Joseph Ward into party leadership. He attempted in July to oust the Government on a No-confidence vote, but the Cabinet retained office by a fair majority. The general elections were held in December, and the new Parliament found parties equally divided, the Government having forty seats, and the same number being held by the Opposition, comprised of the Liberals and Labour members. In December, Mr. Fisher, the Prime Minister of the Commonwealth, visited the New Zealand Dominion, and conferred with the Government upon Imperial Defence, so far as it affected the two Dominions, and the question of a reciprocal commercial agreement. Mr. Fisher thought (and this opinion was heartily endorsed by the great majority of the people of New Zealand and Australia) it would be unwise to build too confidently upon a long era of peace at the conclusion of the present war. He urged that Australia and New Zealand should make it clear to the Mother Country that they were ready and determined to take up the burden of Empire Defence in their part of the world. It was quite unreasonable to expect the Mother Country, with the enemy at her gates, to devote her attention to the defence of the distant dominions, whose strength enabled them to act upon their own behalf. "The national development of Australia and New Zealand," said Mr. Fisher, "would be stimulated if they relied on their own resources by maintaining a naval force which was a direct part of the British Navy, but was under local executive control. Experience showed that local control was the best and probably the only practicable method. The day had already come when self-respect should persuade Australia and New Zealand to abandon their policy of reliance upon the British taxpayer."

New Zealand's co-operation in the war was marked by great eagerness and enthusiasm. The New Zealanders are just as British in their breeding as the people of the Mother Country itself, and their response was just as ready and whole-hearted. From every portion of the island came young volunteers of the finest physique; many of them were South African veterans, and all were excellent rifle shots and splendid natural soldiers. A few months after war was declared some 10,000 of these men had been transported to Egypt, but long before then a small flying expedition had proceeded to German Samoa, and put an end to the Kaiser's colony in that portion of the Pacific. Like the Commonwealth, the despatch of the first little army to Egypt was only the beginning of New Zealand's support. Since then many additional thousands of young men of the best quality have been enrolled at the training camps. These will be sent to the front as they are trained and required, and their numbers would gladly be quadrupled at the request of the Imperial Government. New Zealand has also given handsomely to the patriotic funds, and subscribed a large amount of money to the relief of the Belgians. Indeed, as in the South African War, the practical loyalty of this little island people could not have been exceeded.

III. POLYNESIA.

Up to the outbreak of war little occurred to mark the year in these islands. For several weeks after the beginning of August, however, there was unprecedented excitement in the various white settlements. The possibility of a visit from an enemy war vessel and the eager anticipation of a call from ships flying the Union Jack with tidings of the great campaign, kept these lonely dwellers in a state of constant unrest. Generally speaking there was no trouble with the natives, and fair headway was made in planting and in trade. Some notable instances of individual patriotism were reported in the case of young planters and others, who at great material sacrifice and the exercise of much resource, travelled many thousands of miles in order to return to England and participate in the fighting.