Chapter 26

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.

These measures were partly successful in restoring order, but it was obvious that the gold-fields contained men who were averse to a peaceable settlement. Notwithstanding that the number of the elective members of the Legislative Council was more than once increased; that, with the full consent of the Home Government, a bill was being prepared for the introduction of responsible government; and that the material condition of the diggers was being rapidly improved, the Lieutenant-Governor had, in January, 1854, to report the formation of a "diggers' congress," which obviously had for its object the supersession of the ordinary government.

Latrobe retired from office in May of the same year, and one of the first points noticed by his successor, Sir Charles Hotham, was the existence of an agitation against the Chinese at the Bendigo diggings. Notwithstanding the enthusiastic character of his reception in his progress through the gold-fields in September, the new Governor soon had to face serious disturbances.

The events of the next few months formed a crisis in the history, not only of Victoria, but of Australia. Naturally there is much dispute concerning them, and, as the following account is taken chiefly from Sir Charles Hotham's reports, it is possible that the acts of his opponents may not obtain strict justice. But it is admitted on all sides that Sir Charles acted with the most perfect good faith; and the accounts given by the insurgents are far too contradictory and prejudiced to receive much credit.

On the night of October 16, 1854, a miner named Scobie was murdered, or at least killed, at the Eureka Hotel, near Ballarat. The Eureka Hotel was a place of no good repute, kept by a man named Bentley, who, as well as his wife, was (it is said) an ex-convict from Tasmania. Suspicion fell upon the couple, and they, with a second man (named Farrell), were arrested by the magistrates, but almost immediately released for alleged default of evidence. The dismissal of the charge excited a storm of indignation in the camp, and a body of diggers at once proceeded to wreck the hotel and lynch the accused. In the latter object they, fortunately, did not succeed, and so rendered themselves liable only to charges of riot and arson, instead of the more serious charge of murder. Four of the ringleaders were, through the prompt measures of Sir Charles Hotham, shortly afterward arrested, and committed for trial. But the accusations of partiality against the officials were too strong to be resisted, and a board of inquiry hastily instituted by the Governor disclosed the ugly facts that Dewes, the magistrate who presided at the hearing of the charge against the Bentleys, had been in the habit of borrowing money from residents, and that Sergeant-Major Milne, of the police force, had been guilty of receiving bribes. The officials implicated were at once dismissed, and the Bentleys and Farrell rearrested and convicted. But the Governor very properly declined to release the arrested rioters, who, shortly before Christmas, 1854, were convicted and sentenced to short terms of imprisonment.

Meanwhile, more disturbances had occurred. Though a commission upon the general condition of the gold-fields was holding its inquiries, in November many diggers again refused to pay the reduced license fees, and, on the 30th of the month, a serious riot took place. The military were called out, the Riot Act was read, and there was some shooting. Eight captures were made, but the lesson had not been severe enough, and a state of open war ensued. The diggers intrenched themselves in a fortified camp known as the "Eureka Stockade," openly drilled their forces in the presence of the authorities, and levied horses and rations from unwilling miners in the name of a "commander-in-chief." At the same time they issued a long political manifesto, which, while it did not avowedly disclaim allegiance to the Crown, contained proposals to which no regularly constituted government could ever have assented.

The Governor at once ordered all the available military force to Ballarat; but, before reinforcements arrived, the coolness and promptitude of Captain Thomas--the officer in command of the troops on the Ballarat gold-field when the riot of November 30th took place--had nipped the insurrection in the bud. Captain Thomas saw that, while the Eureka Stockade threatened to become a serious obstacle to the Government if its completion were allowed, in its uncompleted state it was really a source of weakness to the insurgents. By collecting their forces in one spot, and thus rendering them more exposed to a crushing attack, and by drawing off the men who threatened the government camp, it really left the commander of the troops free to act with decision. Accordingly, Captain Thomas at once determined to attack the position. Assembling his forces (somewhat fewer than two hundred men) at three o'clock on the morning of December 3d, he moved toward the stockade.

At about one hundred fifty yards from the intrenchments he was perceived by the scouts of the insurgents, who promptly fired on the advancing troops. Thomas himself, Pasley (his aide-de-camp), Rede (the resident commissioner), and Racket (the stipendiary magistrate), all of whom were present at the attack, positively assert that the insurgents fired before a shot was discharged by the troops. Upon this reception Captain Thomas gave the order to fire, and the intrenchments were carried with a rush after about ten minutes of sharp fighting. Captain Wise was fatally wounded, and three privates were killed outright; one officer and eleven privates were wounded. Of the insurgents, about thirty were known to have been killed, and many more wounded. Nearly one hundred twenty prisoners were taken. The effect of the victory was, so far as local disturbances were concerned, instantaneous. Even before the reinforcements under General Nickle appeared, all resistance to the authorities had died away; and, though the Governor at once proclaimed a state of martial law, he was able to recall the proclamation in less than a week.

In other districts of the colony the effect was, for a while, doubtful. The extreme reluctance of Englishmen to admit the necessity for military interference by the Government told strongly in favor of the rioters. There was some danger that Melbourne and Geelong, left almost entirely unprotected by the concentration of troops and police at Ballarat, would be taken possession of by rioters from the country districts, and Sir Charles Hotham made hasty application to Sir William Denison, the Governor of Tasmania, for military assistance. Very soon, however, the feelings of orderly citizens asserted themselves. Special constables were sworn in at Melbourne and Geelong, marines from two men-of-war stationed at Port Phillip guarded the prisons and the powder stores, wealthy men volunteered to serve as mounted police, and the arrival of the Ninety-ninth Regiment from Tasmania on December 10th dealt a final blow to the hopes of the insurgents. Even before this event, all the respectable classes in the community had rallied round the Governor, and he felt himself in a position to defy further outbreaks.

But the ugliest feature of the whole affair was yet to be revealed. Out of the large number of prisoners taken at the capture of the stockade, only thirteen were committed for trial, the magistrates being instructed to commit only when the evidence was of the clearest nature. It being considered impossible to obtain an impartial trial by a local jury, the prisoners were brought down to Melbourne, and, after various delays, the charges were proceeded with on February 20, 1855. A Boston negro, named John Joseph, and a reporter for the Ballarat _Times_, named Manning, were first tried. The latter may have been merely led away by professional ardor in the pursuit of "copy," though the fact that he had been openly drilled and instructed in the use of a pike by the insurgents would seem to show that his zeal was somewhat excessive.

In the case of Joseph, the evidence was overwhelming; he had actually been seen to fire upon the troops, and he was captured in a tent which had been used as a guard-room by the insurgents. No counter-evidence was offered, the prisoners' counsel relying entirely on the alleged absence of treasonable intention. Nevertheless both prisoners were speedily acquitted, and, although the Government wisely withdrew the remaining cases for the time, subsequent trials produced similar results. Ultimately, however, the difficulties of the situation were allayed by the reforms introduced on the recommendation of the commission appointed to consider the whole subject of the gold-fields. This body presented, on March 27, 1855, an extremely able report, in which it recommended the abolition of the license fee and the substitution therefor of a "miners' right" or Crown permission, lasting for a year, and granted for a nominal fee of one pound, to occupy for mining purposes a specific piece of Crown land. The deficiency in revenue anticipated from the abolition of license fees was to be met by the imposition of an export duty upon gold at the rate of a half-crown an ounce.