Chapter 14

The most prominent politicians in Australia are Sir Henry Parkes and Mr. Berry. Of these, Sir Henry Parkes is unquestionably the abler. He is a fair administrator, a good debater and leader of the House, has statesmanlike ideas, and but for his overweening conceit might have risen to the rank of a statesman. Mr. Berry's talent lies in a fluency of specious but forcible speech appealing to the mob, rather than in debating power. His vision is limited, and he is a poor administrator. After these two I would place Mr. J. G. Francis, now the leader of the Victorian Conservatives, who is decidedly able, and Sir John O'Shannassy, whose adherence to the Catholic claims alone keeps him out of a commanding position. Sir John Robertson may perhaps claim to be placed before either of these two, but it must be upon the ground of past performances rather than of present action; he is emphatically a light of other days. Sir Bryan O'Loghlen will never do anything remarkable; and the same may be said of Mr. Stuart. South Australia has two good administrators in Messrs. Morgan and Bray. The latter has developed during his Premiership abilities for which no one had given him credit. As a leader of the House, he has raised tact to the dignity of a fine art. Mr. Patterson seems to me the ablest of the Victorian Radicals. Mr. Parsons, of Adelaide, should also make his mark. In Mr. Ward, South Australia possesses the most brilliant speaker in the colonies but he has not sufficient application or steadiness to become powerful. Mr. D. Buchanan, of Sydney, is also clever, but his tongue runs away with his discretion. Sir T. McIlwraith, Sir T. Palmer, and Mr. Griffith, in Queensland, should of course be included in any list of prominent politicians of the day, but unfortunately I do not know enough about them to pronounce any opinion upon their abilities which would be worth having. Amongst living politicians who are not now taking part in politics, but whose names deserve to be mentioned, are Mr. Service, Mr. Murray Smith, and Sir Charles Sladen, who throughout the Reform agitation were the pillars of the Conservative party in Victoria, and Mr. Douglas in Queensland.

Amongst the younger band of politicians, it is not difficult to discern three Premiers _in petto_. Mr. Reid, of Sydney, only wants more parliamentary and administrative experience, and the more thorough understanding of the proportions of affairs which a couple of years' residence in England would give, to become the nearest approach to a statesman which Australia has ever seen. In South Australia, Mr. Dixon shows a great deal of promise. In Melbourne, Mr. Deakin's fluency of speech impressed me considerably. Upon him will probably fall Mr. Berry's mantle. All three of these rising politicians are young and enthusiastic, but while Mr. Reid and Mr. Dixon are Australians in the widest sense, Mr. Deakin's ideas seem to be unable to reach beyond the colony in which he was born.

The Land question, the Constitutional question, the Transcontinental-Railway question, the Coastal-Trunk Railway question, the Education question, the Immigration question, will be seen to be common to all the Australian colonies.

In Victoria and South Australia the constitutional question is at rest for another decade; but though it is not at present on the _tapis_, there is every probability that within the next five years New South Wales will abandon the nominated Upper House for one elected by a propertied constituency, such as that of the South Australian and Victorian Legislative Councils. Within the same period Queensland, or at any rate the southern part of it, if it splits into two over the question, will adopt universal suffrage. Very possibly the opportunity will also be taken to make the Legislative Council elective, but probably on a much less liberal basis than in the other colonies. Five years more of progress such as she has made last year, and Western Australia will become fitted for and obtain constitutional government. The liberalizing of the Australian constitutions is entirely a matter of time, but the direction is pretty well indicated. The length of each step depends mainly upon whether it is made with the goodwill of both Houses at a time when there is no urgent demand for reform; or whether it is affected by obstruction on the part of the Upper House; or whether, as seems likely to be the case in New Zealand, it is brought about by the apathy of the Second Chamber. I doubt, however, whether even Victoria has reached finality in its Constitution, and it is difficult to prophesy what form the Colonial Legislative Council of the future is to take. Probably before Reform can take a new direction, there will be Federation, with an Australian Senate.

Many people think that the solution of the Education question remains to be found. A Royal Commission was appointed last session in South Australia to consider the bearings of the existing system, and in Victoria there is already a strong political party opposed to it. After such a complete reversal of a policy which was supposed to be so firmly established as Sir John Robertson's land system, no system in Australia can be said to be finally established if there is any considerable number of sufferers by it. Most sensible people--though they are certainly not numerous--admit that the Catholics are really aggrieved by being obliged to contribute towards a system of education of which they cannot avail themselves, and many others regret the omission from our educational system of so important an element as religion. But the advantage of an uniform system of State education is widely and generally appreciated. The present system may be modified so as to give ministers of religion greater opportunities for doctrinal teaching out of hours, and to allow of broad Christian morality being taught as part of the educational course. But I cannot think that a return to State aid to denominational schools is at all probable; and if the next half-dozen years pass over without such a change, the number of electors educated under the existing system will make it impossible. The Church of England was the only Protestant body which originally objected to the secular system, because none of the other Protestant denominations had schools of their own. Now these are beginning to awake to the fact that the secular schools are thinning their flocks, and producing a large number of freethinkers in fact, if not in profession. They are therefore openly becoming more inclined to joint action with the Anglicans, not for the establishment of denominational schools, but for the introduction of broad Christian teaching into the existing schools. The Catholics, of course, hold that just as the existing schools negatively produce Free-thinkers by the absence of any Christian teaching, so broad Christianity would be mere Protestantism; i.e., the negation of Roman Catholic doctrine.

On the Land question we seem as far as ever from finality. The reaction against the selection system will probably not extend to Victoria because the quantity of land there is limited, and its character for the most part superior. In South Australia the solution will probably be in superior facilities for opening up the interior or unoccupied lands, greater fixity of tenure to the leaseholders, restriction of the land open to the operation of the system of selection, easier terms to the selector, and greater encouragement to both selector and leaseholder to improve their holdings. In New South Wales the change must be more radical, because, in the absence of the South Australian clause which made survey precede selection, the evil which has arisen is much greater. But the direction of the change will probably be similar, though the selector will be less considered, and there is not much totally unused land needing pastoral occupation. In Victoria the selections are now being increased in size to one square mile, and I think changes will gradually be made which will make the large freeholders find it to their advantage to sell. In Victoria and New South Wales there is a quantity of freehold property used for pasture which is well fitted for agriculture. South Australia, on the contrary, has pretty well reached the margin of cultivation, and must seek to improve her wheat-yield, not so much by enlargement of the area cultivated, as by improvement in the cultivation of the area already under crop.

Victoria has completely abandoned Government immigration, but New South Wales, South Australia, and Queensland each grant free or assisted passages to immigrants of a certain class. For the last three or four years the immigration policy has been slackened, but there is every sign that another push is going o be made in this direction by South Australia, which had almost entirely stopped free passages, and by Queensland. Beyond question, one of the chief needs of Australia at the present moment is a steady stream of immigration, and this can only be obtained by more strenuous efforts on the part of the Colonial Governments to make the position and prospects of the country better known at home. Immigration raises the revenue and helps to pay off the interest on our debt. It reduces the expenditure proportionately to the population. It gives more employment, since the new-comers must be housed and clothed and live; and it supplies more labour, enabling fresh country and new industries to be opened up. Population is the chief element of wealth and progress in a young country like this.

The contract which the Queensland Government has just signed for the construction of a railway from Charleville and Point Parker marks the beginning of an era of transcontinental railways constructed by English companies upon the land-grant system. The next will probably join Albany (King George's Sound) to Perth, and the third will traverse the continent from north to south, i.e. from Port Darwin to Port Augusta, and practically to Adelaide. The advantages of the land-grant system are yet insufficiently appreciated in Australia, but in this system I believe there lies an enormous source of wealth. The Colonial Governments cannot possibly afford to construct these lines themselves; but if the contracts are made with discretion, the advantages which the companies will reap, though sufficient, will be as nothing compared with the enormous increase in the value of the remaining land, and the addition to the productive power of the colony. The railways from capital to capital will, of course, be constructed by the Governments of each colony. Sydney is already united to Melbourne, and in four years' time Adelaide will also be connected. Brisbane, Maryborough, Rockhampton, Mackay, and Townsville will all be joined in due course of time, and by the land-grant system Point Parker, on the northern coast, will be included. The next step must undoubtedly be the connection of Albany with Port Augusta on the land-grant system, and of Perth--or rather Geraldton--with the new settlements in the Kimberley district. All this, I think, we may reasonably expect to be done in the next quarter of a century. After that a line will probably be constructed across the centre of the continent from east to west, and the coastal trunk line completed along the north-west from the Kimberley district to Port Darwin, and thence to Point Parker.

Just before the last mail left with this letter, the Parkes Government in New South Wales exploded like a bomb-shell. A fortnight after it was posted, Sir Bryan O'Loghlen wrought a _coup d'état_. On the last day of January, Victoria was amazed by the altogether unexpected news that the Ministry had advised, and the Governor granted, a dissolution. The morning papers had not contained even a hint of such a catastrophe, and the publication of the Government _Gazette_ containing the proclamation was the first intimation of it which anybody outside the Cabinet received. The grounds upon which the request of the Ministry was granted were, that the House was so divided into sections of parties that it was impossible to carry on the public business; that the Parliament was moribund, having only six months to live; and that the Government, which asked for the dissolution, was undefeated. Both the Conservatives and Liberals, and their leaders the _Argus_ and _Age_, alike blame the Governor for granting the dissolution, on the grounds that the House was just as incompetent to transact business six months ago as now, and that the Government would never have applied for a dissolution but for the certain defeat which awaited them directly the House met, on account of the failure of the loan. To me, however, it seems that the Governor was perfectly right. Admitting the undeniable truth of the objections I have just quoted, it remains to be said that if the Government had waited to be defeated in the House, no Government capable of carrying on business could have been formed in such a House. As it is the Government are absolutely certain to be defeated in the country, and in a new House there is every chance of a strong Government being formed. Mr. Service, the ablest of Australian politicians, who led the Conservative Opposition to Mr. Berry's Government throughout the constitutional struggle, and who has been on a holiday in England during the present Minister's tenure of office, has resolved to re-enter into politics. Although a resolute opponent of the excesses of Berryism, Mr. Service is more of a Liberal than of a Conservative, and I confidently expect that the general elections will result in a Coalition Government formed of the ablest men of either side, under Mr. Service's leadership. Even Mr. Berry, in his election speech, has announced 'moderation' as his watchword, and a longing for the loaves and fishes of office will probably induce him to serve under Mr. Service. Mr. Patterson, the ablest of the Radicals, may be pronounced a certainty for the Ministry of Public Works. Mr. Francis, the leader of the Conservatives whilst Mr. Service was away, will be a fourth. For the remaining offices, Messrs. Pearson and Deakin of the Radicals, and Gillies of the Conservatives, are the most likely men. Such a Government of all the talents, with Civil Service Reform as the first plank in its platform, should rival the length and strength of the Parkes-Robertson Coalition, which lasted four years, and would be infinitely superior to it in ability. As for poor Sir Bryan O'Loghlen, the services he has rendered to the country are little likely to be appreciated at the poll, and all he will be able to do is to rally into opposition the men who think Mr. Service ought to have offered them portfolios.

BUSINESS.

The _Australian Insurance Banking Record_ informs me that there are no less than 24 joint-stock banking companies, with 750 branches doing business in Australia. They all pay dividends of from 6 to 18 per cent. to their shareholders, besides putting handsome sums every year to their reserve funds, so that banking business is fairly profitable here. The existence and prosperity of so many banks in a community which, all told, is considerably smaller than the population of London, is chiefly due to the wealth of the small number of people who form it, and also to the wider range of business which the banks undertake. Nearly everybody who is worth £100 has a banking account, and most people who have an account have overdrafts, which are given for the most part on purely personal security. The banks also advance freely on growing crops, wool on the sheep's back, and all kinds of intangible security. Many of the largest merchants are to all intents and purposes mere bank-agents. It is quite a common thing for ordinary working-men to keep bank accounts; and all farmers, even the smallest, are obliged to keep them; for in the country specie payments are almost unknown, and the smallest sums are paid by cheque. Even in the towns, residents usually pay any sum over a pound by cheque. Although this practice has opened the door to a good deal of fraud, its convenience is obvious. You need never keep more than a few shillings in your pocket, and your bank keeps all your accounts for you.

In a community in which every class is largely dependent upon his goodwill, the banker occupies the highest social position, almost irrespective of his merits. It is this excessive dependence upon the banks which largely accounts for the excessive ups and downs of colonial life. In times when money is easy the banks almost force it upon their customers. When it is tight, many people who are really solvent are forced into the _Gazette_, and a panic ensues, from which it takes the country some time to recover.

The tendency to merge large firms into limited liability companies, which has extended lately from America to England, has also been felt in Australia, though not to the same extent as in New Zealand. In certain classes of business these come into competition with the smaller banks, but each, as a rule, runs hand in glove with a large bank, undertaking certain classes of loans and supplementing the bank's business. They buy wool and wheat freely in Melbourne, hold auction sales there, sell on commission in England, advance upon wool on the sheep's back and standing crops onwards; in short, merit their usual description of loan, mercantile, and agency houses. Mortgage and land investment companies are another class which has been springing up of late. One company has been started professedly to deal solely with wheat: several already exist which make wool their only concern. Besides these, there are the usual run of mining companies, which spring up epidemically and mostly have their headquarters in Victoria. It is needless to say, that in these companies it is a case of neck or nothing.

Land is naturally the safest investment of any that offer themselves in the colonies. Although every ten years or so there comes to each colony a period of intense speculation in land, with a consequent reaction, it is a generally accepted maxim, that 'you cannot go far wrong in buying land.' There is always the chance of making 50 to 100 per cent. in the year by a land purchase, and at the worst you will get 10 to 20 per cent. per annum, if you can only afford to tide over one, or at most two bad years.

On first-class mortgages the rate of interest varies from 6 1/2 to 8 per cent. for large amounts. For small amounts 8 per cent. is always obtainable by a man who keeps his eyes open. But, beyond this absolutely secure class of investments, one thousand-and-one small chances of making large profits with little risk occur to every man who has got a few hundreds; and if he fails to turn them to account he will have nothing but himself to blame.

In the early days there was of course no distinction between wholesale and retail business, and in country towns the largest firms still keep stores where you can buy sixpennyworth of anything you want. Even in the towns the distinction is not firmly established, and many of the wealthiest importers still keep shops. Nor are the trades specialized to anything like the same extent as at home; though, in wholesale trade, they are becoming more so every day. Nearly the whole of the extra-Australian trade is still with England--chiefly London--though there is a small import trade with America and China, and export to India and the Cape. The French and Germans are both making strenuous efforts to establish a market here, and the Germans especially are succeeding. A great deal of business has been done of late by agents working on commission for English manufacturers; but most of the larger importers have their buyers in England. The tendency, however, is towards buying in Australia, although it is opposed by the large wholesale importers who are injured by closer connection between manufacturers and small buyers.

If, on the one hand, there are fewer of those old-established firms in which strict traditions of honour descend from generation to generation, so, on the other hand, the smaller size of the towns gives less scope for barefaced swindlers. And thus, if the standard of commercial morality is lower here than at home, people are not taken in so easily, or to so great an extent. Everyone is expected to be more or less of a business man, and is looked upon as a blockhead and deserving to be cheated, if he does not understand and allow for the tricks of the trade. In Melbourne the heavy protectionist tariff has brought about an almost universal practice of presenting the customs with false invoices so skilfully concocted as to make detection impossible. Within my knowledge this practice has been resorted to by firms of the highest standing. Sharp practice amongst respectable firms is also very common, and verbal agreements are less trustworthy than in England. You are expected to be on your guard against being 'taken in;' and if you are taken in, no one has any compassion for you, the general opinion being that a man who trusts to anything less than the plainest black-and-white is a fool.

Liberality to _employés_ and in the details of business is little known or appreciated. Exactly contrary to the prevalent idea in America, the Australian merchant is most averse to casting bread on the waters with a view to its return after many days. He distrusts courtesy and liberality as cloaks for the knave, or as the appurtenances of the fool. Loyalty is a phrase little understood, and the merchant leaves as little to his clerks' honesty or honour as he can possibly help. In business he holds that 'Every man's hand is against his neighbour, and his neighbour's against him;' and he pushes the aphorism to its fullest logical conclusion, i.e., not merely to 'Believe every man to be a knave until you find he is honest,' but 'Believe that when a man is honest it is merely the more successfully to carry out some rascality.'