Australasian Democracy

But how, it may be asked, has an equitable assessment of the land been secured for the purposes of the tax? Any owner who is not satisfied with the value placed upon his land on the assessment roll, may require the Commissioner to reduce the assessment to the amount specified on the owner's return, or to purchase the land at the sum mentioned on the owner's return of its actual value inclusive of improvements. The Commissioner is bound to make the reduction unless the Government approve of the acquisition of the land. A reasonable balance is thus struck: the Government are unwilling to have a large amount of land thrown on their hands, while the owner does not take the risk of the resumption of the land at an inadequate valuation. Disputes between the Commissioner and owners have, in most cases, been adjusted satisfactorily; but the Government decided to buy the Cheviot Estate of 85,000 acres, which lies close to the sea in the Middle Island. Upon its purchase they at first let the pastoral lands temporarily at the rate of £8,862 a year, while their surveyors laid out the country and supervised the construction of roads. The results of the transaction were, in 1896, eminently satisfactory; the capital value of the estate then stood at £271,700, and the annual rental at £14,300; and the few inhabitants engaged in pastoral pursuits had been replaced by 216 settlers and their families, who were reported to be of a good class and to have done a large amount of work in the improvement of their lands.

The principal Act dealing with the alienation of Crown Lands is that of 1892, which consolidates and amends former legislation. Crown Lands are divided into urban, suburban, and village lands, which are sold by auction at an upset price, and rural lands, which are again subdivided according to their adaptability for cultivation or pasturage. When townships are being laid out on Crown Lands, one-tenth of the superficial area is to be reserved for purposes of recreation, and a similar extent as a nucleus of municipal property, to be vested subsequently as an endowment in the local authority in addition to the reserves necessary for all public purposes. At the option of the applicant, lands may be purchased for cash, or be selected for occupation with the right of purchase, or on lease in perpetuity. Selectors are limited to 640 acres of first-class land, or 2,000 acres of second-class land, the maximum being inclusive of any lands which they may already hold. The object of this provision is to prevent existing landowners from aggregating large estates by the purchase of Crown Lands. Cash sales are effected at a price of not less than 20s. and 5s. per acre, respectively, for first-class and second-class land, and entitle the selector to a free-hold title upon the expenditure of a prescribed amount on improvements. Land selected under occupation with the right of purchase is subject to a rental of 5 per cent. upon the cash price, under lease in perpetuity, which is for 999 years, to a rental of 4 per cent.; and strict conditions of residence and improvement are, in both cases, attached and rigidly enforced. At the expiration of ten years, a licensee under the former tenure may, upon payment of the upset price, acquire the freehold or may change the license for a lease in perpetuity. The latter is the perpetual lease of the previous Acts, denuded of the option of purchase and of the periodical revaluation of the rent, and is, in the latter respect, reactionary, as the State gives up its right to take advantage of any unearned increment. Subsidies amounting to one-third of the rent of land taken up under any of the above tenures and one-fourth of the rent of small grazing-runs are paid to local authorities for the construction of roads, but must be expended for the benefit of the selectors from whose lands such moneys are derived. The Act of 1892 also authorises the Governor to reserve blocks of country, as special settlements or village settlements, for persons who may desire to take up adjacent lands. The Village Settlements have been successful when they have been formed in localities in which there was a demand for labour; the Special Settlements comparative failures, because many of the members of the associations had neither the requisite means nor knowledge of rural pursuits. Pastoral land is let by auction in areas capable of carrying not more than 20,000 sheep or 4,000 head of cattle; or in small grazing-runs not exceeding, according to the quality of the soil, 5,000 or 20,000 acres in area. The dominant feature in the Act, in its application to pastoral as well as agricultural land, is the strict limitation of the area which may be held by any one person; rightly or wrongly, the Government are determined that the Crown Lands shall not pass into the hands of large holders. The principal transactions of the last three years are thus summarised, the figures for 1894 covering the period from April, 1893, to March, 1894, and so for the other years:

In regard to the numerical superiority of leases in perpetuity, it must be pointed out that, not only the special blocks, but the improved farms and lands offered under the Land for Settlements Acts, to which I shall have occasion to refer, are disposed of solely under that tenure; but it appears to be attractive in itself: as most of the Crown Lands require considerable outlay before they become productive, a selector can expend any capital that he may possess more advantageously upon the development of the capabilities of the soil than upon the acquisition of the freehold. The Government also are benefited by a policy which renders the land revenue a permanent asset in the finances. The receipts for the financial year 1895-6 amounted to nearly £300,000.

In 1892 an attempt was also made to deal with the problem of the scarcity of available land in settled districts which was caused by the prevalence of large estates. It was thought that the labourers employed upon them, and the sons of farmers who might wish to settle near their parents, should have an opportunity of acquiring land. The Government, accordingly, passed the first of a series of Land for Settlements Acts, which authorised the repurchase or exchange of lands and their subdivision for purposes of close settlement. Upon the recommendation of a Board of Land Purchase Commissioners, some of whom represent local interests, that a certain estate is suitable for settlement, and should be purchased at a certain price, the Government may enter into negotiations with the owner with a view to a voluntary transaction, and, upon his refusal, take the land compulsorily at a valuation fixed by a Compensation Court. Owners are so far safeguarded that they cannot be dispossessed of estates of less than 640 acres of first-class, or 2,000 acres of second-class land, that they can claim to retain the above area, and that they can require the Government to take the whole of their estates. The maximum annual expenditure was limited at first to £50,000, but has been raised to £250,000. At the end of March of last year twenty-eight estates, containing 87,000 acres, had been acquired, in one case compulsorily, and made available for settlement by surveys and the construction of roads at a total expenditure of nearly £390,000. Nineteen of these had already been subdivided into farms of various sizes, and were bringing in rentals amounting to 4.76 per cent. upon the outlay which they had involved. The Land Purchase Inspector was able to report that the lands, which had been the object of eager competition, had, in most cases, been greatly improved and were in good condition, and he is likely to find even better results in the future, as the Amending Act of 1896 provided that applications for land should not be entertained unless the applicants were able to prove their ability properly to cultivate the soil and to fulfil the stipulations of the leases. This provision is of great importance, as much of the land has been cultivated by its former owners, and would deteriorate rapidly under incapable management. The Governments of South Australia, Queensland, and Western Australia have legislated in a similar direction, and that of New South Wales introduced a Bill which failed to become law. As far as New Zealand is concerned, which has conducted its operations on the largest scale, the system has not been sufficiently long in existence to enable an estimate to be formed of its probable financial results.

A similar uncertainty prevails in regard to the more recent attempts to place cheap money within the reach of settlers. The first step in that direction was taken in 1886, when regulations were made for the establishment of Village Settlements, the members of which might receive loans for the construction of their houses and for other purposes. These settlements were not, as in some of the Australian Provinces, formed on a co-operative or a semi-communistic basis. The success of this experiment doubtless encouraged the Government to widen the scope of the advances. In 1895, 4,560 persons, divided among 144 settlements, had occupied 33,800 acres of land; they had received £25,800 in advances, had paid £17,600 in rent and interest, and had carried out improvements of the value of £92,800. These improvements, consequently, form an ample security for the repayment of the loans. The necessity of a general scheme of advances was based upon the difficulty experienced by small settlers, however good might be the security, in obtaining loans except at prohibitive rates. Authority was, accordingly, obtained through the Government Advances to Settlers Acts of 1894-6 to borrow three millions with a view to loans ranging from £25 to £3,000, upon first mortgages, to owners of freehold land and occupiers of Crown Lands, the advances not to exceed three-fifths of the value of the former and one-half of the value of the lessee's interest in the latter. Advances may not be made on town lands, nor on suburban lands which are held for residential or manufacturing purposes. The valuation of every security is to be carried out by or on behalf of a superintendent appointed ad hoc., and is to be submitted for the consideration of a General Board consisting of the Colonial Treasurer, the Superintendent, the Public Trustee, the Commissioner of Taxes, and a nominee of the Governor in Council. The advances on freehold land may be either for a fixed period at 5 per cent., or for 36-½ years at 6 per cent., of which 5 per cent. is reckoned as interest and 1 per cent. towards the gradual repayment of the principal; on leasehold lands, in the latter form alone. As the loan of a million and a half raised as the source of advances was floated at 3 per cent., and realised nearly £1,400,000, the margin between the percentage due by the Government and that received from the settlers should be sufficient to enable one-tenth of the interest to be paid, as provided, into an Assurance Fund against possible losses, and a residue to be available which will cover the general expenses of administration. But it is obvious that the result of the experiment will depend greatly upon the prevalent rate of interest and the price of produce. Hitherto, two-thirds of the advances have been used by settlers to enable them to rid themselves of former and less advantageous mortgages; in some cases, mortgagees, in order to retain their mortgages, have voluntarily lowered the rate of interest to 5 per cent. The tabular statement on the following page of the financial position is the latest that has been issued, and does not purport to be more than approximately correct. Advances may also be made towards the construction of dwelling-houses to those who have obtained selections under the Land for Settlements Acts; but they may not exceed twenty pounds nor the amount already spent by the applicant upon his holding.

Another measure which may affect the well-being of settlers is the Family Home Protection Act, 1895. Any owner of land may settle as a family home the land, not exceeding, with all improvements, £1,500 in value, on which he resides and has his home, provided that at the time the land is unencumbered and he is able to pay all his debts without the land in question. As a precaution against the concealment of liabilities, he is obliged to make an application to a District Land Registrar, who must thereupon give public notice of the intended registration. Should any creditor put in a claim within twelve months, the case is to be tried before a Judge of the Supreme Court, and if the owner of the land is vindicated, the Registrar is to issue a certificate which will exempt the family home from seizure under ordinary processes of law, but not in one or two contingencies, of which the principal is the failure to meet current liabilities in respect of rates or taxes. The registration is to continue until the death of the owner or the majority or death under the age of twenty-one of all his children, and is not to precede the last of these events. Upon its cessation it may be renewed at the option of the persons then holding the estate, who must be relations of the deceased. Little effect has been given to the Act owing, probably, to the unavoidable publicity of the proceedings. It appears to have been based upon a South Australian Act of 1891, which enables holders of workmen's blocks, by the endorsement of their leases, to secure for their properties somewhat similar exemptions from seizure. Their failure to avail themselves, to any considerable extent, of this privilege is attributed to the unwillingness of working men to take any trouble in a matter of which the advantages are merely contingent.

So far I have discussed the legislation of New Zealand which affects freeholders and those who are, or desire to become, tenants of the Crown; but before proceeding to deal with matters of common import to most settlers, I must point out that tenants holding from private landlords have also engaged the paternal attention of the Government. The Minister of Lands introduced last session, but failed to pass, a Fair Rent Bill, which would have established a system of Land Courts under the presidency of Stipendiary Magistrates. Landlords and tenants would have had an equal right to apply for the determination of the fair rent which, upon the decision of the Court, whether it were higher or lower than the reserved rent, would have been deemed, until a further revision, to be the rent payable under the lease. The Government displayed great inconsistency in the introduction of the measure; having shown, in the system of lease in perpetuity, that they objected to the periodical revaluation of the rents payable upon Crown Lands, they proposed, through the Fair Rent Bill, to enable the Crown, as landlord, to take steps to increase the rents of its tenants.

As regards the general interests of producers, the Government have, through reductions amounting to £50,000 a year in railway rates, made a concession to them at the expense of the general taxpayer, as the railways, after payment of working expenses, return only 2.8 per cent., a sum insufficient to meet the interest upon their cost of construction. Again, they have appointed experts in butter-making, fruit-growing, &c., who travel about the country and give technical instruction by means of lectures; and they distribute, among farmers and others, pamphlets containing practical advice upon various aspects of cultivation. But, except that butter is received, graded and frozen free of charge, they have not followed the example of Victoria and South Australia in the direct encouragement of exports. Finally, while the State acts as landlord, banker, and carrier, it also carries on a department of life insurance and annuities, accepts the position of trustee under wills, and, if the programme of the Government is accepted by Parliament, will undertake the business of fire insurance and grant a small allowance to all who are aged and indigent and have resided for a long term of years in the Colony. The development of the resources of the country, under the assistance of the State, has also proceeded in other directions. More than £500,000 had been spent up to March, 1896, in the construction of water-races on goldfields for the benefit of alluvial miners and public companies; and in that year the Premier, in view of the large amount of foreign and native capital that was flowing into the industry, obtained the authorisation of Parliament to the expenditure of a further sum of £200,000 in the conservation of water by means of large reservoirs, the construction of water-races, the extension of prospecting throughout the Colony, and the construction of roads and tracks for the general development of the goldfields. The physical attractions and health resorts of the country, many of which are reached with difficulty, are also being opened up by the expenditure of public funds.

The general question of settlement has, during the last few years, been connected closely with that of the unemployed. In New Zealand, as in several of the Australian Provinces, the construction of the main lines of railway attracted into the country immigrants who, upon their completion, were left without other resources. At the same time the fall in prices rendered many settlers unable to fulfil their obligations, and, upon the loss of their properties, drove them into the towns, where they swelled the ranks of the unemployed. It also forced those who remained solvent to cut down their general expenses, and especially their labour bill, to the lowest possible point. The Government were compelled to face the problem and attempted to give former settlers a fresh chance and gradually to accustom artisans to rural pursuits which, in the case of uncleared land, are at first of a simple character. But the facilities offered under the Land Act were of little use unless it could be arranged that the men, being without capital, should have outside employment upon which they could depend until their lands had been cleared and brought into cultivation. It had already been realised that the construction of roads was an indispensable sequel to that of railways, and large annual appropriations had been made from the Public Works Fund; but it was then decided that settlement should be encouraged systematically in those districts in which it was proposed to proceed with the construction of roads. This policy has, accordingly, been carried out energetically during the last few years from loans and current revenue upon the co-operative system, which was inaugurated in 1891 by the Hon. R. J. Seddon, then Minister of Public Works and now Premier of the Colony. As this system, which was first tried as an experiment upon the railways, is now employed in connection with most public works, its object and operation may be illustrated by a series of quotations: "The contract system had many disadvantages. It gave rise to a class of middle men, in the shape of contractors, who often made large profits out of their undertakings, and at times behaved with less liberality to their workmen than might have been expected under the circumstances. Even in New Zealand, where the labour problem is less acute than in older countries, strikes have occurred in connection with public works contracts, with the result that valuable time has been lost in the prosecution of the works, much capital has been wasted by works being kept at a standstill and valuable plant lying idle, and large numbers of men being for some time unemployed; and considerable bitterness of feeling has often been engendered. The contract system also gave rise to sub-contracting, which is worse again; for not only is it subject to all the drawbacks of the parent system, but by relegating the conduct of the works to contractors of inferior standing, with little or no capital, the evil of "sweating" was admitted. Very often, too, the business people who supplied stores and materials were unable to obtain payment for them, and not seldom the workmen also failed to receive the full amount of their wages. The result in some cases was that, instead of the expenditure proving a great boon to the district in which the works were situated, as would have been the case if the contract had been well managed and properly carried out, such contracts frequently brought disaster in their train. The anomaly of the principal contractor making a large profit, his sub-contractor being ruined and his workmen left unpaid, also occasionally presented itself, and thus the taxpayer who provided the money had the mortification of seeing one man made rich (who would perhaps take his riches to Europe or America to enjoy them) and a number of others reduced to poverty, or in some instances cast upon public charity.... The co-operative system was designed to overcome these evils, and to enable the work to be let direct to the workmen, so that they should be able, not only to earn a fair day's wage for a fair day's work, but also to secure for themselves the profits which a contractor would have otherwise made on the undertaking.... The work is valued by the engineer appointed to have charge of it before it is commenced, and his valuations are submitted to the Engineer-in-Chief of the Colony for approval. When approved, they constitute the contract price for the work; but they are not absolutely unchangeable as in the case of a binding, strictly legal contract. It frequently happens under an ordinary contract that work turns out to be more easy of execution than was anticipated, and the State has to see its contractors making inordinate profits. Sometimes, on the other hand, works cost more than was expected; but in most cases of this kind the contractor either becomes a bankrupt, so that the State has, after all, to pay full value for the work, or, if the contractor happens to be a moneyed man, he will probably find some means of getting relieved of a contract, or of obtaining special consideration for his losses on completion of his work. Under the co-operative system, if it is found that the workmen are earning unusually high rates their contracts can be determined, and be re-let at lower rates, either to the same party of men or to others, as may be necessary. Similarly, if it is shown, after a fair trial of any work, that capable workmen are not able to earn reasonable rates upon it, the prices paid can, with the approval of the Engineer-in-chief, be increased, so long as the department is satisfied that the work is not costing more than it would have cost if let by contract at ordinary fair paying prices.... Another great advantage of co-operation is that it gives the Government complete control over its expenditure. Under the old plan, when large contracts were entered into, the expenditure thereunder was bound to go on, even though, through sudden depression or other unlooked-for shrinking of the revenue, the Government would gladly have avoided or postponed the outlay.... Not only has the Government complete control over the expenditure, but in the matter of the time within which works are to be completed the control is much superior to that possessed when the works are in the hands of a contractor. When once a given time is allowed to a contractor in which to complete a work, any request to finish it in less time would at once provoke a demand for extra payment; but under the co-operative system the Government reserves the right to increase the numbers employed in any party to any extent considered desirable, so that if any sudden emergency arises, or an unusually rapid development in any district takes place, it is quite easy to arrange for the maximum number possible of men being employed on the works in hand, with no more loss of time than is required to get the men together."[7 - New Zealand Official Year Book, 1894. Report by Under-secretary of Public Works.]

It was at first proposed that the men should work in gangs of about fifty, who should have an equal interest in the contract and make an equal division of the wages and profits; but experience showed that large gangs did not work together harmoniously owing to differences, not only in the temperament of the men, but also in their abilities as workmen. The labourers solved this difficulty by forming themselves into small parties composed of men of about equal ability, with the result that, while some gangs earn higher wages than others, the weak are not excluded altogether from employment. The co-operative works have, on the whole, been successful; but it is clear, from the reports of the surveyors, that constant supervision is necessary, and that there is considerable dissatisfaction, among unskilled workmen, with the low rate of their earnings, and, generally, with the intermittent character of the employment. For the Government have decided, in order that work may be given to as many as possible and that settlement may be promoted, that no labourers shall be employed more than four days in the week. During the remainder of the time, if they have taken up land in the neighbourhood, they devote themselves to it; otherwise they are likely to be demoralised by enforced idleness. The Minister of Public Works attempted to prove that works had been carried out more economically under the co-operative system, but was unable to cite cases that were exactly analogous. He showed that the average number of employés had risen from 788 in 1891-2 to 2,336 in 1895-6, but that, whereas in the former years workmen under the Public Works Department were twice as numerous as those under the Lands Department, in the latter the proportion had been more than reversed. This change must be regarded as satisfactory, as employés under the Lands Department are, in a large majority of cases, settlers.

In 1894 the Government passed an Act which was intended to meet the special requirements of the unemployed. Any number of men composing an association may, by agreement with the Minister of Lands, settle upon Crown Lands for the purpose of clearing or otherwise improving them, and will, subject to the authorisation of Parliament, receive from the Colonial Treasurer payment for their work. They are entitled thereupon to take up holdings at a rental based on the combined value of the land in an unimproved condition and of the improvements. This system, which is known as that of Improved Farm Settlements, has been worked largely in connection with co-operative works. In March of last year 39 settlements had been initiated which covered 63,600 acres and carried 679 residents. They have "had the effect of removing from the towns a considerable number of people who otherwise would have been found in the ranks of the unemployed, and an opportunity has been given to all who are really desirous of becoming bonâ-fide settlers to make homes for themselves, and become producers rather than a burden on the State. Many who have taken up land on this system brought no experience with them to aid in the operations of the pioneer work of settlement, and this had to be gained at some cost to themselves and the State. So long as the Government continues monetary aid by way of assisting in clearing, grassing, and house-building, all will go well; by the time this comes to an end, sufficient experience should have been gained, and the farms ought to be stocked. This latter is at present a difficulty with many of the settlers, for it is obvious that many of them can at first do little more than support themselves out of the moneys advanced for clearing, without sparing anything for stock."[8 - Report of Department of Lands and Survey, 1896; page iv.] The success of these settlements, it is pointed out, depends upon the simultaneous occupation by men with capital of the adjoining Crown Lands in larger holdings on which there will be a demand for the labour of the settlers; otherwise they will be in difficulties when the roads are completed, as their blocks of a hundred acres or so will not alone suffice to secure to them a livelihood. This principle has been borne in view, as far as possible, in the location of the settlements.

Labourers for the co-operative works, I should have stated, are recommended by the local agencies of the Labour Department, and are selected on the principle that applicants not previously employed have priority of claim over those who have recently had employment; that men resident in the neighbourhood of the works have priority over non-residents, and that married men have priority over single men; while the qualifications of the men as workmen and their personal characters are naturally taken into consideration. During the five years of its existence, the Labour Department has found employment for nearly 16,000 men; of the 2,781 men assisted during the year ending March, 1896, 2,163 were sent to Government works. Under the control of the Labour Department is a State Farm, in the province of Wellington, at which unemployed are received for a few weeks or months, and, having saved a few pounds, are enabled to seek work elsewhere. The farm is specially adapted for young, able-bodied men who have been brought up as clerks and shop assistants, but, owing to the stress of competition, have been thrown out of employment. Many of them would be prepared to undertake manual labour, but lack the necessary experience. At the farm they would be able to obtain in a short time sufficient knowledge to render them capable of accepting work for private employment. The Secretary of the Department of Labour, Mr. Tregear, maintains that the farm has proved its usefulness and should be supplemented by similar institutions in the other provinces. Since the last annual report, I understand, the Government have decided, as the land has been improved to a point which renders it impossible to employ any considerable number upon it profitably, to dispose of it, and to remove the workmen to fresh areas of uncleared land. They hope to recoup themselves for their whole expenditure, but will not necessarily be convicted of failure should they fail to do so, as the undertaking was started on a charitable, and not on a commercial, basis. It aimed at the assistance of the genuine unemployed, and was not intended to become a refuge for confirmed loafers. On this point Mr. Tregear writes, and his views are those of the working men of New Zealand: "I am more and more impressed with the necessity that exists of establishing farms which shall be used as places of restriction for the incurably vagrant atoms of the population. The State Farm does not and should not fulfil this purpose; it is for the disposal and help of worthy persons, unsuccessful for the time, or failing through advance in years. What is required is a place of detention and discipline. There exists in every town a certain number of men whose position vibrates between that of the loafer and the criminal: these should altogether be removed from cities. The spieler, the bookmaker, the habitual drunkard, the loafer on his wife's earnings, the man who has no honest occupation, he whose condition of 'unemployed' has become chronic and insoluble—all these persons are evil examples and possible dangers. Such an one should be liable, on conviction before a stipendiary magistrate, to be removed for one or two years to a farm, where simple food and clothes would be found for him in return for his enforced labour. The surroundings would be more healthy, and open-air life and regular occupation would induce more wholesome habits and principles than the hours formerly spent in the beer-shop and at the street-corner, while the removal from bad companionship would liberate from the pressure of old associations. He would, on his discharge, probably value more highly his liberty to work as a free man for the future, and, as the State would have been to no cost for his maintenance, it would be a gainer by his temporary removal from crowded centres. There need be no more trouble than before in regard to the sustentation of the restricted person's family, as such a vagrant is of no use to his family, but only an added burden. While for the honest workman, temporarily 'unemployed,' every sympathy should be shown and assistance to work given, for the other class, the 'unemployable,' there should be compulsory labour, even if under regulations of severity such as obtain in prisons."[9 - Report of Department of Labour, 1896; page vii.] New Zealand has a justification for penal colonies lacking in older countries in the fact that the genuine unemployed can obtain assistance from the Government to enable them to settle on the land, either through the Co-operative Works or the Improved Farm Settlements.

The special efforts of the Government to settle impecunious persons on the land are still in the initial stage and have not served to neutralise the effects of the lowness of prices and consequent scarcity of employment. The total expenditure under the heading of Charitable Aid was £106,500 in the year ended March, 1896, being an increase of £20,000 upon that of the previous twelve months. A sum of £18,000 was also spent on relief works. The administration is vested in the local authorities, who obtain the necessary funds from rates, voluntary contributions and subsidies on a fixed scale from the National Exchequer. They expend one-fifth of the amount on the maintenance of destitute children and the greater portion of the remainder on outdoor relief. No information is available as to the number of persons relieved, their average ages, the form of relief or the conditions under which it is given; but it is evident from reports of the Inspector of Charitable Institutions that the administration is exceedingly lax and tends to intensify the evil which it should strive to alleviate. It would seem that, on the one hand, the Government are inculcating habits of independence, on the other, conniving at the encouragement of pauperism.

The results of recent legislation will depend, partly, on the price of produce, principally, on the methods of administration. This matter is one on which it is difficult to form an adequate opinion, as all statements are tinged more or less with the prejudice of partisanship. It is therefore best to confine oneself to Acts of Parliament and official documents while realising that the more a State extends its sphere of action, the more are its Ministers subject to political pressure and tempted to maintain themselves in office by a misuse of the possibilities of patronage. The disposal of Crown Lands is vested in Local Land Boards, which consist of the Commissioners of Crown Lands for the district, and of not less than two nor more than four members appointed for two years, but removable from time to time by warrant under the hand of the Governor. These Boards receive all applications for Crown Lands and dispose of them in accordance with the provisions of the Land Acts. They are constituted the sole judges of the fulfilment of the conditions attached to leases and may cancel them, after inquiry, subject to the right of appeal to a judge of the Supreme Court. If any lessee make default in the payment of interest, his lease is liable to absolute forfeiture, subject to a similar right of appeal, without any compensation for his improvements. This question is one of great delicacy: it is manifestly unfair to confiscate a man's improvements if he has a fair prospect of being able to meet his obligations within a definite period; on the other hand, if such latitude be allowed, possibilities of favouritism are at once admitted. Again, are all applicants for land to be treated alike, irrespective of the probability that they will be good tenants of the Crown? The Land Boards are vested with a discretionary power to refuse applications, but must state the grounds of their refusal. The best constitution for these Boards has been much discussed; but if, as has been proposed, nomination by the local authorities or election by the electors of local authorities were substituted for nomination of the Government, the pressure might be not only greater, but more immediate. Statistics, moreover, show that the administration of the Land Laws has not erred on the side of leniency. In March, 1896, the arrears of rent throughout the Province were only £15,700, a decrease of £22,000 upon the amount reported for the previous twelve months; and forfeitures had been numerous for failure to carry out the conditions of tenure. Under exceptional circumstances Parliament is prepared to make special arrangements. In view of the losses incurred by pastoralists during the severe winter of 1895, it passed a Pastoral Tenants' Relief Act, which empowered the Land Boards after inquiry into the facts of each case to grant remissions of rent or extensions of leases at reduced rentals. The Advances to Settlers Act also appears to be administered prudently, on the principle that the value of the property which may be offered as a security for a loan, and the risk of any loss from granting an advance, must determine the result of the consideration of every application. It is a necessary limitation of the Act that many of those who most require assistance, having borrowed at high rates of interest, are unable to obtain the advances which would enable them to clear off their mortgages on account of the depreciation in value of the security. Of 2,196 applications received to March of last year, 730 had been refused, and 397 had lapsed through the refusal of the department to offer amounts equal to the expectations of the applicant.

The Acts providing for the purchase of private and native land and for advances to settlers have necessitated a large increase in the indebtedness of the Colony, and a consequent divergence from the principles laid down by Sir Harry Atkinson and Mr. Ballance. The present Premier, Mr. Seddon, who succeeded Mr. Ballance in 1893, admits that his Government borrowed £3,800,000 in three years, but contends that the whole of the amount with the exception of £210,000 is being expended in such a manner as to be remunerative. The sum mentioned is exclusive of a loan for a million authorised last session, which is to be expended upon the construction of railways and roads, the purchase of native lands, and the development of the goldfields and hot springs. Have these loans been in the best interests of the Colony? A stranger can but look at the matter broadly and will be inclined to think that they follow, in natural sequence, upon the policy of Sir Julius Vogel. The State then decided that it would use its credit to accelerate the construction of railways and roads and open up outlying districts. Such works were valueless—in fact ruinous to the Province—unless they were followed by a strenuous and successful encouragement of settlement and cultivation. The latter task has been the principal work of the Seddon Government, which has attempted, not only to settle people on the land, but to settle them in suitable localities and under conditions that will give them a reasonable prospect of an independent and comfortable livelihood.

V

CHARACTERISTICS OF VICTORIAN LEGISLATION

Comparisons between the Australasian Upper Houses—Conflicts between the two Houses in Victoria—The proposed obviation of deadlocks—The utility of the Legislative Council—The antagonism between Town and Country—The Factory Acts, their justification and provisions—State Socialism: Railways, Irrigation Works, the encouragement of Mining, Subsidies and Bonuses, State advances to Settlers—The Unemployed and the Leongatha Labour Colony.

The Victorian Legislative Council is, from the democratic point of view, the most objectionable of all the Australasian Upper Houses. In Queensland, New South Wales, and New Zealand, the members of the Council are nominated for life and receive no remuneration for their services; but, as their number is not restricted, their opposition to measures passed by the Assembly is limited by the dread that the Executive may exercise the power of making additional appointments. In the other Provinces the Councils are elective; in South Australia, Western Australia, and Tasmania, as in the Provinces already mentioned, the Members are subject to no property qualification, and in New Zealand, South Australia, and Tasmania they are paid at the rate, respectively, of £150, £200, and £50 a year. In Victoria, on the other hand, there is a property qualification for membership which consists in the possession of a freehold estate of the clear annual value of £100, which confines eligibility to a small fraction of the population; and the area of selection is restricted further by the absence of remuneration and by the size of the electoral districts, which necessitates heavy expenditure on the part of a candidate at a contested election. Under these circumstances, the comparatively low electoral franchise, which admits upon the rolls two-thirds of the voters for members of the Assembly, is absolutely useless to the democratic electors: they are unable to find candidates who will adopt their views, and have been obliged, as at the last elections, to allow all the retiring members to be re-elected without opposition. It should be stated that the members are elected for a period of six years in ten provinces, and retire in rotation at intervals of two years.

The Victorian Assembly consists of ninety-five members who are elected for three years upon the basis of manhood suffrage and receive remuneration at the rate of £270 a year. Conflicts between the two Houses were incessant during the first twenty-five years of Responsible Government. Immediately after its establishment in 1855 a struggle arose as to the right of selection upon pastoral properties, in which the Council supported the interests of the squatters. The issue could not be doubtful, as the squatters, who had been allowed to depasture enormous tracts of land in the early days of the Province, had no fixed tenure and were impeding the settlement of the country. In 1865 the Assembly passed a protective tariff which was distasteful to the Council as representative of the producers, and tried to secure its enactment by tacking it on to the Appropriation Bill. They relied upon the section of the Constitution Act which provides that "all Bills for appropriating any part of the revenue of Victoria, and for imposing any duty, rate, tax, rent, return or impost, shall originate in the Assembly, and may be rejected but not altered by the Council." Upon the refusal of the Council to submit to such coercion, the Ministry arranged with various banks that they should advance the funds required for public purposes, levied a tax upon a resolution of the Assembly and paid the civil servants without parliamentary authority. A general election followed, at which the Ministry were successful; the Assembly and Council repeated their action of the previous session, and, finally, the Council agreed to accept the new tariff provided it was submitted to them in the form of a separate Bill. Similar constitutional struggles occurred in 1867 upon the proposed grant to ex-Governor Darling, and in 1877 upon the Bill to provide for the payment of Members of the Assembly. During the following years peace reigned between the two Houses, owing at first to the great prosperity of the Province, which caused universal confidence, and the predominance of material considerations; afterwards to the equally great reaction which compelled politicians to sink their differences and combine to save the credit of their country.

The antagonism was renewed in 1894 upon the proposals for additional taxation, by which the Premier, Mr. Turner, hoped to cope with an anticipated deficiency in the revenue of more than half a million pounds. His scheme included the repeal of the existing land-tax, under which landed estates of upwards of 640 acres in extent are taxed annually upon the excess of the capital value over £2,500—an impost which obviously penalises rural, at the expense of urban, properties and was intended to promote the subdivision of the land (though it does not appear to have had much effect in that direction); and the imposition of a tax on unimproved values at the rate of 1d. in the £, subject to the exemption of £100 when the value does not exceed £1,000, and of an income tax which, subject to the exemption of incomes not exceeding £200, was to be at the rate of 3d. in the £ on incomes derived from personal exertion and 6d. on incomes derived from property up to £2,200, above which sum the amount was in both cases to be doubled. Absentees were to pay an additional 20 per cent., and incomes from land were to be exempt where the owner paid the land-tax. These taxes, it was calculated, would yield an annual revenue of £600,000. The Finance Bill was passed in the Assembly at its second reading by a majority of twenty-two, but in committee it was amended so as to exempt from the land-tax land values of less than £500. The resultant deficiency in the proceeds of the tax was made up by a continuance of the primage duties and by an increase of the tax on incomes derived from personal exertion. Upon its transmission to the Council the Bill was summarily rejected, the Minister who was in charge of it alone, beyond the tellers, being in its favour, on the ground that the questions of a tax on unimproved values had not been submitted to the electorate and that, in the existing conditions of the Province, any further burden upon the producers would be opposed to its best interests. The Ministry accepted the decision of the Council and contented themselves with rigid retrenchment, the continuance of the existing land-tax, and the imposition of a progressive income tax which rises to a maximum of sixteen-pence upon the excess over £2,000 of incomes derived from property. According to a statement of the Premier, they intend to make the question a distinct issue at the next elections, and will in the meanwhile take no action in the matter.

In the following session the Council rejected an Electoral Bill which provided for the abolition of the plural vote and the enfranchisement of women, and disagreed with the Assembly upon several important clauses of a Factory Bill, in the legitimate exercise of the functions of a revising Chamber. The Ministry succeeded in 1896 in passing the Factory Bill in a form which met some of the objections of the Council, and reintroduced the Electoral Bill, which was subsequently laid aside by the Council on the ground that it had not secured in the Assembly the absolute majority of all the votes required in the case of amendments to the Constitution.

The value of any Second Chamber must rest upon its ability, and the exercise of its ability, to check dangerous tendencies in legislation. As regards Victoria, it must be admitted that the greatest danger has lain in the tendency to extravagant expenditure due to the fatal facility of obtaining almost unlimited advances from the British capitalist. Politicians have been tempted to outbid each other in the struggle for popular support, and to promise the outlay of vast sums of borrowed money. Judged with reference to this question, the Legislative Council cannot be regarded as having been efficient. The greatest waste of money has occurred in connection with the construction of railways from which there was no likelihood of adequate returns, and with injudicious advances to Irrigation and Water Supply Trusts. The Council has been hampered by the restrictions imposed upon it by the Constitution Act, but it has not admitted that it is debarred from amending Railway Bills, though it has done so but sparingly, owing to the opposition which such action aroused in the Assembly. It would seem that, at the time of the greatest output of the Victorian gold mines and of the high prices obtainable for agricultural and pastoral produce, the Council was as much carried away by the prosperity of the Province as the Assembly, and formed an equally false estimate as to its continuance. It appears, however, to have been the first to realise the imminence of a reaction. A comparison of the British and Victorian finances shows that while, in the former case, speaking broadly, provision is made only for the maintenance of the public services and for some matters of national importance, such as public instruction, in which all parts of the country share equally, in the latter case the expenditure includes the construction of public works which benefit particular localities, and grants and subsidies which benefit particular industries. Under these conditions members of the Assembly are subject to continual pressure from their constituents, which, it is contended, the members of the Council, owing to the greater size of the constituencies, are better able to resist. As the whole body of the tax-payers are responsible for the interest on the railways, a locality has everything to gain by the increase of its mileage; if it receives advances for works of irrigation and defaults upon the consequent obligations, it hopes to induce the Government, through its Member, to grant more lenient terms. The works in many cases are of doubtful value; the liability remains as a burden upon posterity.

The evil is widely recognised, but opinions differ as to the remedy. A step in the right direction was taken by the appointment in 1890 of the Parliamentary Standing Committee on Railways, which, it is suggested, should be supplemented by a similar Committee whose duty it would be to report upon all proposals for new works of water supply involving an expenditure of a thousand pounds of State money. Others ask that the Council should be allowed to amend Money Bills, and would do so with more reason if the property qualification for membership were removed, as the electorate already includes the bulk of the stable elements of the population. But the greatest safeguard would appear to lie in the lessons of the past, and in the appointment of Standing Committees whose antecedent sanction shall be essential to proposals for the expenditure of national funds upon public undertakings. It would be advisable to define by Act of Parliament what classes of public works might be carried out upon borrowed money; all others would then form a charge upon current revenue.

The absence of any ultimate appeal in the case of a divergence of opinion between the two Houses has recently been discussed in several of the Provinces. It has been pointed out that the power of the Executive to make additional appointments to nominee Councils is an unsatisfactory device calculated to produce friction between the Governor and his responsible advisers; that elective Councils can force upon the Assembly dissolutions from which they are themselves exempt; and that, in the majority of cases, the Councils are able, owing to the variety of issues and the influence of local and personal considerations, to deny that any particular question has received the verdict of popular approval. The measures rejected by the Victorian Council since 1891 include the Land and Income Tax Bill, the Opium Bill, the Miners' Right Titles Bill, the Mallee Land Bill, and the Village Settlements Amendment Bill. The Council has rejected the Opium Bill twice, and the Bill for the abolition of plural voting three times.

The question was considered in 1894 by a Victorian Royal Commission, which recommended that:—

"(1) If the Legislative Assembly shall in two consecutive sessions pass any Bill which shall not be passed by the Legislative Council, then, notwithstanding such Bill when passed in the second session by the Legislative Assembly shall be in an amended form, if the same shall not in such second session be passed by the Legislative Council, such Bill, if the Assembly so determine by resolution, shall, in manner to be duly provided, be submitted for acceptance or rejection to the voters on the roll for the Legislative Assembly.

"(2) In the event of the said Bill being duly accepted or approved of by the majority of the voters on the said roll who shall vote when a poll is taken, and upon a certificate to that effect to be duly given by the Speaker, the said Bill shall be transmitted to the Governor for his assent. Should, however, such Bill be rejected or disapproved of, then, upon the certificate of the Speaker to that effect, the said Bill shall lapse for the session.

"(3) At least six weeks must intervene between the first and the second passing of the said Bill by the Legislative Assembly."

Measures based upon these lines were introduced during 1896 in the Assemblies of Victoria, Tasmania, and New South Wales, but, in the latter case alone, reached the Legislative Council. It was thought that that body might receive the Bill favourably, as it would be brought thereby into direct contact with the people, and might overcome the jealousy which is at present felt against it. In fact, it might attain to actual popularity by enabling the electorate to pronounce directly upon a distinct issue. But this view did not prevail with the Council, which rejected the measure in the most summary manner.

A supplementary proposal put forward in Victoria is that, upon subjects which cannot be referred in a clear and simple manner to the electors, differences should be followed by a dissolution of both Houses, and, if an agreement is still impossible, by their joint meeting as one Chamber. In New Zealand, a Bill recently introduced by the Premier, but not passed through the House of Representatives, provided that, if a measure had been twice within fourteen months passed by one House and rejected by the other, the House which had passed it might call upon the Governor to convene a joint meeting of the two Houses, which should finally dispose of it by approval, rejection, or amendment. It will be noticed that the Council might thus secure the enactment of a measure which was opposed by the majority of the popular representatives.

The antagonism of the two Houses in Victoria would seem to be to a great extent a reflex of an antagonism between town and country. The population of the Province is estimated to have been 1,180,000 in 1895, that of Melbourne and its suburbs 439,000, or 37 per cent. of the whole. Under these conditions, and owing to the greater cohesion of compact electorates, a strong feeling has arisen in the rural districts that Melbourne has a disproportionate voice in the affairs of the Province, and that the balance should be redressed by the action of the Council. It is also believed that the abolition of the plural vote would lead to equal electoral districts which would increase the supremacy of the capital and the power of the Labour Party. At the present time they hold fifteen seats, all of which are urban or suburban, and, though discredited by the collapse of the Trades Unions, are not without influence upon the Government.

The percentage of the total population contained in Melbourne and its suburbs rose from 26 in 1861 to 43 in 1891, mainly as the result of the high protective tariff which aimed at making Victoria the principal manufacturing centre of Australia. Upon the consequent establishment of a large number of factories, the Government were soon compelled to intervene in the interests of the workers, and passed in 1873 the first Act dealing with the supervision of factories and workrooms. It defined a factory as any place in which not less than ten persons were employed in manufacturing goods for sale, and provided that such places should be subject, as to building, sanitation, &c., to regulations made by the central Board of Health, and that no female should be employed therein without the permission of the Chief Secretary for more than eight hours in any one day. The measure failed in its purpose through the indifference of the Municipalities, which were charged with its entire administration. They appear to have been negligent in exercising the powers entrusted to them, and to have allowed themselves to be served by officers who were unacquainted with their duties. In the following years several measures were passed which were consolidated by the Factories and Shops Act of 1890. Some new points of great importance had been introduced, which applied, however, only to cities, towns, and boroughs, unless they were extended to any shire at the request of its Council: the definition of a factory was amended so as to include all places in which four white men or two Chinamen were employed in manufacturing goods for sale; such places had to be registered, subject to the approval of the premises by the Local Council, and the employers were bound to keep a record showing the names of the persons employed in the factory, the sort of work done by them, and the names and addresses of outside workers; the employment of children under thirteen years of age was prohibited; machinery had to be fenced in in order to prevent accidents, and persons in charge of steam-engines and boilers, with a few exceptions, had to obtain certificates of competency. As regards the enforcement of these and other provisions, inspectors were authorised to enter a factory at any reasonable time, to make any pertinent inquiry and examination, to demand the production of any certificate or documents kept in pursuance of the Act, and, generally, to exercise such other powers as might be necessary for carrying it into effect. Proceedings for offences against the Act were to be taken before two or more justices, who, upon a conviction, would be guided by a prescribed scale of fines and penalties. Finally, retail shops were dealt with by a provision which limited the hours during which they might be kept open; but certain categories of shops were explicitly excluded, and Municipal Councils were given the power of altering the hours upon a petition of a majority of the shopkeepers.

The absence of finality in such legislation was soon shown by the demand for further restrictions, which was met by the Government by the customary expedient of the appointment of a Royal Commission. The census of 1891 had given the number of persons employed in connection with the manufacturing industries as 96,000, of whom less than a half were in registered factories. The remainder were working in shires, in laundries and dye works, in workrooms other than Chinese in which less than four persons were employed, or in their own homes. The Commission consequently, in the pursuance of their instructions to "inquire and report as to the working of the Factories and Shops Act, 1890, with regard to the alleged existence of the practice known as sweating and the alleged insanitary condition of factories and workrooms," had a wide field of investigation, but turned their attention principally to the industries in which the circumstances of the workers were believed to be most unfavourable. In the clothing industry they found that, beyond the common grievance of slackness of trade, those employed in factories had little to complain of in the matter of wages, but that among the outworkers, owing to the depression, competition had reduced the rate of pay to the lowest level compatible with continued existence. They were informed of many cases, which have been corroborated by factory inspectors and others, of women who, working from twelve to fourteen hours a day, were unable to earn more than ten or twelve shillings in a week. It was contended that, as in other countries, the competition was rendered more acute by those who were not dependent upon the work for a livelihood. Another result of this competition was seen in the policy pursued by several large firms which had closed factories built at a heavy cost and were relying upon their operations being carried on by contractors, because they had been unable to produce goods at the factory at the rate at which they could be turned out by those who employed the services of outworkers. An attempt had been made by the women to protect their interests by the formation of a Tailoresses' Union, which, after a fitful existence, collapsed in 1893. Since that time, in the absence of any form of combination, contractors had been able to play off the outworkers against the inworkers and against each other. It may here be noted that, according to a recent report of the Chief Inspector of Factories, the inquiry caused the rate of payment to be lowered in consequence of the publicity given to the very small wages paid by some firms engaged in the clothing trade.

In the course of their inquiries into the furniture trade, the Commissioners found that the Chinese, by evasions of the Factory Act, their poor way of living, long hours of labour and acceptance of low wages, had practically ruined the European cabinet-makers. Their competition was confined to that branch of the industry, but had indirectly affected it as a whole. Statistics showed that in 1886 there were 64 registered European furniture factories employing 1,022 male hands, while in 1894 the number of factories had decreased to 46 and of employés to 320. On the other side, the number of Chinese employed as carpenters and cabinetmakers had increased from 66 in 1880 to 320 in 1886, and decreased to 246 in 1894. It appeared that the Chinese, having ousted the European workmen from the industry, had engaged in a keen competition among themselves, which had reduced prices to such a low level that many manufacturers had been compelled to close their factories and dismiss their workmen. These latter had commenced to make articles of furniture on their own account, and were reputed to be in a pitiable state of destitution. The Commissioners came to the conclusion that, while the unsatisfactory condition of trade had contributed to the distress of the European cabinetmakers, the competition of the Chinese had been the greatest factor in bringing about the existing state of affairs.

Their recommendations were embodied in a measure introduced in 1895 and passed in the following session, but limited in its operation, by the action of the Council, to a period of four years. Its most important provisions aim at the protection of the workers in those industries in which they are least able to protect themselves. The desire of the Government was to get persons as far as possible to work in factories and to deal with the difficulty of outworkers by a system of permits. Clause 13 of the Bill prohibited the making up of apparel outside a factory except by those who had received a permit from the chief inspector, which was not to be given unless he were satisfied that the person applying for it was prevented by domestic duties or bodily affliction from working inside a factory or workroom. Employers were to keep a record showing the work done by holders of permits, their names and addresses, and the amount of remuneration, which was to be forwarded periodically to the chief inspector, and might be published in the Government Gazette at the discretion of the Governor in Council. The number of outworkers would be reduced to a minimum, and the fear of publicity would act as a check upon their employers. A further protection was afforded to makers of furniture and of clothing or wearing apparel, including boots and shoes, by clauses under which the Governor in Council was authorised to appoint special Boards, consisting of a chairman and four members, of whom two were to be representatives of occupiers of factories and workrooms in which such articles were prepared or manufactured, and two of the persons employed in wholly or partly preparing such articles. The Board was to determine the lowest rate which should be paid to the employés, whether working inside or outside a factory. The Assembly added another clause which authorised the appointment of similar Boards for the determination of the hours of labour in any manufacturing industry, but the Council refused to accept it, and also rejected the clause which prohibited outside work by others than holders of permits. They introduced amendments which provided that the discretionary publication of particulars in the Gazette should be limited to cases in which an employer had been convicted for some contravention of the Factories and Shops Acts, and that the special Wage Boards should be elective, in the belief that it would be dangerous to vest the power of appointment in the Governor in Council, since it would actually be exercised by the Chief Secretary. The Government agreed to the former of these amendments, as the value of the right of publication was lessened by the Council's acceptance of the principle of the Wage Boards; but upon the other points of difference a conflict ensued between the two Houses, which resulted in the final decision that the Boards are to be elective, and that outworkers will not be required to obtain a permit, but, if engaged in the manufacture of clothing or wearing apparel, must register their names and addresses with the chief inspector, for the confidential use of the Department, and must answer all questions put to them by inspectors as to the names of their employers and the rate of remuneration. The Chief Secretary had explained in the Assembly that the Government desired to obtain the registration of outworkers in order that they might know from the individuals themselves the addresses at which they were working, and whether they were being paid in accordance with the prices fixed by the Boards. It is also provided that a sub-contractor, equally with the occupier of a factory, must keep the prescribed record of all work given out by him.

The furniture trade, as has been seen, is one of those for which the Governor in Council may cause special Boards to be elected; but it has been realised that, in the cabinet-making branch, owing to their superior numbers, the Chinese would obtain a controlling voice. This difficulty was met by an amending Bill which authorised the nomination of these Boards. Other sections of the Act also aim at the protection of the white workman: one Chinaman is to be deemed to constitute a factory, and no person employed in a factory or workroom in the manufacture of any article of furniture is to work on a Sunday, after two o'clock on a Saturday, or between five o'clock in the evening and half-past seven in the morning on any other day of the week. Furniture made in Victoria is to be stamped legibly and indelibly in such a manner as to show whether it was manufactured by white or Chinese labour. It is noteworthy that, through the Boards which will fix the minimum rate of pay in the baking and furniture trades, the Victorian Government are making their first attempt to regulate the labour of men; in the other trades affected by these Boards women form the vast majority of the workers.

The general provisions of this Act as they affect factories include greater stringency in the sanitary requirements, in the limitation of the hours of labour of women and boys, and in the precautions against accidents. Laundries and dye-works are constituted factories, and the powers of inspectors are in several respects strengthened.

The sections dealing with shops also deserve a word of notice. The necessity for further legislation was based by the Chief Secretary on the ground that under the existing law Municipal Councils were not bound to give effect to petitions received from a majority of shopkeepers, and could only bind their own districts. Besides, the penalties imposed for contravention of any law or bye-law had, in many cases, been so small that shopkeepers had been able to ignore it with practical impunity. He therefore proposed that petitions should in future be addressed either to the Governor or to the local authorities, that a metropolitan district should be constituted so as to render possible uniformity in the hours of closing shops, and that the penalties should be on a fixed scale. These proposals were embodied in the Act, as were others which provided that assistants in shops should have a weekly half-holiday, and that women and boys should not be employed for more than a fixed number of hours in a week or day, nor for more than five hours without an interval for meals, and should have the use of adequate sitting accommodation. These provisions, however, were not to apply to the categories of shops excluded from the operation of previous Acts unless extended to them under regulations made by the Governor in Council. Soon after the passage of the Act a strong feeling arose among the shopkeepers of Melbourne and its suburbs that, as assistants had to receive a weekly half-holiday, shops should be closed upon one afternoon in the week; but opinions differed as to whether the day should be Saturday or Wednesday. The shopkeepers in the city were disposed to favour the former, those in the suburbs were divided in their views.

The Act should be regarded as a humane attempt to minimise the sufferings of the outworkers and to improve the conditions of labour of the toiling masses of the population. The appointment of the special Boards is regarded with sympathy even by those who doubt the possibility of enforcing a minimum wage in the case of persons whose competition is intensified by the fear of starvation. Two general considerations suggest themselves: that a vast discretionary power is vested in the Executive, and that the inspectors will be confronted with a task of hopeless magnitude. On the first point it is to be noted that the Governor in Council, acting naturally upon the advice of the Chief Secretary, may not only exercise the powers already mentioned, but may extend the provisions of the Act or any of them to any shire or part of a shire, and make regulations upon a large number of subjects connected with the efficient administration of all the Factories, and Shop Acts. As regards the inspectors, who are eleven in number, it is to be feared that, though they may invite the co-operation of the police, they will be unable adequately to supervise factories, watch the labour of the single Chinaman, protect the home-worker from the tyranny of the contractor, and assure to assistants in shops the conditions to which they are legally entitled. They will undoubtedly be fettered by the unwillingness of the workers to supply information which may lead to the loss of their employment.

The correlative of protection, which principally benefits the manufacturer, is the direct encouragement of the enterprise of the producer. In this respect successive Governments have displayed an eagerness which has not always been confined within the limits of prudence. The borrowed capital sunk in the construction and equipment of the Victorian Railways is about £36,730,000, which returned in the year 1895-6 a net profit on working of £855,000, being a deficit of £584,000 upon £1,439,000, the annual charge for interest upon the loans; but a large proportion of this deficiency was due to the failure of the wheat crop and the consequent decrease in the amount of goods carried along the lines. Recent returns show that several lines not only do not pay any interest on the capital expenditure, but do not earn even as much as is disbursed in working expenses. The report of the Railway Inquiry Board shows that the Assembly was actually disposed at one time to sanction the expenditure of a further sum of £41,000,000 upon the construction of new lines; but the Age newspaper published a series of articles which showed clearly that national insolvency would follow the approval of expenditure on such a gigantic scale. The exposure attained its object, but involved the proprietor, Mr. David Syme, in actions for libel, brought by the Railway Commissioners, which extended, with intervals, over a period of four years. Finally, he was proved to have been entirely justified in his language, but was saddled with an enormous bill of costs as the reward of his patriotic efforts on behalf of the community. The danger that similar proposals might be carried in the future was lessened in 1890, when the Standing Committee was appointed as a check upon the extravagant tendencies and culpable pliability of individual members.

Again, in connection with water supply and irrigation, the expenditure has been on an extravagant scale. The Melbourne Waterworks are justified by the requirements of the metropolis, but those of Geelong and of Bendigo and adjacent areas commenced in 1865, and constructed at a capital cost of £1,427,000, show an annual deficit of £35,000; and other national works which cost £830,000 are dependent for a return upon irrigation trusts, most of which are unable to meet their own liabilities. Apart from this direct expenditure, the State has advanced £2,438,000 to local bodies, urban and rural waterworks trusts and irrigation trusts. Adding together these different amounts, we find the total direct and indirect expenditure of the State to have been £4,695,000, and we learn from the report of a recent Royal Commission that the annual revenue is about £68,000, or less than 1-½ per cent. upon the capital. As the money bears an average interest of 4 per cent., the loss to the consolidated revenue is at the rate of £120,000 a year. The expenditure was based upon the principle that the national credit should be pledged in order that farmers and land and property owners might be assisted to provide works of water supply which would accelerate the permanent settlement of many parts of the Province. Loans had been granted to municipalities before 1881, but in that year the question was treated comprehensively by the Water Conservation Act, which authorised the constitution of trusts for the construction of works of water supply for domestic purposes and the use of stock. In 1883 the Act was amended so as to include trusts formed for the promotion of works of irrigation. The Urban Trusts and local bodies generally have met their obligations satisfactorily, with the exception of some of the latter, which, instead of striking higher rates or increasing the charge for the water, appear to have hoped that the State would step in and relieve them of their liabilities. The Rural and Irrigation Trusts also have attempted to throw the duty of paying interest on the cost of the works upon the taxpayers of the whole province. In the latter case the Public Works Department cannot be absolved from blame. It is clear from the report of the Commission that money was advanced to Irrigation Trusts without an adequate preliminary investigation of the amount of water available or of the number of settlers who would make use of it. "The public mind was excited at the time, and the gospel of irrigation was preached from one end of the Colony to the other. The farmers had been suffering from a cycle of dry seasons, the price of produce was high, and the prospect of insuring their crops against the exigencies of climate by means of irrigation appears to have overruled all prudential considerations. Schemes were hastily conceived and as hastily carried out. The question as to whether the cost of the undertaking would be commensurate with the benefits to be derived therefrom, or whether the land could bear the burden that would be placed upon it, was apparently lightly considered, if considered at all." But, according to an official who had been concerned in the matter, the Department, far from readily concurring in or urging on schemes, had done its utmost to restrain the popular enthusiasm. Continued pressure had been exercised by deputations, generally supported by the Member for the district, which tried to induce Ministers to set aside formalities in view of the great necessity for water and of the great benefit that would ensue. The lavishness of the Department, whatever may have been its cause, was equalled by that of the Trusts, which in most cases expended the loan money as expeditiously as possible without regard to the requirements of the district or the supervision of the undertakings; they did not realise that they would ever be called upon to provide for meeting the interest on the moneys advanced to them. There can be no doubt that the Government overrated the knowledge and ability of the Trusts, and their recognition of the responsibility involved in the control of large sums of public money. The Royal Commissioners recommended that, after Parliament had decided what concessions should be made, the enforcement of the monetary obligations should be transferred from the Department to the Audit Commissioners, who should be vested with powers enabling them to take action to recover arrears due to the State. They believed that, in the absence of such a change, the Department, being subject to political pressure, might make further concessions, and again allow matters to drift into an unsatisfactory condition.

The next instance of national expenditure in the promotion of enterprise comes under a different category: the State has, since 1878, devoted to the encouragement of the gold-mining industry the sum of £800,000, which was not intended to give a direct return upon the outlay so much as to maintain the pre-eminence of Victoria among the gold-producing Provinces of Australasia. Of this amount £455,000 was expended in boring, the remainder in subsidies to mining companies and prospecting parties. But, as in the case of railways and works of water supply, the Government were confronted by the extreme difficulty of providing safeguards against the misapplication of the funds. Direct control by the Minister of Mines was proved neither to yield good results nor to be satisfactory to the Minister, as he was subjected to continual pressure from Members of Parliament. Prospecting Boards were, accordingly, appointed in the seven mining districts into which the Province is divided, each Board consisting of five members, the surveyor of the district, a member of the Mine-owners' Association, a member of the Miners' Association, a member of the local mining board, and a representative of the municipalities. These men were authorised to allocate all votes, and, according to a statement of the present Minister, as they represented different interests in the mining and different localities, they took a parochial view of their duties and developed "a kind of unconscious log-rolling" which caused the grants, in many cases, to be devoted to entirely unprofitable objects. The expenditure of the £800,000 is believed to have been of the greatest value to several mining companies, but has produced a direct return of only £11,526, an amount which would have been smaller had not the Minister threatened dividend-paying companies with the forfeiture of their leases unless they repaid their loans to the State.

The Government have also attempted to increase the export of such articles as butter, wine, cheese, and frozen meat, for which a large market is believed to be obtainable in Great Britain. Their policy has been to foster these industries by means of bonuses to producers, subsidies to owners of factories, and the free use of cold storage at refrigerating works, and to enforce a certain standard of quality as a necessary condition of their assistance. As the industry progresses the bonus is reduced and finally withdrawn, and charges are made for cold storage which are sufficient to reimburse the State for its outlay. Such a course has already been pursued in the most successful case, that of butter, in which the value of the amount annually exported has risen from £51,000 in 1889-90 to £876,000 in 1895-6. In this manner the State is not permanently engaged, but initiates its expenditure at the highest point and gradually releases itself from the obligation.

In 1893 the Government were confronted with a large amount of misery among the working classes, much of it undeserved, which had resulted from the collapse of many land companies and banking and building associations. An artificial prosperity, caused by the inflation of metropolitan values, had created a demand for the services of a disproportionate number of artisans, who, upon the inevitable reaction, were thrown suddenly out of employment. Under these circumstances the Ministry were called upon to do something to relieve the distress, and passed a new Land Act which offered favourable terms, in the way of tenure and monetary advances, to those who were willing to settle upon the land. They were enabled to take it up either individually or in associations of not less than six persons who desired to live near each other. At the expiration of a year after the passage of the Act 4,080 applications had been received, of which 2,122 had been approved, 993 rejected, and 965 were under consideration; and, in order that the benefit might be immediate, the land had been made available as speedily as possible and applicants had not been compelled to wait until blocks had been surveyed. In view of the conditions under which the settlements were formed it is not surprising to learn from subsequent official reports that the favourable anticipations have, in numerous instances, not been realised, owing to the unsuitability of the soil, the inexperience or physical incapacity of the settlers, or the absence of a local demand for labour or of a market for the surplus produce. Many of the associations have been disbanded as the members were unable to work together harmoniously; and those that are still in existence have, in almost every case, abandoned the co-operative principle and are working their blocks on individual lines. In 1896 the number of resident settlers was 2,127, who, with their wives and families, formed a total population of 8,802; they had received, during the three years, advances from the Government to the amount of £57,000.

The Act of 1893 also provided for the establishment of Labour Colonies. The movement in this direction originated with a few people at Melbourne, who saw the futility of periodical doles to the destitute, which were of merely temporary assistance to them and did not place them in the way of earning a permanent livelihood. It was also felt that, in the absence of any system similar to the English poor-law, which, whatever its evils, relieves the conscience of the community, ministers were subject to continual pressure, which compelled them to institute public works for the sole benefit of the unemployed. In 1892 the distress was met, as far as the public were concerned, by the subscription of a large sum of money, which was distributed through the agency of the local branch of the Charity Organisation Society; but, in the following year, the distress being still more acute, the idea of a Labour Colony rapidly gained ground and was met by the Government by the grant of an area of 800 acres at Leongatha, some 80 miles from Melbourne, which enabled the promoters of the scheme at once to commence their operations. At the outset it had been intended that the funds should be obtained, partly by private subscription, partly by pro-rata contributions from the national exchequer; but, in the absence of popular response, the Government deemed it advisable, at the commencement of 1894, to take over the entire administration of the colony, and appointed, as Honorary Superintendent, Colonel Goldstein, who had been actively identified with the undertaking. Colonel Goldstein states that the main purpose of the colony, which is based on a German model, is to give temporary work at unattractive wages to the able-bodied unemployed in order that they may be prevented from passing over the narrow line which separates poverty from pauperism. At first the aged and infirm were admitted, but it was found that employment could not be obtained for them and that their presence affected the value of the colony as a means of instruction for a class of men in whom it is necessary to arouse a spirit of responsible independence. They are, moreover, provided for by benevolent asylums and other charitable institutions which receive large subsidies from the Government. Consequently men beyond the age of 55 years are now only received in exceptional cases. All applicants are registered, and, if their alleged destitution is believed to be genuine, are forwarded by rail to the colony, where they receive free board and lodging. The colonists are subjected to strict discipline, work for a week without pay upon probation, and then earn wages which rise to a maximum of 4s. a week; they receive no money while at the colony, but may draw certain necessaries, or, if married, cause their wages to be remitted to their wives. The work is so arranged that the capabilities of the colonists may be used to the best advantage and that they may be fitted as far as possible for agricultural employment, which is obtained for them by means of a Labour Bureau established at the colony. At the expiration of six months, or upon an accumulation in their favour of a credit balance amounting to 30s., colonists must, subject to occasional exemptions, seek employment elsewhere, and may not be re-admitted under a period of six weeks. In this manner the men either obtain outside employment while resident at the colony or leave it possessed of a sum of money which renders them better able to search for it; they have the alternative of applying subsequently for re-admittance. The results obtained during the three years have been of a most satisfactory character; 1,832 men have passed through the colony since its inception, of whom only 124 have been dismissed for faults, and none for insubordination; 573 have had remunerative work found for them, and the remainder have earned sufficient ready money to enable them to set out in search of employment. There have been 566 re-admissions of 307 men who have returned from one to eight times. "The majority of the men," says Colonel Goldstein, "are of the shiftless sort, who cannot do anything for themselves. As Leongatha is 80 miles from Melbourne, we seldom see the genuine loafer there. The men who go are willing enough to work when shown how, but they seem unable to rouse themselves into any sort of vigour, to say nothing of enthusiasm, until they have been there a considerable time.... Numerous instances could be given indicative of the generally helpless nature of the men. There can be no doubt that employers, during the depression, will first reduce their worst men. Of these, many have sufficient energy to shift for themselves; the rest drift to the labour colony. Most of them have suffered severely from privation and poverty, and probably have had their dejected condition further dispirited by semi-starvation.... After a few months' stay it is surprising to see the difference in their appearance, and, what is more to the purpose, their discovery that a new kind of life is opened to them. Bush-work gives them a healthier feeling of self-dependence than they ever enjoyed before, especially so for men who have a trade behind them ready when the chance comes." The total outlay has amounted to £11,276, which has been expended mainly upon farm appointments, implements, and permanent improvements, and is represented by assets of the value of £10,861. The net cost must be regarded as exceedingly small in view of the fact that, as the great majority of the colonists are artisans and quite unused to bush or farm work, their labour is necessarily slow and expensive, and that, as soon as a man begins to be useful, he is selected for some private employer. The Labour Colony has, it is maintained, apart from the benefits conferred upon hundreds of individuals, paralysed the agitation of the unemployed; as long as it is in existence no able-bodied man need starve.

Finally, a measure, passed in 1896, aimed at the protection of pastoralists, farmers, and other cultivators of the soil by providing machinery by which the State might grant loans to them, upon adequate security, at a low rate of interest, with a sinking fund extending over a long period of years.

The salient features of Victorian legislation are the strong note of humanity and the confidence in the wisdom and efficiency of State action. If this confidence has sometimes been misplaced, there is no reason to suppose that the Victorians have imposed upon themselves a burden that they are unable to bear. They are an energetic race, who have not only developed the resources of their own country, but have obtained large interests in New South Wales and Queensland. If in the past they were too much inclined to draw bills upon futurity, they have had a sharp lesson which has taught them the necessity of retrenchment and compelled them to reduce their annual expenditure by a third of the total amount. It is impossible to form an unfavourable estimate of the prospects, or of the high average prosperity, of a population of less than 1,200,000 persons, which includes 185,000 freeholders and has accumulated at the Savings Banks £7,300,000 divided among nearly 340,000 depositors.

VI

THE GROWTH AND DEVELOPMENT OF WESTERN AUSTRALIA