188 A HISTORY OF THE COLONY OF VICTORIA 



could be made. On the 6th of April Mr. Mercer again addressed the 

 Colonial Secretary, contending that while the plan of selling lands 

 by auction is undoubtedly beneficial in the already settled districts, 

 it would be inequitable to admit other parties to enter into com- 

 petition with the Association for a property, the whole value of 

 which had been created by their exertions and with their capital. 

 He alleged that the heavy charges and great labour they had in- 

 curred, and especially the principles of justice and liberality on 

 which they had proceeded, hitherto unknown in the history of 

 the British Colonies, entitled them to a special consideration. As 

 a last resort, therefore, he proposed that the tract ceded by the 

 natives, together with about an equal parcel to the westward, in 

 all about 3,000 square miles, should be sold to the Association at 

 the price of 20 per square mile, half the amount to be paid in 

 instalments, at the rate of 3,000 per annum, to be applied by the 

 Government for purposes of emigration or otherwise, as they may 

 deem proper ; and the other half to be expended on roads, bridges 

 and public works in the colony, over the same period, under the 

 administration of a Board composed of equal representatives of the 

 Government and the Association. 



In those days of untempered officialism this suggestion was 

 resented by the ruling authorities, and in Sydney especially the 

 proposal was scouted as an impertinent attempt to seize the 

 government of the new province. It was also an injudicious 

 step to enclose with the letter a copy of the opinion of Dr. 

 Lushington that the right to the soil did not rest in the Crown, 

 especially as that opinion was not endorsed by the other learned 

 counsel consulted, and was not supported by any arguments. On 

 the 14th of the same month Sir George Grey replied, by direction 

 of the Colonial Secretary, stating that the Crown must decline to 

 acquiesce in the opinion of Dr. Lushington, which was assumed to 

 be advanced under a misapprehension of the case. The letter goes 

 on to say that any departure from the recognised methods of 

 alienating colonial lands would involve a breach of faith with the 

 numerous persons already holding property under them, and could 

 not be entertained. The proposal to purchase 3,000 square miles 

 for 60,000 under the conditions offered seemed to the Minister to 



