254 A HISTORY OF THE COLONY OF VICTORIA 



and the mischief was staved off for a time. But when Lord John 

 Bussell's measure was announced, making all surveyed land open 

 to selection at 1 per acre, the bubble burst, and the ruin of the 

 men who had speculated in land with borrowed capital was from 

 that day certain, no matter what became of the purchase-money, 

 and whether it was expended in immigration or otherwise." 



Had the whole surplus revenue of Port Phillip been appropriated 

 to the development of the district, the crisis would neither have 

 been so severe nor so protracted. But, while in the six years ending 

 in 1842 the revenue (including land sold) exceeded the general 

 expenditure by 362,000, of this surplus 204,000 was spent on 

 immigration, and 158,000 was appropriated by Sydney for local 

 purposes. Concurrently with this arbitrarily created difficulty, a 

 steady and persistent decline occurred in the price of wool, the 

 staple export of the colony, and within two years the price of live 

 stock so depreciated that sheep purchased with the right of run 

 at 30s. to 40s. per head were sold under pressure at from Is. 6d. 

 to 3s. The practical ruin of the pastoral interest which resulted 

 from this fall reacted on the trading community, and a large num- 

 ber of the merchants followed the majority of the stock breeders 

 into the insolvent court, the annals of which, it is alleged, show, 

 during these dark ages, an average dividend of about 6d. in the . 



The following extract from the private diary of Mr. Eobert Eussell, 

 the Surveyor of Melbourne, dated 30th March, 1843, vividly reflects 

 the general feeling of despondency : " Melbourne is no longer Mel- 

 bourne. No money, no credit, no trade, nothing but failures the 

 Sheriff's Officer is the only active man in the community. Even 

 the lawyers can scarcely succeed in getting paid. Land is worthless, 

 and cattle and sheep little better. The latter do not fetch more 

 than half a crown a head ! We must learn the dear lesson of 

 experience, however, at any cost, and shall be the wiser for it in 

 the future perhaps." 



Happily the dawn of a renewed prosperity was not far off. From 

 the date of the successful application of the plan introduced by Mr. 

 Henry O'Brien of Yass, and adopted in the Port Phillip district in 

 1845, of boiling down the carcasses of the sheep for their tallow, 

 further depreciation in value of both land and stock was arrested, 



