THE LIQUOR TRADE. 91 



the free importation of good spirits under a high duty of not 

 less than 35. or 45. a gallon." l But he had added that he would 

 wait until he received further instructions from the Secretary 

 of State before carrying out this proposal. 



The Secretary of State sent extracts from the despatch to 

 the Lords of the Committee of the Privy Council for Trade, and 

 was informed on the /th March, 1812, that they concurred with 

 Macquarie's views. At once several licenses were given to ex- 

 port cargoes of merchandise and spirits to New South Wales. 2 

 These cargoes had already been despatched when the Colonial 

 Office heard of the hospital contract. 3 " Many objections," 

 wrote Lord Bathurst, " might be urged to an engagement of 

 this nature, under any circumstances. But I am surprised that 

 you did not foresee the embarrassment which would inevitably 

 be occasioned in the execution of this contract by the adoption 

 of the suggestions contained in your despatch of the 3Oth April, 

 1810. . . . It must be left to your own discretion to take such 

 measures as may appear to you to be best calculated ... to do 

 justice to the several parties whose interests are affected by the 

 arrangements which have been made in New South Wales and 

 in this country." 4 



The Governor made the best he could of the difficulty he 

 had created by permitting the spirits to be landed and in- 

 demnifying the monopolists for this breach of contract by ex- 

 tending its duration for another twelve months. He justified 

 his conduct in originally making the agreement rather quaintly. 

 " When I recommended that measure " (of free importation) he 

 wrote, " I had no idea of the restriction being taken off by the 

 Government at home. I expected instructions from Your 

 Lordship, authorising me to open the Port here when I con- 

 ceived it best so to do. . . . Your Lordship will be pleased to 

 recollect that one half of that period " (of the monopoly) " must 

 have nearly expired before I could expect to receive an answer 

 from Your Lordship, besides concluding that it would be left 

 to me, if permission was given, to make use of it as I saw best 

 and most conducive to the welfare of the Colony." & 



1 D. 30, 1810. Printed in H.R., VII., p. 335. 



2 D. 34, igth May, 1812. Liverpool to Macquarie. R.O., MS. 



3 Ibid. * Ibid. 



5 For further effects of the hospital contract see later in this chapter. 



