90 A HISTORY OF THE COLONY OF VICTORIA 



on the discovery of a serious blunder in Mr. Duffy's estimate of the 

 revenue to be derived from the squatters. He had provided that, 

 after eliminating from their runs all the best agricultural land, the 

 remainder, some 24,000,000 acres, should be available to them, on 

 an annual licence, up to the 30th of December, 1870. Not satisfied 

 that the 250,000 per annum which this class contributed to the 

 State was a sufficient equivalent, he proposed to assess the value 

 of their runs by arbitration, and to make a charge per head of stock 

 according to their carrying capabilities, not as heretofore upon the 

 actual stock held, it being commonly alleged that most of the 

 runs were kept understocked. It was vaguely anticipated that the 

 change would result in a largely increased revenue. Unfortunately 

 for the propounder of this scheme, the report of the Board of Land 

 and Works, by whom the valuations were made, worked in an 

 opposite direction. Some of the squatters were actually paying 

 more than they could now legally be called upon to contribute, 

 under the Board's valuation of the agistment capacity of their runs, 

 and the summarised result showed a deficit of quite 50,000 on 

 the pastoral revenue. A feeble attempt was made to revert to the 

 original charges, but the House creditably denounced such a course 

 as savouring of repudiation, and on the 19th of June, 1863, the 

 third O'Shanassy Ministry succumbed to the position and resigned. 

 Mr. Duffy, if defeated, was certainly not convinced. He main- 

 tained that his theories were correct, but that others had blundered 

 in giving effect to them. He blamed Professor Hearn for faulty 

 drafting of the Act ; he blamed the Attorney-General for insufficient 

 supervision ; he blamed the Board of Land and Works for their 

 appraisements ; but most of all he blamed the people for whose 

 benefit he had pitted legislation against poor human nature, who 

 were unable to resist the temptation he had placed in their way, by 

 emphatically declaring that " the very class for whom he legislated 

 sold their inheritance for some paltry bribe ". 



The relations between the O'Shanassy Ministry and the Governor 

 had not been altogether cordial, and it was no doubt with an assured 

 feeling that change would be beneficial to the country that he 

 entrusted Mr. McCulloch with the task of forming a Government. 

 He was successful in getting together the strongest Cabinet that 



