DAYS OF TKIAL 295 



the British capitalist. It is true that in 1892 the Government 

 floated a loan of 2,000,000 in London, and the Melbourne Board 

 of Works one for 1,000,000, both at very unfavourable rates ; but 

 these came at a time when the process of paying the penalty had 

 commenced in earnest, and they had no part in provoking the 

 crisis. After these efforts the process of borrowing took an ab- 

 solute rest for six years. 



The amount of borrowed capital imported into Victoria during 

 the seven years selected for examination is most startling. The 

 following summary is certainly well within the mark, for it takes 

 no account of large sums advanced on mortgage by private indivi- 

 duals and British insurance offices, through the agencies of several 

 leading firms of solicitors. Nor does it touch the investments 

 made by hundreds of European visitors who were attracted to 

 the colony during the flush of its meteoric expansion, and gladly 

 planted their capital on such an apparently reproductive soil. Mr. 

 T. A. Coghlan estimates this item alone at 6,000,000, which is 

 possibly excessive, but the following figures have been carefully 

 checked : 



The Government borrowings were - 19,500,000 



Tramway, Harbour and Fire Brigade Trusts- 2,750,000 



Debentures and new capital of Pastoral Com- 

 panies - - 4,000,000 



Debentures and new capital of Property In- 

 vestment Companies - - 1,500,000 



Melbourne and Suburban Municipalities - 1,050,000 



Shares issued by Banks and Land Compa- 

 nies in London - 700,000 



Deposits taken in London by Land Banks, 



Building Societies, etc. - - 3,500,000 



Increase of British deposits in established 



Banks - - 5,000,000 



38,000,000 



An influx of borrowed capital continuing for seven years, at the 

 rate of 5,500,000 sterling per annum, plus the legitimate productive 

 earnings of a country where nearly all were supposed to be working, 



