316 A HISTORY OF THE COLONY OF VICTORIA 



aside to recoup it, but now unsaleable. He estimated a revenue for 

 the year of 8,000,000, which was decidedly optimistic, for the actual 

 receipts were under 7,000,000. To ensure his estimate he pro- 

 posed an increase in the stamp duties, postal rates and probate 

 duties, calculated to bring in 290,000. In addition he submitted 

 a list of increased Custom duties, estimated to produce 625,000. 

 These latter ranged from 20 to 35 per cent., in case of furniture the 

 duties were from 35 to 50 per cent. It was quite plain to any busi- 

 ness man, that in the depressed condition of trade these expectations 

 were illusory. Indeed, the result showed that on the articles selected 

 for taxation there was received 600,000 less duty than they pro- 

 duced in the previous year at lower rates. Sir Graham's ideas were 

 not based on mercantile knowledge, but on the dominating belief 

 that the higher he could pile on protective duties, the nearer he 

 approached prosperity. Only one item in his statement gave general 

 satisfaction, and that was a promise to abstain from any fresh loans 

 except for redemption purposes. He was no longer the ready re- 

 sourceful Berry of former days. His honours and his dignified 

 London schooling had alienated him from the sympathies of the 

 masses, who had been wont to roar their approval of his oratory. 

 His fellow-members openly derided in the House his financial nos- 

 trums. He had forfeited the confidence of the colony's bankers by 

 an attempt to tamper with a loan agreement at a critical moment. 

 It did not add to his popularity that while devising this fresh taxation 

 he was drawing 1,000 a year as a liquidator of the bank of which 

 he had been chairman in London. With so unpopular a Treasurer, 

 who believed increased taxation preferable to retrenchment in ex- 

 penditure, Mr. Shiels found himself unable to make any headway 

 towards what the public demanded the restoration of financial 

 equilibrium. What with the long-drawn-out debate on the budget, 

 the tedious revision of the tariff in committee, retrenchments in 

 Civil Service salaries, and a month spent over railway construction 

 proposals which mostly came to naught, the session left no work 

 worthy of permanent record. A very heated controversy arose out 

 of the Ministry having suspended the Eailway Commissioners on 

 the 17th of March upon the ground that those gentlemen had re- 

 fused to co-operate with the Government in a policy of economy. 



