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eign policy of England. The Prime Minister
of Victoria put forth a manifesto on Jan. 12,
1885, in which he complained that the colonies
were subject to an unqualified"
" and an "an-
tiquated autocracy" in imperial matters, a hu-
miliating position, and declared that, whatever
scheme of federation should be decided upon,
it must be one that, "while it can not take
away from us anything that we at present pos-
sess, must give to the colonies more tangible
influence and more legal and formal authority
than they have now."

Commodore Erskine, in November and December, 1884, raised the British flag on the south coast, and with curious ceremonial took the native tribes under imperial protection and made the persons who seemed to be the paramount chiefs in the different districts delegates of the Queen. The new protectorate of British New Guinea extended at first from the East Cape to the Dutch boundary, and was then enlarged, at the request of the colonists, so as to take in the north shore of East Cape and Huon Cape as well as the adjacent islands. The British flag was raised in the beginning of January over the various islands of the Luisiade Archipelago, east of New Guinea, over Woodlark Island to the north of these, and over the smaller Long and Rook Islands off the coast of the German colony.

Government by telegraph, and action could be taken within a few hours. As late as Oct. 24, 1884, just before the German occupation of King William's Land, the under-secretary for the colonies denied that there was an understanding with Germany as to the occupation of the northern portion of New Guinea. The understanding, if it existed, must have been reached suddenly; though, according to the statement of Count Herbert Bismarck, when the grievances of Germany against England with regard to delays and hindrances to her colonial policy were confidentially recited to Earl Granville some months before, the English minister asked him whether Germany wanted New Guinea. The question was involved with matters pertaining to Angra Pequeña, Egypt, and other parts of the imperial policy, in such a way that when Germany finally took possession of the fairest portion of New Guinea, the indictment of unfriendliness was shifted to the charge of Great Britain. After the German annexation was effected, a telegram came from London saying that Lord Derby had known of the intention of the German Government for months. The colonial authorities on their part complained in direct and vigorous official language of the neglect of the Imperial Government to fulfill its promises to them. The proclamation of British suzerainty over the feverscourged coast opposite Queensland hardly The friction between the English and Colosoftened the angry irritation of the colonists. lonial governments prevented the administraMr. Service, the Premier of Victoria, ended a tion provided for British New Guinea from memorandum addressed to the Governor of the going into operation for a long time after the colony, wherein he expressed his indignation protectorate was established. The Colonial at the want of response of the Imperial Govern- governments promised to contribute £15,000 ment to the aspirations of the colonies, and its toward the expenses of annexing New Guinea. extreme unwisdom in slighting the perpetual They were disposed to withdraw that offer and strong representations addressed to it un- when the home Government disappointed them ceasingly for eighteen months on the subject of by establishing a mere protectorate over a part New Guinea, with a request that steps be au- of the island and then expected them to inthorized by telegraph to save to Australia such crease their contribution and to bear the whole of the neighboring islands as are yet available. cost of administration. Gen. Scratchley was In addition to the protectorate over the south- appointed special commissioner for the proern shore of New Guinea the colonists obtained tectorate of New Guinea and deputy commisthe annexation, proclaimed by the commodore sioner for the western Pacific. For six months of the Australian squadron, of the Luisiade or more that popular and energetic officer went group and Huon Bay, important strategical from capital to capital trying to get this quespositions commanding the new German pos- tion of revenue settled. The Colonial Governsessions and the approaches to the Australian ments refused to increase their promised apshore. The assumed fact that the home Gov-propriations, and demanded that the Imperial ernment had acceeded to the German occupation of Cape King William without consulting the colonial authorities, and in despite of their earnest objections, exasperated the colonists more than any difference that has occurred between them and the mother-country since the attempt to re introduce transportation. The feeling that questions affecting their interests, and even their security, should be decided with reference to the continental policy of Great Britain, called forth serious thoughts of separation from the mother-country. Under the excitement of the hour, the only alternative seemed to them to be an Imperial Federation in which they should have a voice in the for

Government should participate in the expenditure on New Guinea. The authorities in Downing Street were at length induced to alter their purposes in important particulars so as to meet the views of the Australians. In May, 1885, it was announced that the British Government

taking into consideration the German occupation of a part of New Guinea contrary to the wishes of the colonies, which might increase the obligations and difficulties of the position, and the duty of protecting native interests, which might reduce the local revenue-would entertain the question of an imperial contribution. The message gave as another reason the decision of the Imperial Government to change

the protectorate into a sovereignty, involving the provision of effective jurisdiction over natives and foreigners, the establishment of courts, and machinery for civil administration. The Colonial governments were invited to consult with Gen. Scratchley with regard to the extent of territory inland to be annexed, and to settle the probable annual cost and the contributions they proposed to pay. The proclamation of sovereignty was postponed until the financial arrangements were concluded. The high commissioner proposed to maintain his headquarters on the water, and asked the Colonial Governments to advance, in the form of a loan, £20,000 to provide a steamer and £5,000 to build two stations on shore, at Port Moresby and South Cape, if these were found to be suitable localities. The annual expenses he estimated at £20,000, including £8,000 for staff, deputy commissioners, and police, £8,000 for manning the steamer and patrol-boats, £1,000 for coal, and £3,000 for exploration, surveys, and mails.

Australian Military and Naval Defenses.-Since volunteering began in Australia, upward of 80,000 men have been trained in the art of war. The total number of males between the ages of twenty and forty years was, in 1881, 451,700. Not less than £8,000,000 sterling has been expended by the colonies on their defenses. Volunteering was encouraged by liberal land-grant orders given to men who served five years or longer. In 1879 there were over 16,000 volunteers in active service. In the year 1877 the British Government sent out Sir William Jervois and Col. Scratchley to advise the colonial authorities upon the defenses. In accordance with their recommendations forts have been constructed, cannon imported, a trained artillery force established, and a nucleus of a standing army formed in several colonies, around which the volunteer forces can rally. The number of trained men or regulars in Australia, including the artillery, militia, and torpedo corps, exceeds 2,500.

The question of colonial defense enters prominently into the federation movement. Three distinct views are held upon the subject in Australia. One party, the advocates of colonial federation, is in favor of a local defense-union between the colonies, with a common budget and a central administration for military and naval affairs. Another party, representing the idea of Imperial federation, desires to merge the colonial forces into the British army and navy, and to assess upon the colonies a proportional share of the cost of the entire establishment. This would be a return in practice to the system that existed before the withdrawal of the Imperial troops in 1865, with the important difference that the British taxpayer, instead of feeling burdened with the expense and responsibility of defending helpless and dependent colonies, would look upon the population and wealth of the colonies as an augmentation of the military resources of

the Empire. A third party approves of an inter-colonial union for land defense, and the creation of an Australian army, the beginnings of which have been made in the separate colonies, but would leave naval defenses in charge of the Imperial authorities, the colonies contributing a fair share of the cost.

In the British House of Lords Viscount Sidmouth proposed that help should be granted the colonies in the form of a number of naval officers authorized to train their sailors and organize a navy, and especially a torpedo force, which would at least constitute their first line of defense. Lord Northbrook replied that many officers would be glad to go out as instructors. He publicly invited from the agentsgeneral the formulation of a scheme for the organization of local naval defenses for the colonies. The Conservative Government issued in the beginning of July a circular dispatch on the subject of Australian naval defenses, and especially the defense of Albany, in Western Australia. Sir Napier Broome, while in England, called attention to the danger of leaving King George's Sound, on which is the town of Albany, open to seizure by an enemy, who from so convenient a base could do damage to British commerce in a few weeks to the extent of millions sterling. Important works for the protection of Port Philip and Melbourne were constructed on the responsibility of the Victoria ministry during the parliamentary vacation, when war seemed imminent. When the sessions opened the Government was not criticised for building the fortifications, but was attacked for awarding contracts to colonial manufacturers when the materials could be obtained more cheaply from England.

The military forces maintained under arms in New South Wales number a little over 2,000 men, costing £85,000 a year. Victoria has about 3,500, including 400 in the navy. When her re-organization is complete she will possess thirteen war vessels, including four cruisers and three torpedo-boats. New Zealand keeps up a large military force, not less than 6,000 men, on account of the Maoris. This colony has lately purchased four torpedo-boats. Queensland has over 500 volunteers, two gunboats, and one torpedo-boat. South Australia is building a cruiser. Tasmania has a rifle corps and an artillery corps, numbering together 550 men. Western Australia has a volunteer force of about the same number.

The Australian Contingent in the Soudan.-The Australian people took but a slight interest in the earlier Egyptian campaigns, which were supposed to be the sequels of an interference in Egypt on behalf of the bondholders. The Khartoum relief expedition, however, they followed with watchful attention. When tidings came that the heroic Gordon was slain, the shock and grief gave rise to a sympathetic impulse to help the mother-country to wipe out the blot on British honor. This feeling was strongest in New South Wales, where there

was the least resentment on account of New Guinea. Mr. Dally, the acting Premier, telegraphed an offer to send a body of men at the expense of the colony. Mr. Service, Premier of the rival colony of Victoria, tendered aid of the same kind. Many thousand pounds were subscribed by private individuals toward the expenses. Men whose wages were three times the soldiers' pay of 28. 6d. per diem volunteered eagerly for the distant expedition.

The home Government accepted the offer of the colony that was foremost and most enthusiastic in its tender of assistance, but courteously declined that of the Victorian authorities. On the 3d of March, sixteen days after the acceptance of the offer, the New South Wales contingent sailed from Sidney amid the cheers of the population. It was composed of 800 men of all arms of the service. The artillery was taken from the permanent force of the colony. All the rest of the men were volunteers. The corps was fully armed and equipped, provided with 200 horses, and supplied with all the necessary stores that could be obtained in the colony. The men were excellent in physique, but had no opportunity to drill, A considerable proportion of them were old soldiers who had served in the British army.

The ministers exceeded their constitutional powers in making the offer, in enlisting the men, and in spending the money. They assumed the responsibility in reliance on popular approval and a parliamentary vote of indemnity. A minority censured the step severely. Sir Henry Parkes, the retired Opposition leader, made himself the spokesman of the party that condemned the quixotic policy of a colony that paid for immigration sending away its best men and impairing its defensive resources to fight in a quarrel in which it had no immediate concern, and sacrificing lives and money without materially benefiting the mother-country.

The Australian troops were only six weeks in the Soudan when, in accordance with the decision of the English Ministry to abandon the campaign announced for the autumn, they were recalled. They suffered severely from heat and fever, but only eight men died. The Colonial Ministry offered their services for Afghanistan; but the English Government declared that they were not needed.

The Russian War-Seare.-The Afghan crisis, instead of strengthening the separatist sentiment developed during the excitement over New Guinea, had the effect of reawakening Australian loyalty to the Imperial connection. In all the colonies the authorities and the citizens co-operated in works of preparation and defense. The war spirit and the animosity against Russia were as strong as in England. The military activity was greatest in Queensland, the most exposed and weakest of the autonomous colonies. During the exciting weeks in April and the beginning of May, the defense force, which was in process of reorganization under a new act of Parliament, was called out

for active service. Meetings were held for the formation of rifle and artillery corps. More than five thousand men were, within a few weeks, either under arms, or undergoing preliminary training. A larger number volunteered, but the Government was unable to supply them with small arms. Fort Lytton, at the mouth of the Brisbane river, was improved and enlarged, and earthworks and redoubts were thrown up along the coast near the capital. A boom was placed across the river, torpedoes were sunk in the channel, the buoys partially removed, and the beaconlights extinguished. Gun-boats were extemporized, and steamers were offered as dispatchboats by private citizens. Orders were given to sink the coal-ships at Townsville, Cooktown, and Thursday Island on the appearance of a suspicious craft. Private owners of vessels were ready to follow out Admiral Tryon's suggestion to destroy their property in order to keep it from falling into the hands of the enemy. At the principal strategic points earthworks were constructed and mounted with heavy cannon. After the fever subsided the corps maintained their drill, and the Government followed up a plan for improving the coast defenses by connecting the points of observation on the coast with Brisbane by telegraph, and by constructing strong fortifications at Thursday Island, the strategical key to Torres Straits, and laying a cable to the mainland.

The American Postal Route.-In consequence of the failure of Congress to increase the subsidy for the Australian mail-service, and of the refusal of the United States Executive to distribute among the steamship-lines an appropriation made available by act of Congress, the Pacific Mail Steamship Company gave notice that the line between San Francisco and Sidney, via New Zealand, would be discontinued after Nov. 1, 1885. This line has been supported since it was started, in 1874, mainly by subsidies from the colonies of New South Wales and New Zealand. The other colonies prefer to send their mails by way of the Cape of Good Hope or the Suez Canal. The two colonies have long complained of the meagerness of the allowance contributed by the United States. At last, New South Wales announced the discontinuance of her subsidy after Nov. 1, 1885. New Zealand was anxious to preserve this mail route, which is much quicker than the Cape route, and offered to furnish two thirds of the necessary subsidy if the United States would pay the rest. As no such arrangement was made, the Colonial Government gave notice of the termination of its contract with the Steamship Company on the same date. The cessation of the Australian steamship service is likely to have an unfavorable effect upon American trade with the Australasian colonies. Since the organization of the line the export trade has increased in value from $3,785,098 in 1874 to $9,225,459 in 1884. There was an excess of exports in the latter year, exclusive

of $3,664,344 of specie imported, amounting to $4,848,994. This gain was largely due to the purchases of colonists who traveled by the American route and visited the markets and manufactories of the United States on their way to or from Europe. The service under the Pacific Mail Company's contract was performed by three steamers, one belonging to the company, and two to John Elder, of Glasgow. Although the American companies refused to accept both sea and inland postage, a combination was formed between the house of Elder and that of Spreckels, of San Francisco, by which the route will be continued from Nov. 21 by two English and one American steamer, as before, receiving from the American Government sea-postage only, about $150,000 a year.

The Labor-Traffic in the Southern Pacific.-The Queensland Ministry represents a popular party that is opposed to any kind of black labor, coolie, Chinese, Malay, or Kanaka. One of their first enactments was a measure amending the Pacific Islands Laborers act of 1880. They also framed more stringent regulations for the labor trade, which the sugar-planters named the "cast-iron rules," by which they say that the sugar industry has been ruined. The capitalists interested in the sugar plantations went so far as to demand the separation of Northern Queensland, the sugar-growing district, from the colony. The Hopeful trials of 1884 proved, however, that the system of Government inspection and the other checks provided in the new regulations were of no avail against the worst iniquities of the traffic. The revelations of these trials induced the Government to appoint a commission to investigate the methods pursued by recruiting agents and masters and crews of labor-ships in recruiting the natives of New Guinea and the Luisiade and D'Entrecasteaux groups of islands. The commissioners' report is based on the investigation of eight voyages, in connection with which nearly five hundred witnesses were examined. In all these voyages recruiting was conducted from the canoes of the natives, which were encountered on the fishing-grounds in the coral reefs, or were paddled out to reconnoiter the labor-ships, or to barter fruits for tobacco. For the latter purpose the islanders often came aboard the vessels. For tomahawks, knives, tobacco, and calico, temptingly displayed by the recruiting agents, parents or relatives were persuaded to sell youths to the slave-dealers. Their authority over the individuals thus recruited was not inquired into, and when the latter resisted they were compelled to go by force and threats. The terms of service and the duration of their exile were seldom known to any of the natives concerned in the bargain. In the voyage of the Hopeful, canoes were wrecked, and their occupants captured in the water, raids were made on shore, villages burned, and many persons murdered. A large proportion of the Kanakas

crammed into the hold of the ship were violently kidnapped. Similar practices took place in one of the other voyages. In the other cases the natives were decoyed away on the pretense of employment on shipboard or in the bêchede-mer fisheries for a few days or weeks, or of a pleasure-trip to "white man's island." In no instance were they regularly engaged, as the law prescribed, for three years' hard and continuous work on the sugar plantations. When they reached the plantations and learned that they were to be retained in practical slavery for three years, many of them sickened and died from grief and despair. Their average rate of mortality during the first year of service was three per cent a month.

As the result of the revelations brought out in the inquiry, the Queensland Government decided to return to their native islands all the Polynesian laborers in the colony held by indentures, at the public expense, and to enforce against the owners of labor-ships the bonds of £500 each, given as a guarantee that the regulations would be observed. The sugar planters raised a great outcry at the prospect of being suddenly deprived of their laborers just at the crushing season. They denied the legality of the bold course taken by the Government, and threatened to bring suits for damages. Mr. Griffith, the premier, was not moved from his purpose. All the laborers who wished to return to their homes were released and returned to their islands by the Government. A few elected to remain in the colony.

The Queensland Government decided to compensate the planters for their loss. Of the 625 islanders brought to Queensland by the eight vessels whose doings had been investigated by the Commission, 97 had died within an average time of seven and a half. months. The Polynesian inspectors in the districts where the "boys" were employed visited the 528 remaining ones and offered them the opportunity to return to their homes. It was found on inquiry that not a single one of the natives understood the nature of the contract into which he was supposed to have entered voluntarily. Most of them had been engaged by the labor agents for three moons. Missionaries reported that their relatives and tribesmen were incensed at their non-return at the end of that period. About 70, all on one plantation, elected to remain. More than 400 were collected at Mackay and Townsville and shipped on a steamer which cruised along the coast of New Guinea and the adjacent islands, calling at 49 places to return the "boys" to their homes. All those whose cases were investigated, and who were sent back, were natives of the lands comprised in the new crown domain. H. M. Chester, the police magistrate of Thursday Island, whom Sir Thomas Mcllwraith intrusted with the duty of annexing New Guinea to Queensland, commanded the expedition, and Hugh H. Romilly, Deputy Commissioner for the West

ern Pacific, accompanied it and informed the natives that the reason for returning the laborers was that they were illegally recruited, and that the Queen would protect them from laborships henceforward. Each laborer was given from £3 to £6 worth of "trade," according to the length of time he was employed in the colony. Bundles of trade were given to the relatives of those who had died in captivity. Presents of tobacco, hoop-iron, and calico were freely distributed among the rest. These gifts not only propitiated the natives toward the newly-declared British sovereignty, but also forefended reprisals for the deaths of the laborers and the violent deeds of the kidnappers, as the acceptance of presents, according to native customs, wipes out blood feuds and condones all offenses. The bill for the compensation of the sugar planters deprived of their laborers provides that claims for loss of service of the returned Kanakas must be presented before Jan. 1, 1886, to be adjudicated upon by the Judge of the Southern District Court, assisted by two assessors, one appointed by the Government and one by the planters.

New South Wales.-The ministry is composed of the following members: Colonial Secretary and Premier, Alexander Stuart; Colonial Treasurer, George R. Dibbs; Minister of Justice, Henry E. Cohen; Minister of Public Instruction, W. J. Trickett; Attorney-General and Acting Colonial Secretary, W. Bede Dalley; Minister of Public Works, F. A. Wright; Postmaster-General, James Norton; Minister of Mines, Joseph P. Abbott; Secretary for Lands, James Squire Farnell. The Agent General for the colony in London is Sir Saul Samuel. The Governor is Lord Carrington, who succeeded Lord Augustus Loftus.

Of the 751,468 inhabitants in 1881, 516,612 were Protestants, 207,606 Catholics, 3,266 Jews, 9,345 Pagans, 1,042 of other beliefs, and 136,971 unspecified. The expenditure on the public schools in 1883 was £870,571. The total attendance in the schools of all classes was 189,983 pupils, with 4,543 teachers. The population on April 3, 1881, comprised 411,149 males and 340,319 females. The increase in ten years was 49 per cent. The net immigration in 1883 was 41,179 persons. The number of marriages in 1883 was 7,405; births, 31,281; deaths, 12,249. The population of Sidney, in 1884, was estimated at 250,000.

The total value of imports in 1883 was £20,960,157, of exports £19,886,018. The quantity of wool shipped to the United Kingdom in 1883 was 100,628,784 lbs., valued at £5,286,177. Tin of the value of £973,570, copper of the value of £437,675, tallow of the value of £362,137, and preserved meat of the value of £320,437 were exported to Great Britain in that year. The product of gold in 1883 was 122,256 ounces, valued at £341,124; of copper, 6,442 tons, value £368,409; of tin, 6,897 tons, value £341,124; of coal, 2,521,457 tons, value £1,201,941. The yield of wheat in 1884 was

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4,345,437 bushels, acreage 289,757; the yield of maize, 4,538,604 bushels; of sugar, 35,220,640 lbs.; of wine, 589,604 gallons. There 1,646,753 cattle, 326,964 horses, 189,050 pigs. were in October, 1884, 34,000,000 sheep, The area of the colony is about 207,000,000

acres.

On Sept. 30, 1883, 36,553,416 acres main still 170,446,484 acres. were in private hands, leaving the public dobill of 1884 was presented there were occupied When the land for pastoral purposes 148,380,005 acres, of which 129,688,006 acres were held under pastoral leases, 16,058,869 under pre-emptive leases, and 2,561,130 under auction leases. The number of pastoral runs was 4,319, of pre-emptive leases 17,635, of auction leases 3,542. The number of conditional purchases up to Sept. 30, 1883, was 132,364. In 1884 there were 121,975, covering 15,416,007 acres, on which the interest and installments had not been discharged, the balance due the Government being £11,562,005.

completed, and 597 miles under construction. In 1883 there were 1,320 miles of railway 177,788. Of telegraphs there were 17,272 miles The earnings were £1,931,464, expenses £1,of wire, constructed at a cost of £569,315.

The

than half the total receipts, has been in recent The chief source of revenue, producing more years the sale and rental of public lands. The sales were partially stopped in 1884 on account of the new land act, which went into force August 6, 1885. Customs duties produce usually about one fourth of the total revenue. revenue for 1884, including loans, was estimated at £7,466,567, and the expenditure, including outlay on public works, at £7,278,538; the revenue for 1885 at £8,695,929, and the excurred mainly for reproductive public works, penditure at £8,420,575. The public debt, inamounted on Dec. 31, 1884, to £30,132,459. The expenditure on railways and telegraphs amounted at the end of 1882 to £17,654,079.

graziers on the land and give them ample time The new land act is intended to settle small to pay for their farms, but to discourage and prevent the acquisition of large pastoral estates. Out of 17,000,000 acres the old law, only 3,000,000 are in the hands of 66 free-selected," under 000 have been the means of enabling the "sheep bona fide occupiers. The remaining 14,000,kings" to filch from the Government the rest able spots that give access to water free-selectof the public domain. By having all the favored by his servants and tools, the squatter be he could extend to any limit in the same way. came practically the owner of his run, which By this fraudulent device great estates of tens and hundreds of square miles were acquired in perpetuity under a nominal rent. The new law requires every transaction to pass under the scrutiny of a local land court and be subjected to full publicity. A large portion of the land now occupied by squatters is open for selection under the new act.

Victoria.—The ministry, constituted in 1882,

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