X - THE CRISIS IN QUEENSLAND DURING 1866

Summary

When Queensland was separated from New South Wales the Treasurer of the new colony found himself absolutely without funds; indeed the authorities of the Mother Colony claimed a balance of £30,000 due to it for works constructed in Queensland prior to separation. The population of Queensland was 23,000, and from so small a number it was impossible to obtain a revenue beyond the bare needs of Government. In 1860 the revenue was £178,589, and, as the Government was bent on adopting a policy of energetic development, it soon became necessary to supplement the ordinary revenue by borrowing. In 1862 a loan of £123,800, bearing interest at 6 per cent and redeemable in 1882, was placed in Brisbane, the price obtained being £104: 1: 11 per cent. The proceeds of this loan were applied to purposes of immigration and public works. The next year another 6 per cent loan, this time for £707,500, was successfully placed in England by the Union Bank of Australia, who were the financial agents of the Queensland Government; the debentures were repayable in 1883, and realized an average price of £102: 5: 5. Owing to the sanction given by Parliament to the construction of railways, it became necessary during 1864 for the Government to arrange for the placing of further stock, to the value of £1,019,000. This loan was also entrusted to the Union Bank, and the manner in which it was dealt with will be discussed in another place.